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Total Quality Management (TQM)

Models Of Excellence- Reward And Recognition

Introduction:

In the new management model, the role of employee rewards and recognition—such things as performance appraisals, compensation, recognition programs, and promotion systems—is to support the achievement of the company's goals. This aspect of the system is usually not among the first to receive attention, nor should it be when a company is still figuring out how to satisfy customers, manage processes, and involve employees.

Opposing viewpoints:

Of all the components of the new model, employee reward and recog­nition may have the farthest to go. Human resource and non-human-resource executives alike scratch their heads about how to send the right messages with their compensation and recognition programs. They are torn by opposing viewpoints:

  • Performance appraisals help improve performance versus performance appraisals undermine performance.
  • People focus on what they are paid to do versus pay is not a motivator.
  • Formal recognition inspires quality improvement versus formal recognition is the least effective part of a total recognition program.

Reward and recognition approaches should be in the domain of human resources versus employees should establish and improve these approaches.

MODELS OF EXCELLENCE

Tennant Company:

  • Tennant Company is one of the world’s leading manufacturers of industrial and commercial floor maintenance equipment, floor coatings, and related products.
  • It has approximately 1,700 employees and is headquartered in Minneapolis.
  • The company's recognition program has an interesting historical/contemporary flavor.
  • Although its profit sharing, service awards, and retirement parties have all been in place for more than 45 years, it has added a half-dozen new recognition programs in the past decade—all developed and run by employees.

GTE Directories:

  • GTE Directories is the largest directories publisher in the world.
  • Located at Dallas/Fort Worth Airport, Texas, GTE Directories employs approximately 5,000 people and provides publishing, sales, and consultation services for nearly 2,400 directory titles throughout the United States, Canada, South America, Europe, and Asia. Among YelIow Pages publishers, GTE Directories ranks second in U.S. market share and has achieved a circulation of 80 million directories worldwide.
  • GTE Directories won the Baldrige Award in 1994.

Trident Precision Manufacturing:

  • Trident Precision Manufacturing produces precision sheet metal components, electromechanical assemblies, and custom products, mostly in the office equipment, medical supplies, computer, and defense industries.
  • A privately held company located in Webster, New York, it has grown from a three-person operation in 1979 to an employer of 180 people.
  • Trident won the Baldrige Award in 1996.