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Similarities and Differences between Business models and ISO 9001 & 14001
Similarities
Business models and ISO 9001 &14001 are both considered as ways of improving excellence in business organizations. Business excellence models are plans, techniques, and methods through which businesses and organizations choose to follow to facilitate or to achieve business goals (Teece, 2018). The aim of the business excellence models is just the same as that of standards of management, ISO 9001 focuses on assurance services. A business organization and Companies have to maintain a high quality of service to its customers to ensure success to the business. ISO 14001 helps in achieving the mission and vision of the Company and the respective organization through following the stipulated steps of conserving the places where their business operates (Boiral et al., 2018).
Business excellence models and ISO 9001 & 14001 both show systematic ways of doing activities to achieve success in their organizations. ISO 9000 quality management services have to fulfill the seven principles displayed by ISO 9001 before its services are approved (Manders, de Vries & Blind, 2016). The seven principles are universal to all organizations in the world. Similarly, business models have to follow systematic guidelines in implementing guidelines to facilitate the success of an organization. Business models and these respective standards of management has the sole purpose of achieving success in business (Wirtz et al., 2016).Differences
Business models and ISO 9001 & 14001 show a clear difference from how they are practiced in business and organizations . Business models exist in different ways. Several businesses choose the type of business models to be used in their organizations. The model chosen depends on the environment in which the business exists. Such a business environment includes market competition in economic conditions. While ISO 9001 & 14001 show the same principles to be applied by all organizations globally. All organization in the world submit their suggestions to the headquarters in the Netherlands for confirmations if the particular organization has fulfilled the required standards of management.
Impact of Quality and Environmental Management Accreditation Standards on Achieving Business Excellence
Quality and environmental management help in improving and ensuring control of organizational activities. Employees should be reminded constantly that they must work according to particular standards set. Setting standards is one step of achieving success but it’s upon employees to practice doing all the standards laid by the management of the organization (Oakland, 2014). During work, the question of pollution might arise. Organizational leaders must maintain quality standards while managing different departments. The idea of ensuring that there is control in the organization allows avoiding mistakes that would be committed by employees when they work without supervision or guidance.
ISO 9001 and 14001 help workers reduce the cost of production. The workforce ensures that there is little material wastage by observing required standards of competence under the guidance of quality management throughout their operations. Moreover, this competence is achieved by Employees of organizations through observing ethics while serving customers of an organization. Correct recording of information such as recording of financial transactions in the books of account to easy auditing procedures (Oakland, 2014). Workers rarely make mistakes while on their line of duty. Competent employees ensure that goods and services produced by a particular company are of consistent quality due to adherence to standards. Consistency is achieved through testing the quality of goods produced to make sure that they will satisfy the demand of customers (Lasrado, 2018). Such testing cautions the organizations’ employees against repeating mistakes in their work.
Produced goods can be recycled, thus helping the particular organization in reducing the waste of materials that could harm the environment. Recycled materials can be used to provide energy, for example biodegradable materials can be used to produce biogas that can be used for domestic purpose such cooking. Non-biodegradable materials such as plastics can be recycled to produce carrier bags .Recycling is one of the best methods to achieve ISO 14001.
Management standards enable employees to train and improve their skills. Competence is achieved through rigorous training and learning, Professionalism can be attained through continuous handling of the same assignments until one specializes in a particular task. Further training is essential as it provides time and opportunities through which employees improve their skills, which will allow them to show their abilities. Labour rights should be upheld to assist in promoting the competency of employees, this includes providing education holidays and incentives such as loans to employees who wish to enroll in further studies. Competence enables workers to produce desired goods and services for their customers, which will help increase the reputation of their organization.
Quality management and environmental accreditation focus on achieving the needs of their targets. The former will improve customers’ relationships with the organization while the latter will guarantee the safety of the community where the company operates. A good relationship between them fosters unity (Oakland, 2014). The satisfaction of customers and the community needs facilitates the building of trust in the organization. This confidence can lead to more sales, which will bring more revenue to the company.
Challenges that Hinder Excellence for Organizations
Many organizations face challenges when trying to reach excellence in their operations. They find it difficult to monitor all changes and trends on the market. Such difficulties are the result of a lack of quality leaders and tools to conduct market surveys (Lasrado, 2018) such predictions are among the fundamental aspects that can enable a company to survive any difficulties.
Poor financial management leads to conflicts in organizations. Finance is the main factor that enables problem-free work of companies. Therefore, all capital and finance of a business must be managed by qualified and competent financial advisors. These professionals participate in budgeting the company’s activities during a particular financial year (Lasrado, 2018). Finance is a rather important tool in business, as it determines the power that the organization has to compete favorably on the market. New investments are thoroughly investigated before being approved. Sometimes, entities reduce the cost of operations by laying off employees and merging departments when they fail to generate profits.
