The PSR was developed by the Institute for Applied Behavior Analysis (IABA).
IABA provides behavioral, employment, and residential services to individuals
with developmental disabilities. IABA recognized the management challenges
that plague the human service industry, resulting in inconsistent services and
poor follow through. The PSR was implemented to address these challenges and
provide a cohesive system to monitor and improve employee and organizational
performance.
Although PSR was originally designed for and marketed to human
service organizations, the need to identify performance criteria, monitor employee
and organizational processes, and communicate performance on the organization’s
goals are not unique to human services. Such a system is beneficial to any and
all industries.
The PSR is based on well-established management principles. Integral in its
development and ultimate success are principles such as:
 bottom-up planning and participation,
 positive feedback;
 emphasis on outcomes;
 objectively defined expectations;
 reliance on verifiable data; and
 a team-based approach
Two approaches to management were influential in the development of the PSR system.
The first, Organizational Behavior Management (OBM), is the application of applied
behavior analysis to problems in work settings. OBM includes a clear definition of
the conditions under which work performances are to occur, methods for monitoring
those work performances, and the provision of systematic feedback to improve and
maintain work performance.
The PSR was also founded on the principles of Total Quality Management (TQM), which
emphasizes consumer satisfaction. High quality is defined as providing what consumer
of the product or service wants, at the best possible price. The TQM approach to
management is to foster a culture within the management and staff of an enterprise
that is totally focused and works together as a team to identify consumer desires
and to satisfy those desires in the best and most cost-effective way possible.
IABA has been using the PSR in its own organization and in consultation since 1981,
across all service and departments within the organization. The PSR is also being
used in other businesses. Some of these include:
 Devereux Foundation, Santa Barbara, California
 State of Connecticut, Dept. of Mental Health & Addiction, Young Adult Service
 Community Care Trust, Dunedin, New Zealand
 Community Access Unlimited, New Jersey
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