CHAPTER I: Theoretical Reference Framework to introduce Management by process.
This chapter aims to conceptualize the Process Approach, the importance of its application, as well as other concepts that support the research.
A set of methodologies designed by different authors for the implementation in organizations of the process approach is shown and some tools that are very useful for the analysis and application of the Process Approach and Management in organizations are exposed.
1.1. CONCEPTS OF THE SYSTEM THEORY.
To reach a clear understanding of what constitutes the Process Approach, a brief reference to some concepts used in Systems Theory will be presented, since this forms the theoretical basis of this approach and is shown in three basic premises:
- Systems exist within systems. Systems are open and are characterized by a process of infinite exchange with their environment, which are the other systems. When exchange ceases, the system disintegrates. The functions of a system depend on its structure.
Therefore, a system is diverse activities that require basic functions (See Annex 1), which in isolation do not benefit the organization but each one independently of the others. Their integration is necessary to achieve, as a whole, greater and better results, since they are all based on a common objective.
One of the most relevant characteristics of the systems, without a doubt, constitutes it, what the bibliography calls Synergy. This means that the whole is something more than the sum of the parts; In the language of the organization it means that; as the different areas of an organization cooperate and interact, they become more productive than if each one acted in isolation.
Then, the achievement of a greater or lesser performance of the system (of the Organization), taking this characteristic into account, will be based on the “how” of the interrelationships of the elements that make it up.
To achieve better relations and cooperation between the different elements that make up an organization, it is important that its managers perceive it as a system; Below are two points of view through which an organization can be perceived.
Vertical Vision.
One of the main problems, according to Geary A. Rummler and Alan P. Brache, is that “the What, Why and How of the business should not be confused…” and, “… when it happens, it is the organizational picture that it is managed and not the organization ”, and this is what the Vertical Vision of a business generally represents.
It is very common that in the functional way of conceiving the company, as a trend, there is a "separation" between the different functional areas of the same, since each department focuses on the achievement of the goals set by senior management.
The literature calls these "separations" as the culture of the Silo. Each department constitutes a kind of fortress, keeping within the activities that correspond to them, and leaving out that of the other areas. In this environment, interdepartmental communication becomes very difficult, promoting the “separation” of the parts of the organization and endangering the integrity and performance of the Processes.
So "How" to make today's functional organization overcome these deficiencies and survive.
Horizontal Vision.
Figure 1.2: Organization as a system from the horizontal point of view. Source: Hernández Lugo, A and Lemus Viera, H.
Thus, systems-oriented functional managers will always identify in advance the impact their decisions will have on other departments or functions. That is, they will integrate their departments with the entire company. The achievement of this or not, is found in the way in which the relationships between the different areas of the Organization are treated and this in turn depends on the conception of the company, the management style, on how the mechanisms of I work for the construction and development of a culture of integration.
This approach (horizontal vision) provides significant advantages, since it includes Clients, suppliers and work flow, it also allows us to see "How" the work is done through processes that transcend functional barriers.
This leads to the premise that systems are the basis of organizations through processes which must be managed correctly, which implies the implementation of the Approach and Management by Process.
1.2. APPROACH AND MANAGEMENT BY PROCESS
Approach by process.
Different authors have defined what a process is, according to the North American consultant Stephen Heffernan: "A process is a set of activities that produce value for an external or internal Client", it specifically states the purpose or reason for being of a process.
ISO 9000: 2000 defines as “A process: all that activity that uses resources and that is managed in order to allow the input elements to be transformed into results”.
During the research, several process concepts were consulted to investigate the elements that comprise it, some of them are shown in Annex 2 and the authors and the main elements of the concepts are summarized in Table 1.1.
Table 1.1: Comparison between the different process concepts of different authors. Source: Made by the author.
The table shows that the concepts are very varied, being the activity and transformation (results) aspects, those that appear explicitly with the greatest frequency. Of the concepts studied, the most complete is that of Nogueira Rivera (2004), since it has 100% of the elements identified.
As an essential aspect for the proper functioning of the process, feedback is defined, because by placing inspection and control points carefully and intelligently along the flow, information is available to raise the quality and effectiveness of the work. (See annex 3: Characteristics of the processes).
At present, organizations have as a first order objective, the realization of their activities and the use of their resources with the greatest possible efficiency, this will depend directly on how effective the execution of their processes is, which will allow them to provide customers a product or service that meets your expectations and meets your needs. The means to achieve that these objectives are turned into results is through the implementation in the organization of a process approach that replaces the already traditional functional system that has shown inefficient operation, since it is based on the actions of the company vertically, dividing it into parcels (departments) and hindering the interrelation between them, losing sight of both internal and external customers.This approach is popular in Cuban companies and has demonstrated not only in Cuba but throughout the world its ineffectiveness by being incapable of truly guiding the company to meet the needs and expectations of customers.
