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controltocontinuouslyadjustplansandimproveoperationsthroughdisseminationofup‐to‐
dateinformationaboutmarketconditionsandoperationalprocesses,and(4)coordination
amongbusinessunitsandfunctionalgroups.HealsosuggeststhatBPMhelpsorganizations
betterexploitopportunitiesaswellasdetectandrectifyoperationalproblemsbeforethey
growoutofcontrol.
PractitionersatvariousconsultingfirmssuchasGartner,IBMandKPMGhaveused
somevariantsoftheconceptofbusiness performance management sincethelatenineteenth
century(Business Performance Management Magazine[BPMM],2005).Forinstance,the
conceptofcorporate performance management, avariantofbusiness performance
management, wasintroducedintocorporateworldin2001byGartnerResearch.However,
thereislittleornoresearchinacademiaonbusiness performance management. Oneofthe
objectivesofthisworkistoexaminethevariouspractitionerversionsofthebusiness
performance management modelanddevelopagenericBPMframeworkthatcanprovideboth
academiciansandpractitionersalikewithacommonframeofreference.Inthisvein,we
attemptedtocriticallyanalyzeeachpractitionermodelandsynthesizethembasedontheir
common,sharedfoundations.Table3providesabriefaccountofmajorBPMconsultingfirms
andtheirBPM‐relatedactivities.
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review,aBPMframeworkwasproposedandpresentedtothe2007MonfortSummit.The2007
MonfortSummitwasagatheringofBaldrigeAwardrecipients(BARs)andasmallgroupof
selectedresearchersfromacrosstheUnitedStates.Thesummithadatotalof25participants.
TwentyofthosewerefromBaldrigeAwardwinningorganizationsand5wereacademicians
fromdifferentuniversities.TheBPMframeworkwasthenrevisedbasedonthefeedback
providedbythe2007MonfortSummitparticipants.Figure3illustratestheBPMframework,
andTable4presentsabriefdescriptionoftheBPMframeworkconstructs.
Figure3:TheproposedBPMframework
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LISTOFFIGURES
Page
Figure1:The2008MBNQA performance excellenceframework ... Morethan100yearsold.Focusesonbusinessconsulting,systems
integration,andmanagedservices.ServesGlobal2000andmidsize
companies,governmentagencies,andotherorganizationsintheU.S.
andaroundtheworld.Majorservicesincludecustomerrelationship
management, enterpriseresourceplanning,key performance indicator
(KPI)development,information management, performance
management, enterprisestrategydevelopmentandtransformation,
andinformationtechnology(IT)strategydevelopmentand
transformation,amongothers(BPMM,2005).
BPMPartnersInc. ... 145
iv
causalrelationshipsamongthem.However,theyarelinkedtothe performance resultscategory
withone‐directionalarrowspointingtothelatter.Thissuggeststhattherearerecursivecausal
relationshipsbetweenthesystemcategoriesandthe performance results.
Figure6:The2008MBNQAframeworkatthecategorylevel
Therearemanyspecificrelationshipsamongthecriteriacategories.Nostudieshave
investigatedallpossiblerelationshipsinanyBaldrigeframeworksinceitsinception.Some
studies(e.g.,Wilson&Collier,2000;Pannirselvam&Ferguson,2001)attemptedtoempirically
testtheBaldrigecausalmodel.However,noneofthemtestedthemodelasanon‐recursive
causalmodel.The2008frameworkrepresentsthemostrecentandenhancedversion,andit
hasnotyetbeentested.Therefore,theunderlyingrelationshipspurportedinthe2008
frameworkandinpriorframeworksfromtheperspectiveofnon‐recursivecausalityaresimply
propositions.Thisstudyidentifiesandattemptstovalidatethesepropositionsfromthe
perspectiveofbothrecursiveandnon‐recursivecausalities.
Thenon‐recursivecausalmodeloftheBaldrigesystem(Categories1–6)yields30
([6!/(6‐2)!])directone‐to‐onecausalrelationships.Thatis,twocategoriesgivetwodirectone‐
to‐onecausalrelationships.Forinstance,leadershipandstrategicplanninghavetwodirectone‐
to‐onecausalrelationships:(1)leadershipinfluencesstrategicplanning,and(2)strategic
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TheBaldrigeframeworkhasundergonesignificantchangessince1995andsinceits
inceptionin1987.The2008Baldrigecriteriarepresentthemostrecentandhighlyenhanced
framework.Significantchangesarereflectedinthecriteriacategories,theunderlying
relationships,andtheGlossaryofKeyTerms,amongothers.Forexample,whilethe1995
Baldrigesystemconsistedoffourcriteriacategories–process management, humanresource
developmentand management, strategicplanning,andinformationandanalysis,the2008
Baldrigesystem(Figure2)consistsofsixcriteriacategories–(1)leadership,(2)strategic
planning,(3)customerandmarketfocus,(4)measurement,analysis,andknowledge
management, (5)workforcefocus,and(6)process management.
