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Copyright ?2011 Pearson Education How Can Organizations Improve Quality? Continuous Improvement An organization’s commitment to continually improving the quality of a product or service Kaizen The Japanese term for an organization’s commitment to continuous improvement Work Process Engineering Radical or quantum change in an organization. Copyright ?2011 Pearson Education Copyright ?2011 Pearson Education Copyright ?2011 Pearson Education You know the economic context has changed when you have a company like General Motors in bankruptcy, 9.4 million jobs vanishing in the United States, and an economic vocabulary that includes terminology like toxic assets, collaterized debt obligations, TARP, bailouts, economic stabilization, wraparound mortgages, and stress tests. To understand what this new economy is like, we need to look at the changes that have taken place and the impact of those changes on the way that organizations are managed. * This economic crisis, which began with turmoil in mortgage markets and spread to businesses when broader credit markets collapsed, has been called the worst since the Great Depression. With foreclosures, financial recession, a huge public debt, and widespread social problems from job losses, it’s clear that the U.S. and global economic environments have changed and are continuing to change. For instance, the International Monetary Fund forecasted that the global economy would likely contract in 2009 for the first time since World War II and that the recovery would take longer than expected * Experts believe that once the U.S. economy emerges from recession things won’t be the way they were—that there will be a “new” normal. As Timothy Geithner, the U.S. Secretary of the Treasury, said, “Capitalism will be different.”10 How managers manage and the way businesses operate will not be as they’ve always been. The biggest change is likely to be in the role of government, especially in financial markets and in consumer protection *
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