The present investigation gathers a bibliographical compilation on the elements that compose a business diagnosis, applied in the UEB Mecánica Jovellanos.
The purpose pursued in it is to apply a diagnostic and evaluation procedure of business management in the Unit, which facilitates determining the existing difficulties and allows to know the state of the same towards the implementation of an SDGE linking the theoretical knowledge- Practical through the diagnostic procedure and the basic principles of an SDGE, with well-known tools, such as: the Kendall's Coefficient Method, Brainstorm, Expert Panel Method, Statistical Processing, among others.
Based on the results of the diagnosis, a calculation procedure is proposed that allows the status of the UEB to be known.
procedure-for-business-improvementAmong the main conclusions reached, are:
- Due to the level of importance and practical application, to face the problems or opportunities for improvement that arise, the diagnosis is the starting point for decision-making. In theory and in practice, when talking about diagnosis, it is implicit evaluation and analysis, due to the high relationship that exists between these terms, which facilitates the efficiency of the investigative process.Expand the content of the procedure to guarantee the extension of the experience, due to the benefits of using the tools that complement the procedure so that they produce a significant change in the comprehensive management of business activity in the SIME.
INTRODUCTION
Cuba is currently projecting towards the search for new ways of managing production and services. The use of modern business management techniques, appropriate to the characteristics of the country and based on the best and most advanced contemporary practices, constituting a priority in order to guarantee the greatest efficiency in the management and production processes of goods and services. Science, innovation and technology assimilation are essential elements in raising economic efficiency and a fundamental condition for development (Economic Resolution of the V Congress of the Communist Party of Cuba).
With the aim of implementing a new management system that increases the effectiveness, efficiency and competitiveness of companies in order to achieve greater contributions to society, the Business Improvement has been put into effect, which states in its bases that: “it is a process of continuous improvement of the internal management of the company that allows to achieve in a systematic way produce goods or provide competitive services ”(Decree No. 281 Executive Committee of the Council of Ministers 18/8/2007).
Negrín Sosa (2003) points out that the introduction of the Business Improvement process requires and needs to change the forms of analysis, projection and management of companies. If we start from the criterion that “companies are as efficient as their processes are” (Amozarrain, 1999) and the complexity and dynamism that the organizations environment has acquired, as well as the need to face the new market challenges; it is necessary to have a management system that enables decision-making based not only on economic and financial analysis; rather, it achieves a systematic and comprehensive analysis (Luchenssa and Podestá, 1973) and serves as a guide in the location of deviations in the different processes of the company.
The insufficiencies identified with the implementation of Business Improvement in the Cuban business context, require a quick solution, which is why it is important to eliminate them, or at least minimize them, through efficient management, with the commitment of senior management. and the active participation of all company workers. (García Azcanio, 2007).
The SIME in the Matanzas province is made up of a small number of companies, see (Annex No. 1) that group experienced workers with a high sense of belonging, backed by quality management systems aimed at satisfying the needs of the national and international market..
The Industrial Mechanical Group is made up of a Presidency that is in charge of ensuring the organization, information and control of subordinate companies, as well as carrying out provincial coordination functions representing the SIME Ministry in the province of Matanzas.
Currently, the highest management of the SIME adopts measures to guarantee the continuous advance of the implementation of the improvement (Decree Law No. 252 Council of State 7/8/2007), in all companies and business groups according to the requirements demanded and consolidated where it is already being applied.
The Jovellanos Mechanical Base Business Unit subordinated to the Central Steel Metallurgical Company "José Valdés Reyes", was created by Resolution 55/2006 dated May 18, 2006, from the director of the company, which replaced the defunct Company Industrial Mecánica Jovellanos, In previous years, the Jovellanos Mechanical Base Business Unit has received a group of recognitions and awards as a result of the comprehensiveness of its work.
These aforementioned results have given to the fact that the Jovellanos Mechanical Base Business Unit has achieved productive stability reaching significant levels in sales values that exceed those of the rest of the Companies of the Industrial Mechanical Group, as well as has shown seriousness in the responses in the fulfillment of the commitments contracted with the state and the Government.
Despite the results, during these last two years the Unit has gone through a number of problems that have affected the results of the unit, an example of this is related to the level of indebtedness of the company, the unit being without carrying out financial operations, bringing with it that during all this time, there have been delays in the fulfillment of the commitments, contracting debts with the workers, in the purchase of raw materials and materials to carry out the productions, even causing difficulties in delivery of the productions and services, the obligations with the state, the commitments contracted with the clients and suppliers, as well as the delays in the deliveries of the productions of the programs of the revolution and battle of ideas.
It is complex to dictate rules that can govern in unison for them, without favoring one of them.
For all of the above and in order to reverse these difficulties, the highest leadership of the SIME, the Party and the Government, consider carrying out the procedures to convert the Unit into a Company again, thereby achieving financial independence, allowing within the framework of the Law to adopt its own decisions, based on the differences between the Company and the Jovellanos Mechanical Base Business Unit, regarding the environment, culture, organizational behavior, sense of belonging of its workers, their values and others.
These are the antecedents that provoke the need for the Base Business Unit to be created as a company on the basis of an Improved Business Management and Management System (Decree Law No. 281 Executive Committee of the Minister's Council 16/8/2007.
PROBLEM SITUATION:
Based on the foregoing, the author considers that the EU .B. Mecánica Jovellanos does not have the information it needs for the implementation of its Business Management system, because they do not know their current situation, as well as the need to have a diagnosis as a starting point to continue with the other stages of the process.
The problematic situation raised justifies the need to achieve an SDG that contributes to the Economic efficiency of the Unit.
For this, it will be essential to apply a Diagnostic Procedure that gives the possibility of knowing the current situation of the organization, with a comprehensive approach and well-oriented techniques, which would facilitate the UEB's implementation of the Business Management and Administration System.
Being the Scientific Problem to analyze the following:
- There is no diagnostic procedure to implement the Business Improvement in the Jovellanos Mechanical Base Business Unit.
