Benefits and Disadvantages of Standards to an Organization - Essay Example

Critical discussion of benefits and disadvantages of standards to an organization Introduction Recently, the development and use of standards have increased tremendously. Many organizations have used standards for technical definition of the organizational requirements and procedures at regional, national and international level. Organizations use thousands of standards in their daily operations to increase the quality, enhance environmental management, for health protection and safety, and in risk assessment. Standards refer to the published documents that detail procedures and specifications designed in ensuring safety, reliability and consistency in services, products and systems. They establish a conventional language, which defines safety criteria and quality. A standard comprises of codes, handbooks, specifications and guidelines defining possible goals in an organization (Brunsson & Bengt 2010, p. 45-49). Standards also refer to documents that provide the requirements, rules and guidelines regarding a service, product, or process. Requirements are complemented by the description for the services, products and the process. Standards depend on the consensus approved by the recognized body. They enhance achievement of the optimum degree in a given context. They enable formulation, implementation and issuing of the requirements (Brunsson & Bengt 2010, p. 45-49). Discussion The process of standardization in any organization enhances fitness of purpose by defining the ability for the fulfillment of purpose based on specified conditions. Standards enhance the identification of optimum operating parameters in performance processes. Standards lay the conditions in use of the process and provide for the evaluation of the product conformity. The suitability of a process used towards the fulfillment of the requirement is outlined by the standards. This is achieved through a deliberate process of standardization for goods and services, irrespective of the region of manufacture or location of the organization (Das & Satyajit 2006, p. 56-58). Standards enhance variety reduction where the consumer knows exactly what they want, and this is critical in organizations to enhance balancing the varieties. Compatibility enhancement is achieved through the standards. The parallel incompatible processes are detrimental in any organization, but standards enhance compatibility by enhancing recognition of codes at all times in all the processes. Safety is enhanced using the health and safety standards that outline the safety parameters and identification processes. Environmental protection standards focus on the preservation of environment against damage through better utilization of the processes. Standards spell out the means of communication in various settings as well as transfer of technology through the incorporation of advances in experience, science and technology (Das & Satyajit 2006, p. 56-58). The formulation of standards encompasses constant review of scientific, consumer and industrial documentation to be in pace with the new technologies. Standards cover the consumer services and products, engineering and construction, health and safety, and risk. The organizational standards encompass various definitions in terms of responsibilities, reporting lines and charter. In any organization, the board establishes and monitors risk tolerance while the management endorses the internal and external control frameworks that enhance the monitoring and design of the control structures. The reporting line entails the internal audits reporting to the organizational executive. The charter institutionalizes the protocols and responsibilities of the protocols and reporting lines. Limitations or quotas of significance or quantity reflect the accessibility and inhibition criteria (Halbert & Ingulli 2009, p. 29-32). Effects of standards on quality Quality in any business is critical in products, processes, human resource and management. Quality relates to consistency; the shift below the quality standards ruins the business. Several organizations set up the quality standards to enhance quality services and products. Quality standards refer to statements that outline key elements of the quality programme; they are elements of good practice. Quality control standards entail inspection that encompasses visual examination, and emphasizes on testing of products to uncover defects and reporting to the management (Halbert & Ingulli 2009, p. 29-32). Quality assurance stabilizes and improves the production by minimizing the issues related to defects. Some components of quality standards include legislation for trading and health and safety, royal warrants, and the mark of quality. Legislation affects weights and measures, and the food labeling to ensure correct quantity and quality in terms of ingredients and related information. Branding entails the product measuring up to the quality outlined in the market (Halbert & Ingulli 2009, p. 29-32). Implementation and adaptation of the quality standards is crucial for the success of every company. Standards enhance competitiveness by allowing benchmarking of the performance between the e-learning providers and e-learning products. Standards strongly influence the economics. They define clear processes leading to the reduced failures during the design, analysis, production and realization of the e-learning. They enhance motivation through transparency and involvement of all the stakeholders required in quality standards. This includes customers in e-learning and students interested in understanding the learning objectives (Milošević, Peerasit & Sabin 2010, p. 56-61). Standards will determine the internal and external image of a product. This influences the international acceptance of its reputation and enhances marketing. Reliability in planning is enhanced by allowing the risk management through standardization. This enhances high quality and high business excellence through the designs and other learning processes. By orienting the customer, quality standards establish equal partnership with customers; understanding customer needs enhances customer satisfaction. The standards enhance continuous improvement cycle in the quality. This is achieved through introducing sustainable evaluation results (Milošević, Peerasit & Sabin 2010, p. 56-61). Quality standards improve the organization, products and processes that enhance business excellence. Marketability is improved through improving the credibility that ensures quality products to customers. The operational expenses are reduced through incorporation of the standards that improves efficiency and garners savings of both time and money. They enhance better management through the registration process, which requires self assessment and documentation, increasing the understanding of the direction and overall process within an organization (Patrick, Ying & Tsz-Ying 2010, p. 854-858). The disadvantages of quality standards involve the problems with understanding of the certification process. Funding for the establishment of quality systems is inefficient, especially for the small organizations. Most of the quality standards depend highly on the documentation of the internal operating procedures. The organizations concentrate more on the business documentation of such procedures rather than the attending to the fundamental employee requirements. The entire process of acquiring the standard procedures is long (Trienekens & Zuurbier 2008, p. 107-22). Effects of the standards on environment management Environmental standards refer to the policy guidelines that regulate the effect of humanity on the environment. There are set of the quality conditions maintained or adhered to for specified environment components and functions. The different activities on environment posses different concerns, hence difference in the