Business Improvement is a new management and direction system, the result of accumulated experience in business management and is projected to place the socialist state-owned company in competitive conditions at the national and international level. The implementation and consolidation of the Direction and Management System and associated systems requires the systematic and joint work of managers and workers, which allows the assimilation of structural changes and values in the organization. This paper presents the results obtained in the implementation of the General Organization System (System I) that is part of the Direction and Management System, in a service company.
Keywords: Direction, business management.
As stated in the Editorial published by the Nueva Empresa Magazine (2001), Business Improvement is a new management and direction system, the result of accumulated experience in business management and is projected to place the socialist state enterprise in competitive conditions. at the national and international level.
In this same publication an interesting question appears: And after the file, what? In order not to stagnate and regress, the organization must set itself new challenges. The goal: World Class company. (Faloh, 2001).
In this first stage, the diagnosis and approval of the files were carried out through the application of Decree Law No. 187/1998 General Bases of Business Improvement. In an analysis carried out by García et al. (2007) on the economic evolution of a sample of 83 companies in Cienfuegos Business Improvement in the period 2002 to 2006, it is concluded that among those analyzed, some are in the groups with low growth rates, with instability in the behavior of the companies. fundamental indicators such as mercantile production, net sales, total income, profits or losses in the period, total salary fund, etc. and not in a progressive ascent with the application of this business model.
The results of this work carried out show that in general, since the beginning of this process, there has been a policy of the Cuban State to achieve companies of excellence, but like any process of change, a period of assimilation of the new systems has been necessary. that are incorporated into business management.
The experiences assimilated in the twelve years of work with companies in Business Improvement and in a process of continuous improvement lead to the promulgation of Decree-Law No. 252/2007 On the continuity and strengthening of the Cuban business management and direction system and Decree No. 281/2007 of the Council of Ministers. Regulation for the implementation and consolidation of the state business management and direction system that regulates the new stages of development to achieve the comprehensive management and efficiency that the country needs.
The Executive Group of Business Improvement (GEPE) has developed different methodologies for the implementation of Business Improvement since its constitution, which have been adapted to the context of the situation of companies in the national economy, the most recent being the Methodology for preparing of the Business Improvement files based on the new projections established by the legislation (2007), Methodological Guide for the preparation of the business diagnosis (2007) and the Methodological Help for the Consolidation of the Direction and Management System (2009).
As can be seen, from the methodological point of view, there are the necessary tools for the implementation of the Direction and Management System, but in many Cuban companies an extraordinary organizational effort and collective creation are required, since it has not been developed in a a management culture is phased in, if one takes into account that it is necessary to design, document, implement and manage 19 management systems, including quality, occupational health and safety, environment and human capital, which are subject to certification or endorsed by competent bodies, in addition to those that have traditionally been managed in Cuban companies.
The implementation and consolidation of the Direction and Management System in the company requires the systematic and joint work of managers and workers for a more or less prolonged period of time, which allows the assimilation of structural changes and values in the organization. This work presents the results obtained in the implementation of the General Organization System (System I) of the Direction and Management System in a service company.
Work development
- Generalities for the application of the Management and Direction System
1.1 Of the training
The preparation of all workers, administrative leaders, political and mass organizations on the political, social and economic objectives of the system is of vital importance in the transformations to be carried out in the organization.
The Director of Human Capital must include in the preparation of the Company Training Plan the training needs of the workers in relation to Business Improvement and evaluate the impact on the Annual Performance Evaluation.
The Director of Organization and Development must determine and use the most appropriate techniques for each case, to know the domain that workers have of the implementation of the Direction and Management System in their areas.
For the members of the Board of Directors, training actions must be programmed according to the Meeting Plan of the same, so that this issue is reviewed periodically, every six months it must be evaluated through an exam and must be approved by more than 70% of the Board members.
1.2 Of the systems that make up the Direction and Management System (SDG)
The processes determined in the organization are presented in Figure 1. Map of Interrelation of the Processes. The systems that make up the SGD associated with the processes and documents are presented in Table 1. Business processes and documents associated with the Direction and Management System in the organization.
