Research On Management By Ouality Based On Performance Excellence Model And Its Relationship With Organizational Performance

Facing the American sub-debt crisis and European debt crisis, Chinese economy is searching for a breakthrough chance for renovation and revolution to improve its position fundamentally worldwide. Meanwhile, there is a movement called ’Renaissance by Quality’ developing in China. Many provinces claimed to build ’Quality Province’, with activities like ’Quality Innovation’ and ’Quality Award Application’ being set up in Zhejiang. Enterprises have to reposition the role and effect of management by quality in fierce competition. Universities and research centers enhance the application of quality management tools and methods actively. However the effect of management by quality is suspected because of the failure of other Quality Management (QM) methods. Also the effect of organizational learning is unclear. Apparently, the research on management by quality is inadequate, in lack of measuring tools and theoretical model as research basis.This paper investigated the companies with Zhejiang province based on PEM, on purpose of studying the effect of management by quality on financial performance and quality performance. Firstly, we interviewed employees from17enterprises, and then we did content analysis to compile the questionnaire.186participants were used to forecast the questionnaire. A questionnaire with6dimensions and29items was formed finally. We investigated328enterprises with Zhejiang province then to do our research.Our conclusions are as follows:(1) management by quality is a multi-dimensional concept, with leadership, strategic planning, customer focus, resource, process management and measurement&analysis its six dimensions.(2) All the other dimensions are positively related with organizational performance except recourse.(3) Organizational learning mediates the relationship between leadership, customer focus, Measurement&Analysis and organizational performance completely; mediate the relationship between strategic planning, process management and organizational performance partially.There are several innovations in this paper. Firstly, we started the research on management by quality with PEM, and we view PEM from the perspective of management by quality. We also empirically proved the multi-dimension of management by quality and compiled the questionnaire. Secondly, we draw the development of QM to management by quality stage, we improved and developed TQM. Furthermore, we tested the effect of each dimension of management by quality on organizational performance, making the basis for further studies. Meanwhile, we adopted the concept of organizational learning with management by quality study, giving important implication to practicers.