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Summary of chaptrer no. 10

Work was the emphasis of this chapter - how, like the people resources, it isorganised anddesigned. In the case of the international Organisation, work activities transform

inputsinto outputs (products and services) for the benefit of customers, adding value alongtheway. We compared and contrasted the traditional (bureaucratic and µvertical¶) viewwithprocess (horizontal) views on organizational design and structure. Traditional(bureaucratic) organizations typically adopt a hierarchical and functional perspectiveonstructure, emphasising command and control and organise work into specialist areasmanaged vertically by similar specialists (functions). Organisations groupingactivities byfunction are known as µsilo¶ organisations because each functional area is distinct

andisolated from all other functional areas. People in Silo organisations tend to focus ontheir individual task rather than the whole process delivered as a cross -functional team. Ithasbeen argued that organizing around processes, as opposed to functions, permitsgreater self-management and allows companies to dismantle unneeded supervisorystructures.We defined what is meant by a business process and explained how processes aredesignedand managed. A Process is a structured set of activities designed to produce aspecifiedoutput for a particular customer or market. It has a beginning, an end, and clearlyidentified inputs and outputs. A process is therefore a structure for action, for howwork isdone. The systematic identification and management of the processes employedwithin anorganization and particularly the interactions between such processes is referred toas the³process approach´. The most visible difference between a process enterprise and atraditional organization is the existence of process owners - senior managers withend-toend

responsibility for individual processes. However, companies making the shift to aprocess enterprise must examine the basic elements of their organizationalinfrastructure,particularly in terms of culture, team work, information and reward systems.Traditionalways to measure performance, determine compensation, provide training, and evenorganize facilities are tailored to vertical units, not processes, and to individuals, notteams.We explained how the process view of organizations may provide the international

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organization with a source of sustainable competitive advantage and enable theattainment of strategic goals; the process approach: (1) presents an opp ortunity toimprove effectiveness and efficiency thus adding value, differentiating products andservices and reducing cost; (2) may lead to the enrichment of work by empoweringpeopleand enabling them to take a holistic perspective thereby seeing the val ue of their 

contribution; (3) may make better use of enterprise wide information systems andtechnologies which can make the organization more responsive, enable timecompressionand further motivate people through the removal of mundane tasks which becomeautomated.Managing processes involves establishing ownership, defining boundaries,documenting theprocesses, identifying control points and measurements and monitoring and takingcorrective action where necessary. Business Process Management (BPM) isintended toalign business processes with strategic objectives and customers¶ needs but alsorequires a

change in a company¶s emphasis from functional to process orientation. The primaryaimof BPM is to improve business processes and so ensure the critical activitiesaffectingcustomer satisfaction are executed in the most efficient and effective manner.ProcessAlignment is the concept which captures how well an organization manages the fitbetween its processes and its institutional elements. It can be int erpreted as theorganizational effort needed to make processes the platform for organizationalstructure,for strategic planning, and for information technology.