Impact of Globalization on Total Quality Management
Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.
A manager’s decision-making process regarding new or increased international operations involves reacting to the environment, seeking competitive advantage globally and assessing the company’s capability in the global context.
Globalization makes managers ask certain questions. These questions include: ‘Must we be more International’? ‘Are we capable of becoming more international?’ ‘How can we improve capability’? ‘What opportunities should we pursue?’ This sort of questioning which globalization creates will enable the firm to identify specific weak areas and/or general lack of strength. The focus now shifts to expansion. These might include things like internal changes as well as linkages with other organizations that help provide the desired result.
Therefore, the options or strategic plans must be selected with caution. Globalization makes management assess the costs and benefits of various possible modes of entry into the global market. In general, the choices can be seen as ranging from no ownership in foreign locations, to joint ventures, to sole ownership of foreign subsidiary. Globalization enables managers to make a lot of choices and decisions regarding improving their output and expanding their business activity. Each of the options they assess has benefits as well as disadvantages that the managers must weigh to make the right choices. Once the managers have made their choice, a plan of action is formulated and executed to achieve the desired foreign activity.
The decision process should be assumed to be a kind
A manager’s decision-making process regarding new or increased international operations involves reacting to the environment, seeking competitive advantage globally and assessing the company’s capability in the global context.
Globalization makes managers ask certain questions. These questions include: ‘Must we be more International’? ‘Are we capable of becoming more international?’ ‘How can we improve capability’? ‘What opportunities should we pursue?’ This sort of questioning which globalization creates will enable the firm to identify specific weak areas and/or general lack of strength. The focus now shifts to expansion. These might include things like internal changes as well as linkages with other organizations that help provide the desired result.
Therefore, the options or strategic plans must be selected with caution. Globalization makes management assess the costs and benefits of various possible modes of entry into the global market. In general, the choices can be seen as ranging from no ownership in foreign locations, to joint ventures, to sole ownership of foreign subsidiary. Globalization enables managers to make a lot of choices and decisions regarding improving their output and expanding their business activity. Each of the options they assess has benefits as well as disadvantages that the managers must weigh to make the right choices. Once the managers have made their choice, a plan of action is formulated and executed to achieve the desired foreign activity.
The decision process should be assumed to be a kind
References: 1. TQM: Total Quality Management Concept Still Alive and Well - Published April 04, 2007 by D.J Schwab http://www.associatedcontent.com/article/189364/tqm_total_quality_management_concept_pg2.html?cat=35 2. The Role of Total Quality Management (TQM) in Firms – Published August 18, 2006 by Sunmade Adeyemi, p3 http://www.associatedcontent.com/article/51997/the_role_of_total_quality_management_pg3.html?cat=3 3. TQM and Globalization – Published October 29th, 2008 http://www.gtqm.com/category/globalization/ 4. Mendenhall, Mark and Betty Punnett and David Ricks, Global Management, Blackwell publishers, 1995, 345-51 5. Hannagan, Tim, Management Concept and Practice (Third ed.), Prentice Hall, 2002, 212-220, 272 & 602