In accordance with the above was defined as a general research hypothesis follows :
If a diagnostic procedure is applied that allows knowing the current situation of the Unit, the Jovellanos Mechanical Base Business Unit would be provided with the implementation of the Improvement according to the requirements of the SIME Ministry and the country.
The following variables are used:
- Independent variable: Application of diagnostic procedure. Dependent variables: Implementation of Business Improvement.
The general objective of the present investigation is: To establish a procedure that allows to apply a diagnostic procedure of business management that facilitates determining the existing difficulties, and allows to know the current state of the Unit towards the implementation of a Business Management and Management system..
The specific objectives:
- Analyze in detail the different approaches related to business diagnosis and improvement, to develop the theoretical framework that guides the research. Select the diagnostic procedure for implementation. Carry out the diagnosis of the Unit. Install the procedure of diagnosis that allows us to determine the existing difficulties towards the implementation of the Business Improvement. Analyze the current state of the Unit towards the implementation of a Business Management system. Validate the implementation of the Business Improvement.
To fulfill the stated objectives, the research process was carried out in the following phases:
- General design of the research, based on the identification and characterization of the problem situation, scientific problem and the objectives to be achieved. Review and analysis of the specialized literature and other sources of consultation, on the approaches to business diagnostic procedures. General characterization of the Jovellanos Mechanical Base Business Unit. Diagnosis of the Jovellanos Mechanical Unit, organization under study.
Among the main techniques used are:
Brainstorm, Expert Panel Method, Kendall's Coefficient Method, Survey, Paretto Diagram, Servqual Model, multi-criteria analysis, cause-effect diagram and others
For this, the study is structured as follows:
- Introduction: It characterizes the problem situation and the scientific problem to be solved is based. It defines the theoretical framework of the research carried out. A documentary review of the main aspects relating to the Business Management and Management System and Business diagnosis is made. This chapter is the conclusion of an investigative process of the author with the bibliography consulted. Conclusions and Recommendations derived from the research carried out and a group of Annexes that allow the best understanding and development of the exposed results. Bibliography.
Chapter I: State of the Art and Practice.
In this chapter the state of the art and practice on the subject of Business diagnosis is exposed and valued. We proceed to make a conceptual map that acts as a common thread of the topic (See Figure 1.1). The following were considered fundamentally for the development of this chapter:
- Characterization of Business Improvement and its importance Characterization of Business Diagnosis. Importance of Business Diagnosis as a starting point for the implementation of the Business Management and Administration System. Definition of Diagnostic. Diagnostic Procedures. Partial conclusions of the Chapter.
1.1 General aspects of Business Improvement.
The improvementIt is a Cuban experience that assimilates the most modern procedures and techniques of business management in the world, adjusted to the conditions and characteristics of Cuba, with an emphasis on the search for greater and better economic results; Its main objective is to maximize the efficiency and competitiveness of the Cuban state-owned company, on the basis of granting it the powers, and establishing the policies, principles, and procedures that promote the development of initiative, creativity, and responsibility. of all bosses and workers. To carry out the same, different steps are carried out, among which is the diagnosis, this stage in the Business Improvement process, encompasses the study and analysis of a set of subsystems,and it constitutes a period of the utmost importance for the projection of the perfected company, since from this diagnosis the current situation of the company will be known, as well as its potential prospects to achieve organizational perfection through greater and better economic results..
The Business Improvement process aims to guarantee the implementation of a Management and Management System (SDG) in state companies and higher management organizations that achieve significant organizational change within them and comprehensively manage the systems that comprise it.
Business Improvement has as its supreme objective to guarantee the development of an organized, disciplined, ethical, participatory, effective and efficient business system that generates greater contributions to socialist society and that all companies become organizations of high social recognition.
The experience in the practical application of the General Bases for Business Improvement, put into effect through Decree Law No. 187 of August 18, 1998, has shown effectiveness, so these experiences need to be improved so that they can constitute effective instruments. in the consolidation of Business Improvement in the country.
The author agrees with the criterion that the companies that apply Business Improvement have shown in these years greater efficiency, organization, discipline, so providing them with these tools would enable them to achieve higher goals, demonstrating that in socialism companies can achieve high performance and high social recognition, being necessary the organization of the process to achieve its objectives.
1.1.2 General organization of the Business Improvement process
Each Organism or Superior Organization of Direction must conceive in its strategy, the implantation of the Direction and Management System in its business system, for it; It will require companies to join the process and, accordingly, it draws up the schedules, where the different stages to be achieved in the implementation of the system are planned, so as to systematically control compliance with what is proposed.
Each company, to develop the Business Improvement process, must create improvement groups; This does not deny the responsibility that the highest management of the organization and other managers of the organization have over this process.
The experience gained in the implementation of the Direction and Management System has demonstrated the feasibility of creating these groups in the stages of diagnosis, study and implementation of Business Improvement, these groups should be composed of professionals with work experience and who dominate the target company. study.
When deciding to assume the services of external consultants, it must be convinced that they are not responsible for the fulfillment of the diagnoses, the files and the implementation and consolidation of the system.
The work of the advisors makes it easier for the company to start and develop the Business Improvement process more quickly.
All the procedures and technologies applied by the external consultants constitute management instruments, for which the company's management must create conditions that guarantee the incorporation of these instruments into its arsenal of knowledge and can henceforth apply said instruments, methods and techniques, in the practical life of the company, all to achieve a comprehensive Management and Administration system.
1.1.3 Direction and Management Systems
C ada company or organization top management will be studied as an integrated whole, encompassing all systems together, they are:
- General Organization System. Management Methods and Styles System. Customer Service System. Organization of Production of Goods and Services. Quality Management System. Human Capital Management System. Environmental Management System. Innovation, Planning System, Economic Procurement System, Accounting System, Internal Control System, Financial Relations System, Cost System, Price System, Informational System, Marketing System, Business Communication System.
For the successful achievement of Business Improvement it is organized in stages and Steps which are described below.
1.1.4 Stages and steps in the Business Improvement process
The Business Improvement process is divided into the following stages:
- Study and design of the Company's Direction and Management System; Implementation and consolidation of the Direction and Management System.
