Total quality management and the choice of information and reward systems
The relationship between the adoption of sophisticated manufacturing practices and the choice of information and reward system is investigated. The study also examines how organizational performance is affected by these choices. An exploratory analysis is conducted to investigate claims that many innovative manufacturing programs fail because management continues to use conventional accounting systems that do not support the new initiatives with the right performance measures, problem-solving information and reward systems. Data for the study are drawn from a database of the use of total quality management (TQM), one of the new manufacturing initiatives commonly adopted, in the automotive and computer industries in Canada, Germany, Japan and the US. Results reveal a link between TQM application and increased use of nontraditional and reward systems. Other findings are discussed.
Publication Name: Journal of Accounting Research
How sensitive is executive compensation to organizational size?
The correlation between percentage changes in corporate size and percentage changes in executive compensation were examined. The statistics analyzed were compensation data gathered from surveys of a human resource management firm. The sample survey was of 303 prominent U.S. corporations in a variety of manufacturing and service industries. The levels of compensation data examined were Corporate CEO, Group CEO, Subgroup CEO, Divisional CEO, and Plant Manager. At the Corporate CEO level, there was a positive correlation between compensation and firm size. The correlations below this level, whether stated in organizational levels or percentage changes in size were uncertain. Therefore, that changes in firm size do not indicate a significant correlation with changes in compensation.
Publication Name: Strategic Management Journal
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