Managing Performance Improvement From TQM to six sigma and the balanced scorecard, there appears to be no end to the “revolutionary” approaches proposed to improve business performance. However, on closer inspection, most new performance improvement approaches offer few differences from their predecessors. This thought-provoking book provides a critical perspective on the management of performance improvement initiatives by relating major theories to practical examples from a wide range of organizations. Baxter and MacLeod analyze ideas on performance improvement and discuss how these concepts may not make any impact on organizations, using cases as diverse as telecommunications, cement manufacturing, a major airport, and an economic development organization. In their critique of popular performance improvement “innovations,” the authors highlight the possible damage to organizations they can cause. In response to prevailing performance improvement practices, the authors put forth the concept of repair as a way to rescue these efforts. Working from their extensive research, the authors present alternative perspectives on improvement that shifts forward the stagnant debates on these processes. Offering a needed alternative perspective and real insights into the process of implementing performance improvements, this book will prove invaluable to advanced students and MBAs studying quality, performance improvement, operations management and HRM. Lynne F. Baxter is Senior Lecturer in Management Systems at The York Management School. Alasdair M. MacLeod is an Honorary Research Fellow at Heriot-Watt University. Managing Performance Improvement Lynne F. Baxter and Alasdair M. MacLeod First published 2008 by Routledge 270 Madison Ave, New York, NY 10016 Simultaneously published in the UK by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2008. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2008 Lynne F. Baxter and Alasdair M. MacLeod All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifi cation and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Baxter, Lynne F., 1961– Managing performance improvement / by Lynne F. Baxter and Alasdair M. MacLeod. p. cm. Includes bibliographical references. 1. Total quality management. 2. Reeingineering (Management) 3. Performance—Management. 4. Organizational effectiveness. I. MacLeod, Alasdair M. II. Title. HD62.15.B39 2008 658.4´013–dc22 2007023656 ISBN 0-203-01943-1 Master e-book ISBN ISBN10: 0–415–36680–1 (hbk) ISBN10: 0–415–36681–X (pbk) ISBN10: 0–203–01943–1 (ebk) ISBN13: 978–0–415–36680–9 (hbk) ISBN13: 978–0–415–36681–6 (pbk) ISBN13: 978–0–203–01943–6 (ebk) For Nicola, Mhari and David M. Baxter and Pearl MacLeod Contents Illustrations ix Acknowledgments x 1 Introduction 1 SECTION 1 The management role in performance improvement 13 2 Leadership 15 3 The relationship between strategy and performance improvement 35 4 Performance measurement 55 SECTION 2 Improvement as damage 77 5 Superfi ciality 79 6 Considering the gender aspect to involvement 97 7 Continuous or “big-bang” improvement: using the analogy of the body 112 viii Contents SECTION 3 Repair 133 8 Repair at an individual level 135 9 Repair at the level of the organization: the contribution of external frameworks 151 10 Conclusions 167 Discussion question hints 175 References 181 Index 190 Illustrations Figures 2.1 Authentic and pseudo-transformational leadership 22 2.2 Blue Circle organization structure 29 2.3 Empowerment process fl ow diagram 29 4.1 Kaplan and Norton’s Balanced Scorecard 61 4.2 The EFQM model of business excellence 66 5.1 Participation and reifi cation 83 7.1 Main processes carried out at the hub 122 9.1 Organization and teamwork at Akzo Nobel 158 Tables 1.1 A comparison of established and current ideas on performance improvement 5 3.1 Govan Initiative performance 44 4.1 A synthesis of framework “criteria” 65
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