Relationship between Quality and State Development

Nadeem Yousaf

Tuesday July 29, 2008

Organizational sociologists have not paid adequate attention to discuss relationship between quality of products (applied also to services) and state development. Likewise, business community as well as government of developing countries has never seriously considered how important this relationship is for the state development.

It is unfortunate that management, human resource development, organizational psychology and organizational sociology research and theories have never got serious attention in developing countries because neither governments of developing country appreciates their importance nor capitalist class has seen effectivity of these theories because governments have their own corrupt vested interests and firms are happy that they are in profit without providing the quality products or services. In this article, a few reasons are briefly unraveled as to why capitalist class of the developing countries survives and makes profits without being quality conscious.

Capitalist class clearly recognizes benefits of huge population, which provides them a large number of customers. In this era of globalization, many companies from the developed countries have also recognized this fact therefore they are rapidly establishing their operations in the developing countries. A concentrating point of business community, whether a local or overseas, in developing countries is to make money quickly even if they need to establish false impression of the firm as a “provider of quality product and service.” They extensively utilize marketing, sales and promotional techniques and adopt strategies that influence psychology of the customers and clients. They spend huge financial resources on decorating their official premises and on promotional activities but spend little in offering or maintaining quality of the products and services.  The effects of this spending are dramatic as it psychologically captures the minds of customers and clients; they unconsciously start believing in the company as a supplier of quality products and services. Interestingly, multinational companies also do not care much about quality of the product or services when they operate in developing countries. Those people who worked in developed and developing countries would confirm that quality of the same product tremendously varies from country to country and region to region. This is an interesting question as to why quality is not offered or maintained in developing countries. There are multifold reasons and some of them are given below to answer the above question. 


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Human resource is a prime reason to maintain quality of products and services whereas the capitalist class in developing countries prefers to hire mediocre and less qualified people on low salaries and wages that can produce “just saleable” products. Human Resource policies are designed that are more helpful in controlling employees’ behavior than improving their skills. Unfortunately, those HR practices which are common in developed countries are considered special privileges in developing countries. Inadequate practices, though demotivate employees, do not affect by and large on firms’ profits; hence management does not bother to change its behavior towards employees. Employees are also reluctant to raise their voice against the undue human resource practices because they are scared that they would be laid off and face problem in finding a new job due to high unemployment rate. By virtue of high unemployment rate, even high employee turnover is not seen as an organizational problem as it happened in this case: in one of the academic institution, the management did not come in panic when seven teaching staff simultaneously resigned. Without going into the process of hiring new people quickly, they offered overtime to the remaining staff to take the workload of those who left the institution. Another interesting point of this case is that the remaining teaching staff did not show any resentment even though their teaching workload was increased more than 20 hours per week. Rather, they accepted the workload gladly as it was seen as an opportunity to increase their net income. Hardly any party questioned how it would affect the quality of education. It is not the sole case. Visiting websites of academic institutions of developing countries, one finds a large number of PhDs in the teaching staff but quality of education is still very low in these countries. Again, low quality is not in the field of education but prevails in all industries.


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Another reason of quality deterioration in developing countries is that customers and clients are most of the time not interested in challenging quality of the products and services due to various reasons including lack of trust in the system, spoiled and expensive justice system and almost non-existence of consumer societies. Under high inflation and high rate of unemployment, individuals are too worried about earning their bread and better than combating for their own rights. Sadly, in developing countries laws exist almost for everything but lack implementation. Capitalist class is well aware that public laws mostly act as a decoration peace in the developing countries than controlling its behavior. Hence, they plunder the public without having genuine fears.

Regrettably, governments of developing countries do not see relationship between quality production of organizations and development of the state. Firstly, they have their own vested interests so they collaborate with the capitalist class instead of controlling them. Secondly, Governments of these countries strongly believes in capitalism and are of the opinion that market forces will control behavior of the firms, which is not proved to be true anywhere in the world.  Depending solely upon market forces has not worked in less populated countries so it will be foolish to expect that they would work in densely populated countries where economic and political environment is not in a favor of common people. 


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Due to the reasons mentioned above, high probabilities are that any businessman/women can be successful if he/she operates in favorable conditions as given below

“High Profit = Availability of financial capital + availability of human resource at low rates + low production cost + low quality + high number of customers + flimsy government control”

 This condition may be exciting and profitable for the capitalist class but will have negative affect on the state development as it is evident by seeing condition of the developing countries.

 
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http://management.corporatemangementsolution.com/quality&state.htm