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Why Is It Difficult to Measure External Failure Costs? What

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Why is it difficult to measure external failure costs? What are some nonfinancial measures quality management systems can use to gauge external failure?


Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing employees, detailing wages, hours, and conditions of work.

Organizing Process

The method of structuring or arranging resources and operations within an organization to achieve its goals and objectives efficiently.

Arbitration

A process where a neutral third party makes a binding decision to resolve a dispute, without going to court.

Neutral Third Party

An impartial entity involved in conflict resolution or negotiation processes, who has no stake in the outcome and is unbiased.

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