Dan, a reader of LSS Academy, recently emailed me this excellent question. I was hoping to get your help as I formulated a response. Here is Dan’s question.
Ever since I studied process improvement at BYU I learned about E. Deming and learned that he was a catalyst in the change that occurred in Japan.
One of Deming’s points or teachings is about rewards or pay for performance. Deming has been asked what the alternative is for merit pay increases and his response has been anything else would be better.
Well, that doesn’t really help me out. I am a supervisor for a manufacturing company and our current system of performance reviews and pay increases needs an overhaul. I have two challenges:
1. What is a better alternative?
2. How do I help my management buy into it?
Any ideas? Thanks for your help.
What do you think?