Introduction
Globalization in the marketplace, expansion of international trade, and the rapid improvement of consumer products and services have resulted in increased pressure on firms to improve the quality of their products in order to remain competitive in the contemporary market (Nejati and Nejati 1999).
Numerous organizations have adopted new advanced operational habits governed by total quality management and have also developed improved and efficient ways of promoting consumer satisfaction through quality products and quality service provision. Quality management has become a major strategic weapon for gaining competitiveness in the modern market.
In order to achieve product and service quality, organizations have established various standardization methods and total quality management principles to govern production and service provision (Nejati and Nejati 1999). In the modern business environment, application of standardized management systems, such as, ISO 9000 and TQM are virtually considered to be one of the key phenomena in total quality management system implementation and globalization.
ISO, otherwise known as international organization of standardization, is among the most highly influential and most frequently used company implemented strategies of quality control that traces its roots from the quality movements of 1980s (Nejati and Nejati 1999).
It is an approach that companies often view as a means of compliance where the governmental agencies requires manufacturers to register regulated products and their consumers expect them to adhere to these standards as a condition of effective business processes (Hutchins 1997).
Organizations also utilize other metholodologies of quality assessment, such as, Six Sigma which evaluate the capability of a company to perform a specified task defect free (Black and Revere 2006). The six sigma monitors business activities in order to promote consumer satisfaction and promote efficiency and has also gained increased popularity across the globe in the recent past (Black and Revere 2006).
Company’s view of ISO and other quality certifications as a compliance issue rather than a business issue has served to promote efficiency in overall business activities. The current ISO registration is oriented towards regulation of not only the regulated products but also commercial products and services in the global market.
This is a clear indication of the transformation that has taken place in quality management systems from an internally accepted mechanism for ensuring compliance to safety, environment, and health related standards to a system that governs quality product and service provision in all aspects of business (Hutchins 1997).
Problems encountered by UAE in ISO registration
The United Arab Emirate ranks among the top three in Arab countries ISO 9001:2000 certifications. In 2006, the number of firms that received this certification amounted to 1040 and this large proportion was attributed to the large numbers of foreign companies that have been established in the region’s free zones (Nejati and Nejati 1999).
Numerous studies have been conducted on the effectiveness on ISO in various regions but since UAE is still a developing country, it lacks adequate mechanisms and formal researches to evaluate the impact and effectiveness of ISO on the region’s organizations.
However, the limited researches done reveal that a considerable number of organizations are facing problems related to documentation requirements and costs associated with ISO compliance while minimal organizations face problems related to complicated work load and implementation of non value added activities in ISO adherence, which has led to the conclusion that the current revision of ISO will be able to fulfill the objectives of the quality standards through reduction of documentation and promotion of efficiency (Magd & Nabulsi nd).
In fact, implementing ISO standards in UAE organizations has enabled the organizations to increase the volume of business, increase the market share, and improve internal efficiency while promoting consumer satisfaction. The certification has in the past served as a marketing strategy whereby such certification improve consumer confidence and also attract new customers (Magd & Nabulsi nd).
However, UAE has encountered various inevitable problems in the process of registration. Registration in itself does not guarantee product quality, but the fact that these companies invest substantial resources in attempt to comply with ISO standards sends the right signals to consumers implying that the company is concerned about consumer satisfaction.
The organizations in UAE need to understand that acquiring ISO registration simply implies that a company is following its predetermined quality standards which may or may not be superior as they are set by the company in question. ISO requires companies to meet or exceed predetermined product specifications but it does not prevent variability within the specifications of a product.
The modern economy is characterized by increased consumer awareness, which has enabled consumers to understand that ISO certification does not necessarily result in improved quality products. Consequently, the role of ISO certification as a marketing tool is slowly diminishing and the cost incurred in its implementation is increasingly becoming unjustified.
The first organization to qualify for ISO 9000 certification in United Arab Emirates was in 1993 and since then, numerous organizations in the region have received the certification. The European Union has also embarked on funding a standards center to implement ISO 9000 certification in the UAE region. The process of registration consumes a lot time, resources, and effort.
The United Arab organizations seeking this certification have to incur additional internal costs in order to revise their preexisting standards to comply with ISO requirements. Cost incurred in auditing and registration also increase external costs of the organization. In addition, the organizations have to modify their work processes and procedures in order to be in line with ISO requirements. These changes in work routine and procedures may significantly disrupt business and affect employee morale consequently affecting output.
Various studies have been conducted in addressing the major problems likely to face companies after implementation of ISO 9001:2000. The ISO quality certification was found to have complicated the work through requirement of unnecessary documentation of processes and activities which only serve to add more load to the employees and does not necessarily guarantee the certification (Magd & Nabulsi nd). ISO’s also requires companies to engage in non value added activities that add no value to overall performance of the organization.
Conclusion
Despite the fact that UAE is among the top recipients of ISO certification in the Arab world, critical analysis need to be carried out to assess the effectiveness of this certification on company’s quality systems. In order for the ISO certification to meet its objectives in the UAE, organizations should be committed to the process of implementation and support the top management in this task.
In addition, organizations require adequate resources to facilitate the entire process backed by top management support. Finally, organization needs to establish well developed systems of procedures and engage their internal auditors in order to accurately assess their quality systems capabilities.
Reference List
Black, K., & Revere, L., 2006. Six Sigma Arises From The Ashes Of TQM With A Twist. London, Emerald group publishing Inc.
Hutchins, G., 1997. ISO 9000: A Comprehensive Guide to Registration, Audit Guidelines and Successful Certification. London, John Wiley and sons.
Magd, E. A. H., & Nabulsi, F. Not Dated. ISO 9001:2000 Implementation in UAE: An exploratory study. Working paper Series. Web.
Nejati, M., & Nejati, N. 1999. Global Business and Management Research. An international journal Vol. 2 No 1.