organizational analyses 2500 Problem Solving Case Study and Proposal Report

OrganisationsasSystemsofFunctionality.pptx

Home >Business & Finance homework help >Management homework help >organizational analyses 2500 Problem Solving Case Study and Proposal Report

Organisational Analysis

Organisations as Systems of Functionality

‹#›

Aims

To understand how organisations are seen as Systems of Rationality

Organisations as Systems

Functionality

Frameworks of Functionality

Supply Chain Operations Reference (SCOR)

Federal Government Process frameworks

School/Department/Area

‹#›

Analysis underpinned by Rationality

To discover the objective truths that define and govern organisations

Analyse ‘Truths’ as objective and accurate accounts of organisational properties (e.g. causal powers and laws) and the events within which management must act.

Through ‘truth’ organisations avoid being distracted by speculation, hunches and lies.

‘Truths’ possess instrumental value (practical utility).

By knowing the ‘truth’ organisations intelligently formulate and accomplish organisational goals.

The instrumental and objective value of ‘truths’ for management is in assisting them to establish control over an organisation, predict outcomes and learn about one’s powers and vulnerabilities.

School/Department/Area

‹#›

Organisations as Systems

A system is constructed of mutually and organically interrelated specialised parts called subsystems.

School/Department/Area

Even human systems are identified: Concerned with social integration, what binds individuals and groups together.

Emile Durkheim’s Structural Functionalism.

The goal is to understand the ‘laws’ governing these systems and how each subsystem performs a particular activity and ‘functions’ to help reproduce the larger system.

An organisation is seen as a system comprised of four sub-systems (technology, social structure, culture and physical structure) located within a supersystem (i.e. global environment) of which it is a part.

‹#›

Organisations as Systems

Organisations are seen as comprising sub-systems of Functionality:

Technology

Engineering

Functionality (Business Processes)

Data

Information

Knowledge

School/Department/Area

‹#›

Functionality as Abstractions

Organisations conceptualised as partitioned entities

Departments within Organisations, i.e. functional areas

School/Department/Area

Chief Executive

Research & Innovation

Marketing

Strategy

Human Resources

Production

Design

Maintenance

Quality Control

Concurrent Engineering

Business Intelligence

Supply Chain

Logistics

Information Technology

‹#›

Organisations as Systems and Places of Order

The Functional Approach:

Authority is allocated in ways to manage conflict and resistance to authority within organisations, e.g. positional power, reward power

Determines how power gets legitimised and distributed within organisations

School/Department/Area

‹#›

Organisational Functionality as Business Processes

Functionality as Business Processes

Generic Process Formalisms

Reference Models of Best Practice

School/Department/Area

Achieving organisational stability through ‘routines’:

“routines preserve and transfer organisational knowledge and capabilities so that work can be successfully accomplished and coordinated” (Hatch and Cunliffe, 2006: 127).

‹#›

Modelling Functionality

Organisational Charts

Process Models/ Process Maps

Flowcharting

Swim-lanes

School/Department/Area

‹#›

Flowcharts

School/Department/Area

‹#›

Business Process Modelling – Process Chains

Integrated Definition Language (IDEF0)

Slide 11

Event/Trigger

Process

Input

Output

Event/Trigger

Resource

**** IDEF0 – You will find these diagrams in Visio.

‹#›

Introduce a formalism or diagrammatic representation of business process modelling

Business processes are often described in this syntax

Event/trigger

Inputs

Outputs

Resources required to perform the process

The IDEF0 technique is a modelling formalism, you may find this in MS Visio under process modelling

Nesting of Process Chains

School/Department/Area

Subprocesses

‹#›

Processes Provide Points of Measurement

School/Department/Area

Process

Input

Output

Event/Trigger

Resource

‹#›

Presentation Clarity: Swim-lanes

School/Department/Area

‹#›

A swim lane (or swim lane diagram) is used in process flow diagrams, or flowcharts, that visually distinguishes job sharing and responsibilities for sub-processes of a business process. Swim lanes may be arranged either horizontally or vertically. The swim lane flowchart differs from other flowcharts in that processes and decisions are grouped visually by placing them in lanes. Parallel lines divide the chart into lanes, with one lane for each person, group or subprocess. Lanes are labelled to show how the chart is organized.

Building Blocks for Business Improvement

Basis for business improvement

Basis for business process re-engineering

Basis for quality systems and improvement e.g. Six Sigma, Statistical Process Control (SPC), Total Quality Management (TQM)

School/Department/Area

Reminder: Achieving organisational stability through ‘routines’:

“routines preserve and transfer organisational knowledge and capabilities so that work can be successfully accomplished and coordinated” (Hatch and Cunliffe, 2006: 127).

