3-1

Chapter 3

GLOBAL COMPETITIVENESS

3-2

TQM Organizations

Recognize the Technology ParadoxCreate A Climate for InnovationCreate High Quality Goals & Services

3-3

Technology ParadoxThe quality/cost dilemma

Wrong:

As quality increases, the cost of production also increases

Right:

quality and costs are

inversely related

3-4

Creating a Climate for Innovation

– create corporate databases to link experts in diverse technologies

– take advantage of Experts from outside the company

– encourage Scientists to present innovations to peers

– create visions by looking to the future – Benchmark competitors– create a wide array of products that cannot

quickly be copied by the competition

3-5

“Quality Pays Off”

Auto manufacturing– U.S. automakers have continued to increase their quality

Asian services– Asian airliners and hotels are top ranking internationally

Aircraft manufacturing– Major manufacturers are delivering

high quality and cost effective products worldwide

3-6

New Paradigm Organizations

1985 1990 1995 2000

O

rgan

izat

iona

l Dev

elop

men

t

Total Quality

(Adaptive)

Learning

(keeping ahead of change)

World Class

(continuous improvement to

become and sustain being the best)

3-7

Learning Organizations“learn how to learn”

– anticipate change and discover new ways of creating products and services

Openness– encourage and anticipate, rather than accept change

Creativity– promote risk taking– encourage personal flexibility

Self-Efficacy– Enhance confidence that employees have the personal resources

needed to accomplish

specific tasks within the organization

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Examples of learning organizations

anticipate change– General Electric– Sony– Kodak

openness– whirlpool

creativity– Sony– Chrysler

efficacy– IBM

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World-Class Organizations (WCO’s)

Enterprises that are able to compete with anybody, anywhere, anytime, anyway (the so-called “4 Any’s”.

3-10

World Class Organizations Customer Based

Continuous

Improvement

Flexible or Virtual Organizations

Creative Human Resource Management

Egalitarian Climate

Technological Support

3-11

World Class Organizations

Hewlett-Packard Honda Xerox Ritz Carlton Wal-mart Southwest airlines Ford