Deming's management system applied to performance evaluation and reward: A field study of organizational values, practices and behavioral outcomes

This study investigated organization-level relationships predicted by the management theory of W. E. Deming, a founder of the quality movement in Japan and the United States. The model of Deming's approach developed by Anderson, et al. (1994) was used as a framework, with a focus on values, practices and outcomes. The study employed a survey methodology; participants were 311 Human Resource Managers of mid-to-large sized organizations in Maryland.;It was hypothesized that organizational adoption of the Deming-recommended values of organizational cooperation and learning would lead to practices consistent with Deming's recommendations, including multiple sources of performance feedback, pay based on factors other than individual performance, use of developmental (vs. evaluative) feedback, and use of quantitative process management (SPC) tools. Use of these practices would in turn lead to positive outcomes predicted by Deming, including lowered turnover, absenteeism, and on-the-job accidents, and a higher level of participation in organizational improvement activities. The data were analyzed through structural equation modeling, using the EQS program.;Results of model fitting indicated that the values of cooperation and learning were found in the sample organizations, and these values are related to use of SPC tools but not to human resources practices. No support was found for a relationship between practices and outcomes, except between use of SPC tools and a higher level of participation in improvement activities. An exploratory model was proposed, based on Deming's last book (1993). The model treated knowledge of statistical variation as an independent variable affecting adoption of values, and participation as a practice rather than outcome. Results indicated that the exploratory model matched the data somewhat better; there were significant paths between knowledge of variation and adoption of Deming values, and between Deming values and participation. Avenues for future research include investigation of the impact of organizational study of variation (particularly using SPC tools) on organizational variables, and investigation of other organizational outcomes, particularly related to customer service.