The Business Improvement process is divided into the following steps:
Step 1, the preparation of the personnel, is the most important and permanent action to develop with all the workers, administrative leaders, of the political and mass organizations existing in the company.
We must work to achieve the conviction of the need for Business Improvement and its impact on the economic and social sphere.
The preparation of all company personnel plays a fundamental role in the process. The subsequent success in the implementation of the System largely depends on its quality. This is the step where the main characteristics of the process, the main changes introduced by the System, the stages of the process, the conditions that the company must have and the top management organization are clearly exposed to the workers, it is important to explain the objectives political, social and economic system; as a fundamental objective to increase productivity, discipline, organization, the demand for compliance with the provisions, increase efficiency and as a consequence raise the contribution of the company to society, as well as the standard of living of workers,The importance of the change in the company and in the business group, should give particular importance to the preparation of the administrative leaders, the Party, the Youth and the Union, explaining to them the need for the cooperation and active participation of all in the transformations to perform for the sake of achieving greater organization, discipline, efficiency in management; guaranteeing more contributions to socialist society. It is important to convince and not impose. Analyze every concern that may arise in the workers of the company, in order to achieve consensus and overcome logical resistance to change, that any process of transformation and that all workers internalize that the Business Improvement process is not imposed from the outside, that it is the company itself that defines its management system,from the established principles and procedures.
When working on personnel preparation, it is necessary to explain that more efficiency means producing more goods and services, selling more and spending less or the combination of both, so it is necessary to evaluate how much can be saved in material and financial resources, passing for an in-depth study of the composition and structure of the workforce. Staff preparation never ends, as it is imperative to constantly prepare staff for new features at different steps in the process.
Step 2, Preparation of the initial diagnosis of the company. The diagnosis is a photograph of the current situation of the company, from making an assessment of all the processes and structural subdivisions that comprise it.
In order to carry out the diagnosis, it is necessary to carry out an analytical examination of the trajectory and the current situation of the company regarding the fulfillment of its mission, its objectives and activities, the assessment of the state of its resources, the characterization of the business culture and its technical-organizational functioning.
The diagnosis is carried out by the company or higher management organization. In correspondence with its conditions and with what is decided by the management, the services of consulting entities may be hired to help carry out the diagnosis.
The fundamental success of this step largely depends on:
- The active participation of the management, the union and the workers in the entire diagnostic process. The selection of the internal group (improvement group) that will carry out the diagnosis. The group's preparation in the use of existing techniques to diagnose and about knowledge. of the issues to be diagnosed. That the greatest number of workers be involved in the issues that are diagnosed. The establishment of deep interpersonal relationships with the workers and the development of analysis and collective discussions, which promote the greatest openness and creativity, to find the essence of the problems. The conviction that the results of the diagnosis will allow a better projection of the company or the top management organization. The diagnosis must cover the entire company,without excluding any area and analyzing the operation of each one of them. The diagnosis of the company is carried out on the basis of the methodology prepared for this purpose by the Executive Group.
In the development of the diagnosis, the state of all the systems covered by the Improvement will be studied, and particular importance should be given to the organization of the production of goods and services, quality management, accounting and costs, internal control, hiring, planning, finance, innovation and protection of work and the environment, the organization of company processes and prevailing organizational structures, as well as the labor and salary policy that is applied.
The evaluation of the situation of the existing technologies of the products and essential processes of the company cannot be stopped studying.
It is important to define, before each diagnosed problem, if it is internal or external to the company and if it is objective or subjective.
Each company must prepare an action plan in order to gradually resolve internal problems detected in the diagnosis that may be resolved by the company; that is, those whose essence lies in the fulfillment of what is established or those that can be solved without having to make fundamental modifications.
This action plan should preferably include, not only the measures to be taken, framed over time, but also those responsible for compliance.
The action plan will allow the company management to control the elimination of problems and evaluate the progress of what is proposed by the group that develops the diagnosis.
Problems diagnosed external to the company, if possible, should be classified according to the level at which they can be solved, that is, at the level of the top management organization, the Agency or other levels and to this same extent achieve involve the external factors of the company in helping to solve those that are possible at all times.
The upper management organization is obliged to analyze the diagnosis of the company before sending it to the corresponding Body.
The author agrees that the top management organization cannot vary any aspect of the diagnosis; its duty is to analyze the existing doubts with the company and make the change itself.
Step 3, Approval of the diagnosis Based on the opinion prepared by the Executive Group, as appropriate; The Government Group authorizes or not, that the design of the Direction and Management System in the company and the preparation of the final file of the Business Improvement begin.
The companies that are implementing the system, should as a rule every one or two years carry out a new diagnosis that allows them to detect new problems and difficulties that have arisen. In this way they will be able to convert Business Improvement into a continuous improvement process. This diagnosis and the corresponding action plan for solving the detected problems.
Step 4, Design of the Management and Administration System in the company and preparation of the final Business Improvement file. In this step, the company designs the organizational structure, systems and processes necessary to fulfill its mission and functions, taking into account what is defined in the present Regulation the results of the diagnosis made. The file is a project that organizes the implementation process of the Direction and Management System.
Step 5, Defense and approval of the file in the Executive Group, consists of the detailed analysis by the Executive Group of the file presented by the company.
Step 6 Verification by the Provincial Executive Secretariat for Business Improvement about the satisfactory preparation of the workers and the board of directors to undertake the implementation stage.
Step 7, Approval of the file by issuing the agreement of the Executive Committee of the Council of Ministers that authorizes the application of the system.
Step 8, the implementation in correspondence with the elaborated schedule.
Step 9, Continuous system improvement. In parallel, in the implementation stage itself, there is a constant process of supervision and adjustment, making the necessary transformations with the aim of achieving maximum effectiveness and efficiency in its comprehensive management.
The author agrees that this step, continuous improvement of the system includes carrying out the diagnosis, which as a rule should be carried out every one or two years, making a new diagnosis that allows them to detect new problems and difficulties that have arisen. In this way they will be able to convert Business Improvement into a continuous improvement process .
