Business process structure is a set of guidelines, policies, and procedures implemented by a company to enhance its operations. It includes management, operational, and support processes, and can improve workflow and productivity. However, it requires regular review and application of policies to prevent fraudulent activity.
The business process structure represents the individual guidelines, policies and procedures implemented by a company to improve and enhance its overall business operations. Most companies divide their departments or divisions into different processes to improve workflow. This provides business owners, directors, managers, and employees with specific responsibilities in their work activities that directly impact the output of each process. The business process framework also makes extensive use of diagrams and charts, which provide businesses with a pictorial reference for outlining process activities and activities.
Business processes typically fall into one of three categories: management, operations, and support. Management processes are specifically concerned with owners, directors and managers, with the structure of business processes commonly defined in the corporate governance of the company. This governance creates standards for business ethics, defines the mission and vision of the organization, separates duties among managers, and dictates acceptable behavior and contracts for business relationships. Larger companies will typically have more corporate governance rules due to the number of directors and officers in the company.
The structure of operational business processes provides information about the main tasks and activities of an organization. These processes can include sourcing, receiving, warehousing, manufacturing, sales, and marketing. Each process must be directly related to a company’s core activities, which generally include the production of consumer goods and services. Most companies have similar operational processes, even if they go by different names. This framework can outline how each individual process is related to the others, as well as the number of activities within each process. It is often different within each process as different activities are required to complete the functions of the process.
Support processes may include maintenance, accounting, human resources, and information technology support. These processes do not necessarily add value to a company’s production process, they are ancillary services to support and improve production. The business process framework can help companies develop procedures and guidelines to improve the relationship between primary and secondary business processes. These ancillary processes will also affect more than one primary or secondary business process. Business owners and executives often spend a lot of time developing the framework for these processes due to their wide-ranging activities.
Creating a framework is not necessarily a complete and comprehensive solution to organizational management. Owners, directors and observers must be willing to review and apply policies and guidelines to ensure that the company remains relevant in the business environment and does not allow fraudulent activity to occur in business processes. Outlining various internal controls and punishments for failure to follow the process structure can help organizations prohibit harmful employee behavior.
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