Employee Development Plan: Importance and Applications

Employee Development Plan: Importance and Applications Employee Development Plan Running Head: EMPLOYEE DEVELOPMENT PLAN Abstract With the nation’s economic turmoil still lingering it is more important than ever to develop plans that will encourage employees to remain with the company. Employee turnover is a crucial issue when it comes to the current economic standing of America. Each time an employee leaves the company the company loses the money it spent training and developing that employee for the future with the company. The training, classes, and cross skills the company has invested in the employee then benefit the new company. Because this situation costs the company money, a new employee development plan has been designed in the hopes of improving employee retention rates in the future. Employee development allows for the development of the employee so that they can better equip themselves for their career choices. It is important to support their desire to develop more fully at work, while at the same time not investing money that walks out the door and to the competition. This design allows the company to support and assist the employee desire to develop in career skills and to feel that the company supports the loyalty he or she has shown by years of service while encouraging education as well as cross training. The organizational consultant, per the research information and plan, challenges the organization to embrace the detailed plan to further develop each valuable employee. No matter what, organizational leaders must see the value in employee development and be willing to make the effort to show loyalty to its employees. Employee Development Plan With the nation’s economic turmoil still lingering it is more important than ever to develop plans that will encourage employees to remain with the company. Each time an employee leaves the company the company loses the money it spent training and developing that employee for the future with the company. The training, classes, and cross skills the company has invested in the employee are then benefiting the new company. Because this situation costs the company money, a new employee development plan has been designed in the hopes of improving employee retention rates in the future. Ebbert Hubbard, the prominent American philosopher and writer, once said, â€Å"One machine can do the work of 50 ordinary men, but no machine can do the work of one extraordinary man† (Goldstein, 2003). His statement seems to be more pertinent than ever in the contemporary context of commuting from organizations focused on tangible assets like land or property to organizations relying on intangible assets such as creativity, knowledge, or problem solving. Statistics show that more than 50% of the Gross Domestic Product generated by developed economies is based on knowledge—information technology (IT), education, and pharmaceuticals being the key sectors that account for the impressive percentage (www.yourpeoplemanager.com). This means that humans have become the major resource for modern companies. Consequently, their development and education are the major levers conditioning the organizational growth. For that, leaders must understand the value of their employees and develop them for organizational and employee benefit. This research defines employee development and addresses why organizational leaders need it. The research proves the link between employee development and company growth while sharing the benefits of employee training and development. Then the research outlines a plan that addresses hiring, training, development based on time, promotion, and education. Lastly, the conclusion calls leaders to action to realize the importance of, and build the plan for, developing their employees. What is employee development and why do we need it? Before starting to analyze the correlation between these two aspects, a clear picture of what employee training and development mean could prove extremely useful. First, a clear delimitation should be made among three concepts that people often confuse. These are education, training, and development. The first one consists of preparing an individual’s mind in a framework that is different from the organization. The second refers to attending courses aimed at improving skills, knowledge or attitudes for appropriately achieving a certain task within an organization, while the third is the natural result of the first two and is represented by the growth of the individual in terms of ability, understanding and awareness (www.accel-team.com). This triangle proves to be indispensable to company performance as it allows employees to account for more tasks that are difficult. In addition, it accommodates newcomers to the organization’s performance standards and helps them act w ithin the same competitive pattern responsible for the company’s success. Further, it enhances the organization’s efficiency and effectiveness, it responds to legislative requirements regarding health or safety, and sets an adequate framework for informing employees on changes that have been made and the courses they have to attend in order to cope with modifications. Detecting the personnel’s needs requiring employee training and development programs is very difficult. However, task as managers can rely on various sources such as common sense (for instance, the implementation of new technologies undoubtedly represents a solid reason for training) and negative aspects that statistics reveal (the decrease of output per employee, lower performance indices, behavioral problems like absences, sickness, lateness etc.). Furthermore, government recommendations, predictions, specialists’ advice, alarm triggers pulled by specialized journals or confessions made by other organizations which have encountered a certain problem also are other sources on which task managers can rely. Training and development may be achieved in both formal and informal ways. The former category implies attending courses held by internal or external managers who usually combine impersonal lectures with interactive activities like role-playing or simulation, forums, tests, case studies presented with the help of video and computers. The latter category is a non-official one, and is mainly based on the employees’ ability to draw their own conclusions after observing other workers, participating in meetings, rotating jobs within the organization or temporary assisting employees from another company, autodidactic teaching by reading texts or viewing video tapes, being a member of a research team and so on (www.accel-team.com). Measuring the outcome of such training and development initiatives is a very difficult thing to do because results are rather qualitative than quantitative. Still, managers may observe if the effectiveness and efficiency of their employees have increased by analyzing the number of customer complaints or the time in which a certain task has been performed. They can also notice a faster accommodation of new employees, more effective use of machinery, a higher job satisfaction reflected in performing more qualitative services to the client (and thus attracting new customers), fewer accidents etc. Managers can also draw some conclusions concerning the employees’ loyalty or the improvement of their qualification allowing them to contribute to tougher tasks or other positions within the organization (www.accel-team.com). Researches proving the link between employee development and company growth Undoubtedly, employee development has a significant impact on the customers’ satisfaction and the employees’ ability and willingness to solve crisis encountered by the organization or to adapt to changes occurred in the business environment. Through training and development, a company’s personnel may gain the necessary expertise for approaching new markets or technologies, thus inducing cost savings in the end. Additionally, employees value trainings because these are seen as strategic investments that the organization accepts to make because of the huge trust it has in its personnel’s potential. Therefore, employees will embrace a positive and enthusiastic attitude towards the organization concerned about their intellectual evolvement and will work harder for helping it achieve its mission and goals (Gross, 2000). The link between employee satisfaction, customer satisfaction, and financial performance has also been outlined by AC Nielsen through its market researches or by Sears through surveys carried out on its retail stores (Goldstein, 2003). Another research survey, carried out by Sirota, Mischkind, and Meltzer (2005), on a sample of 2.5 million employees, highlighted that companies boasting high morale had the tendency to outperform competitors. Moreover, the research emphasized that out of 28 companies having almost 920,000 employees, the share price of 14 (known as high morale firms), had an average increase of 16% in 2004, while the share price of 6 (known as low morale firms) had an average increase of only 3%. The results were significant when compared with the industry average of 6%, calculated for 9,240 companies (http://knowledge.wharton.upenn.edu). In conclusion, higher morale and enthusiasm lead to increased financial performances. As employee development and training are said t o be rewards boosting the personnel’s positivism and satisfaction, they may be considered inherently linked to company growth. Benefits of employee training and development A major benefit of employee development is increased productivity. Because of the courses he or she attends, an employee may learn advanced techniques that lead to higher efficiency and effectiveness in performing tasks. For instance, if a company’s bookkeeper is sent to an Excel course, this will be taught several shortcuts that will help him or her comply faster with his job requirements. On one hand, this means that he or she can perform other activities that would have otherwise required hiring new employees, and spending more money. On the other hand, increased efficiency results in prompt accountancy reports and ledgers that may be timely consulted by managers in order to make operative decisions. This means shorter time, and consequently, less money spent. A second benefit of employee development refers to reducing turnover. Researches that have been carried out with regard to this issue have emphasized that an employee’s trajectory within an organization has the form of a parabola. In the beginning, he is enthusiastic about his new job and learns everything he needs in order to live up to the company’s expectations and gain recognition for his well-done work. This ascending trend (or honeymoon as Sirota calls it) lasts five or six months until the individual reaches a climax where routine comes into the limelight. Thus, he continues to do his job for a certain period, but as nothing new appears, the employee decides to leave the company and try something different or look for another challenge. Yet, Sirota’s (2005) research shows that 