Contemporary Problems of Social Work Современные проблемы социальной работы academic journal

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VOLUME 2, No. 1, 2016
Discussion.
The effective management of organization’s business processes depends on the integration 
of primarily business processes with its strategic objectives. Development of the business 
model starts with description of the processes that determine the company’s mission and its 
fundamental purpose. Characteristics of basic strategies allow these goals to achieve and 
describe other processes.
Description of the process is carried out until the degree of “transparency” sufficient 
for the analysis of the development of effective management decisions is achieved. Such 
approach to the business process identifies and eliminates existent errors in the management 
structure.
According to the definition, process is a series of operations performed in the making or 
treatment of a product. Thus, the main task of the business process is a transformation of inputs 
(material, information and human resources) into output (product i.e. good or service). So, the 
main component of the business process is a conversion function, that is a set of sub-processes, 
activities and transactions. The process of transformation is carried out by means of a certain 
mechanism (methods and technologies). The process is controlled, organized and performed by 
specific executor [15; 16; 18].
Dealing with systemic approach you should keep in mind the main thing here is communication 
and relationships between elements of the system. Any employee, action and other element of 
the system are parts of a single object, and only close connection of them leads to the result. So, 
description of the process in a narrow approach should reflect not only individual processes, but 
also the relationship with other processes and interactions between them.
According to the business process in a broad sense, it is not just a subset of the activities, but 
all interactions that occur between the process and its supporting system. Every organization 
produces services for the customers [2; 4; 19; 20].
Thus, services of process management consist of preliminary assessment of the technological 
system and management of functional actions. From the point of view of the process approach, 
management system aimed at improving business processes. Representatives of such approach 
offer different classifications of the business processes.
So, V.G. Eliferova and V.V. Repina single out horizontal and vertical business processes, 
depending on the companies boundaries. Horizontal business process cross divisions, but vertical 
take place in a single unit. According to the authors, this classification of business processes 
isn’t convenient. For example, it would be difficult to compare companies of the same type, 
because of differences in the organizational structures. In addition, designing the organization 
from the ground, this approach would require an initial drawing of the organizational structure 
with departments, the distribution of functions among them, and only then isolation and 
linking of its processes. It is quite obvious that it will be difficult to realize such approach into 
practice: it important to understand the type of organization and its processes and only then 
define organizational units and divisions.
The apologists of the process approach distinguish different types of business processes, 
depending on the performed actions.
H.J. Harrington divides all company processes into production and business processes. 
However, one of his contemporaries, Mikael Lind has challenged the correctness of such 
division. He justified this by the fact that every company’s activity is closely connected with 
the production activities that are integral part of other business processes, namely delivery of 
goods or services.
T.H. Davenport distinguishes processes that involve interaction with customers, and 
processes of delivery products. However, Mikael Lind pointed out that delivery process involves 
all material and communication interaction, which related to the customer relationship. Mikael 
Lind also stresses the importance of improvement the products and services, but T.H. Davenport 

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CONTEMPORARY PROBLEMS OF SOCIAL WORK
forgets about company’s needs in the development of knowledge management systems and 
other used instruments.
In accordance with the concept of the American scholar and researcher in the field of 
marketing and competition M. Porter, another scientist Geary Rummler divided business 
processes into main and auxiliary. In the late 80-ies M. Porter formulated the principles 
of company’s interaction in a competitive environment. Such principles are called “Value 
Chain» (Michael Porter`s Value Chain). According to this approach, the company’s success 
depends on its ability to create value for its customers via Value Chain. This concept single 
out five basic functions (inbound logistics, operations, outbound logistics, marketing and 
sales, service) and four auxiliary functions (firm infrastructure, human resource management, 
technology development, procurement). According to M. Porter it is the Value Chain which is 
the subject of control management. As a logical extension G. Rummler proposed the concept 
of “Value Chains” to a company’s business processes that connects several departments 
instead. The basis of the company’s functioning is a key business processes, and auxiliary 
processes support key ones.
Nowadays there exist classification of business processes depending on the nature of its 
activities:
• basic or key;
• auxiliary or support;
• managerial or administrative;
• development.
The key business processes (as a rule, no more than ten in number) directly relates to the 
products production (outputs) and oriented to the external client. Auxiliary business process 
(dozens in number) support the key process, providing resources to them and its output 
(products or services) are oriented to the internal client.
Mikael Lind disputed the rationality of the separation of the company’s business processes 
on basic and auxiliary, because of absence of clear criteria between them. Moreover, all 
company actions affect the cost of goods or services so it is unacceptable to use such kind of 
differentiation [12].
Management process is a business process that covers all management functions at each 
level. The concept of controlling allows you to form a complete cycle of enterprise management, 
to analyze the causes of deviations from the plan and control formation. However, Mikael Lind 
stated that management processes can’t be classified as a business process. He justifies this by 
the fact that all company’s organizational work is based on internal and external coordinating 
actions, both in the horizontal and vertical processes.
Some scholars distinguish development processes group in the auxiliary or support. Such 
group includes processes of improvement of products or services, technologies, equipment 
and innovative processes. They increase the efficiency of key and auxiliary business 
processes.
The aim of any business process is a satisfaction of customer claims [17; 21]. That is why we 
can single out internal and external processes. Internal processes refer to the process within a 
single organization, but the external process which are outside of the company. This division 
has its advantages: focus on processes that produce value for customers. By adopting this 
method of focusing, you can reveal that a great number of operations does not create consumer 
value, but solves some internal problems of the company.
There are also exist technological, organizational and business processes classification. 
Technological process is part of the production process (or other process). Organizational and 
business processes refer to the processes associated with the interaction of people (departments, 
organizations). Technological, organizational and business processes can be divided into 
operations and then into transitions.

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