- General Organization System
The documents that constitute the regulatory basis of the company are prepared by the areas that originate them and are subject to review by the management and consultation bodies, in accordance with the provisions of the specific procedures of each process.
The General Director is the person designated to approve the regulations, procedures and documents that are empowered, through business resolutions that are drawn up, reviewed and controlled by the Legal Counsel, after being approved by the corresponding management body and the file of Annual Resolutions.
The information system is regulated by the Information and Communication Procedure where the flow of information is established and responsibilities for the use and management of information are defined.
2.1 About structure and template
According to the needs of the company and the changes that occur in the environment where it carries out its processes, the Board of Directors periodically analyzes the structure of the organization and the workforce and approves it, which must be made effective by means of a signed Resolution by the Director General.
The Human Capital Directorate prepares the template according to what is regulated in Resolution No. 57/88, Regulation for the preparation, calculation, presentation, approval, filing and control of the templates of the State Committee on Labor and Social Security. The models to be made and filed in the Human Capital Department are the following:
- Model P-1 Summary of the company's workforce Model P- 2 Template of positions and occupations Model P- 4 Staff template.
The template must correspond to the load and capacity balance carried out in the company, it is necessary to take into account that the difference in salaries Heads-subordinates does not exceed the four groups in the single scale (Article 353, Decree No. 281/07), unless they are approved as an exception in the initial file and keep it updated so that the applied template corresponds to the approved one and to the salary payroll.
2.2 On the areas of regulation and control and the UEB.
The company defines the following areas of regulation and control that are executed in the directions defined in the structure:
- Direction Management: Strategic Planning, Deployment of objectives and control of business management. (General Management and Organization and Development Management) Financial Accounting Management: Planning, accounting, finances, costs, prices, statistics and economic evaluation of the results of the company. (Financial Accounting Department). Human Capital Management: Human Capital System. Selection, training, hiring, suitability assessment, salaries. (Human Capital Directorate) Technical Management: Planning and control of the execution of services. (Technical direction).
The organization determines the following processes for the performance of the service and production that are carried out in the Base Units:
- Service Process A. Service Process B. Technical Consulting Process in Design and Projects Construction Maintenance Process.
The following support processes are determined for the performance of the services
- Legal Advice Process. (General Directorate). Defense Process and Exceptional Situations. (General Directorate). Information and Communication Process. (Directorate of Organization and Development). Innovation Process. (Directorate of Organization and Development). Environment Process. (Direction of Organization and Development). Quality Process. (Directorate of Organization and Development). Purchasing Process. (Directorate of Assurance) Service Process. (Directorate of Assurance).
The functions and activities carried out in the execution of the processes are defined in the Business Improvement File, in the Internal Control Folder, the General Director's Resolutions, the respective manuals and procedures of each management system determined in the SGD.
Evidence of their performance is kept in the records established in the aforementioned documents.
2.3 About the comprehensive strategy of the company
For the development of the strategy, a Business Instruction has been prepared as a guide to facilitate the work of the team set up for this purpose, led by the General Director. In addition, the indications of the Business Group should be taken into account when updating it, as well as documents that are issued by the Government.
- Benefits provided to the organization
The implementation of the General Organization System has been carried out gradually, according to the fulfillment of the stages of the projects approved for each year, contributing to the fulfillment of the company's work objectives.
It is observed that the training, competencies and awareness of managers and workers about the Management and Direction System and its components have been increased, based on the active participation of all members of the organization in work teams and leadership of senior management in the implementation of the systems.
