This document discusses the importance of effective operations and quality management in achieving organizational goals. It explores the processes and implications of strategic quality change, and provides insights into monitoring and implementing the change. The case study focuses on the National Bank of Abu Dhabi.
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STRATEGIC QUALITY AND SYSTEMS MANAGEMENT
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Table of Contents INTRODUCTION.......................................................................................................................4 LO 1.............................................................................................................................................4 LO 2............................................................................................................................................5 LO 3............................................................................................................................................6 LO 4............................................................................................................................................9 LO 5..........................................................................................................................................10 CONCLUSION..........................................................................................................................12 REFERENCES..........................................................................................................................13
INTRODUCTION The purpose ofstrategic managementis to drive the business organization efficiently and effectively towards its goals and objectives. Operationsmanagementis an important area ofstrategic managementwhich guides thequalityperformance of a company.National Bank of Abu Dhabi was a bank operating in the United Arab Emirates until it merged with the First Gulf Bank in December 2016 to form First Abu Dhabi Bank. NBAD was the largest lender bank in the Emirate of Abu Dhabi and in the United Arab Emirates. NBAD had the largest market capitalization among UAE banks.This report covers issues such as role of operation management in the company. Importance of managing quality. Plan a strategic quality change. Implement a strategic quality change. Evaluate the outcomes of change in strategic quality. LO 1 1.1 Importance of effective operations management in achieving the goals of organization ï‚·The aspect of operation management is concerned with managing the same operations which is necessary for every business such as First Abu Dhabi Bank. Nature of the business has nothing to do with this aspect. Aspects such as planning, controlling, organizing, controlling, directing and motivating are the elements of management. It is necessary to manage the operations on a daily basis in order to maintain the activities daily. Company needs to use the resources such as labour, raw material, money etc. in an optimal manner (Khan, 2018). ï‚·Managing the operations of the company is important as it helps the company to increase their productivity. With that it also helps the company to increase the efficiency of employees which overall helps the company to achieve their goals and objectives. ï‚·Operation management will be considered as effective when various activities of business helps to contribute in the alignment of products according to the requirement of the consumer. It is necessary to manage the operations as it focuses on entire operationsof the company and made it possible to make the servicesfeasible according to the needs of the consumers so that they prefer them over the services of their competitors.
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1.2 processesof operationsmanagementin meetingan organization’soverallstrategic management objectives The process of operation management includes four stages Minimize the negative potential- Managers who work at the top level of management in the company needs to neutralize any type of impact or factor which is negative for the company. These factors affect the internal operations of the company. Measures and controls are assessed in detail by the company so that they can ensure that steps taken by them is right for the company (Mbaka and Hood, 2017). Achieve parity with competition- In order to maintain the level of parity managers of the company need to assess the factors which makes them stay on the same level with their competition. This stage is concerned with being equal with the competitors so that they can adapt the updated and current practices in the industry of banking which helps them to solve the matters which are related with the employees, purchases of equipment and upgrade the capacity of productivity. Support overall strategy of organization- Managers of the company needs to support the function of managing the operations so that they can increase the strength of strategies of the companies. Pursue the strategy of operation management- In this stage top level managers and operation managers of the company works on the process which helps them to formulate the strategy by which the First Abu Dhabi Bank will be able to meet the objectives of strategic management. LO 2 2.1 Importance of effective quality management in achieving the goals of the company Consistent services and increased level of efficiency- Managing the quality of the service helps the company to increase factors such as reliability, performance and durability. These factors help the company to take out those factors which makes them different from their competitors. If they enhance the level of services then they will be able to earn more revenues. Apart from this it also helps the company to make the system of communication more clear so that there are less chances of sharing the information to the wrong person.
