The initial stage is behind us and the organization is developing rapidly

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The number of functional divisions and management levels in it is increasing, and the number of personnel has reached such a limit that the manager is no longer personally acquainted with each employee.

Experience shows that at enterprises with a staff of more than 50 people, the management system is usually functional-hierarchical. That is, in the work of the company, a certain number of functional zones are identified and the management system is built in accordance with them.

As the company grows and develops, each functional area develops its own hierarchy of managers - from the boss (who acts as an expert in this area) to a simple performer. Moreover, the larger the company, the more levels in such a hierarchy. And if at first such a system works quite well, providing the company with manageability, then as the organization expands, it becomes less effective. The reason is that it takes a lot of time to make decisions: in order to comprehensively hotel email list consider the problem, close interaction between experts in different functional areas is necessary, which is difficult in a large company. As a result, ALL decisions are transferred to the highest level of the organization, and its manageability is significantly reduced.

Here is the management system with a functional approach:

Business processes in the organization

Due to the presence of certain problems, the company may think about optimizing management. The problems may be as follows:

the manager is forced to devote all his working time to operational issues;

the company's staff is growing faster than its revenue;

due to high competition in the market, the company is forced to think about ways to reduce the cost of goods or services;

Each functional department lives its own life, and divisions are coordinated only at the management level.

Here, it is already difficult for management to do without a clear model of the management system. The enterprise has a complex structure, there is a lot of information, and therefore it is no longer possible to manage "by intuition".

But only a documentary reflection of the management hierarchical-functional structure does almost nothing to improve the efficiency of business processes. The problems associated with functional management are most acute in large enterprises at a time when the external situation is unstable, and decisions are made very slowly.

To solve problems in functional management, it is necessary to move to process management. All activities, regardless of the functional feature, are grouped into mixed units , where each performer is responsible for their own set of operations.

These approaches differ fundamentally from each other in that there is a transition from managing the functioning of the company (and its structural departments, united by the subject of activity: accounting, legal department, sales service, supply, etc.) to managing business processes based on the results of activities. That is, the main attention is focused on the efficiency of the company's activities.

At the same time, all probable situations during the execution of business processes are described in detail, since in practice 80 percent of the situations that arise are typical, which means that the creation of detailed work regulations is entirely justified. Here, employees in typical situations can act as efficiently as possible and, what is especially important, independently, without the participation of management. In fact, the manager is involved in the process only if a non-standard situation arises in which employees do not know how to behave, since there is no clear regulation.

Here's how you can reflect the process control diagram: