Crisis Management, Total Quality Management, and Organizational Sustainability: The Relationship.

Successful business strategy should include a plan to develop sustainability and competitive advantage. In the process of developing sustainability, thinking and planning is a primary process that provides executives an important step to develop programs. However, how to communicate effectively within an organization about organizational change, innovative strategy, and how to monitor the progress efficiently becomes a substantial question to the organizational leadership. Organizations use total quality management (TQM) for not only measuring the competitiveness but also governing the efficacy and sustainability. From the theory of organizational learning perspective, effective leadership proved to be a key requirement for the success of the organization by all measurements including communication and transparency. Therefore, communication and crisis management is also a significant contribution to the sustainability and competitive advantage in this regard.

Crisis management has two approaches, event-based and process-based (Jaques, 2010), but it requires charismatic leadership, in which effective communication and sharp decision are the required characteristics of a leader to influence followers in an organization. Every member of the organization from executives to front line employees should understand the organizational mission for sustainability and business innovation. Therefore, there is a relationship between crisis management, leadership, and organizational change. Jaques (2010) noted that effective organizational learning and changing are achievable only when crisis review is objective and accepted.

The relationship between TQM, sustainability, and social responsibility is determined by a high measurement of governance because TQM aims at the continuous improvement in all functions of an organization (Chin & Sofian, 2011). TQM emphasizes the focus of top executives on quality management of an organization including sustainability thinking, crisis management, charismatic leadership and competitiveness. Quality management is a holistic approach to monitor and ensure a performance of a complex environment where leaders used organization learning culture to foster the sustainability.

As the complexity and persistent nature of sustainability issues is conceptually incorporated into business strategies, it requires businesses to construct radical and structural changes within and between organizations (Loorbach, Bakel, Whiteman, & Rotmans, 2010). Organization should establish a committee at the executive level to monitor and manage the sustainability progress. Business strategies for this transition towards sustainable organization requires changes including technology, economy, culture, and organization (Loorbach et al., 2010). Consequently, crisis management, TQM, social change and responsibility, and sustainability relates to each other in this process.

Reference

Chin, K. S. & Sofian, S. (2011). The impact of human capital and total quality management on corporate performance: A review. Interdisciplinary Journal of Contemporary Research In Business, 3(3), 1091-1100.

Jaques, T. (2010). Reshaping crisis management: The challenge for organizational design. Organization Development Journal, 28(1), 9-17.

Loorbach, D., & Bakel, J. C., & Whiteman, G., & Rotmans, J. (2010). Business strategies for transitions towards sustainable systems. Business Strategy and Environment, 19, 133-146.

About Phat Pham

I don't have money to share, but I do have a desire to transform our society, starting from the workplace and the local community I serve.
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2 Responses to Crisis Management, Total Quality Management, and Organizational Sustainability: The Relationship.

  1. Denaus Jones says:

    Phat,

    That is a good read. What are the other details of a business strategy? I need to get a better understanding of Crisis Management and TQM, I am sure they are equally important, but you have raised my interest towards Organizational Sustainability.

    Denaus Jones
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