10% of the companies surveyed succeed in ensuring a prolonged honeymoon throughout the entire career to their employees because they understand the difficulty of â€Å"being enthusi astic about an organization that is not enthusiastic about you† (http://knowledge.wharton.upenn.edu). Consequently, they implement development programs that help employees seize opportunities and prepare for complex tasks that might reveal numerous latent skills or abilities. Additionally, employee development may be presented as a supplementary path to job security that has become a top need after the collapse of high-tech companies and September 11, 2001. A perfect example of a high-morale company in these terms is Southwest Airlines, which, after the terrorist attacks in September, stated: â€Å"We will take a hit in our stock price and not lay off anybody† (http://knowledge.wharton.upenn.edu). Furthermore, training and development can exert a positive influence in the recruiting process. First, managers may wish to hire an elitist who does not correspond to job requirements because of a certain skill. If the company is ready to offer trainings for developing the missing feature, it could win a valuable employee who may be responsible for future performances. The following is an example: A person applying for the PR executive position may be rejected because he or she does not correspond to a single requirement such as updating the company’s website. Although he or she is a performer and a fast learner, the organization prefers to hire a less brilliant candidate who poorly meets all the requirements instead of investing some courses in the first one. Such a decision may greatly affect the company’s performance and image. Secondly, development programs may prove enticing enough to potential employees. Therefore, the company can use them in order to attract the desired staff capable of inducing the organization’s growth. Thirdly, if existing employees are trained for different or more complex tasks, these may become eligible for vacant positions or may handle a wider range of activities. In this context, the company saves money by reducing its need to hire. Fourthly, development consists of rewarding loyal employees who after learning new skills are promoted to higher positions. This also accounts for a company’s performance. Lastly, development strategies allow employees to be more independent or, in other words, they give them wings to fly. This autonomy cuts off the supervision costs, thus increasing the company’s efficiency, and inherently, performance (Gross, 2000). Employee training also plays a major part in maintaining a work/life balance. This is essential for the organization’s health because the employee burnout phenomenon can decrease productivity or can have other negative consequences like: sickness, lateness, absenteeism as a result of the unusual stress; lower efficiency and morale because of their exaggerate workload; higher turnover rates. Consequently, employees should be helped to handle both work and life commitments through trainings teaching them how to better manage time and priorities or how to recharge batteries after projects or seasons involving an unusual amount of work. In response to the company’s concern, an employee may prove unexpectedly grateful and may voluntarily contribute to a future project, essential to the organization’s success (Gross, 2000). Employment Development Plan Hiring The first step to employee development is the hiring process. When there is an opening the department head will meet with human resources and determine exactly what the new job requirements will be. In addition, at this time there will be a discussion about where the position may lead in the future and what type of education or skills will be important to have for the path to be followed (Bass, 1985). Hiring in the future will involve a careful screening of applicants to cull the most qualified for the particular position in question. In the past, it has been accepted as a practice to hire the first one who was qualified in order to get the position filled. In the future, this will change and improve the retention rate of employees to the company. The applicants will be carefully examined so that the candidate who is most likely to advance within the company is selected. Hiring will happen by way of Internet sources, employee referrals, recruiters, and job fairs. When an opening occu rs it will be publicized in several publications so that the company will have a diverse applicant pool from which to select those who will be interviewed (Steines and Kleiner, 2003). Training Employee development is an expensive process. The company invests funds to train the employee, and then further train and then possibly invest in the employee’s college education as well. All of this is done with the hopes that the company will eventually reap the benefits of the investments made on the employee’s behalf (Liggett, 2007). The company’s employee development plan has changed to be more cautious about fund investments at the front end of the employee history with the company, but on the back end as time moves forward, the benefits are increased from previous years. When an employee is first hired, there will be a three-day training period by which the employee will view the videos and company policies, be given tours of the company, and will engage in a discussion about future possibilities. After the three days have passed, the employee will begin working along side someone in their chosen department who will assist with