Quite often, the manager of any level is faced with the issues of organizational development of the company. This happens when, in its formation, an organization (firm, company, enterprise, society) has reached a level that requires the systematization of personnel, communication and organizational issues.
We are faced with these problems in our practice: internal corporate communication has ceased to work, standards are outdated and do not work, officials make systemic errors due to the "blurred" distribution of powers, the placement of leading specialists has not been made correctly and many other things that were not essential for the development and strengthening of the organization before
Many of the development challenges are common to all businesses. This circumstance prompted the development of models that determine the stages of development of the organization and the problems that arise in them. The most famous is the Aizedis model
The Aizedis model is based on the assimilation of an enterprise to a living organism. As the model shows, not all enterprises survive to their heyday; the heyday is inevitably followed by the bureaucratization of business, and then death. The Aizedis model defines a number of dangers that an enterprise faces on the path of its development, but does not answer the question: what kind of organizational state should the enterprise strive for in order to stay longer in the flourishing phase?
Thus, in order to prevent the process of "aging", sooner or later the question of organizational structure or restructuring of a company, organization, enterprise arises. The organizational development manager is responsible for this in the company.
Note: Not to be confused with Business Development Manager. This is a different focus and a different profession. Business Development Manager deals with the commercial development of the company: develops new markets and distribution channels, looks for new products and new customers. This is sales + marketing
The Organizational Development Manager is responsible for the organizational development of the company. Its task is to develop (change) the structure of the organization in accordance with the current and strategic objectives of the company and competently and effectively fit the company's employees with their functions and responsibilities into this structure. And then to actualize this organizational structure, to make it effective, to introduce it into the life of the enterprise.
Organizational development of a company is a management activity aimed at implementing changes in organizations.
In practice, this means designing and implementing changes in the following areas:
- 1. Development or introduction of significant changes in the organizational structure and number of the company.
- 2. Description of the main and auxiliary business processes of the company.
- 3. Development of functional documents for the work of structural divisions, officials, company standards and regulations, responsibility matrices, etc. local regulations of the company.
- 4. Implementation of changes, development of corporate culture: ensuring high-quality performance of functions by all officials.
The unit responsible for organizational development should be assigned either direct activity in these areas, or the organization and coordination of its conduct by adjacent structural units. In both cases, the person responsible for the organizational development of the company, it is advisable to report directly to the head and, as a rule, this is done by the Director of Organizational Development.
How, using the process approach, to organize the personnel management system of a company, says business coach Alexander Sagalovich.
- Personnel management is not always carried out systematically and on a planned basis. The principles and values that underlie work with personnel may not be formulated, or in any way related to the company's strategy. Motivation systems can be difficult to understand and calculate, and their effectiveness is not monitored.
As a result, the efficiency of the company decreases, the staff turnover grows, and some vacancies remain open for many months. The quality of customer service falls, the real costs of personnel rise (even if the payroll decreases).
In this series of articles, I want to outline my vision of a HR management system based on a process approach. It is not academic, I am not offering it as an HR manual. The main goal is to demonstrate the principles on the basis of which the personnel management system is built as part of the company's business processes, integrated into the general system of regular management. Specific advice on personnel management in terms of recruiting, motivation, etc. that you will come across are my personal opinion, the result of experience and training.
Let's define what human resource management is. Michael Armtsrong in his book "The Practice of Human Resource Management" gives the following interpretation: "Human Resource Management (HRM) can be defined as a strategic and coherent approach to managing the most valuable asset of an enterprise: the people who work there, who collectively and individually contribute to solving problems. enterprises. At the same time, the main goal of HRM is to ensure the success of this organization with the help of people. "
This definition seems to me to be consistent with the purpose of this article. Some authors share the concept of HRM and "personnel management". But in this article it is not essential, I will use these concepts as synonyms.
Now a few definitions, which I have already given in other articles.
The structure of business processes is a model of the company's business processes that reflects the hierarchy of processes and the relationship between them, departments and the external environment through inputs and outputs. All inputs / outputs have their own supplier / recipient: process, department, specific employee, external counterparty.
A business process is a periodically repeated, controlled activity, the result of which is a certain resource that has value for a particular consumer (client). The client can be both internal and external.
Therefore, we will consider primarily the structure of HRM processes, their relationship with each other, other processes and the company's strategy.
Since the HR system contains certain elements that go beyond the definition of business processes, I will use an additional concept. Its working title is Universal Procedure. This is a regulated activity that can be carried out in a similar way within the framework of any project or business process. Its result can be a tangible or informational product that is used further in the process or project.
Among all sections of the business plan:
- Cover Page
- Confidentiality Memorandum
- Executive Summary
- Investment Plan
- Marketing plan
- Production plan
- Organizational plan
- Financial plan
- Risk analysis
it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.
If you are writing a business plan to receive investments for the development of an already operating enterprise, you will need to prove to potential partners that its organizational structure is as effective as possible. If you are just planning to open a company, production or retail outlet, you will need to describe in detail how you are going to ensure the operation of the new business.
