Effects of in-company quality awards on organizational performance

Journal article, 2003

The relationship between total quality management (TQM) practices and improved performance has been frequently discussed in the literature. In this paper, the costs and the effects of in-company quality awards on performance are discussed and analysed. The paper covers a survey of Swedish companies that use or have used in-company quality awards to stimulate TQM efforts and thereby to improve performance. The study cannot show any strong evidence of improved performance for units that applied for the in-company quality award. However, in contrast to units that have not applied, some units that have applied for the in-company quality award considered that the results related to performance have improved greatly. One large positive effect perceived by the participating units was increased customer orientation while the largest costs were put on the description of activities and the improvement work itself.