This literature entails information about business processes, what these processes are exactly and how this variety of processes can be classified and categorized within EAM. Companies should run maximum efficiency in order to survive economic crises. Business processes are well-defined tasks performed by ‘human machines’ converting inputs into outputs in order to accomplish clear objectives. Furthermore, business processes are divided into two components; core processes and back-office (support processes) Davies, (1997), Melão & Pidd, (2000).
Figure 2.2: Transformation Process
Source: Melão & Pidd, (2000)
Figure 2.2 emphasizes the structure (tasks, activities and areas of responsibility), procedures and goals of the business process being designed. The theory criticizes that good process design works efficient in terms of money, resources and time and the compulsion of satisfying customers’ needs. Moreover, information technology plays an important role in automating, coordinating and supporting the re-engineered processes. Business processes are made more efficient with well-defined tasks. The theory of Hammer & Champy, (1993) argues that a sensible view of a business process does not ‘see’ individual tasks in isolation, but the entire collection of tasks. In order to create a holistic approach, the use of multi skilled and autonomous workers or teams is essential to contribute to a desired outcome. Nevertheless, managers should organize tasks optimally and train workers at the best way to carry out the tasks. This would lead to an efficient overall business process.
The theoretical view of Curtis, Marc, & Over, (1992 discusses four business process positions: functional: representing the activities being performed, behavioral: when and how the activities are performed organizational: where and by whom the activities are executed and informational: the various entities streaming through the process, their structure and relationships
The information to gain from business process models is simply described as:
“What is going to be done, who is going to do it, when and where will it be done, how and why will it be done, and who is dependent on its being done” Curtis, Marc, & Over, (1992; Melão & Pidd, (2000).
2.3 Business Process Management
Business Process Management exists for a long time. The strong competitive environment forces organizations to optimize their processes. Business Process Management is an integrated part of “normal” management, thus improvement of business processes must be continually maintained. It is crucial to understand the nature of business processes to achieve greater modeling effectiveness in Business Process Management Jeston & Nelis, (2014). Therefore, proposes four points to view business processes as deterministic machines, complex dynamic systems, interacting feedback loops and social constructs Melão & Pidd, (2000), Morgan, (1997).
Business Process Management is the discipline of efficiently aligning an organization with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency (or operational excellence) while striving for innovation, flexibility, and integration with technology Gillot, (2008) within EAM.
2.4 Business Process Modeling
Process modeling is becoming more and more important these days, especially for an organization like EAM. Organizations make use of these various process models for growing. Besides, process models are tools used for organizational process reorganization. It is supposed to be an instrument to cope with complexity of process planning and control Becker, Rosemann, & von Uthmann, (2000). The main issue is how this knowledge can be conveyed as efficiently as possible. This can be divided into two viewpoints; information that can directly be recorded and applied, and acquired knowledge should be interpreted before it can be applied. Business Process Management includes two approaches; hard and soft models that support different process scenarios Melão & Pidd, (2000). The findings and recommendations of this thesis illuminate which approach is applicable for EAM.
The discipline of a process modeling, organizations insight could be eye-opening. Business process tools gather and organize evidence that provide organizations with the following information; which tasks are performed within a process, who performs the tasks, and guidelines for performance. Moreover, it helps to prioritize processes and outlines back-up plans in case activities go awry Wreden, (1998). Business process modeling supports the transformation of informal information in a structured way. However, the applicable models should ensure clarity and understanding of the processes.
2.5 Business Process Implementation
The principal question in implementation is: how to create with a minimum effort (cost), the best possible chances that implementation have intended and approved complex innovations? How will these innovations actually take place? Meaning, how do you ensure that an implementation process proceeds in a controlled manner while at the same time allowing sufficient space for the forces that wish to participate? Improvements can create ambiguity and anxiety on the work floor. Before EAM can implement changes, it is important to construct a plan according to this theory. In this case, implementation management is required Vrakking, (1995). According to Vrakking, (1995) a successful implementation advises to follow the following steps:
1. Set up a divergence/convergence trajectory whenever possible
Measurements to support and strengthen the learning process, to successfully succeed. Appealing to the input of everybody in the organization and subsequently make everybody realize what they know intuitively, but want to ignore.
2. Make sure that the intended organizational innovation deals first of all with issues that are part of the bottom line of what needs to be changed
Many investors become an “innovation trance”; they tend to immediately put in work as much as possible. However, organizations should decide which major issues need to be handled.