Another challenge that hinders the achievement of excellence for an organization is the recruitment of incompetent employees that do not fit in it. Employees are among the most important factors of production in a company (Oakland, 2014). Sometimes, those responsible for recruitment may not follow the right procedures of employing recruits, which might lead to putting wrong individuals in charge of handling business activities (Oakland, 2014). Such incompetence results in the production of poor services and low-quality products (Oakland, 2014). Lack of training and employee improvement endangers the professionalism of an organization, as such workers might fail to perform favorably compared to their better-performing competitors.
The low level of technology used by a particular organization in the production process also hinders its achievement of excellence. The current market demands high-quality products produced at the right time, so failure to achieve this goal can be attributed to such factors as outdated equipment and inefficient production processes (Fonseca, & Domingues, 2017)). Companies fail to use new means of transport, or they install old computer systems that are too slow, or they can use insufficient communicating channels such as landline telephones (Oakland, 2014). Technology is the vital deriving factor of production, as it determines the quality of products as well as the duration of their manufacturing.
Poor compliance with business rules and regulations as required by state laws also prevents organizations from being excellent in their work. Sometimes, they fail to follow due to the requirements of the laws set the national authorizes (Lasrado, 2018). Consequently, any organization risks being temporarily or permanently closed. Quality standards and environmental management are some of the international compliances that companies might fail to adhere to, which will result in that particular organization being rated poorly. Therefore, businesses focus on maintaining all required standards and following all rules and regulations.
Role of Leadership in Dealing with Challenges
Leaders of any organization should observe quality assurance issues as well as environmental management standards. ISO 9001 and 14001 will ensure that companies produce products of appropriate quality (Castka & Balzarova, 2018). Environmental protection through recycling of wasted materials will enhance a good relationship between the business and the community in addition to protecting the environment. Leaders should ensure that the business models used helps in promoting the standards of management of ISO 9001 & 14001 (Kassem et al., 2019). Maintenance of books of accounts indicates the professionalism and competence by the employees. They should consider cutting the cost of production during the low-income season in terms of sales. An organization needs to maintain and record all its transactions to facilitate openness in its management (Lasrado, 2018). Thus, the leader should conduct an audit of all financial documents to check if there is compliance with the required standards.
Leaders of organizations should update their systems to suit the latest advancement in technology. Such a move will assist in the production of quality goods and services at the right time, thus satisfying their customers. Outdated systems should be abolished, while adherence to the new standards should be encouraged (Lasrado, 2018). Tracing the performance of the organization assists in its management, which can be done by using computer systems that can monitor its financials and conduct inventory management. Finally, leaders should invest in training employees and improving their competence skills (Iatridis & Kesidou, 2018). Competence determines the quality of products as well as the time that is required for their production. The task of the leadership of an organization is to cater to employee’s welfare by providing resources for further training. In doing so, the company will propel its excellence to the desired levels since workers are vital assets of any organization.References
Boiral, O., Guillaumie, L., Heras‐Saizarbitoria, I., & Tayo Tene, C. V. (2018). Adoption and outcomes of ISO 14001: a systematic review. International Journal of Management Reviews, 20(2), 411-432.
Castka, P., & Balzarova, M. A. (2018). An exploration of interventions in ISO 9001 and ISO 14001 certification context–A multiple case study approach. Journal of Cleaner Production, 174, 1642-1652.
Fonseca, L., & Domingues, J. P. (2017). ISO 9001: 2015 edition-management, quality, and value. International Journal of Quality Research, 1(11), 149-158.
Iatridis, K., & Kesidou, E. (2018). What drives substantive versus symbolic implementation of ISO 14001 in a time of economic crisis? Insights from Greek manufacturing companies. Journal of Business Ethics, 148(4), 859-877.
Kassem, R., Ajmal, M., Gunasekaran, A., & Helo, P. (2019). Assessing the impact of organizational culture on achieving business excellence with a moderating role of ICT. Benchmarking: An International Journal.
Manders, B., de Vries, H. J., & Blind, K. (2016). ISO 9001 and product innovation: A literature review and research framework. Technovation, 48, 41-55.
Oakland, J. S., & Marosszeky, M. (2017). Total construction management: Lean quality in construction project delivery. Taylor & Francis.
Shafiq, M., Lasrado, F., & Islam, A. (2018). SERVICE QUALITY SCALE DEVELOPMENT FOR HIGHER EDUCATION INSTITUTIONS: THE ASIAN CONTEXT. Journal of Quality & Technology Management, 15(1).
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development and future research perspectives. Long-range planning, 49(1), 36-54.
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