According to (Ing. Iván Dimitri Moyasevich 2005) the organizational diagnosis is not only necessary but also essential, as a way of knowing the different forces and processes to which the organization is subjected and of being able to use them for the purposes of the organization have defined for themselves. Organizational diagnosis is a double contingency study: on the one hand, modes of relationships are studied, and on the other, the question is asked about other possibilities.
- BUSINESS DIAGNOSIS
There are many reasons why a business diagnosis must be made, one of them is to determine the gap in relation to the desired future situation that involves achieving operational efficiency, growth, innovation, continuous improvement or any other purpose. However, there are some characteristics in the approach and the way of making the diagnosis, which affect or deviate the results, truncating in its realization the adequate survey of key factors that ultimately prevent proposing the appropriate strategies to reach the desired situation.
Ing. Ivan Dimitrie Moyasevich considers that many of these characteristics are related to the lack of a model of the desired future situation that must have clearly defined, measurable and verifiable attributes and based on it, carry out the gathering of qualitative and especially quantitative information with previously designed formats that allow a systematization of the same and obtain the existing gap.
There are several types of Business diagnoses, these can be by their purpose, nature, scope, methods, deadlines, characteristics and others. Due to their application they can be: Preliminary or Preventive (mostly these diagnoses must be consolidated or reinforced with one of the following two), partial diagnosis and comprehensive or general diagnosis.
All Diagnosis performed must have "A Conceptual Framework" (Principles, Techniques, Standards, Methods, Procedures and others) and "An Applicable Framework" (Table of Needs - Radiographs - The Matrix of Diagnosis - Table of Causes Effects - Solution Chart, Master Plans and others).
In summary, what objectives does the Business Diagnosis show us ?
A vision as deep as necessary of the Business Situation.
- Examination of the Information Circuit in the Company. Study of the Company's Situation in the Market and in its Environment. Examination of the Documentation and Treatment of it. Examination of its Productions and Terminal Services. Financial Evaluation and Control of Business Management. Provide the Senior Business Management - Conclusions and Recommendations. Predict Problems or Effects, detect Vulnerabilities in the Company. Specify and Plan Projects and Sub Projects. Apply the improvements based on the strengths of the Company, in order to achieve a IDEAL target state.
The competitive challenge that companies have to face in most activities is steadily intensifying in recent times and, consequently, companies are forced to develop new behaviors to achieve their objectives and survive in new competitive environments.
It can be seen that in a diagnosis the behavior of the system is being evaluated. In the same way that a doctor examines a patient and mentally compares it with the functioning of a healthy person. Not necessarily an organizational diagnosis is the obligatory Starting Point of a planning process, since it is necessary to know where we are before deciding where we want to go and how we should get to that point. The main objective of the Diagnosis is to quantify the current state of maturity of the organization with the national or international standards that the company should handle, identifying in a quick, precise and concise manner the potential areas of development in it.
1.2.1 The concept of diagnosis (Valdes Rivera, 1998) is part of a preventive and strategic management process. It is constituted as a means of analysis that allows the change of a company, from a state of uncertainty to another of knowledge, for its proper management, on the other hand it is a process of permanent evaluation of the company through indicators that allow measuring the Vital signs. Diagnose : (Diagnostic). tr. Collect and analyze data to evaluate problems of various kinds. - 2. Med. Determine the character of a disease by examining its signs. (Encarta® 2005)
Analysis. (From gr. Ἀνάλυσις). m. Distinction and separation of the parts of a whole until they get to know its principles or elements. (Encarta® 2005).
Evaluate. (Of the fr. Évaluer). tr. Point out the value of something. - 2. Estimate, appreciate, calculate the value of something. (Encarta® 2005).
This concept issued by Encarta 2005 shows the necessary integration between these three elements when putting into practice any of the approaches or guides that refer to the subject.
According to Tom Peters (1985): "The diagnosis is of utmost importance since it tells us where we are and what we must do to get where we want."
According to Philip Crosby (1996). "The diagnosis is the starting point of quality improvement, if it is not carried out, we cannot determine the diseases of the organization and therefore these will not be solved, we would lose customers since the products or services we offer them would not comply with their needs and specifications ”.
The diagnosis is a management tool and corresponds to a collaborative process between the members of the organization and the consultant to collect relevant information, analyze it and identify a set of variables that allow conclusions to be drawn (Cummings & Worley, 2001).
External variables include the evolution of the market, its demand, customer characteristics, performance of the competition, technological evolution, evolution of economic and social policies as well as the identification of socio-cultural factors. The internal variables refer to the situation of the company regarding the use of material, human and financial resources, degree of technical knowledge, organization, control methods and management system.
Cummings & Worley establish the systemic character of an organizational diagnostic model and identify the inputs as the external variables and the design components of the model as the internal variables. Culture represents a consequence of the firm's design and a basis or restriction for change.
Alfaro Pérez Alfredo (2000). Strategic Diagnosis. An intention is perceived when using the term strategic to emphasize predetermined aspects as managers. In this sense, greater clarity can be seen because it takes into account from the beginning variables already defined by the same organization that are established in the vision and mission.
The strategic term implies that in this case, the diagnosis focuses directly on evaluating the “gap” existing between what needs to be done and what is done, so that its content does not consider other emerging aspects that could help better describe the state of affairs.
Likewise, it tends to be understood that the strategic diagnosis becomes a second diagnosis, since the first diagnosis will seek to interpret a series of factors that help to know the situation in which it is taking into account the macro environment and the microenvironment of the organization in question.
Annex II describes a group of Business Diagnosis concepts by different authors and the author agrees with their criteria.
1.2.2 Advantages of diagnosis
When applied, a group spirit is awakened
- It is participatory; People feel committed to the solutions; It gives a logical structure to the problem; It is a very efficient way in time and resources to find problems; It allows knowing the operational processes where you have to start working urgently and achieve a immediate improvement Provides data to structure a temporary planning, until the new direction, objectives of the organization are set and changes are implemented in the systems and processes of the organization.
