3-1 Chapter 3 GLOBAL COMPETITIVENESS

3-2 TQM Organizations  Recognize the Technology Paradox  Create A Climate for Innovation  Create High Quality Goals & Services

3-3 Technology Paradox The 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 Organizational Development 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

3-8 Examples of learning organizations  anticipate change –General Electric –Sony –Kodak  openness – whirlpool  creativity – Sony – Chrysler  efficacy – IBM

3-9 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