Likethe1995andotherBaldrigeframeworks,the2008Baldrigeframeworkhasused
two‐headedarrowsamongtheBaldrigesystemcriteriacategories(Categories1–6)(Figure1).
ThisisinlinewithNIST’sunderlyingpropositionthattheBaldrigesystemcategoriesare
reciprocallyrelated–bothdirectlyandindirectly.Therefore,theBaldrigesystemrepresentsa
non‐recursivecausalmodel(Byrne,1998).However,the2008Baldrigesystemisconnectedto
performance results(Category7)withone‐directionalarrowspointingtothelatter.Thisimplies
thattheBaldrigequalityexpertsdidnotdefaulttothepremisethateverythingisrelatedto
everythingelsebutratherpositedtherelationshipsassuch.Thisalsoimpliesthatthereisa
recursivecausalrelationshipbetweentheBaldrigesystemandthe performance results.
TheBPMFramework
TheacronymBPMinthisstudystandsforbusiness performance management, nottobe
confusedwiththetermbusinessprocess management. SynonymouswiththeconceptofBPM
aretheconceptsofcorporate performance management (CPM)andenterprise performance
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(NIST,2008).ThetwoevaluationdimensionsarecentraltotheBaldrigeAwardapplicant
evaluationandfeedback.Acriticalfactorinevaluationandfeedbackistheimportanceofan
organization’sreportedprocessandresultstoitskeybusinessfactors.NISTsuggeststhat
organizationsidentifytheareasoftheirgreatestimportanceandreportthemintheir
organizationalprofile.NISTpositsthatorganizationalprofileisthemostimportantstarting
pointforself‐assessmentandforwritinganapplication.Inaddition,organizationalprofilehelps
organizationsidentifypotentialgapsinkeyinformationandfocusonkey performance
requirementsandresults.Itsetsthecontextsuchasoperatingenvironment,keyworking
relationships,andstrategicchallengesandadvantagesforthewayanorganizationoperates.
Therefore,organizationalprofileservesasanoverarchingguideforanorganization’s
performance management system.However,organizationalprofileisnotconsideredacriteria
categoryanddoesnotcontributetowardthescoringsystem.Thisstudyinvestigatesthe
underlyingrelationshipsamongthesevencriteriacategoriesandthusconsidersthediscussion
oforganizationalprofileforfurtherresearch.Abriefdescriptionofthecriteriacategoriesis
giveninTable1.Table2providesabriefdescriptionoftheMBNQAconstructsatthedimension
level.
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CHAPTER2
LITERATUREREVIEW
ThischapterprovidesareviewoftheliteratureontheMalcolmBaldrigeNational
QualityAward(MBNQA)framework,thebusiness performance management (BPM)framework
andlatentsemanticanalysis(LSA).Therearefivesectionsinthischapter.Thefirstsection
presentsareviewoftheliteratureontheMBNQAframework.Thesecondsectionprovidesa
reviewofthepractitionerliteratureonBPM.AconceptualBPMframeworkisproposedbased
onthereviewofthepractitionerliterature.Thethirdsectiondiscusseslatentsemanticanalysis.
SectionfourdiscusseshowtheBPMandtheMBNQAframeworkcanbeintegrated;andit
presentstheintegratedBPM‐MBNQAconceptualframework.Finally,researchpropositionsare
detailedinsectionfive.
TheMBNQAFramework
TheMalcolmBaldrigeNationalQualityAward(MBNQA)isconsideredthehighesthonor
forbusinessexcellenceinAmerica(TYBEA,2001).TheUnitedStatesDepartmentofCommerce
establishedtheBaldrigeAwardandtheBaldrigeNationalQualityProgramin1987tojumpstart
asmall,slowlygrowingqualitymovement(TYBEA,2001).TheBaldrigeAwardandprogram
playsacriticalroleinstrengtheningcompetitiveness(Bell&Keys,1998)withtheintentof
achievingthreespecificgoals–topromotequalityawareness,torecognizequalityachievement
ofU.S.companies,andtopublicizesuccessfulstrategies(Bemowski&Stratton,1995;TYBEA,
2001;NIST,2007).TheNationalInstituteofStandardsandTechnology...