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CONTEMPORARY ISSUES IN
BUSINESS & MANAGEMENT
INDIVIDUAL ASSIGNMENT 2
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INDIVIDUAL
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Contemporary issues in
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Table of Content
040708
1.0 Introduction..............................................................................................................1
2.0 Managing quality and performance............................................................................2
2.1 TQM in Malaysia.....................................................................................................3
2.2 TQM in Tanzania.....................................................................................................4
2.3 Comparison...........................................................................................................5
2.4 Challenges of implementing ISO 9000.....................................................................5
2.5 Measure performance.............................................................................................6
2.6 Alternative strategy................................................................................................6
3.0 Conclusion...............................................................................................................6
4.0 References................................................................................................................7
5.0 Appendices...............................................................................................................9
1.0 Introduction
Globalization can be defined as a combination of people, firms and
government. Globalization can affect how business being manage by an
organization (Green, 2016). It is something that cannot be control and it will sweep
all over the world like an economic tidal wave. However, there will be pros and cons
of the existence of globalization. The positive impact of globalization is that it gives
customer and companies to have better access to worldwide market from different
countries. With the existence of worldwide market, there will be more production
sector and people can invest more in different companies (Gordon, 2016).
However, there are also downside of globalization that can affect the
performance of business. Globalization can cause many people to be unemployed,
this is because companies would want to outsource their workers to a more
developed country so that they could help reduce the labour cost and to increase
their profits. All this downside of globalization will affect the performance of a
business. It will affect business managers to diversify their management structure,
adopt the innovation of technology, face competition, find cheap labour and raw
materials (Ganguly, 2016).
Quality and performance are two different things. Performance management
is something like a process to help an organization to achieve their short or long term
goal and mission by developing effectiveness, empowering employees, and good
decision making process (Rabinowitz and Vilela, 2016). Where else for quality
improvement, it is a process that improves services or products to the next level to
give a better or more longer lasting effect for customers. Quality performance is
important because customers are sensitive to the needs and culture, it makes a
group more effective, gives strength and credibility to organization, and it is also a
model of ethical behaviours (Rabinowitz and Vilela, 2016).
According to Daft (2016a, pp661-672), there are many types of tools can be
used by organization to control their quality and performance at the workplace. For
example, feedback control model, total quality management, and many more can be
used by organizations to help manage quality and performance control.
(2000). So, in this findings there is no big differences between the impact of TQM
and organizations with or without ISO 9000 certification. With this ISO 9000
existence in Malaysia, more numbers of SMEs are trying to get this certificate.
2.3 Comparison
According to the 2 empirical research that was done, there are difference and
similarities between ISO 9000 being implemented in Malaysia and Tanzania. In
Malaysia, it is difficult to get accurate measurement because of different environment
and the focus on areas of the quality program of different firms. According to
Rahman (2000) this study also has limitations like sample size is considered small.
Despite that, another challenges that they face is that different industry type have
different requirements of organizational performance. However, in Tanzania,
implementing ISO 9000 will be beneficial to organizations because they can gain
more loyal and satisfied customers and also have competitive advantage over
competitors. These both countries have same view of getting ISO 9000 certified and
it is to satisfy customers with their product or services. However, these 2 countries
that uses survey as methodology is not an accurate way to get a full answer. This is
because not all organizational are the same and some do not require quality
management for example small businesses like small businesses. A strategy
methodology that can be used is by interviewing. According to Assarlind and Gremyr
(2016), they use interview to conduct so that managers can follow up and answer the
questions that were needed. Interviews will also be recorded and transcribed so that
interviewer can gather information by replaying the recorded interview. It is an
effective strategy to help business managers to understand and get what interviewer
ask for.
3.0 Conclusion
In conclusion, this research shows how important how an organization implement or
do not implement the total quality management system technique. With the ISO 9000
standard being implement in organizations, it will have a positive impact to
organizational performance. Therefore, managers should start improving the
management of business by using not just ISO 9000 but other technique that can
help improve the effectiveness and efficiency to be more develop and competitive
advantage among other competitors. However, not all strategies and techniques are
effective because it all depends on various aspects of the environment, culture,
motivation any many more that can cause bad impacts on the performance and
quality of an organizations.
6
4.0 References
Al-Najjar, S. and Jawad, M. (2011). ISO 9001 Implementation Barriers and Misconceptions:
An Empirical Study. IJBA, 2(3).