Another element is the diagnosis where the current state of maturity of the organization is quantified, in other words it says where the company is located and what it must do to reach the desired goal.
According to the consultation library Encarta Diagnosis of Diagnosis: it is to collect and analyze data to evaluate problems of various kinds. With this concept the interrelation that exists between diagnosis, evaluation and analysis is revealed, to find signs and evidence that something is wrong with the system and that is where the need to diagnose lies.
1.2.3 Need to diagnose Within organizations, it is necessary to carry out diagnoses due to: Ö The dangers of immediately jumping to “solutions”. Ö It is necessary to go beyond the symptoms: to be able to attack the causes of the problems and focus actions on crucial factors. Ö It is necessary to prepare actions from a global perspective. The needs to diagnose and evaluate an organization can have different origins:
1. The natural process of growth of the organization that makes it difficult to continue with the same organizational schemes as before, appropriate for a smaller organization, referred to another market, with other competence and responsibilities.
2. The natural process of deterioration of the organization, the organization may see its people, equipment, buildings age. Furthermore, your product may become obsolete.
3. The company has decided to face the problem of productivity and quality. Costs may have reached unacceptable limits or competition may have brought alternative product prices to levels that make it impossible to continue with the same production. The diagnosis should look for ways to overcome any problems that may exist and recognize eventual development potentials used to benefit productivity.
4. The organization has undergone major changes (innovation, change of old structures, job demands, adaptation to new technologies). Here the diagnosis would be a way of knowing the impact of these changes in the different sectors or preventing possible transformations due to these changes.
5. The increased complexity of the organization's environment, be it political, economic and social (for example, increased competition or international trade, generalization of labor demands, etc.) demands a corresponding change in the complexity of the organization itself.
6. The organization needs to know its own culture to implement high quality and productive organizational schemes that, at the same time, allow the organization to maintain its current identity.
7. The organization wants to improve its climate, increase the motivation of its members, make work in it more pleasant. For this it is necessary to know the aspirations and problems that the workers. they have to look for ways to overcome difficulties and create a more pleasant work environment.
8. The organization has been merged with another or bought by another that wants to implement a different management than the traditional one.
The diagnosis refers to seeing the availability of the organization's resources and the feasibility of possible changes. In all cases, it is necessary to examine the situation, detect the real causes of problems, evaluate the importance of each one and find or select appropriate solutions. In each case, and depending on who applies it, the method to be used will be different. The depth of analysis will also vary, depending on the object of analysis. But in all cases it is a question of carrying out a systematic and comprehensive analysis of the problems, their causes and possible solutions (Luchessa and Podestá, 1973).In other words, although the organization is subdivided to analyze it, the analysis must finally refer to the globality of the system, or else, the diagnosis may not be precise, biased or superficial.
He consents to the search for a "State of Excellence or Ideal". it leads to define the main objective of the Business Diagnosis, which is to visualize, detect and explain the current situation of the Company, with its symptoms, problems and causes, with the effects it produces, establishing its strengths (strengths) and weaknesses (weaknesses)) with repercussions in the different areas that influence it, and propose the conclusions and recommendations to bring the company to a goal state or horizon of ideal action or Excellence.
The organization diagnosis can be carried out at different levels: for problem detection, search for partial solutions and strategic analysis. Detecting problems is a first step, but by itself it does not generate any change in the company. At the second level, diagnosis is centralized in the improvement procedure itself, emphasizing a cycle of problem solving, this level of diagnosis only achieves incremental improvements where short-term decisions are not connected with long-term decisions and efforts. Improvement measures are isolated, in different directions and with low impact on business performance (Simons, 1994).
The strategic diagnosis is the guiding level that contains the previous ones, part of the changes in the environment and recognizes the need to integrate improvement efforts around the key or strategic problems of the organization and allows for more radical changes in the performance of the organization.
Regarding this topic, many authors have not only reflected their definitions, but have also developed their methodology to collect the accumulation of information that will allow knowing the objective reality of the company. Different procedures related to business and organizational diagnosis are described below.
1.2.4 Business Diagnostic Procedures
A suitable approach to make the diagnosis is; to propose a procedure based on the maturity of the capacities to be diagnosed, that is to say: the aptitude, talent and quality that the organization has for the proper exercise of activities in the desired future situation. Another important element for the approach of the procedure is that it must be conceived under a systemic approach, that is, the system must be composed of subsystems that cover the purpose of the diagnosis, which are interdependent and together are designed to meet an objective. common and that through a control subsystem the feedback to the system as a whole is carried out and that will allow us to implement a continuous improvement scheme.
For the above, the diagnosis must be made on the predefined procedure, evaluating the maturity of the processes that we want to redefine and establish the level at which they are found, in this way, at the conclusion of the diagnosis, it will be known what the level of maturity of the current situation, aligned to the reference procedure and also the existing gap to reach the desired future situation and the levels through which it must previously pass.
One of the practices that directly affect the inadequate business diagnosis is to carry out interviews, questionnaires, evaluations and measurements, without having previously defined the desired future situation that serves as a reference standard for what we want to diagnose. Obviously, diagnosing without knowing the desired future situation does not make sense and therefore it is necessary for the business organization to have a current Strategic Planning.
Organizational development
Porras, J and Roberston, 1992
Focuses on culture and processes, collaboration between organizational leaders and members in managing culture and processes is encouraged.
Teams are of particular importance for the performance of tasks.
It focuses primarily on the human and social aspect of the organization and, in doing so, they also intervene in the technological and structural aspects.
The participation and commitment of all levels of the organization in problem solving and decision-making are the hallmarks of the model's success.
It focuses on the change of the total system and considers organizations as complex social systems.
The practitioners are facilitators, collaborators and co-learners with the client system.
It adopts a development perspective that seeks the improvement of both individuals and the organization.