Reduced Risks- If the company manages the quality in an effective manner then they will be able to reduce the level of risk in their service which are offered to their consumers. Company needs to keep quality software so that the data is not corrupted as it can lead to huge losses and will affect the goodwill in the market. Low cost, increase in profits- The management of quality will help the company to improve those areas which needs theirattentionsuchasresearchand development,marketingand sales,manufacturing, maintenance of equipment, departments related to administrative and legal concerns of the company, accounting and finance. These measures will help the company to reduce the cost in these aspects and with the right decisions they will be able to increase their profits. 2.2processesofqualitymanagementinmeetinganorganization’soverallstrategic management objectives In order to take out the planning of quality process company needs to describe their standards and regulations which describe the requirement of the project. This helps the company to use the tools of quality so that they can predict the standards and imply the regulations according to it (Shokhnekh, 2019.). The quality assurance makes sure that project is carried out to assure that the service made by the bank is according to the regulations and standards. The aspect of quality assurance is done on both the aspects such as internally and externally and the department of the company keeps an eye on the whole process. To monitor the result of the process of quality management that is both results related with management and product. This aspect is concerned with the prevention and inspection of the process. Company focuses on reducing the cost by decreasing the quality of the service. LO 3 Strategic quality change to improve the performance of the organisation The plan of strategic quality change helps the company to offer high quality services which helps them to enhance the performance of the company. The department of operation management and quality system management faces many difficulties in formulating and execution of the plan. To identify and overcome the issues company come up with various types of techniques and methods. The plan of strategic quality change is divided into steps
such as finding the initiatives of the quality aspects, identify the demands and expectations of customers and ensures that the employees are involved in the process of maintaining the quality work (Klug, 2018). Assessment- This step of the plan is concerned with working according to the internal and external environment, the resources which are available, the gathering of information, analysis of situations which are happening into the current market. SWOT analysis will help the company to recognize their strength, weakness, opportunities and threats. With the help of this aspect company will be able to make the plans according to the requirements of future. Achievable- Company must formulate the strategies in that way which help them to achieve their set targets. Only with the help of this method they will be able to increase the quality in the management of operations. The changes which are assessed in the plan must be realistic and time bound so that the plan of the company does not get affected and they achieve the goals in the given time. It is advised that in order to achieve goals with more efficiency the company must set the right criteria so that they can achieve the tasks. Resources, tools and systems to support business processes in a strategic quality change Strategic quality change will help the company to assess the importance of success and help them to make sure that the changes made were necessary or not. The company can monitor the strategic change by keeping an eye on all the areas that are concerned with the completion of task. Then focus of the managers must be on analyzing the needs of customer and performance of employees. It is necessary that they measure and evaluate the transaction made so that it can be linked with the required performance. Implication of resources- The aspects such as operation management and quality system management are based upon the resources which are available. The aspect which is involved is HR of the company. This resource is considered as one of the strongest which can help the company to bring changes which are predetermined. The employees of the company are agents which bring the change in quality. Before the aspect of quality change six sigma was implemented in the company so that employees of the bank could be trained and develop their skills so that they can meet thestandards. To enhancetheir performancecompany motivatesthemon a continuous basis (Puttikunsakon, Boonlua and Raksong, 2017). Financial Resources-
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On the basis of availability of these resources the company take decisions and these resources helps the company to maintain the smooth flow of operations which includes the management of quality. There are various tools which are used by the company in order to take out the tool such as continuous development which has been effective for the company. Systems- There are different types of available sources such as internal system which helps the bank to monitor the progress in the performance of the whole aspect. The system designed is on the basis of continuous measurement and monitoring the process of quality system control of the company. Implications of planned strategic quality change in an organization Implication of planned strategy- Different implication are there for the bank on the assessment of internal and external environment. Financial performance- Bank can easily analyse their performance on the basis of improvements such as stability in financial aspects and performance. It is a considered as a good factor for the performance of the company. If the financial aspects of the bank is unstable then it will affect the efficiency of the company. In order to implement the necessary changes in quality company needs to make sure that they have the appropriate funds available with them. Customer Satisfaction- If the company is able to increase the level of service they offer to their consumers then they will be able to satisfy their consumers. In order to develop the factors of the company they need to analyse the aspects such as needs which are actual, demands and expectations of the consumers and satisfaction of the employees. If the employees of the company are not satisfied then they will not be able to deliver according to the needs and wants of the consumers and achieve customer satisfaction. In order to achieve this the company analyses the reasons of failure and work on them so that they can take rectifying measures for the company. Internal and external environment of the company is also involved in analysing the data and collecting the information. It is necessary that the company makes their culture flexible so that changes in quality can be easily implemented.
