Last Updated 12 May 2021

Cost of Implementation

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One could argue that if the organization is placed rather low on the 1000-point scale. This does not necessarily mean that the organization functions badly, in fact it is rather normal. What it does show though, is that there is still a long way to go to achieve excellence, where the organisation works smoothly, change is easy, there is integration between customer needs and what the organization provides, there is efficiency in the processes and all staff are involved and committed. One may believe that using such a model more explicitly as a management tool will make it possible for organisation to concretise the TQM principles into practice and more easily be able to focus on the system and how the parts work together rather than how the parts work in isolation.

Cost of Implementation

On average, the ISO 9000 certification fees are nearly 20 times more expensive than applying for the MBNQA. These fees do not take into consideration the internal cost of preparing for the process. With ISO 9000 registration, these costs can be much higher since firms have to conform to a prescribed industry standard. In contrast, firms applying for the MBNQA are simply inviting a group of examiners to review their operations for ideal existing practices.

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The EQA is Europe's most prestigious quality award for organizational excellence. The award is administered by the European Foundation for Quality Management (EFQM), and is open to all firms that operate in Europe. The application fees range from �10,000 to �12,500 depending on whether the applicant is a member of the EFQM or not (EFQM, 1999). On the other hand ABEF charges the organization even to download the information sheet and the criteria's for the award from its website. But one could postulate that all though it's expensive to register but it does provide on going continual improvements in all the areas and it could be considered as healthy and profitable long term investments.


This paper has highlighted the main people management activities that are currently being used in some world-class organizations. The MBNQA can help an organization by having the entire organization rally around a common goal, by creating clear objectives to improve quality, and the national recognition should the company win the award. Business week (cited in MBNQA,, [12 March 2004]) compared Baldrige winners with the Standard ; Poor (S;P) 500 and created the Baldrige index. Winners of the MBNQA outperformed the S;P 500 $33,185 to $18,613. This clearly shows the importance of quality improvement and gives tangible results of how winners improve their profitability for investors.

Whereas, Europe's view nowadays is clearly focused on the European Quality Award and the underlying EFQM model for business excellence. The vision beyond Europe's frontiers is restricted mostly to the Deming Prize and the MBNQA. Moreover, identifying the relationships between stated goals or objectives and outcomes can be challenging, yet this is a critical component of a rigorous self evaluation process. Quality frameworks such as the ABEF provide a firm foundation on which all organizations, including those within the higher education sector, can effectively plan and carry out the internal assessment process.

One could also conclude that all the three quality awards are very much inspired by teachings of Dr. E. Deming who is known as one of the pioneers of the global quality movement. In spite of sharing a number of apparent similarities, the ABEF, the MBNAQ, and the EFQM Business Excellence Models are based on fundamentally different framework criteria's about how best to improve the performance of an organization.


  1. Australian Quality Council, (2002), The Australian Business Excellence Framework 2002, St Leonards: Australian Quality Council
  2.  Docking, D.S., and R.J. Dowen, (1999), Market Interpretation of ISO 9000 Registration. Journal of Financial Research 22, no. 2: 147-60.
  3. Hamel, G., and C.K. Prahalad, (1994), Competing for the Future, Harvard Business Review 22, no. 4: 122-128.
  4. Oakland, J.S., (1999), Total Organizational Excellence Oxford, Butterworth-Heinemann Porter,
  5. L: Oakland, J, and Gadd, K. (1998), "Unlocking business performance with self assessment", Management Accounting, Volume 76, Issue 8, pp. 35-37.

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