standards. Standards define desired states like the limit alterations and PH (Quality without Compromise 2005, p. 169-171). The standards provide different aspects of the environmental management. It offers provision for the practical tools necessary in control and identification of the environmental impacts and improves the environmental performance. The main advantages of the standards on the environment are the higher likelihood of understanding than the environmental policies. Despite of the standards on environment considered inefficient, the pragmatic approach entails the uncertainties on the pollution effects. The political costs for the standards are lower than the market based instruments like subsidies and taxes. Obtaining of the environmental standards does not incur the direct budgetary implications (Terry, Johnson & Clark 2005, p. 45-49) However, some of the disadvantages of the standards on the environment are faced by problems like determination of the demand curve for the air in order to establish economically cost effective and efficient optimum standard. This is impossible due to the unmarketable nature of the environment. The incentives for the reduction of the pollution beyond the standards discourage development of the technologies, which may result to improved pollution control methods. Penalties in violation of standards are low, and enforcement is weak. To promote effectiveness, revision of the standards should be frequent due to the rapid changes in circumstances (Quality without Compromise 2005, p. 169-171). The practical legislation is reluctant in keeping up with the changes. Cost effectiveness of the standards is low when compared to MBIs due to the uniform application in all regions and firms. The costs in pollution abatement differ based on the firm and the location. The high cost abaters reduce pollution similarly as the low cost abaters, hence additional resources in achieving a cleaner environment. Cost saving can be achieved through undertaking some abatement by firms at relatively low costs. The financial costs like administrative costs used in implementation of standards and monitoring is high. When environmental standards are stringent, political costs affect businesses adversely (Sasi 2007, p. 47-49). Health and safety standards The standards in health and safety protect the health, safety, and the welfare of the people within an organization. This fosters safe and healthy environment, as well as protects co-workers, employers, family members and the rest of the people affiliated to the company. The standards promote moral, financial and legal reasons. Formulation of health and safety standards should ensure that employees and all people within an organization are safe. The moral obligation of health and safety standards entails protecting lives and health of the people. The legal obligation encompasses the practices in health and safety relating to the punitive, compensatory, and the preventive effects of the laws in protecting the safety and health of workers (Sasi 2007, p. 47-49). Standards enhance high degree of social, physical and mental welfare of the workers in all the occupations. This protects workers from risks that adversely affect the health by placing them in the occupational environment with psychological and physiological capabilities. This promotes the health of the workers, improves the working environment, as well as development of the working cultures of smooth operation that promotes productivity. Working culture promoted by the standards reflects the essential values that pertain to a certain operation (Sasi 2007, p. 47-49). The identification of the health hazards provides a safer and healthier work environment. This reduces the overall time lost due to injuries and illnesses. The standards enhance transparency through carrying out of investigations and converting them to action plans that minimize the accidents. Few accidents result to reduced liability claims and reduce the insurance premiums. Standards in health and safety ensure the credibility of health and safety in any organization (Satpathy 2005, p. 12-15). The disadvantage of standards of health and safety is that the maintenance of these standards is quite expensive. The learning of classifications of the standards is complex. For instance, purchase of the combustible material with low smoke productions is quite expensive. The Standards on Risk The standards on risks influence the uncertainty objective in any organization. The standards handle issues regarding deviation from expectations and are characterized in reference to the potential events. Various standards to risk management use the risk approach as an integral component of the generic management. Standards on risk identify and enhance the assessments of the risks experienced in an organization. This facilitates the management of the significant risks with the severe consequences, which require a specialized management to eliminate and reduce the frequency of the occurrence and severity of the consequences (Susskind, Kacmar & Borchgrevink 2007, p. 370-379). Application of the standards on risk by organizations has enhanced control of the environmental aspects like waste disposal, water, raw materials and the air emissions. The application of the environmental standards by organizations meets expectations by the stakeholders to enhance management of the risks and prevent losses related to environment (Segalstad 2008, p. 31-33). These standards offer the guiding principles and a generic framework towards risk management. The objectives of the risk standards increase the rate of achievement of laid down objectives. This creates the awareness on the identification and treatment of risk in an organization. The standards enhance the identification of the threats and opportunities to comply with the relevant regulatory and legal requirements and the international norms. They improve the financial reporting and governance. The stakeholders’ confidence and trust within an organization are enhanced through the use of the risk standards (Silverstein 2007, p. 56-8). The establishment of reliable decision planning and formulation basis is enhanced through improvement of the controls. The organization’s allocation capability for resources in treatment of the risk is promoted by these standards. The operational effectiveness is promoted while the safety and health performance, and the environmental protection are promoted. Risk standards improve the management of the incidences and the loss prevention. They minimize the losses incurred in an organization, and improve the organizational learning and improve organizational resilience (Silverstein 2008, p. 416-423). The disadvantages of the risk standards include the costs in risk control that consumes time. The formulation of risk standards requires the response plan, resolution, reporting and monitoring. This requires a substantial amount of money in assisting people in an organization to transfer and mitigate risks accordingly. Unavailability of the funds hinders the risk control process (Stevenson 2006, p. 101-06). Conclusion Maintenance of established standards in any organization enhances efficiency in the performance of daily activities. Standards are critical in improving the quality of the services and normal operations in the business. They enhance environmental protection and management, and they promote health and safety, as well as enhancing the management of the risks. Standards like the ISO 9000 are recognized globally since they present guidelines that enhance efficiency and the customer satisfaction. The standards embed management system within an organization. This increases productivity as well as reducing the unnecessary costs, and ensure quality for the products and processes. The standards are crucial in organizations and businesses, and enhance flexibility in today’s business world. References List Read More