Impact of Globalization on Total Quality Management

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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 of iterative process – that is having been through the model once, a manager will periodically return to the first question and repeat the process. This has the effect changing a reactive strategy into a dynamic one. Globalization creates an atmosphere where companies look to embark on international operations which in turn foster a degree of synergy. Having business operations in more than one international location provides the opportunity to transfer learning from one international location to another. The 1990s is considered to be the decade when the new era of the beginning of quality management. This was because during that period of time, firms where facing a high degree of competition, the encroachment of their market share and a depreciation in the perceptions of the quality of their products. Hence, it was necessary to adopt a quality management technique that would override any existing traditional management styles.

Literature Review- This brings us to the topic of identififying the Impact of Globalization on Total Quality Management. What has been the impact of Globalization on Total Quality Management”? TQM has played in its origins a decisive role in Globalization. Globalization is a direct consequence of TQM. In 1954, John Foster Dulles, then the US Secretary of State, despised Japan as a commercial threat to USA. “The Japanese don’t make anything the people in the US would want.” Twenty five years later, in 1979, when Japanese car were starting to be built in America, Business Week mocked: “With [more than] 50 foreign cars on sale here, the Japanese auto industry isn’t likely to carve out a big slice of the US market.” Later it came “If Japan can… Why can’t we?” broadcasted by NBC in 1980. And Deming. Anyway, as TQM always does, it has to adapt its processes to the needs of the organization (environment) in every moment and circumstance. Globalization is not an exception Globalization has allowed small businesses and major corporations to...
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