The relationship between the four-pillar management approach and net income

Purpose This study aims to examine the implementation of the four-pillar management approach and investigated the relationship (if any) between this management approach and net income. The proposed management approach consists of four pillars: the system pillar, the process pillar, the participation pillar and the scientific pillar. The concepts and practices related to quality and excellence fall within one or more of the four pillars of the examined management approach or they are common to more than one of these pillars. The proposed management approach is that the company is managed as a system, functions are managed as a process, stakeholders are treated as partners and policies and decisions are made scientifically. Design/methodology/approach The proposed management approach was developed based on a literature review, and then its feasibility and usefulness were tested by studying the relationship of its practical application with the net income of Jordanian industrial companies that are members of the Securities Depository Center (SDC) – public shareholding companies – the industrial sector, totaling 53 companies. The proposed management approach was measured by developing a questionnaire and distributing it to a member of the management team in these companies. The number of valid responses for analysis was 35 (one from each company). The net income of these companies was published on the SDC website. Findings The results indicated that the levels of the adoption of the examined management approach and its four pillars fall within the “medium = 3” range on a four-point scale. The results also indicated that there are statistically significant positive relationships between the examined management approach, with its four pillars, and net income. The results support the importance, applicability and feasibility of this management approach. Originality/value To the best of the author’s knowledge, this study is one of the rare studies that presented an integrated management approach that includes four pillars interspersed with the basic concepts and practices of quality management and organizational excellence. This study confirms the benefits of adopting this management approach in improving performance. Theoretically, it addressed a management approach that integrates several concepts derived from the philosophy of total quality management, namely, the concept of the system, the concept of the process, the concept of participation and the concept of science. In practical terms, it provided new insights into how to manage an organization, manage its functions, manage its internal and external partnerships and formulate its policies and decisions, all in a way that contributes to performance.