Use compliance management ((Quality Management, Risk Management, and Performance Management) Answer the question
What role should top management play in ensuring that the process of ISO 9000 certification is effectively planned and implemented
The top management of an organization plays an important role in ensuring that the process of ISO 9000 certification is effectively planned and implemented. The first responsibility that top management has in ensuring effective planning and implementation is providing evidence of their commitment to the implementation of the ISO 9000 quality management system. Top management also has the responsibility of ensuring continual improvement of the system’s effectiveness through communication. In this way, they are tasked with communicating the significance of the system to the organization such as the importance of meeting the needs of customers in addition to regulatory and statutory requirements. The top management also plays a role through the establishment of quality policy, making sure that quality goals are instituted and resources are available. Lastly, the top management play a role through conducting management reviews.
What impact did ISO 9000 implementation have on organizational climate and coping strategy of the four firms studied by the author?
The implementation of ISO 9000 can have tremendous impact on an organization’s climate and coping strategy as noted in the study conducted. On the organizational climate front, the implementation of ISO 9000 aids the clarification of roles and responsibilities and consequently promotes constant training of personnel to sustain the requisite levels of competence. In this way, the implementation of the quality management system worked to motivate employees to achieve their objectives with merit. The implementation of the system also promoted and enhanced teamwork among organization personnel and as such the extension climate of the organization was boosted. Implementation of the system was noted to have a positive effect on the control climate of the organizations since it promoted power delegation, which consequently led to empowerment. This means that the system transformed dominance in the organizational climate and made the organizations more functional where they were dysfunctional. On the coping strategy, the implementation of IS0 9000 strengthened the aspect of making team effort especially in promoting efforts of personnel to work with others in solving problems that cause stress. This is because the implementation of the system promotes cooperation, which fortifies teamwork.
According to ISO 31000, organizations need to develop a risk management framework that consists of ‘foundations’ and’ organizational arrangements.’ Explain briefly what this means.
Risk according to ISO 31000 is denoted as the effect of uncertainty on goals or objectives and as such, the outcome of risk is a deviation from expectations either positively or negatively. Risk management is the process of managing risk through a synchronized set of undertakings employed by an organization to control the risks that may impact on the organization’s ability to attain its goals. An organization therefore needs to come up with or develop a method that works to mitigate the risk faced. In developing a framework for risk management, the two most important components include foundations and organizational arrangements. The foundation aspect of a risk management framework is based on commitment, policy, objectives, and mandate.
To manage risk, an organization should therefore develop a method that is based on the fundamental aspects that define the organization and includes the measures put in place for risk mitigation. Such a framework for risk management of an organization should be clear about the aspects of foundation such as their commitment to risk management, the mandate, goals and policy. The framework needs to be clear on arrangements of the organization including plans, accountabilities, and activities among other factors related to organizational arrangement.
Explain what risk mitigation approaches can be adopted by firms to manage operational risk, strategic risk, and compliance risk when offshoring business operations.
Several factors need to be considered in adopting the risk mitigation strategies. In managing operational risk, an organization needs to consider the manner in which their processes will be transferred to a foreign country. Attention needs to be given to ensuring that the organization’s processes are being accurately transferred to a different country through an application of strict control measures to the process of transfer. This can be done by making use of or adopting tools such as standard operating procedures in addition to clearly defined training manuals, which can help in sustaining and maintaining the consistency and regulation of the process. Further, organizations need to implement stringent measures, which will help in gauging the quality of their operations and products.
The approach to mitigating strategic risk will require an organization to implement their offshore activities in a detailed, comprehensive, and systematic manner. Invariably, organizations are in a hurry to capitalize on saving cost which may be a disadvantage to future prospects. Strategic risk is limited when an organization implements their offshore activities following a systematic and detailed evaluation of the situation. Failing to be precise in the decision-making process exposes an organization to potential risk.
In mitigating compliance risks, an organization needs to examine foreign regulations and policies thoroughly. This can be done effectively through consultation where the organization consults someone knowledgeable on foreign policies and regulations. Organizations need to be aware on the regulations and policies that affect the nature of their offshore activities to avoid any compliance problems.
Explain briefly the advantages of benchmarking. What are some of the commonest criticisms of benchmarking?
Benchmarking as a process has several benefits or advantages to an organization and they include; helping to strengthen the organization’s competitive advantage. The process also helps to define and understand the requirements of customers in a more accurate manner. It aids in finding proven ways of improving products and processes, setting objectives in strategic planning and spotting new opportunities. The process also helps in enhanced creative thinking in addition to setting performance goals.
By evaluating these processes, an organization gains competitive advantage by discovering their shortcomings and developing strategies directed at becoming better. The results of benchmarking also help organizations to come up with better ways of improving on the quality of their products or services in addition to enhancing creative ways of mitigating potential shortcomings. Since benchmarking is a continuous process, it generally improves an organization in every aspect through better understanding of areas of strengths and weaknesses.
Some of the commonest criticisms of benchmarking include the notion that benchmarking leads to an increase of the information that an organization needs to monitor. This is said to have the potential of leading to an overload of information thereby decreasing the performance of the organization. Another criticism underlies the notion that benchmarking may lead compromise the confidentiality of an organization’s information and lastly, benchmarking is seen as having the potential to limit an organization’s development by directing focus on maintenance of the existing procedures.
Explain briefly the six phases (process design, process development, process documentation, process testing, process publication, and process acceptance) that the authors used to design a performance measurement system.
Process design as a phase used in the development of a performance measurement system entails twelve phases. These phases were concerned with identifying the measures that were required in order to find out information needed by various managers for their sector of the business. The next phase involves a cost benefit analysis to make sure that the most appropriate and advantageous measures were identified. The purpose of the measurement ensures a clear purpose for each measure followed by a comprehensive check to ensure every vital area has been covered. The fifth phase of detailed design determines the structure of each measure, followed by integration to determine if the identified measures can be integrated. The phase also includes environmental considerations, testing, institutionalization, and finally continuous maintenance.
Process development phase entailed evaluating the measures identified and identification, alteration and improvement of the proposed measures in developing a performance measurement system. The third phase was application, which entailed applying the processes identified in the first phase and determining their suitability to the design of the process. Process documentation and testing involved writing down the processes entailed in the development of the framework for the performance measurement system while eliminating aspects that were not suitable for the framework. The next phase entailed publication and acceptance whereby a publisher was approached to publish the framework and as such the acceptance of the performance measurement system.
Kumar, S, Kwong, A & Misra, C 2009, ‘Risk mitigation in offshoring business operations’, Journal of Manufacturing Technology Management, vol. 20, no. 4, pp. 442-459.
Neely, A, Mills, J, Platts, K, Richards, H, Gregory, M et al. 2000, ‘Performance measurement system design: developing and testing a process-based approach’, International Journal of Operations and Production Management, vol. 20, no. 10, pp. 1119-1145.
Srivastav, AK 2010, ‘Impact of ISO 9000 implementation on the organisation’, International Journal of Quality and Reliability Management, vol. 27, no. 4, pp. 438-450.