In consequence with what the Dictionary of the Royal Spanish Academy (RAE) dictates about the word “focus” in some of its meanings, it is defined as: “Way of treating a matter, or optical device that achieves greater clarity for the image and its reproduction in a plane ”; then understood as the lens through which the organization is viewed; Through which, the processes that flow through it will be seen in the foreground; determining the points where their integrity and optimal performance are at risk. These points are often made up of the relationships established between the different functional areas through which the company's processes flow.
The Process Approach is the application of a process system within the organization, together with the identification of the interactions of these processes, as well as their management. (ISO / FDIS 9001: 2000)
When a system of processes is applied in an organization, those that are identified, interrelated and managed to guarantee a desired result that satisfies the client's needs, there is a process-based approach.
According to Hernández Lugo, A. and Lemus Viera, H, (2001) the processes are classified as:
- Basic or Keys: The key processes are those that add value to the client or directly affect their satisfaction or dissatisfaction. They make up the organization's value chain. Key processes can also be considered those that, although they do not add value to the customer, consume many resources. The key processes intervene in the mission, but not necessarily in the vision of the organization. Direction or Management: they are in charge of managing the key and support processes and are involved in the vision of an organization. Support: they are processes that indirectly add value to the service received by the Client, or do not add value, but do not come into direct contact with it and are necessary for the good performance of the Basics or Keys.
Here are some advantages of the Process Approach. (Vialog Group Communications, 2004, Anonymous: Knowing the client and reaching their mind, CETDIR Authors' Collective, 2004).
- It gives the organization a focus on the customer It is a means to effect major radical changes It helps to manage interrelationships It gives a system vision It allows better decisions to be made Lower costs and shorter time cycles through the effective use of resources. Consistent improvement and predictable results The appropriate and priority approach improves opportunities Suitable for both operational and strategic management Promotes the management of interrelationships and frames them in time to shorten delivery times Shows cause-effect links between activities and It places them in relation to the overall objectives and the needs of the customers. It cares about both costs and value. Identify the processes related to the key success factors that provide distinctive competencies,putting them in relation to the added value perceived by customers.
Annex 4 sets out the main differences between an organization focused on tasks and those that are focused on processes, evidencing the superiority in organizations with a Process Approach.
Therefore, the Process Approach provides the entity with a more effective way of making strategic and operational decisions, assuming the client (external and internal) as the most important element, taking into account the adequate management of resources.
Management by Process
Management by Process constitutes the systematic activity of the workforce aimed at guaranteeing a set of measures, methods and procedures that ensure the most rational and harmonious qualitative and quantitative conjugation of the elements of the production system in time and space throughout the entire process of production in order to fully satisfy customer requirements with high efficiency, effectiveness and competitiveness. (Ortega Pérez, M, 2007).
Process Management is the way to manage the entire organization based on the processes. These have a sequence of activities aimed at generating added value on an INPUT to achieve a result, and an OUTPUT that in turn satisfies the Customer's requirements. Therefore, the organization is aware of the needs of its clients and for that it works through an interrelated system that makes cross-functional management possible.
Putting Process Management into practice has promoted the creation of different work schemes that are formed depending on the situation that has caused its implementation.
Some of these situations are:
- Design a process (Create, Study) Redesign in search of improvements Organize a Fractional Process
In all cases, the search for improvement should be the premise. (See Annex 5: Advantages of Process Management)
In short, Process Management is the administration of the fundamental processes of the company. But there is no doubt that, in order to achieve effective process management, you must first have a Process Approach. Then the process approach constitutes the means and management the end to be achieved.
It can be said that Process Management provides an overview of all the activities carried out in the institution, encourages exchange with clients to increase the quality, efficiency and effectiveness of products and stimulates the relationships established between the associated sub-processes. This approach encourages cross-functional management because the interrelationships in the processes develop horizontally.
1.3. METHODOLOGIES, MODELS OR PROCEDURES FOR THE INTRODUCTION OF THE PROCESS APPROACH.
Analyzing the feasibility of the Approach by Process in an institution, it is necessary to implement a methodology that allows its introduction and thus increase the degree of customer satisfaction and the improvement of the interrelationships between the entity's processes.
In order to define the work tool, a bibliographic search was carried out and 7 results were studied (See Annex 6) designed by different authors and both national and international organizations.
- Geary R. and Alan B. (1995). Improving Performance. How to Manage the White Space on the Organization Chart.Vialog Group Communications. (2004). Process improvement procedure. “Introduction to Process Redesing.” Hernández A. and Lemus H. (2001). Process approach. Preparation and application of a Procedure in the Leisure industry Román ME (2006). Process Management. Its implementation and importance in business practice Beltrán J. (2002). How to focus a Management System on processes. School of Higher Studies in Hospitality and Tourism. MINTUR. (2001) Methodology for a Management by Processes. Jardines Ochoa, M. (2011). Methodology to introduce the Approach by Process in the framework of Hospital Management.