‹#›

“Reference Models” of Best Practice

Best Practice Diffusion

Best practice is a valuable way to configure a process or a set of processes

Related to the automation of the process, a technology applied in the process, special skills applied to the process

A sequence for performing the process, or a proven method for distributing and connecting processes between organisations

School/Department/Area

‹#›

The Notion of Best Practice

Made possible by capturing what organisations “do” as process representations

Utilise process representations as instructions

As basis for measurement

As process improvement

As models of best practice

School/Department/Area

‹#›

Examples of Reference Models

Australian Government Business Process Interoperability Framework

Capability Maturity Model Integration (CMMI)

Supply Chain Operations Reference Model (SCOR)

Relevant Singapore Examples:

Enterprise Singapore – Business Excellence Framework

DSTA – Business Transformation Process https://www.dsta.gov.sg/docs/default-source/dsta-about/driving-business-transformation-through-a-process-centric-approach.pdf?sfvrsn=2

School/Department/Area

‹#›

Australian Government Business Process Interoperability Framework

Supporting a journey from process awareness to standardised processes, to interoperable processes, to enhanced networked capability, depending on agencies’ need.

Linked to the “Information Interoperability Framework Plan” that enables sharing of information

School/Department/Area

This hints towards developing organisational capability

‹#›

Focus on Supply Chain Operations Reference Model (SCOR)

There are numerous functional frameworks

Sometimes known as “enterprise models”

We will focus on SCOR to illustrate organisations as functional systems

We will discuss CMMI as part of process maturity

School/Department/Area

‹#›

SCOR Framework

Supply Chain Council (SCC, supply-chain.org)

Global non-profit organisation whose framework, improvement methodology, and benchmarking tools help member organisations make dramatic and rapid improvements in supply chain performance

The Supply Chain Operations Reference model (SCOR)

“World’s leading supply chain framework” linking business processes, performance metrics, practices and people skills into a unified structure

School/Department/Area

‹#›

Support for SCOR

School/Department/Area

Organisations that have applied SCOR to help:

with supply chain problem solving

process improvement

process redesign

or business process engineering

have demonstrated that SCOR is an effective enabler for aligning an organization’s portfolio of improvement projects with strategic goals and objectives.

‹#›

Hierarchy of Processes included in SCOR

Generic Processes:

Plan

Source

Make

Deliver

Return

Enable

School/Department/Area

Metrics provide diagnostics for the overall health of the supply chain. These metrics are also known as strategic metrics and key performance indicators (KPIs).

‹#›

SCOR Contains Four Levels of Process Abstractions

School/Department/Area

‹#›

Hierarchy of Metrics

The SCOR process reference model contains metrics

A metric is a standard for measurement of the performance of a process.

SCOR metrics are diagnostic metrics

Just as the process elements are hierarchical, performance metrics in the SCOR model are also hierarchical

School/Department/Area

‹#›

Best Practice Driven by Metrics Hierarchy

Level 1 metrics are diagnostics key performance indicators (KPIs) for the overall health of the supply chain. Also known as strategic metrics. Level 1 metrics establish targets that support strategic objectives.

Level 2 metrics serve as diagnostics for the level 1 metrics. The diagnostic relationship helps to identify the root cause or causes of a performance gap for a level 1 metric.

Level 3 metrics serve as diagnostics for level 2 metrics.

School/Department/Area

‹#›

Justifications for SCOR

School/Department/Area

Employ the SCOR framework at your organisation and:

Increase the speed of system implementations

Support organizational learning goals

Improve inventory performance

Rapid assessment of supply chain performance

Clear identification of performance gaps

Efficient supply chain network redesign and optimization

Enhanced operational control from standard core processes

Streamlined management reporting and organizational structure

Alignment of supply chain team skills with strategic objectives

A detailed game plan for launching new businesses and products

Systematic supply chain mergers that capture projected savings

‹#›

References

Samuel H. Huan, Sunil K. Sheoran, Ge Wang, (2004) "A review and analysis of supply chain operations reference (SCOR) model", Supply Chain Management: An International Journal, Vol. 9 Issue: 1, pp.23-29

Archie Lockamy III, Kevin McCormack, (2004) "The development of a supply chain management process maturity model using the concepts of business process orientation", Supply Chain Management: An International Journal, Vol. 9 Issue: 4, pp.272-278

Gordon Stewart, (1997) "Supply‐chain operations reference model (SCOR): the first cross‐industry framework for integrated supply‐chain management", Logistics Information Management, Vol. 10 Issue: 2, pp.62-67

Australian Government Information Interoperability Framework, 2006, Australian Government Information Management Office (AGIMO), Departme

H. J. Scholl and R. Klischweski, "E-government integration and interoperability: Framing the research agenda," Int. J. Public Adm., vol. 30, no. 8--9, pp. 889—920.

CMMI Product Team. (2002). Capability Maturity Model® Integration (CMMI), Version 1.1. Pittsburgh PA: SEI CMU.

Paulzen, Oliver; Doumi, Maria; Perc, Primoz; and Cereijo-Roibas, Anxo, "A Maturity Model for Quality Improvement in Knowledge Management" (2002). ACIS 2002 Proceedings. 5. http://aisel.aisnet.org/acis2002/5

Ashworth, C. M. 1988, Structured systems analysis and design method (SSADM). Information and Software Technology, 30(3), 153-163.

Dumas M., La Rosa M., Mendling J., Reijers H.A. (2013) Introduction to Business Process Management. In: Fundamentals of Business Process Management. Springer, Berlin, Heidelberg

School/Department/Area

‹#›