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Q 2. List and describe in brief the seven Baldridge criterions


Answer:
The Seven Baldrige Categories
• The Criteria for Performance Excellence are the foundation of the Baldrige National Quality Program. For more than 21 years, the Criteria have played a significant role in strengthening U.S. competitiveness. Now in business/nonprofit, education, and health care versions, they are the basis for

1. Conducting organizational self-assessments
2. Making awards to recognize the achievements of organizations that have improved performance in the critical factors that drive their success
3. Providing feedback to applicants for the Baldrige Award
4. Stimulating the improvement of performance practices and capabilities
5. Communicating and sharing “best practices” information among U.S. organizations of all types
6. Understanding and managing for performance excellence and for guiding planning
• The Criteria are a de facto definition of performance excellence.

They are intended to be at the “leading edge of validated management practice.”
• They are a globally recognized model of performance excellence.
There are more than 40 active state, regional, and local quality award programs throughout the country. Additionally, some 76 countries, including Japan, have quality programs based on the Baldrige Criteria.

• The Criteria are used by diverse types of organizations (regardless of whether or not they plan to apply for the Baldrige Award): small and large, service and manufacturing, education and health care, forprofit and nonprofit, and private- and public-sector organizations.
Expectations
• The Criteria are a set of expectations or requirements.
• They define the critical factors that drive organizational success.

Structured Approach
• The Criteria comprise seven Categories.
• Distributed across the Categories are 18 Items, each focusing on a major requirement.
• Within each Item, there is one or more Area(s) to address containing specific requirements related to the Item.
Framework
• The Criteria constitute a framework for understanding
a) A systems view of performance management
b) The key components of a performance management system
c) The relationships among the components
• The Criteria emphasize the alignment of key components of the performance management system.
The framework provides a high-level overview of the Baldrige Criteria for Performance Excellence and illustrates how the Criteria provide a systems perspective for managing your organization to achieve performance excellence. From top to bottom, the framework has three basic elements are the Organizational Profile, the system operations, and the system foundation (Measurement, Analysis, and Knowledge Management).
• The Organizational Profile (the umbrella at the top of the figure 1) sets the context for the way your organization operates. Your environment, key working relationships, and strategic challenges and advantages serve as an overarching guide for your organizational performance management system.
• The system operations (middle of the figure 1) are composed of the six Baldrige Categories that define your operations and the results you achieve.
a) The leadership triad Leadership, Strategic Planning, and Customer Focus emphasizes the importance of a leadership focus on strategy and customers. Senior leaders set your organizational direction and seek future opportunities for your organization.
b) The results triad Workforce Focus, Process Management, and Results focuses on your workforce and key processes that accomplish the work of the organization that yields your overall performance results.
c) ALL actions point toward Results.
d) The horizontal arrow in the center of the framework links the two triads – a linkage critical to organizational success – and indicates the importance of feedback in an effective performance management system.
• The system foundation (bottom of the figure 1) is composed of Measurement, Analysis, and Knowledge Management, which are critical to a fact-based, knowledge-driven system for improving performance and competitiveness.
• The Criteria are built on a number of interrelated Core Values and Concepts.
• These values and concepts are embedded beliefs and behaviors found in high-performing organizations. They are the foundation for integrating key performance and operational requirements within a results-oriented framework that creates a basis for action and feedback.
• This figure shows the role of the Core Values and Concepts on which the Criteria are built. Core Values and Concepts are embedded in the systematic processes addressed in Criteria Categories 1 through 6.
These systematic processes yield the performance results found in Criteria Category 7.
• The Baldrige Core Values and Concepts are visionary leadership, customer-driven excellence, organizational and personal learning, valuing workforce members and partners, agility, focus on the future, managing for innovation, management by fact, societal responsibility, focus on results and creating value, and systems perspective.

• The Criteria are designed to help organizations use an integrated approach to organizational performance management that results in a) Delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability.
b) Improvement of overall organizational effectiveness and capabilities.
c) Organizational and personal learning.
Value refers to the perceived worth of a product, process, asset, or function relative to cost and to possible alternatives. Organizations frequently use value considerations to determine the benefits of various options relative to their costs, such as the value of various product combinations to customers.
Performance refers to outputs and their outcomes obtained from processes, products, and customers that permit evaluation and comparison relative to goals, standards, past results, and other organizations. Performance can be expressed in financial and nonfinancial terms.

Six types of organizational performance are addressed in the Criteria for
Performance Excellence:
1. Product outcomes,
2. Customer-focused outcomes,
3. Financial and market outcomes,
4. Workforce-focused outcomes,
5. Process effectiveness outcomes, and
6. Leadership outcomes.

• The Education and Health Care Criteria focus on parallel sector related results, with a primary focus on student learning and health care outcomes, respectively.

Organizational learning includes both continuous improvement of existing approaches and adaptation to change, leading to innovation, new goals, and new approaches. It can result in reducing errors, defects, waste, and related costs; increasing productivity and effectiveness in the use of all your resources; and enhancing your organizations performance in fulfilling its societal responsibilities.

Personal learning is achieved through education, training, and developmental opportunities that further individual growth and can result in (1) more engaged, satisfied, and versatile employees who stay with the organization; (2) organizational cross-functional learning; and (3) an improved environment for innovation.


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