Amaratunga, D., Baldry, D. and Sarshar, M. (2001). Process improvement through
performance measurement: the balanced scorecard methodology. Work Study, 50(5),
pp.179-189.
Assarlind, M. and Gremyr, I. (2016). Initiating quality management in a small company. The
TQM Journal, 28(2), pp.166-179.
Daft, R. (2016a). Managing Quality and Performance. Management, 12, pp.661-672.
Daft, R. (2016b). Managing Quality and Performance. Management, 12, p.668.
Daft, R. (2016c). Managing Quality and Performance. Management, 12, p.674.
Ganguly, P. (2016). Pros and Cons of Globalization. [online] Buzzle. Available at:
http://www.buzzle.com/articles/pros-and-cons-of-globalization.html [Accessed 25 Feb.
2016].
Gordon, J. (2016). How Does Globalization Affect an Organization's Business Approach?.
[online] Webcache.googleusercontent.com. Available at:
http://webcache.googleusercontent.com/search?
q=cache:http://yourbusiness.azcentral.com/globalization-affect-organizations-businessapproach-28663.html [Accessed 25 Feb. 2016].
Green, J. (2016). How Does Globalization Affect an Organization's Business Approach?.
[online] Smallbusiness.chron.com. Available at:
http://smallbusiness.chron.com/globalization-affect-organizations-business-approach20077.html [Accessed 25 Feb. 2016].
Iso.org, (2015). ISO 9000 quality management - ISO. [online] Available at:
http://www.iso.org/iso/home/standards/management-standards/iso_9000.htm [Accessed
25 Feb. 2016].
Jansen, J. (2008). Relating the motivations of an SME to apply for ISO 9000 certification to
the challenges encountere during the implementation process. ISO 9000: Motivations
and Difficulties do they relate?, pp.1-15.
7
LeeMortimer, A. (2006). Six sigma: effective handling of deep rooted quality problems.
Assembly Automation, 26(3), pp.200-204.
Ling Sim, K. and Chye Koh, H. (2001). Balanced scorecard: a rising trend in strategic
performance measurement. Measuring Business Excellence, 5(2), pp.18-27.
Mangula, M. (2013). Effect Of Quality Management Systems( ISO 9001) Certification On
Organizational Performance In Tanzania: A Case Of Manufacturing Industries In
Morogoro. International Journal Of Technology Enhancement and Emerging
Engineering Research, 1(1), pp.14-19.
ztayi, B. and Kutlu, A. (2011). Determining the Importance of Performance
Measurement Criteria Based on Total Quality Management Using Fuzzy Analytical
Network Process. Advances in Intelligent and Soft Computing, pp.391-400.
Rabinowitz, P. and Vilela, M. (2016). Chapter 40. Maintaining Quality Performance |
Section 1. Achieving and Maintaining Quality Performance | Main Section | Community
Tool Box. [online] Ctb.ku.edu. Available at: http://ctb.ku.edu/en/table-ofcontents/maintain/maintain-quality-performance/overview/main [Accessed 24 Feb.
2016].
ReVelle, J. (2016). Benchmarking Process & Learning Resources | ASQ. [online] Asq.org.
Available at: http://asq.org/learn-about-quality/benchmarking/overview/overview.html
[Accessed 25 Feb. 2016].
Sabella, A., Kashou, R. and Omran, O. (2014). Quality management practices and their
relationship to organizational performance. Int Jrnl of Op & Prod Mnagemnt, 34(12),
pp.1487-1505.
Sadiq Sohail, M. and Boon Hoong, T. (2003). TQM practices and organizational
performances of SMEs in Malaysia. Benchmarking: An International Journal, 10(1),
pp.37-53.
5.0 Appendices
ID: 637062088
Similarity Index
6%
Similarity by Source
Internet Sources:
0%
Publications:
5%
Student Papers:
3%
sources:
1
3% match (publications)
Benchmarking: An International Journal, Volume 10, Issue 1 (2006-09-19)
2
1% match (publications)
Measuring Business Excellence, Volume 14, Issue 3 (2010-08-21)
3
1% match (publications)
International Journal of Quality & Reliability Management, Volume 18, Issue 9 (2006-09-19)
4
1% match (student papers from 18-Apr-2015)
Submitted to Wawasan Open University on 2015-04-18
5
1% match (student papers from 06-Aug-2015)
Submitted to University of Western Sydney on 2015-08-06
paper text:
Introduction Globalization can be defined as a combination of people, firms and government.