their acclimation (Liggett, 2007). While this will cost time and money because the training or supervising peer will have to slow down their own work when the new employee needs help, it is still less expensive than paying for the new employee to spend time in a training institution. The training will initially for nothing more than the job the employee was hired to do. At the first three-day session however, the employee will be told of the entire development package so the employee has an understanding of what the future holds and what staying with the company can mean to them. There will also be an employee suggestion box outside the cafeteria from which ideas for development will be read and discussed quarterly (Liggett, 2007). Development based on time The entire foundation of this employee development plan is to reward employees for loyalty and longevity. The plan is based on a staggered schedule that allows the company to provide the best benefits for those who stay with the company (Redling, 2003). The reward is incentive for employees to remain in the employ of the company while offering the company some security that it is investing in long-term workers. It also reduces the loss of funds that occur when a short-term employee goes to a competitor after receiving training at this company. Because the company’s new policy is operated with the bulk of the benefits on the back end of employment they must be made better than they were before so that employees want to stay and reap the rewards of the new package. After six months of employment the employee may request for a cross training package to be started. In this package, the employee will be trained in other departments so that he or she can work throughout the company in several different capacities. The company will provide a temporary worker to perform the employee’s duties while the employee is cross training for the other department (Redling, 2003). Each six months the employee will be encouraged to choose another department that he or she wishes to be cross trained for and the company will provide an temporary worker so that the employee can devote a full forty hour week to the business of learning the new skill. There will be no limit on the number of departments an employee can be cross trained in as long as there are at least six months worked at the regular position between training sessions. This allows the employee to develop their skills as well as provides additional back up support for the company because the empl oyee can handle multiple tasks within the company (Redling, 2003). Promotion It is important that an employee feel they are being treated well and given opportunities to advance in their careers (Solomon, 2002). Any time there is an opening the company employees shall have the first opportunities to apply for it. If there is an employee who is qualified, that employee shall be given the job and the hiring will focus on replacing him or her in the old position. Education After one year of employment with the company, the employee can apply for the education package. This will allow the company to reimburse for some costs of education. In years two through four of employment the company will reimburse the cost of tuition following the receipt of a report card that demonstrates a C average in the classes attempted. The classes can be based on any subject but there will be a one hundred percent reimbursement for classes pertaining to work and a seventy five percent reimbursement for classes that do not pertain to the industry. During years five through ten the company will reimburse at one hundred percent not only the cost of the tuition but also the cost of the books for any classes the employee chooses to take. The employee simply needs to provide a report card at the end of the semester to receive reimbursement. From years ten to 15 not only will the company pay for the employee college but will allow the employee to attend during the work day without docking the pay. This will work up to two hours a day for the duration of employment. The employment development plan not only allows for the development of an employee in the area of training but also in staff development. The managers of the company will attend annual seminars on staff relations so that they can better understand how to communicate with their subordinates (Dowling, 2001). The company wants to focus on employee retention and part of the reason employees choose to stay with a company or leave it for greener pastures is because they do or do not get along well with their superiors. Staff development and relations is an important aspect of employee development and annual staff relation seminars are targeting problem communications so that the employee will continue to feel loyal to the company. Conclusion Employee development can serve to save funds that the company would otherwise have to write off. Employee turnover is a crucial issue when it comes to the current economic standing of America. Employee development allows for the development of the employee so that they can better equip themselves for their career choices. It is important to support their desire to develop more fully at work, while at the same time not investing money that walks out the door and to the competition. This design allows the company to support and assist the employee desire to develop in career skills while at the same time discouraging a cash loss. If the employee stays with the company the development program risks very little of the company’s assets before the employee has proved themselves a long-term investment. This plan allows the employee to fully develop and to feel that the company supports the loyalty he or she has shown by years of service while encouraging education as well as cross tr aining. The organizational consultant, per the research information and plan, challenges the organization to embrace the detailed plan to further develop each valuable employee. No matter what, organizational leaders must see the value in employee development and be willing to make the effort to show loyalty to its employees. References Bass, B. M. (1985). Leadership and Performance Beyond Expectations. New York, NY: Free Press. Dowling, F. (2001). â€Å"Just the Job: Bosses need work on staff relations.