Business Process Improvement - Essay Example

? Action Research Project: Business Process Improvement Outline Introduction Operations Management as a Discipline The Processes of Stakeholders Lean, Six Sigma and Operations Management Recommendations for Improvement Conclusion Introduction In order for the organization to achieve the most effective outcomes that will ensure its successful management, it is indeed significant for every business to review, analyze and re – design any process that is in need of improvement. This is basically what the concept of business process improvement (BPI) states. Harrington (1991) suggested that BPI concentrates more on doing the things right in order to best utilize the resources that will lead to the achievement of the desired outcome. According to Harrington (1991), this systemic approach works through the alignment of the business against with the strategic goals and purposes of the organization. On the one hand, one among the processes that can translate the success of business is through performance management of its human resource. Maximizing the resources, in particular, the human resource, in business aligned with the company’s goals will aid the organization for improvement. According to Daniels and Daniels (2004), performance management is the process of handling the critical elements of performance namely the behavior and results. Handling these elements will guarantee that the employees are meeting the agreed standards which bring about higher productivity and motivation. However, performance management has its very own shortcomings (Dooren, no date) which are lack of integration, decision challenges, lack of leadership support, incompetence, communication challenges, inspiration challenges, lack of monitoring, lack of evaluation, and implementation failure as identified by Saravanja (Regenesys, 2011). In this regard, this paper grasps the real need for improvement of implementation of performance management. Given this, this research mainly delves at strategically addressing the shortcomings of performance management, specifically, its implementation issues. In addressing the problem area of performance management, it points toward proposing a program to strategically improve the problem. Operations Management as a Discipline According to Samson and Singh (2008), operations management is an area of management which deals with the controlling, designing and re – designing its particular operations of business that is meant for creating goods and services. This field of management takes in the accountability of making sure that the organization is operating at its best in order to perform its most efficient functioning through utilizing only few needed resources. Moreover, this approach is made up of strategic design, organization, formation, preparation as well as implementing the tasks that can be bought long – term or short – term. In addition to that, such process is concerned with making the overall operations in business even more tightly interconnected than they have been previously. In this regard, the operations managers should act together with other managers within the organization to ensure a smooth business operation. The Processes of Stakeholders The stakeholders’ involvement in business processes is manifold. Meanwhile, the biggest part done by the stakeholders is their involvement in the decision making processes. This makes the stakeholders play an even increased major role in management. According to Yosie and Herbst (1998), those involved in stakeholder processes are also engaged in a wide array of problem solving options though such have its very own strengths and weaknesses. A specific definition of stakeholder does not exist but what is known is that they participate in advising committees, offering optional dispute answer, solving processes, negotiation of regulations, as well as making decisions (Yosie & Herbst, 1998). In this case, performance management is also part of the stakeholders’ processes. Performance management has become an integral part of the organization because it brings effectiveness of business through maximizing its human resource. With performance management, the most fundamental aim is to keep everyone in the organization aligned toward the same sets of objectives because this can offer the institution a higher possibility of attaining such goals (Aspect Software, Inc., 2012). Pollitt and Bouckaert (2004) suggested that there are many advantages that performance management contributes to business. According to Mark and Nayyar – Stone (2002), one of its chief benefits includes improvement in service quality and outcomes. Likewise, it improves resource allocation since it helps in justifying the budget or service cuts (Mark & Nayyar – Stone, 2002). For the individual employees, it makes the work environment more interesting and more satisfying too (Mark & Nayyar – Stone, 2002). Since it clarifies the scope of work as well as the roles expected from them, and offers self – insight as well as development opportunities, correspondingly, it improves the motivation as well as self – esteem of employees that assists them in advancing their performances (Daniels & Daniels, 2004). This is for the reason that it creates a performance – based culture that is aligned with the company’s objectives (Aspect Software, Inc., 2012). Lean, Six Sigma and Operations Management The