Business process management
For those who work in large enterprises in administrative departments, it is probably clear what an organizational structure is. Some companies even present them to their employees at welcome trainings. Let's try to figure out what it is.
To begin with, let's define what the words "about the organizational structure of the business" mean. This is the division of the enterprise into all kinds of departments, divisions, workshops in order to ensure an orderly process of managing an economic object.
The organizational structure of a business implies the presence of clear relationships between all departments of the company, as well as a designated definition of areas of responsibility.
What is it for
The business structure of the enterprise is designed to ensure the development of the organization as a whole. Its presence allows the responsible link to quickly make a decision, determine the area of responsibility and quickly transfer information to the required structural unit.
The organizational structure of a company's business is not something static; it can change quite often, adapting to changes in the economy. This is due to the fact that any ambitious leader strives to ensure that his company interacts with other organizations as productively as possible, and that employees perform their duties efficiently.
How the structure of an enterprise can be modified
A hierarchical structure is a collection of many departments, such as the sales department, production department, accounting department, whose main function is to provide activities with resources.
The structure of the business can undergo changes if, to solve certain tasks, by order of the head, process units are created that deal with more specific issues. For example, a group of sales managers may be formed who work on individual orders. Such an organizational structure is called matrix, or two-arm. It may look like this:
Learn more about matrix structures
In such a business organization, the process units rent resources from the main divisions in order to perform specific tasks. To implement such projects, groups of employees are created, which are allocated by the main divisions. Employees united in such groups are subordinate to both the main manager and the process manager.
Business processes (BP) are a set of standards and procedures used by an enterprise to organize its daily work. This is a sequence of actions leading the production process to the planned result.
In order for business processes to meet modern conditions and keep up with the rapid growth of technologies, it is necessary to implement a BP management system in the organization.
Business Process Management (BPM) is the management of work standards within a production or sales cycle. High-quality management of its business processes helps the company to become the leader in sales in its market. How? Below, we will tell you about everything in more detail.
Description of business processes
Often starting a small business, entrepreneurs neglect such a "trifle" as a description of business processes. And only when the company begins to grow, or production becomes larger, problems begin to arise with the coordination of interaction between departments and processes.
Managers are faced with a choice, either to begin to devote time to describing and managing business processes, or to work the old fashioned way, lose efficiency and give way to more progressive companies.
The description of a business process is a full-fledged analysis of all working procedures, their structuring and alignment into a single sequential chain.
Activities for the development and description of business processes are best carried out at the stage of creating a company, but there are cases when they are extremely necessary:
- The company is gaining momentum. A period of active growth is not only a reason to rejoice, but also a reason to roll up your sleeves and work even harder. This period is accompanied by an active turnover of personnel, the attraction of freelancers, an increase in the workload on production, an expansion of the product or service line. Having the described BPs, you do not have to explain to each employee what's what, and heads of departments will be able to conduct management more effectively.
- Complex production. If you manufacture a product that involves many processes and operations. Complex production must be accompanied by clear regulations at every stage of its development. It provides a description and implementation of business processes.
- Franchise sale. If you want to sell a franchise of your business, the described business processes are simply necessary not only for the development of the network, but also for organizing the work of your franchisees. Few people want to buy your business without detailed business processes.
- Cost reduction needed. If you want to reduce the costs of maintaining production, find financial holes through which the budget flows, establish work with each department.
- Development orientation. This is necessary if you strive to develop in the future. It is important not to overlook details that can cost hundreds or thousands of lost profits as you expand your business, introduce new technologies, products or services, and open additional branches.
Business Process Development
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Educational Consortium Central Russian University
Autonomous non-profit organization of higher professional education
"Moscow Regional Humanitarian Institute"
Department of Economics and Management
in the discipline "Business planning"
on the topic "Business plan as a management tool at the enterprise LLC Engelskaya paper"
Analysis of technical and economic performance indicators of the enterprise
In a market economy, a business plan is a working tool used in all areas of entrepreneurship. The business plan describes the process of functioning of the company, shows how its leader is going to achieve his goals and objectives, primarily increasing the profitability of work. A well-developed business plan helps the company to grow, gain new positions in the market where it operates, draw up long-term plans for its development, concepts for the production of new goods and services, and choose rational ways to implement them.
The business plan is drawn up for external and internal purposes. The external side of the business plan is intended to justify the trust of investors and creditors, to convince them of the company's potential, the competence of its employees, and the need to provide it with strategic and financial assistance.
In other words, the lack of a well-thought-out business plan that is systematically adjusted in accordance with changing conditions is a significant drawback reflecting the weak management of the company, which ultimately makes it difficult to attract financial resources and achieve long-term stability in a competitive environment.