Globalization can affect how business being manage by an organization (Green, 2016). It is
something that cannot be control and it will sweep all over the world like an economic tidal wave.
10
However, there will be pros and cons of the existence of globalization. The positive impact of
globalization is that it gives customer and companies to have better access to worldwide market
from different countries. With the existence of worldwide market, there will be more production
sector and people can invest more in different companies (Gordon, 2016). However, there are
also downside of globalization that can affect the performance of business. Globalization can
cause many people to be unemployed, this is because companies would want to outsource their
workers to a more developed country so that they could help reduce the labour cost and to
increase their profits. All this downside of globalization will affect the performance of a business.
It will affect business managers to diversify their management structure, adopt the innovation of
technology, face competition, find cheap labour and raw materials (Ganguly, 2016). Quality and
performance are two different things. Performance management is something like a process to
help an organization to achieve their short or long term goal and mission by developing
effectiveness, empowering employees, and good decision making process (Rabinowitz and
Vilela, 2016). Where else for quality improvement, it is a process that improves services or
products to the next level to give a better or more longer lasting effect for customers. Quality
performance is important because customers are sensitive to the needs and culture, it makes a
group more effective, gives strength and credibility to organization, and it is also a model of
ethical behaviours (Rabinowitz and Vilela, 2016). According to Daft (2016a, pp661-672), there
are many types of tools can be used by organization to control their quality and performance at
the workplace. For example, feedback control model, total quality management, and many more
can be used by organizations to help manage quality and performance control. Managing quality
and performance Organizations that wants to manage quality and performance has to use total
quality management to help ease out the challenges face in future. Total quality management is a
method that focus more on quality, and it is based on the commitment of their workers to aim a
long term success through customer satisfaction, and also to employees in the organization. It is
a way to be managed and also it helps companies or business to be more competitive advantage
in the global markets. There are also many companies who have failed in doing business but
were being restored by using this total quality management strategy (ztayi and Kutlu, 2011).
Total quality management is widely use around the world because of the interrelationship and
effect of different elements and practices on key business results, particularly on more develop or
advance countires (Sabella, Kashou and Omran, 2014). According to Sabella, Kashou and
Omran (2014), they strongly agree to Vecchi and Brennan (2011) about total quality management
has impact on
According to Lau
(2004), the traditional way of quality control is no more effective and efficient in a developing
country because globalization has occurred and more advance technologies are now available to
11
do things more efficiently. There are many techniques that business managers can use for total
quality management and they are quality circles, benchmarking, six sigma, quality partnering,
quality improvement and many more. However, the major type of contemporary quality and
performances practice that organisation will use is benchmarking. The meaning of benchmarking
according to ReVelle (2016), is a process to measure the products, services, and process of
those known to be organizations leaders aspects of operations. Its a technique to compare how
the best in class companies achieved their performance and try to implement changes into its
own company performance. By identifying how other companies have successful performance,
small organizations can control and try to change new strategies to help improve their
performance and quality. The first thing that organizations can do for benchmarking is to get the
ISO 9000 standard. According to Draft (2016b, p684) ISO 9000 standard is known as
International Organization for Standardization. ISO 9000 standard is used as a tool for
companies or organizations to make sure their products and services meets the requirements of
customers and also to improve the quality consistently (Iso.org, 2015). The most suitable ISO
9000 standard that can be used for companies to set out requirements of a quality management
system is the ISO 9001 which was implemented in 2015. It has been adopted in many countries
around the world to help business managers to manage the quality and performance practices.