Among the most important results for the company are:
- The design, implementation and certification of the Quality Management System, which allows its alignment with the requirements of Decree No. 281/2007 Regulation for the implementation and consolidation of the state business management and management system and Resolution No. 297-2003 of the MFP. Definitions of Internal Control. Content of the Components and their Standards The determination and development of the procedures and manuals necessary to consolidate the Direction and Management System in accordance with Decree No. 281/2007 The preparation of the Manual of the Environmental Management System and the improvement in the environmental management, the Certificate of Territorial Environmental Recognition granted by the CITMA Delegation this year is obtained.The preparation of the Integrated Strategy of the organization for the period 2009 to 2011,where the specific policies and strategies are defined, in accordance with the provisions of Decree No. 281/2007. The design and implementation of the Occupational Health and Safety System by NC 18,000: 2005 Occupational Safety and Health. Occupational Health and Safety System, with a view to its integration with the Quality Management System and the link with the NC-3000: 2007 Integrated Human Capital Management System Introducing new and improved working methods with the portfolio of projects, the movement, the realization of the Science and Technology Forum and the activities of the ANIR, the participation of specialists in events framed within the Business Innovation System The organization maintains the status of Company within the Business Improvement System since its foundation,through continuous improvement of its systems and compliance with the requirements established by Decree-Law No. 252/2007 on the Continuity and Strengthening of the Cuban Business Management and Direction System.
Bibliographic references:
- Cuba. Decree Law No. 187/1998 General Bases of Business Improvement, Cuba. Decree No. 281/2007 of the Council of Ministers. Regulations for the implementation and consolidation of the state business management and management system in Cuba. Decree-Law No. 252/2007 On the continuity and strengthening of the Cuban business management and direction system. New Company Publishing. 2001. Cuban Journal of Business Management. Vol.1, No. 1, 2001. Faloh Bejerano, R. 2001. Approaches. Towards a high performance company. New company. Cuban Journal of Business Management. Vol.1, No. 1, 2001. García Leonard, Y., Domínguez Domínguez, M., Nieves Domínguez, Z. 2007. The economic evolution of companies in business improvement in the period 2002 -2006. In: Scientific Yearbook of the University of Cienfuegos. Digital edition. 2007.GEPE. 2007. Methodological guide for the elaboration of the business diagnosis. Digital format.GEPE. 2007. Methodology for the preparation of the Business Improvement File of companies and superior business management organizations. Digital format. 27 p. GEPE. 2009. Methodological Help for the Consolidation of the Direction and Management System. In: CD of Consolidation of the GEPE. November 2009.
FIGURE 1. PROCESS INTERRELATION MAP
Note: * Work is being done on the integration of the Management Systems for Quality, Environment and Health and Safety at Work (Integrated Management System).
| Not. | Systems | Scope | Associated processes | Associated documents |
| one. | General Organization System. | Defines the main organizational concepts for the implementation of the SDG | Of direction.
Quality. Information and communication. |
Management Procedure of the Directorate.
Information and Communication Procedure. File of Business Improvement. Internal Control folder. Quality Manual. Process Manual. Accounting Manual. File of Annual Resolutions. Business Strategy. Identity Manual. |
| two. | Management Methods and Styles System. | Typify the methods and styles of business management. | Of direction.
Information and communication. |
Management Process Procedure of the Directorate.
Information and Communication Procedure. File of Annual Resolutions of the EAHCF. Business Strategy. Indications of the Work System of the Tables. Regulations for the Participation of Workers in Management. Values system. |
| 3. | Man Care System. | Ensure participation in management, improvement of working conditions, satisfaction and training, increased job competence. | Human capital.
Services. |
Service Procedure.
Man care strategy. Regulation of moral stimulation. Regulation of participation of workers in the Directorate. Regulation for payment for high performance. Integrated Management Manual of Human Capital. |
| Four. | System of Organization of the Production of Goods and
Services. |
Planning, organization, direction, coordination and control of the production of goods and services. | Processes determined for the performance of services | Business procedures associated with the performance of services.
(Planning, realization, control and improvement) Measurement Management Procedure. |
| Logistics: Guarantee the acquisition, movement, storage of products and inventory control | Purchases.
Financial accountant. |
Accounting Manual.
Purchase procedure. |
||
| 6. | Quality management system. | Implement the Quality Management System in accordance with NC-ISO 9001. | Quality | Quality Manual.
Process Manual. Annual quality objectives. |
| 7. | Human Capital Management System. | Determine and implement the elements of the SCH to achieve compliance with the requirements of the NC-3000. | Human capital. | File of Annual Resolutions.
