LECTURE # 12 & 13 BUSINESS MANAGEMENT PROCESS AND ITS IMPROVEMENT

by FAIZ MOHAMMAD BHUTTA

30/04/08

B M P

Business + Management

+ Process
+ Improvement

18/05/07

Business ( already studied)

Objectives Factors of production How to set up business Type of businesses and organizations Business operations and costs Financial reports and their analysis

Management
Information & Technology

Planning Management

Finances

Humans Directing

Materials

Functions & Resources

Functions Planning

Establishing the destination and the Supervising, disciplining, evaluating

route that a business will take

Controlling

and managing the change of four managerial resources

Organizing

Grouping the four resources to

achieve goals and objectives

Directing Leading and motivating ResourcesHuman, Finance, materials, information & Technology

Environmental effects
PROCESS

Input

Business Process

output

Environmental effects

18/05/07

Business process improvement

Timely decisions Cost effectiveness ( match V and P) Increase Customer satisfaction Increase in revenue Reduce wastage Enhance productivity Reduce employee turnout Maximize profitability Timely customer support Enhance service/product quality Enhance image Enhance Customer satisfaction Sustainability and growth Socially responsibility Improve employee performance Many more

18/05/07

A typical Business Process

Telecom Operator has a business process which has Following processes/departments/functions 1. 2. 3. 4. 5. 6. 7. Human Resources development Operations Marketing Customer support Maintenance Accounts and finance Administration

Human resource development

(recruitment, development and rewards)

Process Owner
HRD Process
HR requirement from process owners Job specifications Advertisement Interviews/tests Selections Appointment letters Job descriptions Orientations Training and development Rewards and compensations Separations

values
Right people At right job At right time

OPERATIONS
(Quality, efficiency, productivity, cost effective)

Process Owner
Operations
Demands from Marketing, process Owners and customers Maintenance new technologies Up-gradations Fault free product High Quality service cost effective strategies Creativity Highly competitive

values
Best match of Value verses price Uninterrupted service Quality service

MARKETING
(Price, Place, Promotion, Place, people, physical evidence, procedures)

Process Owner
MARKETING
Demands from Customers and Process owners Market analysis Market intelligence Pricing Advertisement Sales and distribution Customer delight Prospecting

values
Customer delight Best value vs price Competitive

CUSTOMER SUPPORT
Pre-sales and after sales customer support

Process Owner
CUSTOMRE SUPPORT
Demands from Customers and Process owners Pre-sales Information Sales Technical support Customer relationship Repeat customers Promotions Tele-marketing Help and assistance

values
Quick Response and support Customer delight

MAINTENANCE
Reduce downtime and improve equipment life

Process Owner
MAINTENANCE
Demands from Customers and Process owners Keep equipment operational Reduce downtime Reduce breakdowns Preventive and corrective maintenance Operations Without any breakdowns

values

ACCOUNTS AND FINANCE

Improve cash flow, update record, cost effectiveness, maintain financial health

Process Owner
ACCOUNTS & FINANCE
Record keeping Reduce wastage Investments Expense control Salaries Bills/Invoices Financial statements Assist in decision making Ensure profitability

values
Timely And right Transactions

Demands from Customers and Process owners

ADMINISTRATION
( Inventory, discipline, Office maintenance, Leaves, Ticketing, Transport etc)

Process Owner
ADMINSTRATION
Demands from Process owners, Customers and Employees Office maintenance Leaves record Entertainments Transportations Inventory records Procurement General services and facilities Keep office And employees Functional

values

BUSINESS PROCESS FLOW CHART Process Owner

(CEO/MD)

HRD

ADMIN

MKTG

OPS

ACCTS

CS

HRD PROCESS FLOW AND IMPROVEMENT

JOB SPECIFICATIONS

HR DEMAND

ADVERTISEMENT

SCRUTINY

INTERVEWS/TESTS

SHORT LIST

NEGOTIATIONS

SLECTIONS

APPOINTMENTS LETTERS

JOINING

ORIENTATION

OPERATIONS

NEW TECHNOLOGIES

INSTALLATION AND COMMISIONING

OPERATION AND MAINTENANCE

QUALITY ASSURANCE

UPGRADATION

R &D

MARKETING

TARGETS

MARKET ANALYSIS

PRICING

PRODUCTS LAUNCH

SALES & DISTRBUTION

REPORTS

IMPROVEMENTS

Management
Supplies realistic perspectives Relates to functions Has to do with facts Strives for efficiency Concerned with control Succeeds on accomplishment Depends on authority Inspires fear Says I Know how it is done Make sure you get to the top Of the ladder as quick and As sage as possible

Leadership
Provides vision Deal with concepts Exercise faith Strives for effectiveness Provides direction Strives on finding opportunity Depends on relationship Inspires enthusiasm Says We Know why it is done Makes sure that the ladder leans against the right wall

LEADERSHIP STYLES
AUTOCRATIC

Relies on threat and punishment to influence employees Do not trust employees Do not allow for employee input Some times the most effective to use in the following situations - New trained employees - Effective supervisions - High volume production - Limited time - Area poorly managed

LEADERSHIP STYLES

BEARUCRATIC
Employees are performing routine tasks over and over Employees needs to understand certain standard and procedure Employees working with dangerous equipment Security or safety training being conducted Performing tasks required handling cash Style ineffective Work habits hard to break Employees loose interest in their jobs Employees only do what is expected of them

LEADERSHIP STYLES

LASSEZ -FAIRE
Let it be the leadership responsibilities are shared by all Manager provides little or no direction Employees make decisions and resolve problems at their own Only effective when employees are highly skilled Outside experts are used Trustworthy employees Not to be used It makes employees feel insecure Manger can not provide regular feedback Manager unable to thanks employees for their good work Can be very useful in businesses where creative ideas are important Can be highly motivational as people have control over their working life

 May help motivation and involvement Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Can delay decision making

GROUP ASSIGNMNET Take your group name as company under Study and make its process chart and write down the functions performed by each process, input and Output values

THANKS