† Birmingham Post. January 6, 22 pp. Function 7: Employee education, training, and development. (2006). [Online], Available:http://www.accel-team.com/human_resources/hrm_07.html (2008, January 30). Giving Employees What They Want: The Returns Are Huge. (2005). [Online], Available: http://knowledge.wharton.upenn.edu/article.cfm?articleid=1188CFID=3898075CFTOKEN=53249968 (2008, January 30). Goldstein, S. (2003). â€Å"Employee Development: An examination of service strategy in a high-contact service environment.† Production and Operations Management. Summer. Gross, B. (2000). 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Volume 26, Issue 2/3/4, pp. 170-180. Solomon, M. (2002). â€Å"Discovering the Leader Within.† Computerworld. August 5, 38 pp. YPM Briefing: Employee development. (2005). [Online], Available: http://www.yourpeoplemanager.com/YarBGXpoTX_-WA.html (2008, January 30). Total Quality Management: Advantages and Disadvantages Total Quality Management: Advantages and Disadvantages Quality plays a significant role in the development and success of any organization or product. UK is recognized as a core of the creation of petrochemical and other associated products of petrochemical. There is high demand for petrochemical products all over the world; so quality assurance and quality management are very important in petrochemical industry in order to exist in the global economy. There are many petrochemical industries in this country and millions of people are working in these industries. Even though this sector is one of the major sources of economic growth, the petrochemical industries are facing some problems regarding quality management and quality assurance (Grote, 2001). The main challenges faced by the petrochemical industry are the need to manage the commercial environment better and as a minimum to stop worsening the industrys inherent cyclicality  the need for further restructuring in order to improve underlying performance  and the need to improve relationships with the outside world because crucially these relationships increasingly will determine the scope for success in our industry (ibid). In terms of long term challenges, petrochemical industries in the UK are facing number of challenges that need careful planning. These challenges are firstly, the increase of demand (BP, 2010). This increase in demand is caused by the increase in population in the UK and around the world which will put petrochemical under pressure to follow the demand. Another problem is dealing with petrochemical suppliers it will be possible to survive the prices that are caused the changing in petrochemical raw material (oil and gas) in global market (ibid). For example, in 2008 the oil prices raised to record value over $138 for barrel. Thirdly, they need to find more resources to cope with demand increase (ibid). Finally, they are going to face a problem of where should they make investments and train their workforce (ibid). The investment should not be on only finding new oil field but Its about discovering new technologies and pioneering new methods; developing the best equipment and equipping our teams with the right skills and be more innovative to become even more environmental friendly (ibid). Some petrochemical industries in the United Kingdom have problems in utilizing their resources in best way. This causes a great loss of profit for them since in higher demand season they need to increase the capacity by hiring skilled workforce or buying needed products from competitors which needs extra costs. Others have problem recycling there products or some kinds of product or even recycling of the waste product. This also causes a big loss to the company because if a product has a defect, its not necessary mean that all material integrated in the product cannot be recovered. Implementation of the Latest technology and train the workforce on it is necessary as it recommended by TQM and ISO 9000 in system improving point. The pressure which making solving these problems even more difficult come from the financial crisis for the past few years that has affected the running of the petrochemical industries 2008 saw crude oil prices rise to record highs and then follow the financial markets to unexpected lows (BP, 2010). Increase in the price of the resources decreased the production of these industries or if the production doesnt change, the profit will decrease. The petrochemical products are used for a number of purposes and the number of competitors has increased recently; therefore, leading in quality and clearing the company brand guarantee the survival in this competition. Implementation of TQM as a precursor to ISO 9000 and vice versa: The petrochemical industries are those involved in the manufacturing of toxic chemicals and organic compounds which can affect