A general analysis of all the tools found was carried out in order to establish points of contact between them. (See table 1.2)
Table 1.2: Comparison between the methodologies of different authors for the introduction and improvement of the process approach. Source: Made by the author. As seen:
The convergence criteria between the different authors analyzed are: the selection, the characterization of the process under study and the Implementation Plan, agreeing 100%. This shows the importance that is given to the correct selection of the process, the use of the appropriate techniques for the analysis and its implementation.
Most of the sources consulted consider the analysis of the process and the determination of the reserve fields important with 85.7%.
The authors do not attach much importance to identifying improvement objectives, the monitoring and control plan and the evaluation of the benefits and costs of improvements (critical issue). A methodology to introduce the Approach by Process in a company must first define the critical issue of the same, since from this the redesign of the process begins, it must also take into account the monitoring and control of it to correct errors and take advantage of The feedback in the process and, finally, the cost analysis contributes, with good management, to increasing the efficiency of the organization.
In this sense, the procedure for the introduction of Management by Process by the authors Rummler & Brache is adopted as a basis for the investigation. It has 80% of the steps identified in the methodologies studied, it is very generalizable, that is, it can be adjusted to any research object and offers the possibility of treating the processes emphasizing their interrelationships and not so much in the content itself.
The Rummler & Brache Procedure, 1995 presents a systemic conception that starts from considering three levels at which an investigation can be implemented (See figure 1.3), in order to detect improvement reserves, these are:
- Company Level Process Level Work Level
(or homework)
Figure 1.3: The three levels of improvement. Source: Rummler & Brache.
Analysis at the organization or company level allows finding strategic improvements in processes and in the organization. In addition to better identifying the critical issue and selecting the processes to analyze. In this regard, the R and B methodology surpasses the rest of those studied.
The organizational level considers the functional divisions and spheres of authority of the organization in relation to four external components: society, customers, market and investors or shareholders.
The company is analyzed in its entirety from a macro perspective, this point of view is generally the one held by the top management of the organization, for this reason and because as a trend, decisions at this level commit a large number of resources; it is advisable that senior management be in charge of making improvements at this level.
The process level considers the sequences of work processes that interrelate the different departments, in a horizontal analysis that evaluates their alignment with the results.
The analysis at the level of the processes allows, fundamentally to determine possible separations or fractionation in the processes, and therefore to improve the relationships between the functional areas, persuading them to achieve the organizational goals.
At this level, it is appreciated how the processes transcend the functional boundaries of the organization, studying them from beginning to end. The study has a more rigorous level of detail than at the organization level.
To properly manage operating variables at the process level, it is first necessary to ensure that:
- The processes are designed to meet the needs of the customers. The processes work effectively and efficiently. The objectives and indicators of the processes respond to the requirements of the customers and the organization.
Analysis at the task level allows operational improvements to processes. It is the most detailed level at which a process can be studied, often analyzing sub-processes that are part of larger processes. It is advisable that the people in charge of carrying out the tasks to be improved participate in this analysis.
Figure 1.4 shows the Rummler & Brache matrix, which shows the 9 variables to take into account in the three levels of improvement mentioned above.
Goals and Measures Design and Development Management
| Organizational Factual Goals and Measures | Organization Design and Development | Organization Management |
| Goals and measures of process facts | Process Design and Development | Process Management |
| Goals and measures of Activity facts | Design and Development of the Activity | Activity Management |
Organization level
Process level
Activity level
Figure 1.4: Rummler & Brache matrix: Source: Rummler & Brache.
After knowing the different levels of improvements and the variables to be analyzed in each one, the sequence of stages of the procedure is shown for the introduction of the Approach by Process of the book "How to manage de white space on the organization chart", by the authors Rummler & Brache, which will be taken as the basis for the development of the research, taking into account that each of the stages have different interpretations depending on the level of improvement that is being studied.
- Identify the non-correspondence of the process requirements with the necessary output results for customer satisfaction. Know the direction of the improvements that will be produced. Establish output parameters that the customer requires.
- Identify the aspects that impede the effectiveness and efficiency of the process in terms of the output results. Analyze the causes of occurrence of these aspects.
1.5. Partial Conclusions
According to the criteria expressed in the chapter, it can be concluded that:
- Analyzing a productive institution as a system from a horizontal point of view, would lead to favorable results for both the client and the entity itself, since it would work in continuous Product-Client exchange and would raise the organization's ability to solve problems because The company's staff would have as a first the integration of the areas and the increase in efficiency by improving processes, hence the need to introduce management by process The incorporation of business tools and methods aimed at increasing integration between the different areas of an entity, is today an important element to achieve efficient business management in new institutional settings.In the UEB of Television and Monitors of the Electronic Industry Company, we do not work with a process approach, therefore, it is advisable to introduce Management by Process as a solution to several of the problems that today threaten its performance.
The Rummler & Brache methodology has been selected as the basis for the design of a procedure to introduce Process Management in the UEB of Television and Monitors of the Electronic Industry Company, as it is one of the most complete of those studied and adapted better to the object of investigation; In this sense, the methodology offers the possibility of treating the processes by emphasizing their interrelationships and not so much on the content itself.
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