TQM in Malaysia An empirical research by Sohail and Hoong (2003) was total quality
measurement
medium
quality management
that was used to gain information is by using two things which is survey instrument and sampling
method procedure. For the survey instrument, a mail survey was conducted and there will be six
criteria that needs to be answered by managers of small to medium enterprise. The criteria are
2employee training and development, process management, quality
12
180
questionnaires were used for the final analysis of this research. In the
findings
and 51 organizations which is 64% do not have certification of IOS 9000. One of the reason why
there are more not certified ISO 9000 is because it is still a new thing in Malaysia (Jahil and
Abdullah, 2001). According to the mean score of the highest group which is the certified ISO
9000 organizations it was founded that most managers wants customer management and quality
satisfaction. This mean shows that the reason why they wanted to get certified ISO 9000 is
because they want to meet customers requirements and satisfaction in order to be successful or
to be sustainable in business. ISO 9000 in Malaysia will
organizational performances
findings there is no big
and
in Malaysia, more numbers of SMEs are trying to get this certificate. TQM in Tanzania Despite
that, another research was done by Mangula (2013), which is about the
4effect of
management system which is the (ISO 9001) when organizations improve the performance of
quality and quantity of products. The research methodology that was used in this research is by
doing survey. 40 respondents were consulted by using the simple random approach. All the data
that were collected will be analysed to calculate mean and standard deviation. Where else for the
SPSS, Chi-square will be used. Besides that, the Cronbacks Alpha was used to calculate
whether the quality of products can improve the performance of organization. In the findings of
this research, the means score shows that most organization agrees that some particular
aspects need improvement. With this means score, it shows that most of organization wants to
get IOS 9001 certified because they wanted to reduce the customers complains and also to meet
the satisfaction of local and international standards. Moreover, they did not care more for
13
reduction of waste and rework jobs and elimination of potential causes of nonconforming
products. According to Colbert (2005) implementing the ISO 9001 can help business to increase
the product volume and hence increase in revenue too. This conclude that, one ISO 9001 is
being implement, demand for the particular product will increase when quality is improved, and
also reduce production cost while increase efficiency. The positive impact of this is that it will
motivate organizations to be more committed and active. Synthesize According to the 2 empirical
research that was done, there are difference and similarities between ISO 9000 being
implemented in Malaysia and Tanzania. In Malaysia, it is difficult to get accurate measurement
because of different environment and the
of different
firms. According to Rahman (2000) this study also has limitations like sample
size is considered small. Despite that, another challenges that they face is that different industry
type have different requirements of organizational performance. However, in Tanzania,
implementing ISO 9000 will be beneficial to organizations because they can gain more loyal and
satisfied customers and also have competitive advantage over competitors. These both countries
have same view of getting ISO 9000 certified and it is to satisfy customers with their product or
services. However, these 2 countries that uses survey as methodology is not an accurate way to
get a full answer. This is because not all organizational are the same and some do not require
quality management for example small businesses like small businesses. A strategy
methodology that can be used is by interviewing. According to Assarlind and Gremyr (2016), they
use interview to conduct so that managers can follow up and answer the questions that were
needed. Interviews will also be recorded and transcribed so that interviewer can gather
information by replaying the recorded interview. It is an effective strategy to help business
managers to understand and get what interviewer ask for. Challenges of implementing ISO 9000
Not all organizations can be successful while implementing this ISO 9000, there will be barriers
or limitations that business managers face. According to Jansen (2008), companies will face
challenges such as,
finance. Besides that, Al-Najjar and Jawad (2011) also strongly agrees that there are also
barriers while implementing this benchmark. Another example that they add is difficulty of
performing internal audits, some ISO 9000 requirements are unrealistic, and also the absence of
consulting boards. Measure performance One of the best way that organizations can measure
performance is by using the balanced scorecard. Balanced scorecard is a system that managers
14
use to control the financial measures with operational measures to develop a companys
performance (Daft, 2016). According to Ling Sim and Chye Koh (2001), they did mention that
Kaplan and Norton (1996) says using the balanced scorecard helps organizations to identify the
inappropriate of using traditional management system. There is a 1400 global survey that was
done by Hackett Benchmarking solutions, and they found that 50% of companies uses this
Balanced scorecard to measure performance (Amaratunga, Baldry and Sarshar, 2001). With this
system being implement, organizations can gather information and find out the major problems
to be improved and also to achieve goal. Alternative strategy Despite using benchmarking as a
technique, business managers should also use six sigma as an alternative to help improve the
management of performance and quality. Six sigma, which envelop existing ideas and set up
factual methodologies inside of an efficient and quantifiable task based change system, it quickly
demonstrates that they are amazingly powerful in finding the genuine reasons for variety and
handling of this key part of assembling execution (Daft, 2016c, p.674). According to Lee
Mortimer (2006), this six sigma help companies to solve issues that day face day to day jobs.
Introducing this six sigma gives an organization a big change in improvement. Conclusion In
conclusion, this research shows how important how an organization implement or do not
implement the total quality management system technique. With the ISO 9000 standard being
implement in organizations, it will have a positive impact to organizational performance.
Therefore, managers should start improving the management of business by using not just ISO
9000 but other technique that can help improve the effectiveness and efficiency to be more
develop and competitive advantage among other competitors. However, not all strategies and
techniques are effective because it all depends on various aspects of the environment, culture,
motivation any many more that can cause bad impacts on the performance and quality of an
organizations.
15