Pay for performance boosts quality output.

Many companies are boosting their quality outputs by offering a pay-for-performance bonus system. The advantage of this approach to quality management is that it is usually self-funded and transfers responsibility for better quality to where it really belongs: the workforce. Among companies that have already benefited from pay-for-performance systems are Xerox, Kaiser Aluminum, General Tire, General Electric, Wrought Washer Manufacturing Co., Rowe Furniture, Whirlpool Corp. and Jostens. The three elements of a successful pay-for-performance reward system are expert guidance for the first ye