The spread of Total Quality Management has led to experiment with payment systems designed to secure worker commitment to quality objectives. Quality incentives are output-based payment systems which usually link a bonus payment to the achievement of a quality objective or target. The latter might be operational (e.g. number of defects and delivery to time) or be based on customer reports (e.g. number of complaints and survey estimates of customer satisfaction). Whilst there are reports of increased use of quality incentives by employers, some commentators question their value and argue that employee commitment to quality goals is best secured through intrinsic motivation and supported by training, direct communication, and empowerment.
Subjects: Human Resource Management.