concept of operations management, which can aid the improvement of business, has been discussed earlier. However, there are two other concepts that can be applied in improving the business. First is the lean thinking. The lean thinking principle basically aims to getting things done correctly to obtain the most impeccable and precise work flow and at the same time, reducing the waste (Krafcik, 1988). This strategy must always take into consideration that improvement can always be achieved. Second is the six sigma. Six sigma is a strategy of business management that works on attempting to enhancing the quality of process outputs through the identification and elimination of the origins of errors so that the inconsistency in business processes can be reduced (Snee, 1999). Such defect is identified if it plays a role in customer dissatisfaction. This specific strategy aims to offer an effective means to implement an effective business management strategy though ensuring that all the work processes are consistently functioning and also through comprehending that the existing variations are the vital elements to success (Snee, 2000). Basically, all these three, operations management, lean and six sigma, are ways to improve business processes to ensure that the business are performing at its best. Recommendations for Improvement In this evaluation, the problem area of managing the performance of the human resource can be combined solved with the applying the strategic approach of operations management, lean thinking as well as six sigma. All these three approaches can be applied in order to ensure the improvement of business. However, though all of these approaches can bring about to the improvement of business, I recommend the option of operations management as the best solution to be applied. This is for the reason that the process that is in need of improvement is the problem of performance of the employees. In this regard, this approach is open for controlling, designing and re – designing how the problem of performance among the employees can be addressed. This is in order for them to provide the most efficient service that can be offered among the customers. Likewise, this approach ensures that the organization is operating at its best in order to perform its most efficient functioning through utilizing only its human resource, which happens to be the most important resource in any organization. Conclusion The performance management as a process has its problem areas. Its shortcomings come basically from the fact that employees may possibly not working at its best. That is to say, the human resource is not performing as aligned with the goals of the organization. Through the implementation of operations management as a solution to improve the performance of every employee so that the business can perform at its most efficient and successful function. What can be ensured is that business can be improved. Likewise, without making additional investments but just utilizing and ensuring that the employees will perform their very best, it is guaranteed that there is no extra investment needed. In addition to that, since the performance of the employees will be aligned with the company’s goals and objectives, it is expected that there are more customers who will be satisfied with the service and performance of each employee. If this process will be sustained, such will ensure a positive outcome for the business in terms of financial gains for the long – term. References Aspect Software, Inc. (2012). Insight on: Performance management tools that drive action, not just reports. Retrieved from http://www.aspect.com/Documents/Papers/Performance-Management_Tools-that-Drive-InsightOn_WP.pdf Daniels, A.C., and Daniels, J.E. (2004). Performance management: Changing behavior that drives organizational effectiveness (4th Eds.). Performance Management Publications. Dooren, W.V. (no date). Better performance management: Some single and double loop standards. Retrieved from http://www.lafollette.wisc.edu/publicservice/performance/van%20dooren%20Better%20Performance%20Revised%20WVD.pdf Harrington, H.J. (1991). Business process improvement: The breakthrough strategy for total quality, productivity and competitiveness. McGraw-Hill. Krafcik, John F. (1988). Triumph of the lean production system. Sloan Management Review 30 (1): 41–52 Mark, K. and Nayyar – Stone, R. (2002). Assessing the benefits of performance management in Eastern Europe: Experience in Hungary, Albania, and Georgia. Washington, D.C.: The Urban Institute. Retrieved from http://unpan1.un.org/intradoc/groups/public/documents/NISPAcee/UNPAN004371.pdf Pollitt, C., and Bouckaert, G. (2004). Public management reform: A comparative analysis. Oxford: Oxford University Press. Regenesys (2011). 10 reasons why performance management fails and how to remedy them. Retrieved from http://regenesys.co.za/2011/03/10-reasons-why-performance-management-fails-and-how-to-remedy-them/ Samson, D. & Singh, P.J. (2008). Operations management: An integrated approach. Cambridge University Press. Snee, R.D. (1999). Why should statisticians pay attention to six sigma? Quality Engineering 12(3): 100-103. Snee, R.D. (2002). The project selection process. Quality Engineering (September): 78-80 Yosie,T.F. & Herbst,T.D.(1998). Using stakeholder processes in environmental decision making. Retrieved from www.gdrc.org/decision/nr98ab01.pdf Read More