Diagnosis of French and Bell
French and Bell, 1996
Diagnosis is a continuous collection of data about the total system or its subunits, and about processes, culture, and other objectives of interest. From it, the identification of strengths, opportunities and problem areas should emerge; This from the analysis of the environment and the following five subsystems:
- Technological subsystem Social - human subsystem Regulatory subsystem Structural subsystem Objective subsystem
Diagnosis for SMEs Industrial and Services companies
Nestor Braidot, Hector Formento, Jorge Nicolini, 2003
Organizational diagnostic procedure applicable to the SME scenario, capable of generating results that allow identifying the keys to proper organizational improvement.
Diagnosis of the Organization
Parra Ferie Cecilia (2005).
Procedure directed towards the processes and operations related to transportation, a tourist product that is offered to the client. In the Cuban context, where the economy develops in a turbulent environment, but also with the presence of the blockade, this service is significantly affected, with resource limitations that directly affect the results it wants to achieve. In this sense, the clients' priorities are centered on the response capacity of the transportation service, where tangibility and reliability have special significance in customer satisfaction, a diagnostic procedure that allows identifying and studying the essential elements for the achieving superior results.
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Figure 2.1 Specific procedure to carry out the diagnosis in transport companies providing automotive technical services. Source: Parra Ferié 2005.
Force field analysis
Kurt Lewwin
It is conceived as different forces that compete with each other; There are two forces with which it works: the driving forces, which facilitate change, and the restraining forces, which prevent change from occurring.
It focuses on identifying and analyzing these forces and relating them to potential change. By using the force field analysis it will be possible to identify the most suitable course of action to be implemented since it will have the greatest number of driving forces and the least number of opponents.
This force model helps us determine to what extent change can be difficult and also allows us to see the factors that contribute to the success or failure of the proposed solution.
According to the bibliography review, there are several business diagnostic procedures (see Annex No III) from different authors and approaches, followed by this, the critical analysis of the different Business diagnostic concepts and Diagnostic procedures from different authors is carried out.
1.3 Critical analysis.
According to the authors analyzed in this research, it can be seen that when they give their points of view about the concepts and procedures of business or organizational diagnosis, the vast majority agree that it is a planned change, this change has its roots in the idea of an organization and a social system, because it is a planned process of cultural and structural modifications, permanently applied to an organization visualizing the institutionalization of a series of social technologies, in such a way that the organization is enabled to diagnose, plan and implement those modifications with or without external assistance.
Most of the authors specialized in the subject, despite having diverse ideas and approaches, present very common points.
Although it is true, one of the influential factors is the change in the organizational culture, this is quite a critical point.
In addition to this, the part related to time is criticized, because in order to see the results, it is essential to wait many years, which is limiting, because in most organizations they need rapid changes and not wait so long to achieve their goals.
Voluntary participation is one of the distinctive characteristics of the Working Groups. The degree to which it is has an impact on expectations and behavior.
The groups of the organizations are more permanent; its members have a much greater interest, both in the past and in the future, and are more willing to resolve debatable issues.
The use of consultants, whether internal or external, is another controversial point. An increasing number of companies are creating their own internal consultants.
The benefits of using an outside consultant, summed up as you are generally an "expert," are expected to offer a fresh and fresh approach to time-consuming issues, as well as possess the objectivity necessary to assert your expertise and knowledge in favor of the company.
On the other hand, a disadvantage that is pointed out is that it requires time and effort to come to understand how the organization works; You will also need to spend some time adjusting to the organization's system. Her relationships with the organization are temporary or sporadic, which means that the consultant only plays a limited role in the operations of the Diagnosis.
In turn, the internal consultant has the advantage of knowing in depth the operation of the organization. However, the internal consultant has less room for maneuver and little ability to influence the body. Senior management has a tendency to delegate to the internal consultant, which causes the real participation of senior levels in projects to decrease, with the consequent loss of interest, which often leads to project abandonment.
Various are the models that are used for organizational diagnosis, of which there is no common characteristic; Most consider a diversity of variables that refer to a generic mention of systems and subsystems, as is the case of the Patrick Williams model, which is based on four subsystems: the technological, the human, the administrative, and the organizational environment. or environment, this reference in turn is found from a more comprehensive perspective of the organization, in some other models they require the analysis of some specific variables on which they base the diagnosis, in this sense, the leadership analysis can be the determining factor for evaluate the effectiveness of the organization, in this sense the Sensing model and the so-called HPO(High Performance Organization) by Kurt Lewin respectively, are an example of this; and some others favor a set of factors that drive or restrict change.
After this critical analysis of the positive and negative aspects of the different procedures and their interiors, we proceed to make the partial conclusions of the chapter.
The procedures available to carry out the business diagnosis offer a range of different options, which allow selecting the one that best suits the particularities and conditions of the organization that seeks to improve performance. These procedures are based on the fact that companies exist to provide one or more services to their clients, therefore the improvement that can be achieved will have positive effects on the perceptions of clients on the organization.
In the opinion of this author, the business diagnosis procedure, exposed by Parra Ferie Cecilia (2005), is the one that best adjusts to the particularities and conditions of the SIME companies, to improve the performance of their processes, since this procedure integrates the best concepts, procedures and tools currently available related to business diagnostics. However, since it is a new procedure, its development is necessary, therefore, for this research, the procedure for business diagnosis will be used, developed by Parra Ferie Cecilia (2005), of which there is more experience in its application in companies with a high level of contact with your clients, a characteristic that the company object of this investigation possesses. There are also a number of improvement tools.These tools allow improving the effectiveness, efficiency and adaptability of a process through redesign or redesign of a process.
1.4 Partial conclusions of the Chapter
- Business Improvement is the way to achieve greater organization, discipline, efficiency in management; guaranteeing more contributions to socialist society. Diagnosis as a provider of relevant information is the starting point for the design of any system. Carrying out a diagnosis with the required quality is essential for the implementation of the Business Management and Administration System. Most of the diagnostic concepts discussed coincide in that the diagnostic concept is part of a preventive and strategic management process, as a means of analysis that allows the change of a company.At international level there is a wide bibliographic reference on the subject and a coincidence in the concepts of diagnosis and its importance,since it tells us where we are and what we must do to get where we want.
