a. Give four (4) reasons why the Malcolm Baldrige National Quality Award (MBNQA) was established in The United States of America.
b. Discuss briefly the seven (7) categories of criteria that are used for evaluations on organizations to be considered for MBNQA.
As its name suggest, MBNQA ia a national award founded by then president, President Reagen in 1987, when the productivity in the States was declining. Refers to the USA Improvement Act 1987, four reasons why MBNQA was established are:
i. Helping to stimulate American companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits,
ii. Recognizing the achievements of those companies which improve the quality of their goods and services and providing an example to others,
iii. Establishing guidelines and criteria that can be used by business, industrial, governmental, and other organizations in evaluating their own quality improvement efforts, and
iv. Providing specific guidance for other American organizations that wish to learn how to manage for high quality by making available detailed information on how winning organizations were able to change their cultures and achieve eminence.
Seven categories of criteria that are used for evaluations on organizations to be considered for MBNQ are:
Category 1: Leadership
It refers to the leadership of the management in the organization, how they guide the organization to achieve quality and sustain it. The leadership also refers to the working orientation, culture and administration system on how to fulfill the organization’s responsibility to the employees, customers and the environment.
Category 2: Strategic Planning
This category evaluate on how the organization develop strategic plan, objectives and action plans. How the organization executes or implements the strategic plan and how the progress and development of the plan are assessed.
Category 3: Customer and Market Focus
This category looks at how the organizations has come up to the expectations of the customers, how the organization obtain input from the markets and customers on their needs and requirements. This category will also examine the relationship among the organization, customers and suppliers in terms of satisfaction, attainment, loyalty and the opportunities and possibilities of improvement and business expansion.
Category 4: Measurement, Analysis and Knowledge Management
This category looks at how the organization collects, analyses, administers and uses its data, information and knowledge to improve its operation, as well as to support the organization’s key processes and performance management system. This also include in the improvement of its information technology.
Category 5: Human Resource or Workforce Focus
This category examine how the work system of an organization and its work culture or environment and HR practices direct to performance excellence and in the same time, parallel with the strategic objectives and action plans of the organization. This includes pinpointing the organization’s initiatives to build and maintain a work environment and employee support system conducive to high performance, capacity and high capability of the work force and also to personal and organizational growth. It also looks at the employer-employee relations of the organization, in terms of the development and engagement of the employees in the progress of achieving the organization’s mission, objectives, strategy and strategic plans.
Category 6: Process Management or Operation Focus
This category looks at key aspects of an organization’s process management and organizational design, including the key products, service, and operation or business process, work systems for creating customer and organizational value or delivers the value to the customers and key support system and processes involving all work units. This category also examines the readiness of the organization to face emergencies and how it improve its operations for sustainability, increasing competitiveness and success.
Category 7: Business Results
This category looks at overall performance of the organization and its improvement in its predetermined key business areas such as customer satisfaction, leadership and administration performance, product and services performance, process, human resource focus, financial performance, stability and sustainability and also the market results of the organization, compared to other organization which offered the similar product or services.