Standardization is defined as a process whereby which a company makes its methods, mostly due to its production process, and uniformity throughout the organization. Standardization assists with cost cutting by removing a duplicated effort and enables the organization to take advantage of the economies of scale when making purchases. It is important to note that standardization has got both advantages and disadvantages.
This essay examines various advantages and disadvantages of standardization in the organization.
Advantages of Standardization
The first major advantage of standardization is quality control; this would guarantee the customers a uniform experience across the brands regardless of the ownership of a given franchise. The second most advantage of standardization is the fact that it can help with the reduction of costs because only what is important for the product will be included. The third advantage of standardization is on marketing; standardization makes it easier for buying and selling functions quite easy and most effective. The other advantage of standardization is that it enables the businesses to avoid dependence on a single source of supplier; this is because availability of standards will help with the opening of markets. Companies have also increased their demand for the suppliers that largely depends on the standardization. The other advantage of the standardization is that it has a positive effect in the formation of strategic alliances between different organizations; it is quite clear that the merger of companies concerning the matters of standardization is beneficial in that the outcome of synergy can help with the reduction of costs as well as increasing profits of business.
Disadvantages of Standardization
Despite numerous advantages of standardization, it has also got its disadvantages with equal measures. The first disadvantage of standardization is that it will make product to lose its uniqueness. This is because if an organization builds its customer base on customers that value its unique products; standardization of its products would mean that the business would lose some of its former customer base. The second disadvantage of standardization is that the business would lose its responsiveness. This is due to the fact that when an organization expands to new markets mostly in foreign markets, standardization may turn against the firm. For example, if a restaurant specializes in making chicken meal, it might find it hard to adapt in new markets where most customers might prefer things like hamburger; its standardization policies may make it difficult for the business to respond these new customer needs. The other disadvantage of standardization is that it can only work for some businesses and may not work for other businesses. For instance, standardization is not appropriate for those businesses that are dealing with customer service and advertising. The other disadvantage of standardization is that it stifles or hinders creativity in businesses and response duration. This is because ones the business has set its own standards, it would be become status quo that changing it might be a hard nut to crack and eventually it would become organizational culture making it hard to change them should there be a need for change of those standards. However, it is important to note that market is dynamic and it would only be prudent for the business to change with changes that are taking place in its environment. The other disadvantage of standardization is about employee concerns. Standardization puts a lot of emphasis on the sameness and repetition; this shows that the employees are expected to do the same repetitively that may end up being tiresome and boring to the workers themselves. Put in other words, standardization would deny the employees a chance to learn new skills.
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