Analytical Study On The Categorical Relationship In Excellence Performance Model

In order to understand China enterprises quality management status quo and explore the relationships of core values of total quality management, China Association for Quality designed questionnaires, which are based on the Performance Excellence Model. This dissertation explores the relationships among seven categories in Performance Excellence Model based on survey data.The model is composed of seven categories: Leadership, Strategy Planning, Customer and Market Focus, Human Resources Focus, Process Management, Measurement, Analysis, and Knowledge Management and Results.According to the Performance Excellence Model, questionnaire is designed. For leadership category, 10 indicators are used to reflect the characteristics of leadership. In the same way, 81 indicators are introduced to reflect other six categories. The data index from the project'the survey on China enterprises quality management status quo', which is supported by China Association for Quality. This dissertation presents descriptive analyses for the valid samples. We analyze the linkages by using Structural equations modeling is used to analyze the linkages between categories. In our research, we consider'leadership','strategy planning','customer and market focus', and'measurement, analysis, and knowledge management'as exogenous latent variables,'human resources focus','process management', and'results'as endogenous latent variables. At the same time, 18 hypotheses are made. Based on theory analyses and pre-set hypotheses, a path diagram is constructed.In our research, latent variables, at least, have more than eight indicators. Therefore, the measurement model can be identified. In addition, the parameters in the model to be estimated meet basic condition, the structural model also can be estimated. LISREL 8.70 are used to estimate, assess and modify the model iteratively and the structural model is obtained. In both the path diagram of standardized coefficients and the T-test values diagram of standardized coefficient, T-tests are significant at signicance levelα=0.05.The dissertation comprehensively adopts absolute fit measures such as root mean square error of approximation (RMSEA), and standardized root mean square residual (SRMR), incremental fit measures, such as non-normed fit index (NNFI), comparative fit indicator (CFI), and parsimonious fit measures, such as parsimony normed fit index (PNFI), parsimony goodness of fit index (PGFI). Fit measures of the model meet standards. In addition, the expected cross-validation index (ECVI) is smaller than independent model value index and saturation model value index. Therefore, the cross-validation of the model meets requirements. In the structural equation model, reliability (R2) of individual observed indicator is greater than 0.5, which means indicators system is satisfactory. Composite reliability (CR) of the latent variables is greater than 0.9, which means the reliability of latent variables is excellent.Based on hypotheses and structural equation model, we should refuse three hypotheses, while accept others. It is found that leadership and strategy planning play important roles in human resources focus, while human resources focus and process management are decisive factor in performance results. For China enterprises, it is should focus on process management and human resources to obtain excellence results.