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Related Experiment Videos

Quality management: implementing incentive plans.

D W Seeley1

  • 1Chesapeake General Hospital, VA.

Medical Interface
|December 9, 1993
PubMed
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Many healthcare organizations struggle to link employee pay to total quality management (TQM) initiatives. This article presents practical compensation models for human resource managers to incentivize TQM participation through pay structures.

Area of Science:

  • Healthcare Management
  • Human Resources
  • Organizational Behavior

Background:

  • Many healthcare organizations adopt Total Quality Management (TQM) principles.
  • Traditional compensation management often relies on base pay, potentially limiting TQM integration.
  • A gap exists in effectively linking employee compensation to TQM participation.

Purpose of the Study:

  • To explore methods for incentivizing employee participation in TQM through compensation.
  • To provide human resource managers with actionable compensation models for TQM.
  • To bridge the gap between TQM philosophy and traditional pay administration.

Main Methods:

  • Conceptual analysis of compensation strategies.
  • Development of specific pay-for-performance models tailored to TQM.

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  • Review of existing TQM implementation challenges in healthcare.

    • Main Results:

    • Proposed models demonstrate how base pay can be augmented to reward TQM contributions.
    • Specific examples illustrate linking pay to quality improvement metrics and team-based TQM efforts.
    • Models address the challenge of measuring and rewarding intangible TQM behaviors.

    Conclusions:

    • Integrating TQM into compensation is feasible and can enhance organizational quality.
    • Human resource managers can utilize presented models to align pay with quality goals.
    • Effective compensation strategies are crucial for successful TQM adoption in healthcare.