Assessing Business Excellence. A guide to business by L.J. Porter and S.J. Tanner (Eds.)

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By L.J. Porter and S.J. Tanner (Eds.)

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Extra resources for Assessing Business Excellence. A guide to business excellence and self-assessment, Edition: 2nd ed

Sample text

The Baldrige criteria also emphasize the need for good human resource practices and employee involvement in order for an organization to make substantial progress in its quest for quality. Human resources management is clearly an important part of an organization’s quality management process, as it determines the effectiveness of the organization’s product and process management and customer focus and relationship management efforts. Through these two components, human resources management has a significant indirect impact on the organization’s performance.

34% increase in on-time deliveries (1985–1991) ● ● 63% decrease in quarry-truck loading time (1985–1991) ● Revenue per employee 30% higher than industry average (1985–1991) Three times more training hours per employee than industry average (1985–1991) The Ritz-Carlton Hotel Co. 2 Indexed sales increases for three Baldrige winners (Source: Wisner and Eakins (1994)) is confirmed when comparing the increase in sales volumes for three other winners: Federal Express, Solectron and Motorola. 2 gives the indexed increase in sales for these three publicly owned companies over the period 1987 to 1992.

Results have also been given for site-visited organizations. 9. 52 per cent return for the S&P 500. 28 per cent return for the S&P 500. In releasing this information NIST also noted that while receiving a Baldrige Award or any other award is not a guarantee of success, to win the award organizations must show continuous and major improvements. For example, when Solectron Corp. won the Baldrige Award in 1991, revenue was $265 million with 1500 employees. When they won again in 1997, revenue was $4 billion with 18 215 employees.

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