CH Integrated Management Manual. Safety and Health at Work Manual. |
Table 1. Business processes and documents associated with the Direction and Management System in the organization.
| Not. | Systems | Scope | Associated processes | Associated documents |
| 8. | Environmental management system. | Environmental diagnosis.
Environmental policy and goals. Environmental program. |
Environment. | Manual of the Environmental Management System.
UMA-CITMA Environmental Guarantee. |
| 9. | Innovation Management System. | Assessable results of innovation management.
Generalization plan. |
Innovation. | Innovation Management Procedure. |
| 10. | Planning System. | Approved Annual Business Plan, prepared in accordance with the aspects approved by the MEP.
Compliance with the different indicators of the Plan. |
Financial accountant.
Security, Defense and Exceptional Situations Process. |
Planning Procedure.
Security, Defense and Exceptional Situations Procedure. Annual Resolutions file. |
| eleven. | Economic Contracting System. | The company has materialized all its economic relationships with clients and suppliers through contracts. | Legal advice. | Procedure for the Review, Approval and Control of Purchase and Sale Contracts.
Legal Advice Procedure. |
| 12. | Accounting system. | The company has correctly implemented the elements that make up the Accounting Manual in correspondence with the Cuban Financial Information Standards. | Financial accountant | Accounting Manual.
Internal Control folder. Security, Defense and Exceptional Situations Procedure. Unique Audit File. |
| 13. | Internal Control System. | Documented and implemented the SCI of the company.
Resolution No. 297/2003 of the MFP. |
All processes determined. | Process Manual.
Minutes of the Internal Control Committee. Internal Control Folder Security and Physical Protection Regulations. |
| 14. | Financial Relations System. | Determine the financial relations system adopted by the company. | Financial accountant | Balance sheet.
State of Situation. Unique Audit File. |
| fifteen. | Cost System. | In the board of directors of the company and UEB, the behavior of costs and expenses is analyzed and used as a management tool. | Financial accountant | Accounting Manual.
Balance sheet. State of Situation. Unique Audit File. |
| 16. | Pricing System. | The prices and rates used correspond to those approved by the corresponding instance. | Financial accountant | Service rates and prices folder |
| 17. | Information System. | Politics
Security of the information. Computer security plan. Balanced scorecard. |
Information and communication. | Information and Communication Procedure.
Computer Security Plan. Information dashboard. Validation of computer programs. |
| Not. | Systems | Scope | Associated processes | Associated documents |
| 18. | Marketing System. | Marketing structure.
Customers. Complaints and claims. Marketing plan. Supplier Evaluation. |
Information and communication.
Quality Purchases. Innovation. Processes associated with the services. |
Process Manual.
Customer Satisfaction Evaluation Procedure. Procedure for the Evaluation of External Suppliers. Marketing Procedure. |
| 19. | Business Communication System. | Communication diagnosis.
Communication system. Business identity. Trademarks, distinctive, industrial property. |
Information and communication.
Innovation |
Information and Communication Procedure.
Innovation Management Procedure. Identity Manual. |
Authors' data
Dr. Silvia Caridad Gil Fundora
Address: Faculty of Mechanics. University of Cienfuegos. Four ways. Hundred fires. Cuba.
Phones: (53) (43) 522962 and (53) (43) 522548.
Email: [email protected]
Graduated in Chemical Engineering from the Central University of Las Villas in 1972. Doctorate in Technical Sciences from the Central University of Las Villas in 1986. Senior Researcher.
He is currently a consultant at the University of Cienfuegos in Quality Management Systems and in Corrosion and Protection of Metals.
Dr. Wilfredo Francisco Martín
Address: Faculty of Mechanics. University of Cienfuegos. Four ways. Hundred fires. Cuba.
Phones: (53) (43) 522962 and (53) (43) 522548.
Email: [email protected]
Graduated in Chemical Engineering from the Central University of Las Villas in 1969. Doctorate in Technical Sciences in 1977 in Poland. Professor at the University of Cienfuegos. Professor of Corrosion and Protection of Metals, Water Treatment, Instrumental Analysis, Scientific and Experimental Research Methodology, Fundamentals of Unit Operations and Project Management.
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