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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