All information related to the management of the enterprise should be presented in a section called "Organizational plan". Moreover, it is this point of the business plan that will prepare the ground for writing the financial section of the project.
Business Plan Organizational Plan Structure
First of all, in this section it is necessary to justify the choice of the form of activity. Indicate whether you are an individual - individual entrepreneur, or the founder of an organization - LLC or JSC. In the latter case, it is imperative to list the governing bodies and their powers, the composition of the founders and their rights and obligations. After that, it is necessary to describe the organizational structure of the enterprise.
Organizational structure is the composition, system of relationships and functions between the various departments of the enterprise, each of which is responsible for its own area of activity and is part of the hierarchical system of the organization.
There are several types of organizational structures, namely linear, functional, linear-functional, etc. However, whatever the type of structure, your task is to emphasize that it is as efficient as possible, namely:
Modern management is a set of solutions aimed at improving the efficiency of the enterprise.
Such a tool is the system for managing the existing personnel of the organization.
Such efficiency is understood as an approach to the selection and employment of employees with the necessary specialized skills, capable of performing tasks at a competent level.
Personnel management functions should also include personnel placement.
Objectives and principles of personnel management methods
In contrast to the conservative approach, HR management covers all processes of the enterprise.
For example, in addition to the expected qualifications and length of service, organizations are interested in the motivational component of an employee.
Given the full scope of the directions, it is necessary to indicate the goals that the personnel management achieves in the course of practical application:
- Planning the main development trend (strategy);
- Determining the organization's need for competent employees (critical for self-regulatory organizations), taking into account the actual filling of vacancies, the requirements of regulatory enactments, wage fund reserves;
- Development of the staffing table, job descriptions, local labor contracts, liability agreements;
- Performing direct functions arising from the concept of production personnel management - recruiting, adaptation to the existing team. The management tasks in this area also include the permanent renewal of the staff (retirement, transfer to another unit or to a higher position);
- Formation of a reserve of employees, which will be used in the future to fill positions in the face of staff turnover ;
- Monitoring performance indicators in order to determine the directions of staff motivation at each workplace. This should include the criteria that will allow employees to advance in the service without the influence of the human factor;
- Analysis of the tasks facing the enterprise with subsequent breakdown by sector. In this direction, specific requirements for workplaces are formed in order to develop job descriptions, work out materials before the upcoming certification;
- Development of local training programs in order to increase the personnel potential of the enterprise, including planning advanced training outside the organization.
HR Management Principles
Human resource management as a modern branch of control and adjustment of internal corporate processes is based on specific and independent criteria.
Unlike traditional models, the resource structuring methodology implies a unified and at the same time independent approach to the selection of personnel.
This is impossible without observing the principles developed over the years:
Newbies may ask: "If I open a flower kiosk or cafe, why do I need your business processes?" Answer: not to burn out, but to make a profit and expand your business. To do this, you will have to do a lot of analytical work: study the market, competitors, buyers, and most importantly your own business.
Who will be in the black: an entrepreneur who does everything on a whim or someone who has established processes for selecting personnel and suppliers, ways of distributing advertising, delivery are calculated, and the company employs not only workers, but also qualified economists ? All other things being equal, the one who implements and manages business processes will take all the profit.
What is business process management
Business Process Management is a systematic approach to management. Its goal is to continually improve the organization's performance and processes. The company deeply studies its processes, analyzes them for regular improvement.
- Business processes mean not only production cycles of manufacturing products, but also auxiliary business service processes that affect the final result. Based on this, almost all processes in the company can be attributed to business processes, - explains Oleg Filippov, associate professor at the Institute of Finance and Sustainable Development of the RANEPA.
The main goal of a business is profit. There is a certain path to it, sometimes more than one. Which one is optimal? Determination of key points along this path, methods of achievement and methods of control is management.
- To put it simply, the business process from "Gentlemen of Fortune": "Stole-drank-to jail." Not the best strategy! Therefore, real entrepreneurs use different sequences. For example, the simplest "bought there-brought here-sold". Or no less understandable, but time-consuming "plowed-sowed-processed-harvested-sold". Analyzing what kind of business to do, assessing the time and resources spent, calculating the risks of failure is already management, - explains Dmitry Bocharov, the developer of methodological instructions and standards for the quality management system according to ISO.
Business Process Management Structure
All business processes can be divided into three groups.
1. Management processes. They are necessary for planning, analyzing, diagnosing activities. Through effective management processes, it is possible to ensure the achievement of production goals related to obtaining value for the end user.
These processes include planning and budgeting, analysis of the financial and economic condition, setting optimal goals, implementation of KPI (key performance indicators) and BSC (balanced scorecard).
2. Manufacturing processes. The main processes by which the company manufactures products, performs work and provides services. This is not only the manufacture of products by industrial enterprises, but also educational programs in universities, and transport services of logistics companies, cooking in restaurants, etc.