According to Crosby, what is the basis for assessing the impact of quality on performance?

The basis for assessing the impact of quality on performance, according to Philip Crosby, is the measurement of the price of nonconformance. Crosby's philosophy emphasizes the concept that quality is not just about preventing defects but also about understanding the costs associated with failing to meet quality standards. This includes all costs that arise from poor quality, such as rework, scrap, and lost revenue due to customer dissatisfaction.

By measuring the price of nonconformance, organizations can identify and quantify the financial impact of quality issues, which ultimately informs decision-making and quality improvement efforts. This approach aligns with Crosby’s belief that investing in quality initiatives will lead to reduced costs and improved profitability over time.

Other options may contribute to understanding quality, but they do not capture the comprehensive financial implications of failing to achieve quality standards in the same way that measuring the price of nonconformance does. Customer satisfaction feedback, for instance, provides valuable insights into perceptions of quality but does not directly quantify the financial consequences of defects. Similarly, analyzing defect rates and employee performance reviews may indicate areas for improvement but do not encapsulate the broader financial perspective associated with poor quality outcomes that Crosby highlights.