Systems to monitor the implementation of a strategic quality change For implementing the change successfully the company needs to work on evaluating and monitoring the processof qualitymanagementon continuousbasis. Many of the companies can design the plan in an appropriate manner but they cannot keep up with monitoring and evaluating the progress made by them. This leads to the failure of the whole process. This is the reason why the bank had to take the help of total quality management such as plan, do, check and act. If the company is able to facilitate employee empowerment and focus on increasing the level of communication they will be able to collect feedback and accelerate the program of change. This is considered as a plan of action which drives the company to change the quality. In order to implement this it is necessary for the company to make sure that their employees are getting enough training and developing their skills right from the top level of management to bottom level of management (Khan and Naeem, 2018). Performance Appraisal- There are several techniques for the measurement of the performance, assessments , bench marking etc. which is conducted by the bank on a continuous basis. Involvement of stakeholders- First bank of Abu Dhabi needs to ensure that their employees participate in bringing the change which will help them to successfully implement the change. LO 4 Implement a strategic quality change Monitoring the change- The strategies which were related to implementation of monitoring and evaluation needs to be assessed so that they can manage the process of change. It was not easy for the company to execute the changes in the strategies of quality. There are various methods which are used by the company for the monitoring of management of change such as different types of surveys for customers and the other stakeholders. With the help of this measure the effectiveness in quality change. The aim of the survey is to increase the relationship between the bank and the stakeholders and increase their participation in the process of change. Step by Step evaluation-
This method was followed by the bank in order to assess the quality of the process. Apart from this it will also help the company to increase the accuracy of the quality system management in the bank. Planning of Action- This aspect has helped the company to become international as they have made progress with the help of process of change. This process follows each step which involves the objectives of development of change and execution of the plan so that they targets can be easily achieved by them. It is necessary for the company to collect the feedback and evaluate it so that they can make improvements in the process of quality change (Psomas and Antony, 2017). Quality culture in an organization to ensure continuous monitoring and development Quality culture provides a framework that include certain standards which has to be applied into quality. this enables in maintaining quality and ensuring that standards are followed by employees at all level. besides that, it brings change in process or procedure of operations and increasing efficiency. However, with help of culture it becomes easy to incorporate continuous development within process and methods. Usually, there is systematic procedure through which quality culture is implemented. Similarly, in First Bank of Abu Dhabi quality culture was executed. here, several improvements were set which were vital by identifying weak areas. then, proper planning was done and accordingly strategy was developed to apply those standards in maintaining quality. Along with it, leaders were trained and their skills were sharpened to implement those standards. In addition to it, quality culture infrastructure was placed in which system and structure was revised. However, the standards was aligned with goals and objectives (Rahimic and Ustovic, 2016.). Then, a team is formed to implement quality culture and is assigned different roles to monitor those standards. After that manager effectively monitor those standards and analysed results and compare it with set goals and objectives. Then, according to it, changes are identified and proper actions and measures are taken. In this way, continuous development is done in process or procedure by ensuring quality standards. Besides that, training and development is provided to staff on how to maintain those standards. Implementation of a strategic quality change
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The implementation of quality change on the strategic basis is possible if they are able to adapt the strategy of bench marking. It is considered as the best strategic process of identifying the practices which are best and adopted by the company in relation with the processes and services offered by them (Gaspar and et.al., 2018). LO 5 Outcomes of strategic quality change It is essential for the company to manage the quality in the service and system of operation management so that company can take out high quality and standards of operation in the country. It is necessary that the company made changes in their processes and strategies which is on the basis of internal and external environment. The major changes after the implementation of the strategy are- Enhancements in the satisfaction of customers- When the quality of service increases then it will give more satisfaction to the consumers which will increase the level of loyalty towards bank which will help them to gain competitive advantage (Shin, Park and Lee, 2016). Improved satisfaction to employees- The increased level of quality will help the company to offer more satisfaction to their consumers which will make them enthusiastic towards the company. This will also develop their confidence by which they will be able to deliver their best (Cox, 2017). Enhanced CSR- The company is aiming at the value of the stakeholders as they consider it as their main focus of CSR. This will help them to achieve the goals and use advanced sources of quality system management and operation management. Also increase in the level of revenue and profit. The company started enabling the strategy of six sigma and TQM by which they maintained the stability of financial aspects so that they can increase the level of profits of the company. Apart from this they will be able to achieve more growth in the market. Improvement to a strategic quality change First bank of Abu Dhabi had the scope to improve more and bring more advancements in the process of operation management and quality system management. It also involves improvement on continuous basis in the strategy. The systems which are already existing in
the market could also be improved by taking these steps into consideration such as bringing the systems which are advanced and helps the company to develop continuously with the help of real time monitoring system, evaluation on continuous basis of the system of quality management, system of operation management etc (Alsaif, Savage and Reed, 2018). Facilitate action learning- This method is considered as learning collaboratively so that they can build the team and develop the set of learning. These groups were met by the company so that ideas can be shared by them and gather the feedback which are related to management of operations. CONCLUSION From the above studies it has been concluded that the First bank of Abu Dhabi has taken the help of various methods to bring changes in the process and system of company which are related to operation management and quality system management. This has helped the company to achieve growth in the market. Apart from this various tools has been taken by the company such as six sigma and TQM to enhance the level of satisfaction for their consumers.
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