Process approach in management. Process approach in management

Modern realities make it necessary to adapt the management apparatus to a dynamically developing environment with fierce competition. The opinions of professionals in this regard differ. Some completely deny the importance of organizational and economic methods, others propose to appoint a person responsible for each management function.

Practical experience shows that the use of only a functional approach leads to a decrease in the effectiveness of management. What is the essence of other management methods? What is the process approach focused on and what are its advantages?

4 approaches to management

In modern management, there are four types that allow you to take a different look at the organization and management process. This is a quantitative, process approach, systemic, situational, which arose in the twentieth century.

An approach
Quantitative	Arose in 1950, with the development of the exact sciences. Computers, achievements of mathematics, physics began to be actively used in management. Construction of virtual models for resource allocation, inventory management, maintenance, strategic planning, etc.
process	The founder of the direction A. Fayol, the time of occurrence is the second decade of the twentieth century. According to the approach, management is presented as a continuous process or cycle. Its foundation is formed by the main functions: planning, organization, motivation and control.
Systemic	Appeared in the middle of the twentieth century. Considers the organization as an open system interacting with the external environment. The internal environment contains elements of the subsystem: divisions, technologies, management levels.
situational	Formed in 60 of the XX century. Supporters of the approach recommend choosing management methods taking into account the situation and environmental factors. The most effective method is the one that suits the circumstances.

Process approach in management

The modern process approach is based on a systematic approach to management and considers any organization as a single organism. At each enterprise, a variety of business processes take place, taking resources at the input, and giving a semi-finished product or product at the output. The whole cycle is closed on the release of finished goods, services.

This approach consists in such an organization of work, which is based on the division of all enterprise activities into business processes, and the management apparatus into blocks. The whole system can be represented as a scheme, a chain with separate links - operations. The end result of the production chain is the product. The links responsible for a specific business process are formed from structural units.

Basics of the process approach

In order to make it more clear, we have arranged all the postulates in the table below.

The process approach is based on several principles.	Main features of the approach
Focus on improving product quality and consumer preferences. All participants in the chain are responsible for economic results. Motivation of employees at a high level. Relaxing bureaucracy.	Authority and responsibility are widely delegated to line employees by management. Decisions are made faster by reducing the number of management steps. The quality of a product or service is under scrutiny. All technologies related to business processes are formalized and automated.

Problems in the implementation of the process approach

In theory, the process approach looks simple and logical, but its implementation in the activities of the enterprise in practice turns out to be difficult. At the same time, it is worth paying attention to real examples, the practical result of other organizations, the opinion of professional consultants. For any organization, the implementation of an untested theory results in large monetary and other costs.

The application of the process approach in practice is associated with a number of problems:

management introduces a process approach in management only at a formal level;
the created system does not correspond to the real state of affairs in the organization;
an attempt to introduce an approach at an informal level;
managers do not perceive the approach as a new organizational ideology;
management does not think about the need to regulate processes or does not know how to manage them;
managers are not ready for fundamental changes, for example, a revision of the company's structure;
lack of competence, motivation, dedication, perseverance in optimizing processes.

Process approach in the organization and quality management system

One of the main requirements of ISO 9001:2000 is the implementation of the process approach. According to the standard, it is necessary to identify processes and organize their management, but a specific system of actions is not given.

Many managers, starting work on the creation of a QMS, perceive its implementation as informal. At the same time, they emphasize how significant are the expected changes for the better that arise during implementation, and not the QMS certificate itself. In practice, the implementation of the project creates difficulties. They frighten the management of the organization, which decides to confine itself to complying with the formal requirements of ISO.

Thus, QMS remains at the formal level. As a result, frustrated staff have a negative attitude towards the system itself and the process approach.

Methods of transition to process management

All of them are presented in the table:

Full method	through method
The process and system approach is based on the allocation of business processes based on the current organizational structure. After that, there is a transition to the process structure. Its foundation is based on several provisions.	Process and situational approach. The management identifies end-to-end business processes for which a description of the workflow and sequence of work is prepared. At the next stage, they are included in a new process structure, usually a matrix one.
Identification and classification of required business processes. Formation of a chain of business processes within a working structure. Development of standards and methods to ensure the effectiveness of management processes. Creation of an information base and selection of resources to perform work within the framework of business processes. Monitoring and analysis of processes. Implementation of measures to achieve the planned goals. Improvement of business processes.	Preparing the model according to the situation. Analysis of existing business processes. Development of an improved model. Reorganization of business processes based on it. Preparation of a new process organizational structure.

What does the description and regulation of processes provide?

The increase in efficiency is not directly related to the regulation of processes. Descriptions and regulations may not be in the enterprise. The work will still be carried out by employees according to the accepted rules, since the staff knows the production process. Such an organization of work leads to a constant loss of resources. Description and regulation of processes open up a number of possibilities:

Activities within the framework of standards, repeatability of processes create opportunities for management.
Identification of problems, difficult moments, loss of resources in the implementation of processes.
Development of measures to improve processes.
Experience and knowledge of work processes that can be transferred to new employees, branches, other organizations.
Implementation of benchmarking, comparing your company with competitors to improve business processes.
Internal audit.

Regulation is effective if it is accompanied by analysis, development and implementation of improvements.

The ideology of the process approach

The process approach and its real, rather than formal, implementation in the management system causes many difficulties. The problem for management is the lack of leadership skills and the ability to involve staff. Change in the creation of new systems must first occur in the minds of workers.

Employee involvement is facilitated if this approach is perceived as an ideology. First, the idea penetrates the minds of people, and then becomes a tool. Then the staff will be ready to apply new methods and programs, for which they must be encouraged.

Conclusion

In many countries of the world, the process approach to management is perceived as the main success factor in business. It is no coincidence that it became the basis of quality management standards. The effectiveness of the approach has not yet been confirmed by real examples of implementation at Russian enterprises. There are few examples, as well as new benefits from the implementation of the standard. The reason is that many organizations simply changed the terminology: there was a sales department, there was a “Sales” process. Department heads have become process owners.

The process approach in management is the main tool among the tools that are used by management to reorganize the management system.