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Should Organizations Pay for Quality?

Helga Drummond (University of Liverpool, UK)
Elizabeth Chell (University of Newcastle upon Tyne, UK)

Personnel Review

ISSN: 0048-3486

Article publication date: 1 April 1992



TQM creates a dilemma for organizations. The dilemma is that TQM implies increased employee responsibility at shopfloor level. Increased responsibility traditionally equates with increased pay. The TQM gurus however advise that monetary rewards are likely to prove counterproductive. Analyses the problem and examines the potential impact of coercive and symbolic power as alternatives to material reward. Concludes that, although little can be achieved by rewarding contributions with money, neither of the alternatives are workable. The answer lies in matching increased responsibility with increased control. Suggests that organizations which succeed in adjusting this balance may gain a competitive advantage ahead of the Japanese.



Drummond, H. and Chell, E. (1992), "Should Organizations Pay for Quality?", Personnel Review, Vol. 21 No. 4, pp. 3-11.




Copyright © 1992, MCB UP Limited

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