All the authors who are cited in one way or another agree that the main objective of the diagnosis is to visualize, detect and explain the current situation of the company, and for this they propose various methodologies according to the purpose, nature, scope, methods, deadlines, characteristics, among others.
In almost all of them, the process approach, teamwork, the human factor are present as the main figure for the achievement of the objectives set, and also common points of view on the diagnosis appear:
… evaluation, analysis, interpretation, explanation, self-analysis, identify, propose, obtain, report, among others; Which are aimed at solving problems, setting goals, making decisions or at least determining the causes of the ills that afflict the organization in its transit to achieve high competitiveness, being effective, efficient and effective.
Annex No I
Geographical location of all SIME organizations in Matanzas.
- Matanzas Conformadora Company "Noel Fernández" CONFORMAT. Extinguishers and Cylinders Company "Faustino Pérez" EXCILGAS.Commercial Company Ferromar.Metallurgical Company America Libre.Company for Services and Support to the Mechanical Industry.Central Metallurgical Steel Company José Valdés Reyes; which has the UEB of Nautical Services and the UEB Industrial Mechanic of Jovellanos. Granma Repair Company subordinated to the UNECAMOTO Group. Raw Materials Recovery Company belonging to the National Union of Recovery of Raw Materials and Recycling. DIVEP Marketing company subordinated to the DIVEP Group. ALASTOR Matanzas company, which is part of the RC Group.
It also has four establishments:
- EMAE Matanzas, reports to the management of the National EMAE company, of the DIVEP group. AMCA Cárdenas, reports to the Aluminum Mechanized and Assembly Company - AMCA in Havana City, of the ALCUBA.PEXAC Group, reports to the company of the same name of the General Machinery Group ACINOX Comercial Matanzas Branch, subordinate to the ACINOX Group.
.Annex No. II Diagnostic Concepts.
| AUTHOR | YEAR | DEFINITIONS |
| Tom Peters, | 1985 | "The diagnosis is of utmost importance since it tells us where we are and what we must do to get where we want." |
| Simons, | 1994 | The diagnosis is centralized in the improvement procedure itself, emphasizing a cycle of problem solving, this level of diagnosis only achieves incremental improvements where short-term decisions are not connected with long-term decisions and improvement efforts are isolated, in different directions and with low impact on business performance. |
| Philip Crosby | nineteen ninety six | "The diagnosis is the starting point of quality improvement, if it is not carried out, we cannot determine the diseases of the organization and therefore these will not be solved, we would lose customers since the products or services we offer them would not comply with their needs and specifications ”. |
| Harold koontz, in his book "Administration, a global perspective" | 1998 | Organizational Diagnosis: “The common process of Organizational Development (OD) includes the identification of problems, the diagnosis of an organization, the feedback of information about the organization, the development of a change strategy, interventions and measurement and evaluation of the actions of change". |
| Valdez Rivera | 1998 | The Diagnosis is part of a preventive and strategic management process, it constitutes a means of analysis that allows the change of a company, from a state of uncertainty to another of knowledge, for its proper management, on the other hand it is a process permanent evaluation of the company through indicators that allow us to measure vital signs. |
| Enrique Franklin | 2000 | They approach the diagnosis as a fundamental step for any activity that implies the definition of an effective action plan towards the improvement of the organization. |
| Dr. Alfredo Pérez Alfaro | 2000 | Strategic Diagnosis. An intention is perceived when using the term strategic to emphasize predetermined aspects as managers. In this sense, greater clarity can be seen because it takes into account from the beginning variables already defined by the same organization that are established in the vision and mission.
The strategic term implies that in this case, the diagnosis focuses directly on evaluating the “gap” existing between what needs to be done and what is done, so that its content does not consider other emerging aspects that could help better describe the state of affairs. Likewise, it tends to be understood that the strategic diagnosis becomes a second diagnosis, since the first diagnosis will seek to interpret a series of factors that help to know the situation in which it is taking into account the macro environment and the microenvironment of the organization in question. |
| Cummings & Worley | 2001 | The Diagnosis is a tool of the Management and corresponds to a collaboration process between members of the organization and the consultant to collect pertinent information, analyze it and identify a set of variables that allow conclusions to be drawn. |
| Raimundo Fernández Villaverde Grupo SCA Madrid | 2003 | The diagnosis is a tool at the service of effective management. The diagnosis applied to the administrative management of companies, tries to look for the diffusions or malfunctions according to the norms and criteria of the companies.
Define: Ö Global Diagnosis, this is an analysis from the global perspective through its functions and organization and that will lead to improvement proposals. Ö Diagnostico Expreso, aims to identify and formulate quick rescue measures (in the short term). Ö Functional Diagnosis, the analysis of a specific function (technical, commercial diagnosis, etc.), is aimed at solving internal functioning problems and improving their results. |
| Dr. Martín Flor Romero | 2006 | Business Diagnosis: Defines it as: "… the result of a research process related to the organization and operation of companies, which allows determining and evaluating the cause-effect relationships of the problems detected and providing a comprehensive solution to them". |
| Mario Héctor Vogel &
Idalberto Chiavenato |
2006 | Situational Diagnosis: As mentioned by the term Situational Diagnosis has a lot to do with a theoretical current called the Situational Approach or Contingency, which is a current that starts from the principle that the Administration is relative and situational, that is, it depends on the circumstances environmental and technological aspects of the organization. In other words, it conjugates the moment and the context in which the organization finds itself.
The word contingency means something uncertain or eventual, which may or may not happen, depending on the circumstances. Situational Theory emphasizes that there is nothing absolute in organizations or administrative theory, everything is relative, everything depends. In this way, it also transmits a sense of dynamism, that is, what defines your current reality cannot be considered immovable, since what is detected is determined by the current situation in which you find yourself. And this situation is due to various internal and external factors, which combined established these conditions. |
| Executive Group for Business Improvement | 2007 | The diagnosis is a photograph of the current situation of the company, from making an assessment of all the processes and structural subdivisions that comprise it.
In order to carry out the diagnosis, it is necessary to carry out an analytical examination of the trajectory and the current situation of the company regarding the fulfillment of its mission, its objectives and activities, the assessment of the state of its resources, the characterization of the business culture and its technical-organizational functioning. |
Annex No. III Diagnostic Procedures.
