This is a solution of Business Organization System part 2 in which we discuss The factor of quality has an effect on the success attained by the organization.


Business Organization System part 2

Assessment is an appraisal which outputs graded judgements with respect to quality. With respect to this factor it reaches beyond accreditation which gives rise to a binary judgement (Dill, 2000). Assessment puts the question “how good are the outputs of a particular project?” The end result of a process of skills assessment is an evaluation in quantitative sense, a grade which can be numeric, descriptive or literal) (Woodhouse, 1999).Projects and organizational assessments are extensively implemented by European quality assurance agencies. Project assessment is the method which is used most frequently. It is used quite frequently by more than half of the agencies in Europe, mainly in the Nordic, Dutch or English-speaking countries. Concentrating on projects management is predominantly recurrent in the business industries. Organizational assessment is much less frequently used. Only around one fifth of the quality assurance agencies of Europe take help of it on a regular basis (ENQA, 2003).


An audit with regards to the quality in an organization or a particular project pursued by the organization verifies the degree to which the organization is attaining its own clearly stated or implied objectives (Woodhouse, 1999). As cited in Woodhouse (1999) “ISO (Standards New Zealand, 1994) defines quality audit as a three-part process, checking 1) the suitability of the planned quality procedures in relation to the stated objectives; 2) the conformity of the actual quality activities with the plans; and 3) the effectiveness of the activities in achieving the stated objectives”. Audit generally gives rise to the question if the processes followed by the organization are effective or not? The output is a description of the extent to which the claims of the HEI are correct (Woodhouse, 1999).Academic audits are carried out at the institution level. However, unlike accreditation or assessment, audits do not aim at making a comprehensively review a HEI’s or programme’s resources and activities, nor do they directly evaluate the quality of teaching or learning. Rather audits focus on those processes implemented by HEIs in order to assure and improve the quality teaching and learning (Dill, 2000).

In Europe institutional audit is regularly used by 28% of the quality assurance agencies. It is used on a regular base in Ireland and the UK and by some of the agencies in Nordic and associated countries. The use of programme audits is not very common in European quality assurance (ENQA, 2003).The basic principle of QA – working out the
best course of action beforehand and communicating it reliably to all those concerned – should be applied whenever a planned business process is complex, has implications for other processes, or has wide or repetitious application. Beyond this, the decision to follow the specifications in a comprehensive published QA standard rests on your organisation’s answers to the following questions:

•Is your organisation prepared to invest the time to follow the formal discipline required?
•Does the law require your organisation’s compliance with a specific standard (pharmaceutical manufacturers must comply with the Code of GMP)?
•Do your customers insist on your organisation’s compliance with a standard (many large companies and Government Agencies and Departments have a policy of preference for suppliers with QA Certification)?


Quality assurance has to be on the list of high priority things of the policy makers of an organization if they intend to run the business environment successfully for a period of time. It is important to verify the quality level in a regular succession. It will ensure that the maximum level of quality is sustained throughout the life of a project carried out by the organization. If the customer of an organization is not content with the kind of quality the company is delivering by the output, then he will not buy the company’s products or services. The word of mouth, which generally is an important factor for deciding the consumer behaviour, will also go against the company in this case. This will acutely hinder the profit earning of the company. However, if it is possible to satisfy the customer, he can persuade the buyers he knows with his positive review about the products or the services of the company. Ultimately, it will help the company to become more profitable and as well as getting an excellent repute in the market. Some other key benefits which an organization gets from pursuing quality assurance are thefollowing. (Barrow, 1999)

Improve Quality

Quality assurance professionals are concerned in all of the crucial actions of a company like planning, manufacturing, resource procurement, packaging, logistics etc. In view of the fact that most of the procedures are being followed and scrutinized accurately, there is very less probability of occurrence if low quality or non conformity of products with regard to the specific standards. These requirements are generally of the nature of requirements with respect to standard, requirements with respect to customer, or requirements with respect to legal points (Harvey, 2002).

Low Cost

Quality assurance is helps in the process of cutting down the overall costs for the company. If it is possible for the company to manufacture products which conform to the quality standard at the very first go, it reduces the necessity of rework costs as well as costs related to wastage of resources, wastage of labour hours. It also helps in reducing the disturbances which generally occurs during the production process without a proper quality check procedure installed. The costs which the company has to incur due to providing warranties and guaranties for faulty products after sales also get reduced due to the quality assurance process. The overall cost of poor quality gets significantly diminished by the quality assurance process. All this reduces the operating costs of the organizations and hence results in increased operating profits (Eaton, 2004).

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