Q7-1 What Are the Important Characteristics of Processes in Organizations?

Question 1

What are business processes?

Answer 1

A business process is a sequence of activities for accomplishing a function within an organization.

Question 2

What is the significance of improving a business process by even a small amount?

Answer 2

Improving a process by even a few seconds in highly repetitive tasks can result in significant time and cost savings for the organization.

Question 3

What is an activity in a business process?

Answer 3

An activity is a task within a business process, performed by actors using resources.

Question 4

What are resources in a business process?

Answer 4

Resources are items such as people, computers, data, and other tools necessary to accomplish activities in a business process.

Question 5

What are actors in a business process?

Answer 5

Actors are the resources who perform the activities in a process. They can be humans or computers.

Question 6

What is a role in a business process?

Answer 6

A role is a subset of activities within a business process that are performed by a particular actor.

Question 7

What are the four characteristics of processes?

Answer 7

Stability of Flow (Structured vs. Dynamic)

Scope (Operational, Managerial, Strategic)

Objectives (Effectiveness, Efficiency)

Location in Value Chain (Inbound Logistics, Operations, etc.)

Question 8

What is the difference between a structured process and a dynamic process?

Answer 8

A structured process follows a predefined sequence of activities (e.g., logging into email), while a dynamic process is more flexible and informal (e.g., collaborating on a group project).

Question 9

What is the scope of a process, and what are the three categories?

Answer 9

Scope defines the breadth of the process. The three categories are:

Operational: Day-to-day activities (e.g., ordering supplies).

Managerial: Allocation of resources (e.g., scheduling cashiers).

Strategic: Broad organizational issues (e.g., deciding on a new location).

Question 10

What are the two objectives of processes?

Answer 10

The objectives are:

Effectiveness: Achieving organizational goals.

Efficiency: Minimizing resources used.

Question 11

What are examples of locations in the value chain where processes take place?

Answer 11

Inbound Logistics
Operations
Outbound Logistics
Sales and Marketing
Service
Technology Development
Infrastructure

Question 12

Why is it important to understand the flow stability of processes in organizations?

Answer 12

Understanding flow stability helps in identifying whether a process can be streamlined or automated (structured), or if flexibility is required (dynamic), affecting efficiency and effectiveness.

Question 13

What are operational processes?

Answer 13

Operational processes are routine, everyday business processes that occur frequently and involve tasks like ordering supplies, paying bills, and checking out customers.

These processes typically have more computerized actors and are facilitated by Transaction Processing Systems (TPS).

Question 14

What are managerial processes?

Answer 14

Managerial processes focus on resource use, such as planning, assessing, and analyzing resources.

They occur less frequently and are often supported by Management Information Systems (MIS).

Question 15

What are strategic processes?

Answer 15

Strategic processes address long-range organizational issues and have broad scope.

They often require judgment and ambiguity tolerance, involving decisions like selecting a new restaurant location.

These processes are supported by Executive Support Systems (ESS).

Question 16

How do operational, managerial, and strategic processes differ in frequency of occurrence?

Answer 16

Operational processes occur frequently, managerial processes occur less frequently, and strategic processes occur the least often.

Question 17

What is an efficiency objective in a business process?

Answer 17

An efficiency objective is focused on creating more output with the same input or achieving the same output with fewer inputs, aiming to conserve resources.

Question 18

What is an effectiveness objective in a business process?

Answer 18

An effectiveness objective helps an organization achieve its strategic goals, focusing on doing the right things to succeed in the long term.

Question 19

What are the two main categories of process objectives?

Answer 19

The two categories are efficiency (resource conservation) and effectiveness (achieving organizational strategy).

Question 20

Can a business process have both efficiency and effectiveness objectives?

Answer 20

Yes, processes can aim for both efficiency and effectiveness, and these objectives are not mutually exclusive.

Question 21

Why are strategic processes typically more human-driven compared to operational processes?

Answer 21

Strategic processes often require judgment, ambiguity tolerance, and decision-making regarding broad organizational goals, which are less suited to automation than routine operational tasks.