Diagnosis of the Organization
Parra Ferie Cecilia 2005.
Procedure directed towards the processes and operations related to transportation, a tourist product that is offered to the client, and there are resource limitations that directly affect the results that you want to achieve. In this sense, the clients' priorities are centered on the response capacity of the transportation service, where tangibility and reliability have special significance in customer satisfaction, a diagnostic procedure that allows identifying and studying the essential elements for the achieving superior results.
Organizational development and change.
Burke- Litwin.
The variables involved in creating the first and second order change called transactional change and transformational change are identified. To understand the model, it is necessary to distinguish between the environment and the organizational culture and between transactional and transformational change.
Diagnostic model
French and Bell (1996)
Identifies that diagnosis is a continuous collection of data about the total system or its subunits, and about processes, culture, and other objectives of interest. From it, the identification of strengths, opportunities and problem areas should emerge; This from the analysis of the environment and the following five subsystems:
- Technological subsystem Social - human subsystem Regulatory subsystem Structural subsystem Objective subsystem
Organizational performance. David Hanna. The model describes a frame of reference in which there are five dimensions that have an impact on the performance of the organization: commercial situation, business strategy, company results, culture and a focus focused on the interrelationships between the structure, people, rewards, information, tasks and decision-making. The first focus of diagnosis would be the relationship between the business situation and the results of the company. The second focus of diagnosis would be to analyze the business strategies, the raison d'être of the organization: Finally, the third focus would relate the prism of interrelationships with culture.
In the culture is how the structure, tasks, information and people are perceived.
Force field analysis
Kurt Lewwin.
That of the force field is conceived as different forces that compete with each other; There are two forces with which it works: the driving forces, which facilitate change, and the restraining forces, which prevent change from occurring.
This tool focuses on identifying and analyzing these forces and relating them to potential change. By using the force field analysis it will be possible to identify the most suitable course of action to be implemented since it will have the greatest number of driving forces and the least number of opponents.
It can be used anytime a significant change is expected. This force model helps us determine to what extent change can be difficult and also allows us to see the factors that contribute to the success or failure of the proposed solution.
Sensing.
Leonard Schiesinger.
It is conceived by dividing the organization into five subsystems, the central subsystem of the organization is culture, bearing in mind that this set of beliefs and values are commonly accepted by all members of the organization and is closely related to its design.; it can be modified by the action of the environment and influence the changes and results of the other subsystems; which involves another subsystem that it calls renewal mechanisms.
Three-dimensional diagnosis
Patrick Williams.
It relates the forms of administration (leadership styles) from centralization to decentralization with the levels of work required, influenced by the action of the environment and obtaining, in response to human behavior, different levels of commitment to the given situations.
The Six Pictures
Marvin Weisbord It consists of the relationship between six subsystems that are: objectives, organizational structure, human relations, rewards, leadership and support mechanisms. It aims to facilitate the diagnosis of problems caused by the influence of the external environment. Participants use this model as a cognitive map, systematically examining the processes and activities of each subsystem, looking for signs of problems and the reflection that these actions have had on each of them. Importance is given to formal aspects and informal of each subsystem.
7 S procedure
McKinsey
It was born out of the concern of western companies to adopt the excellent performance of Japanese companies. Her focus is on analyzing and improving effectiveness in organizations. The model assumes that this effectiveness depends on seven dimensions: 1. Structure 2. Strategy 3. Systems (programs and processes) 4. Skills and faculties 5. Personnel 6. Style 7. The organization's superior objectives. The model postulates that changes in organizational efficiency are the consequence of multiple factors and not only of the hard dimensions (strategy, structure and systems). The model is related to a network of relationships between the dimensions, which makes it possible not to give a priori predominance to any of them when it comes to improving organizational efficiency, but rather to analyze the interrelationships in order to begin to intervene.
Organizational development.
Porras, J and Roberston, P. (1992)
Focuses on culture and processes, collaboration between organizational leaders and members in managing culture and processes is encouraged. Teams are of particular importance for the performance of tasks. It focuses primarily on the human and social aspect of the organization and, in doing so, they also intervene in the technological and structural aspects.
The participation and commitment of all levels of the organization in problem solving and decision-making are the hallmarks of the success of the Procedure.
It focuses on the change of the total system and considers organizations as complex social systems.
The practitioners are facilitators, collaborators and co-learners with the client system. It adopts a development perspective that seeks the improvement of both individuals and the organization.
Letter from the SIME Minister requesting the MFP to establish the Jovellanos Mechanical UEB as a Company dated April 29, 2008.
Letter from the Territorial Economic Commission addressed to the Minister of SIME related to the constitution of the UEB Mecánica Jovellanos as a Company
According to Decree Law 252 8/7/2007 On the continuity and strengthening of the SDGEC
According to Decree 281 of the Executive Committee of the Council of Minister 16/8/2007.
According to Article No. 11 Decree Law 252 of 7/8/2007.
According to Article 55 Decree 281 of 8/16/2007
According to Article 17 Decree 281 8/16/2007.
Methodological Guide (Executive Group for Business Improvement dated 1/12/2007.
According to Peters (1985), Valdes Rivera (1998), Comming & Worle (2001), (Encarta® 2008).
Ing. Ivan Dimitrie Moyasevich B. Industrial Engineer - Consultant and Business Advisor, Creator of the CIPOD Model (Lima - Peru), http://www.moyasevich.cjb.net/ - [email protected]
According to Ing. Ivan Dimitrie Moyasevich (2005)
Koontz, Harold and Weihrich, Heinz "Administration, a Global Perspective" 11th. Ed. Mc Graw Hill 1 998 pag. 471, 472.
Flor Romero, Martín "Organization and Business Processes" 5th. Ed. LItocolor 2 006 pag. 87.
www.tablerodecomando.com
Chiavenato, Idalberto "Introduction to the General Theory of Administration" 7th. Ed. Mc Graw Hill 2 006
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