Academic journal article Advances in Management

Organization Maturity through Consistency of Its Management System

Academic journal article Advances in Management

Organization Maturity through Consistency of Its Management System

Article excerpt

Abstract

The paper introduces approach to the organizational development based on the systematic management of the organization maturity. In the article we present also the results of an empirical research focused on the consistency of the process-based management system Effectiveness of the various management systems depends on many factors. One of them is the consistent definition of each system elements. The main purpose of this study is to explore if the performance management systems of the sample companies is consistent and how companies can create such a system The consistency in this case is based on the homogenous definition of attributes relating to the performance indicator in the process based management system

Establishing of such an approach to the organizational management requires a very complex change which is impossible to perform at once. It is also impossible to perform it as a single managerial decision with use of just the managerial power. Such a change is a long term evolutionary process which ought to be carefully managed.

Keywords: Process based management system, maturity management, consistency, performance management system, performance indicator, empirical study.

(ProQuest: ... denotes formulae omitted.)

Introduction

The business process model represents the process orientation of the managerial system which can be achieved by the application of a process approach. The process approach is a part of the majority of quality management systems. Gutiérrez et al17 present different alternatives for quality management implementation, such as the EFQM model, the ISO standards, the Malcolm Baldrige model or the Six Sigma methodology. The difficulty with the implementation of each initiative varies from case to case. Heras-Saizarbitoria et al21 evaluate the impact of both the ISO 9001 standard and the EFQM model. The process model differs similarly, if the company developed it during the application of the process approach while implementing these initiatives. We consider the ISO 9001 standard to be a suitable initiative for creating a process model. This has also been proved by Sampaio et al36 who highlighted the huge importance that ISO 9000 certification has assumed for companies across the planet.

Three disciplines - the BPM, the QM and the IM meet in the development and the utilization of the process model. In our survey we focused on the utilization of process models from the QM point of view. The process model can increase the effectiveness of a quality management system (QMS) in different areas. Results provided by Wu and Chen39 indicate that ISO certification has a significant effect on companies' performance. A well developed process model can ensure this and therefore its creation can be one of the internal incentives for the ISO 9001 certification. Sampaio et al35 state that the internal incentives for the ISO 9001 certification are related to genuine organizational improvement goals. These include internal communication and process performance. Just as the development of process model can be a motive to implement the QMS, it can also assist with destroying the barriers to its implementation. These barriers are described by Hoonakker et al

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The utilization of the process model depends on the way it was created. Business process modelling has become fundamental for modem enterprises due to the increasing rate of organisational change. Aldin and Cesare2 indicated reusability as one major problem associated with the design of business processes which has the potential to increase the efficiency and effectiveness of BPM and QMS. A comparative analysis of business process modelling is provided by Recker et al31.

Many companies dedicate a lot of time and money in describing the processes and to the implementation of different programs. But the expected results are not achieved. It is because no process diagram, or program, used to manage the projects has yet managed to improve the internal organization of a company. …

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