the people when not maintained properly. Quality assessment and quality standard implementation should be done from the start-up of production to the final despatch of the product for customer satisfaction and for the maintenance of quality system. The petrochemical industry should also comply with the requirements of occupational health and safety management systems which deal with the precautions on health and environmental factors. This is applicable to all chemical industries. In Diagram 1, the implementation of quality factors starts with the vision and mission of the company, the vision are the future view of the company; the mission are the goals in terms of quality products, customer satisfaction and the profit which they want to achieve (DTI, n.d., p2). The statements should be clear and spontaneous (ibid). CSF/KPI: The critical factors for successful implementation are the building blocks for the success and those identified factors that affect in the implementation by analysing of the past data and the modification to be done in implementing the new standards (DTI, n.d., pp2-3; Oakland and Marosszeky, 2006, p363). They identify the key performance indicators like the employees, resources like plant and machinery, innovation etc. Encouraging new ideas and technology, discarding obsolete ones etc. contribute to the success in the implementation; they monitor the performance and report the progress and the feedback for the organizations well-being (ibid). Core process: The core business processes are the profit rearing segments of the business and they consist of suppliers, process and the customers (DTI, n.d., pp3-4). The quality implementations create a major impact on the core process and the competitive advantage when the implementation of the TQM is done in the business process (ibid). Defining of the business opportunity: Quality implementation is done mainly for increasing the reputation of the company which leads to increase in profit. The company must be against the acceptance of any kind of compromise in the product quality which affects the company and its reputation in the market. To make the situation at an ease and conducting a review to identify the particular need and the specification of the customer and the company and the analyzing whether the required standard is met or not, this becomes the method for getting a better business opportunity (DTI, n.d., p6). The ISO 9000: This is an important tool for the implementation of TQM. This is a general name given to the list of quality standards. The main aim of these quality standards is to provide the company with the standard products and to make the company a profit oriented and highly reputed. The brainstorming of the ideas is given a good place for the implementation. They help in several ideas generated by the people and the product analysis and the performing of the functions according to the effectiveness of the customer satisfaction and the major role in the quality assessment criteria and to enhance the company position, reputation and profitability (Karakas and Kavas, 2008, pp.8-11). Decision making by the management and the implementation to be done by the different standards and the performance of them are monitored continuously, and the demerits in the performance are identified and continuous improvement is done by providing adequate training and development (Maddalena, 2007, pp.71-72). ISO 9000 series is a quality management system that has to be maintained in an organization. This means what the organization does to fulfil:   the customers quality requirements, and  applicable regulatory requirements, while aiming to  enhance customer satisfaction, and  achieve continual improvement of its performance in pursuit of these objectives (ISO, 2010). The idea of improvement in implementing TQM by the companies is to have the accreditation, proper dealing with the customer for the certification for the business and exports to be done to other countries and also to increase the position and profit of the company. Advantages of implementing TQM as a precursor to ISO 9000 and vice versa globally: The ISO 9000 and TQM are two main subjects that are used to show the quality of an industry. Although fundamentally different TQM ensures organizations do the right thing, while ISO 9000 is about doing things right (Williams and Buswell, 2003, p133). There are many advantages in implementing ISO 900 as precursor to TQM and vice versa. ISO 9000 has grown popularity due to its advantages. The ISO 9000 is considered as a quality model, and it can be used as a tool to TQM. ISO 9000 helps in planning household finance because keeping records of paying bills and taxes is the first step to run a business effectively (Kurtus, 2001). ISO 9000 will help the process of production when the quality management process is at the starting stage. ISO 9000 has nowadays become a need to any organization because it helps to improve productivity (Pike and Barnes, 1996, p27). It helps in organizing the process of production, and it also helps in improving the performance of the company (ibid). The implementation determines whether the work is done in an efficient way or not, and makes sure that the system is on track (ibid). Moreover, ISO 9000 gives a great advantage to an organization to work globally (ibid). Finally, by implementing ISO 9000 first, the implantation of TQM will be more effective. On the other hand, Total quality management can be implemented as a precursor to ISO 9000. Implementing TQM as a precursor can be of advantage to the