ISO (International Organization for Standardization) is a non-governmental organization that began on 23rd Feb 1947 when the delegates from 25 countries came together at Geneva, Switzerland. The ISO is responsible for developing international standards that cover all the factors of the industry from technology to health and safety. To date, ISO has developed and published 22878 international standards.
Since ISO is a non-governmental organization, it’s not mandatory for the corporations to acquire the ISO certification. Even though not mandatory, the ISO standard certification comes with various beneficial factors for the organizations. These factors are briefed as follows:
- For Small and Medium Organizations:
- Financial benefits: A certified organization will also get the preference in the market on potential business clients and customers as it guarantees the productivity for the clients and the quality consistency for the customers. This means that a certified organization will get more business and therefore, more revenue.
- Building customer confidence: The standards help in keeping the customer happy by quality control, customer satisfaction, and complaint control. The ISO helps build customer confidence because it shows that the customer is dealing with an internationally certified organization.
- Develops operation efficiency: The standards if met by the organization helps to identify any shortcomings in the operation process of the organization and helps them to take necessary actions to deal with such shortcomings.
- For Large Organizations:
- Boosts Employee Morale: The ISO standards require the organization to properly define the structure, roles and responsibilities, and health and safety of the office which allows the employees to have a favorable working environment. If the organization meets these standards then it results in higher employee satisfaction and morale.
- Helps maintain long term strategy relevancy: Since the ISO standards require the management to review the QMS for appropriateness and applicability at least once a year it allows the organization to identify and analyze their shortcomings during this review.
- Reduces operational expenses: In order to meet the standards of the ISO, to monitor its operational process which often exposes various shortcomings. These shortcomings may be unnecessary expenses. If the organization then takes corrective organization then they reduce any unnecessary expenses.
The other important factors are as follows:
- Improved internal communication
- Reduction in production liabilities
- Control of any non-conformities
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