Organizational ProcessOrganizational Process

• A process is a set of actions that are logically sequenced.

• For example, organizations have goals, and they achieve it by creating products and services and this is done in a logical sequence.

• The components of this sequence is given in the next slide.

Organizational Process SequenceOrganizational Process Sequence

• VISION, MISSION, BUSINESS DEFINITION• STRATEGY• STRUCTURE• SYSTEMS• PROCESSES• JOBS• TAKS ( ACTIVITIES)

Organizational Process SequenceOrganizational Process Sequence

MISSION VISION

BUSINESS - DEFINTION

CORPORATE

BUSINESS

FUNCTIONAL

SIMPLETALLFLAT

ADHOCRACY

SIMPLECOMPLEX

OPENCLOSE

PLANNING ORGANISING

STAFFINGDIRECTING (LEADING)

CONTROLLING

OUTPUT OR

OUTCOME

JOB

STRATEGY STRUCTURE SYSTEM PROCESS

TASK

Organizational Process – Vision & Organizational Process – Vision & MissionMission

A vision is a goal that is “ massively inspiring, overarching and long term”. It represents a destination that is driven by and evokes passion.

A vision may or may not succeed; it depends on whether everything else happens according to a firm’s strategy

A vision statement is a formal statement of what business wants to be.

"the world's most respected service brand."

Organizational Process – VisionOrganizational Process – Vision• How do we make a vision?• A vision statement should have four parts

( Collins and Porras). They are: Core values Core Purposes BHAG ( Big Hairy Audacious Goals) Vivid Description

Organizational Process – Vision Organizational Process – Vision

Core values are those things which are very close to your heart that you will not give up at any cost. It can be integrity or quality.

Usually all companies will have 4 to 6 core values.

This is something you want to achieve within the framework of our core values.

It gives achievement orientation to business

CORE VALUES

CORE PURPOSE

Organizational Process – Vision Organizational Process – Vision

This is about having a goal which qualifies the purpose.

BHAG should be big, yet specific and your chance of attaining should be more than 70%

It should be simple and easily understandable It can be understood by your grandmother as

well as a 12 year old child. ( called as Grandma’s Test or the 12 Year Old Test)

The BHAG

VIVID DESCRIPTIOIN

Organizational Process – Mission Organizational Process – Mission

Mission is the purpose for the existence of a company.

It is always defined from the point of view of the customers.

It explains what the company want to do for the customers and other stakeholders (public, government, suppliers, employees etc) so that the company can achieve its vision easily.

Mission Statement : DefinitionMission Statement : Definition

• A sentence describing a company's function, markets and competitive advantages; a short written statement of your business goals and philosophies.

• It explains what the company intend to do to achieve what it want to be. ( The efforts that will be done by the company to achieve its vision)

Mission Statement

• Mission statements define the organization's purpose and primary objectives. These statements are set in the present tense, and they explain why you exist as a business, both to members of the organization and to people outside it. Mission statements tend to be short, clear and powerful.

Organizational Process – Strategy Organizational Process – Strategy

• Strategy means the grand plan and the term is borrowed from the military which is distinguished between the grand plan and actual action by calling former as strategy and the latter as tactics.

• Strategy can be divided into three.– Corporate Strategy– Business Strategy– Functional Strategy

Corporate StrategyCorporate Strategy

• An organization is structured at three levels as follows:

STRA

TEGY

CORPORATE LEVEL

(Board of Directors, CEO etc)

Business LevelSBU 1

Strategic Business Unit (SBU ) 2

Strategic Business Unit (SBU ) 3

Functional Level (Marketing, Finance, Operations etc)

Functional Level (Marketing, Finance, Operations etc)

Functional Level (Marketing, Finance, Operations etc)

Organizational Process - StructureOrganizational Process - Structure• Structure follows strategy• In small organization, the structure is simple

and the structure comprises of few departments.

• In big organizations, it will be divided between different departments such as finance, marketing, production, HR etc

• Each department will have a head, some people, a rule for communication etc.

• These basic pillars on which the business is built are called the structure

Organizational Process – Structure Organizational Process – Structure

• Structures can be:1.Simple ( small organizations)2.Hierarchical ( Tall and Flat Structure)3.Adhocracy (Structure of future where

information flow takes place in all directions thus enabling organization to take advantage of opportunities as never before)

4.Matrix (Reporting to local in charge as well as the in charge of the department in HO. Used by MNCs)

Tall and Flat Structure

Organizational Process – Systems Organizational Process – Systems

• The system is the way we group functions, create a logical order, organize the flow of information and resources and let it run almost by itself.

• Each system is independent as well as interdependent. For example, marketing system is dependent upon HR system to get people , but at the same time act independently.

Organizational Process – Systems Organizational Process – Systems • It is easier to think in terms of human body

system consisting of the cardiovascular system, digestive system etc. Cardiovascular system is fairly independent but it is also dependent on other systems for energy.

• In business too, we have systems such as HR, operations, finance, marketing etc.

• Now a days, more systems are added such as Supply Chain Management, International Marketing etc.

Organizational Process – Systems Organizational Process – Systems • System can be simple, complex, open or

closed.• Typically every system would have:– Input (raw materials, resources etc)– Throughput ( the way it is mixed and connected)– Output ( a final or interim product )

Management Functions(Process)

Organizational Process – Processes Organizational Process – Processes

• Process is a set of logical activities that lead to some final or interim output. For example, to manufacture some thing or to provide service, there is a logical sequence.

• For example, to manufacture something, it should be planned, resources should be coordinated, sufficient manpower should be provided, proper direction should be given and the work should be controlled and monitored.

• Thus at business level some process come into play.

Organizational Process – JOBS Organizational Process – JOBS • Each process is made of several jobs.• A job is a set of similar activities. For example, the

job of a teacher involves the task of preparing for the class, teaching, making question papers, correcting papers, giving feedback to the students etc.

• So a job is a cluster of similar tasks. The size of this cluster depends on the capacity of a person to do it.

• For example, in a small school, a teacher may do all those jobs but if it is a university, then many people will do one task

Organizational Process – TASKS (Activities) Organizational Process – TASKS (Activities) • This is the most basic unit in an organization. • In a big organization, a person may be performing

only one task ( for example, in accounts department, one accountant may be handling accounts receivable, another may handle payable whereas a third person may be doing bank reconciliation).

• So the activity that is performed by a person in one particular department can be termed as tasks.