implementation of ISO 9000 because the company can keep its regular customers which can be possible because TQM helps in meeting the needs of the customers. The implementation of TQM creates a competitive advantage, and it will also improve the participation and dedication of the employees. The employees work as a team for the implementation activities and thus cooperation increases. Besides, the implementation of TQM as a precursor to ISO 9000 will reduce the time of the registration with ISO because most of ISO 9000 requirement should be met by the organization. The implementation of TQM and ISO 9000 helps provide quality to the customers. So, the advantages of both quality systems in an organization can be listed as follows; They improve the productivity of the organization from top to bottom. They are systematic and well-structured approaches that can be used for enhancing customer satisfaction. Theyre very improvement methods by which the deviations can be reduced. Both help in delivering the product and services that required quality which expected by the customers. Together they help in reducing a higher level of wastages. Implementation of ISO 9000 offers a strong foundation for the efficient implementation of TQM. The implementing of ISO 9000 as a precursor of TQM helps to create an understanding of the requirements of the customers. It enhances the involvement of the employees in the TQM process. It increases the relationship with the suppliers. The profit of the firm can be boosted up by implementing ISO 9000. Disadvantages of implementing TQM as a precursor to ISO 9000 and vice versa globally: ISO 9000 and TQM are the integral components of the successful running of every organization. While implementing TQM as a precursor to ISO 9000, few problems arise in connection with customer satisfaction, because without the incorporation of TQM and ISO 9000 does not bring enough customer satisfaction. They consider that ISO 9000 certification is the main thing which shows the manufacturers ability to produce high quality products (Schoonmaker, 1997, p5). Also implementation of TQM as a precursor to ISO causes difficulties for entering into international market because ISO 9000 certification is an integral component of petrochemical industry to enter an international market. In order to get ISO 9000 systematic planning is necessary and it will help bring faith from the part of the customer and also to produce good quality products. ISO 9000 certification is the major thing which is used to compete with the international markets. Also, implementing TQM as a precursor to ISO 9000 will cause difficulties to maintain quality improvement. So, it is better to follow ISO 9000 standards before TQM in every organization. Nevertheless, there exist few disadvantages also for this type of implementation. In order to achieve maximum profit from a business, the major thing is to fulfil the needs of the customer and TQM approach gives more consideration to customer satisfaction. So, by implementing ISO 9000 first will cause few problems regarding customer satisfaction. Even there is quality in the products for the satisfaction of the customer ISO 9000 and TQM certification is essential. It is better to implement ISO 9000 before TQM because in the newest version of ISO 9000 it includes several features of TQM. Therefore the implementation of TQM before ISO 900 is really wastage of time and money. There are some problems regarding the implementation of TQM as the precursor to ISO 9000 and some of that problems are Initially higher cost of production as more is recognized as rejects. Cost of training personnel, cost of implementing stages of feedback for employees (Voters 2010). The implementation of this TQM standard requires more cost because there need to bring total changes in the organization such as for the training of the employees, implementation of the latest technologies etc (Pike and Barnes, 1996, p275). It is difficult to alter the practice of the long-time workers to the TQM procedures and ISO 9000 procedures. While the organization is ru nning smoothly with their existing functional procedures as the customer demands for the ISO 9000 and TQM standard certification, the company owners are forced to change to these standard procedures. Even though an organization maintains quality in their products and excellent workers the customer does not agree the quality without the certification of these standards. The petrochemical products are used for several purposes so the certification of ISO 9000 and TQM for every product seems to be very difficult because sometimes the assurance of the quality of a product requires much more money than the money required for the manufacturing of that product. There are also some difficulties in implementation the ISO 9000 as the precursor. To finish the procedures of ISO 9000 registration it takes several months. The 1996 Quality Systems Update survey indicated that it took businesses an average of 15 months to move from the early stages of the process to passage of the final audit, and that processes of 18-20 months or even longer were not that uncommon (Answers, 2010). It is really wastage of time and effort to the business owners moreover wastage of time to other employees in the organization. Frequently companies will have a customer who demands that they be ISO 9000 certified to continue doing business. NOW the company has the choice of losing a customer or implementing ISO 9000. Either way money is lost in the short term (Gunaman and De-Almeida, 2000, p.5).