3. After the outline has been established, time and budget will have to be doubled in the specification if implementation is to be successful
The implementation plan results in an increase of the costs need for additional time and money. This also includes more manpower
4. Work together with project management all through the trajectory
All individuals involved in the implementation project should work coordinated
5. Look at the implementation process as a rugby game
The implementation process involves “shuttle” movements, thus planning is essential.
6. Start with clear information about the whole process, including implementation, for everybody
The executive board should inform everybody in the organization about the following aspects: the approach, the strategy, the timeframe and the responsibilities. This will stimulate the whole implementation process.
7. Make sure of top management’s commitment to what is offered in the outline
This commitment is achieved when the top managers are involved in the process from start to finish. The project is anchored in the top from the beginning.
Vrakking, (1995) Indicates important principles of implementation:
-Divergence – convergence sequence
-Outlines first – specifications second
-Innovation management first – implementation management second
-Maintain involvement of works council/representatives
2.6 Communication
The role of communication in an organization is an important factor. The key issue in a successful implementation of change programmes is communication. Spike and Lesser, (1995), cited in Kitchen & Daly, (2002) describes that communication is used as a tool for announcing, explaining or preparing people for the positive and negative changes. Generally employees do not realize the importance of communication to organizational goals Ming-Ten & Shuang-Shii, (2009). There are ten Guidelines for effective communication: 1. Be assure of yourself what you wish to communicate and why, 2. Language use should be clear, 3. Observe how much is communicated, 4. Use sufficient medium, 5. Stimulate right environment, 6. Listen carefully, 7. Be careful for unintentional communication, 8. Bare in mind communication is a two way process, 9. Actions should not contradict communication, 10. Communication training is necessary T. A. VENKATACHALAM, (2010).
The communication process can be described as “Who says what to whom in what channel with what effect?”. This process identifies two elements; “who” sends the messages (source of communication), and “what” is communicated (target of the communication) Chang, (2012). It is of high importance to establish and maintain a healthy communication system within an organization. Managers have the responsibility to improve and create a good communication workplace for employees, at every level. This is achieved by training employees in communication skills, encourage informal communication, stimulating employees to achieve organizational objectives and enabling them to identify with their company by creating an effective communication environment. In order to decrease the level of turnover intention, the organization can develop channels for managing conflicts to cultivate a satisfied communication environment for employees Ming-Ten & Shuang-Shii, (2009). It is important for managers to be able to assess internal communication as stated in Ruck & Welch, (2012).
2.7 Internal communication
The focus of internal communication is on processes instead of employee contents/needs that lead to organizational identification and engagement. As Tourish and Hargie stated in Kitchen & Daly, (2002), communication focus lies on who is communicating with whom, the issues on receivers, the volume of information exchange, levels of trust and the quality of (working) relationships. This highlights the beginning for internal communication audits and research. The four fundamental rules for how to improve internal communication are; 1.know your audience, 2.tell the truth; it sounds simple but it is not easy,3. don’t do it alone; have collaborations and allow for soak time and 4. repetition; once more with feeling Marasse & Maselli, (2009). Internal communication establishes an understanding for change as well as a reduced confusion and resistance. The managers have to think more now than in the past due to changing values Kitchen & Daly, (2002).
Figure 2.7: Specifications of consulting forms and consulting objectives of internal communication consulting
Source: Zerfass, (2012)
The figure illustrates the four dimensions of internal communication consulting. Consulting types depend on different situations. Moreover, consulting needs to be understood as a common task for everyone in the organization regardless of hierarchical positions. The specifications of this model are: providing and supporting communication competencies, structures, and processes, integrating communicative insights into task-related decision making, building and encouraging awareness of the communicative dimension of any management activities or task-related decisions Zerfass, (2012). This framework provides solutions on how to identify and improve the internal communication of EAM.
2.8 Sustainable growth
According to Gallup, (2005) cited in Abraham, (2012) engaged employee’s equal engaged customers who in turn create greater profit, thus sustainable growth. Employee engagement is when the employees feel satisfied about their job; accordingly have a positive effect on productivity, innovation and retention. The employees are committed to their work and role and put in extra time to get a task completed, which in the end magnifies the value of the organization. The management team is required to attract, motivate and retain their employees in order to provide employees with a sense of satisfaction Abraham, (2012).
2.9 Conclusion
This part of the research focused on the business processes and formulated ways to improve those processes through the use of the literature described in this chapter. By mapping out the processes, insight can be gained as stated in the desired situation. In the following chapter the research methodology will be defined.