Communications in Organizations: Business Operations Report Analysis

This report analyzes business operations, emphasizing the importance of business processes in achieving organizational goals and objectives. It identifies and evaluates functions within an organization, examining their relationships and main processes. The report investigates how business goals and objectives influence business operations, including their impact on organizational structure and culture. It explores different approaches to goal setting, including the use of SMART objectives, and provides examples from companies like HSBC and Waterstones. Furthermore, the report details the development and implementation of operational plans, including monitoring and control mechanisms to ensure objectives are met. The report covers various aspects of operations management, such as structural components, system variables, and the role of strategic and tactical management in ensuring economic efficiency. The analysis includes methods for mapping and evaluating organizational processes, with a focus on improving operational performance and reducing the risk of failure.

Communications in Organizations
Name Daniel Plesca
Unit 1 Business Operations
Word count 2000
Date 22-05-2020
CONTENTS
S. No. Description Page No
1. Examine the importance of business processes in delivering
business goals and objectives. 3
1.1: Identify and evaluate functions and the relationships between the them, of
the selected organisation. 3
1.2: Identify the main processes of these organisational functions. Review
methods and approaches for mapping organisational processes and evaluate the
processes. 3
2. Investigate how business goals and objectives affect business
operations. 4
2.1: Explain the effect of organisation mission, aims and objectives on the
structure of the organisation. 4
2.2: Explain the effect of organisation mission, aims and objectives on the culture
of the organisation 5
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Assignment 1

2.3: Analyse different approaches to goal setting for organisations and set
SMART objectives. 6
3. Develop and implement plans for an operational area. 7
3.1: Develop and introduce plans that support the achievement of the
organisational goals and objectives. Use SMART objectives. 7
3.2: Monitor and control plans to make sure objectives are achieved. 9
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Assignment 2

1.Examine the importance of business processes in delivering business
goals and objectives.
Increasing business performance requires analysis, modeling, control and permanent
improvement of internal processes.
1.1: Identify and evaluate functions and the relationships between the
them, of the selected organisation.
Operations are, in a broad sense, the management of the transformation process that
converts labor, capital, materials, information and other inputs into products and
services for customers.
An organization's operations strategy is derived from its business strategy and should
guide and inform decisions in the four "pillars" of operations management: product &
process design, demand & supply management, supply chain management, and
process improvement. These four pillars are supported by quality, human resources,
management systems, analytical tools and performance measurements.
The operations function is a central element of the organization because it produces
goods and services that are the reason to exist, but this is not the only function. It is,
however, one of the three basic functions of any organization. These are:
• marketing function - which is responsible for communicating on the market all types of
products and services of the organization in order to generate customer requests for the
service / product;
• product / service development function - which is responsible for creating new
products and services in order to generate future customer requests;
• the operations function - which is responsible for fulfilling customer requests for the
product / service, by producing and delivering them. In addition, there are support
functions that allow basic functions to operate efficiently. These include, for example:
● accounting and finance function;
● human resources function.
Organizations will have different sets of support functions. However, almost all
organizations have the three basic functions, because all organizations have a
fundamental need to sell their services and products, to satisfy customers and to create
the necessary means to meet the needs of customers in the future.
1.2: Identify the main processes of these organisational functions. Review
methods and approaches for mapping organisational processes and
evaluate the processes.
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Assignment 3

The management of operations must ensure the quality of functional stability of
production in the conditions of input variability (system controls), environmental
disturbances or products of own malfunctions, as well as the dynamics of market
requirements. In order to maintain the operationality, the operations management acts
on:
-structural components - elaboration of production programs, launching in
manufacturing and control of the fulfillment of production programs;
-variables of the system– input (sales activities, planning, technical preparation of
manufacturing, maintenance, repair of equipment and energy management, supply,
personnel - remuneration, quality control), output (product quality, delivery times,
deviations of quality), provider (change of deadlines, additional requests, waivers, falls,
staff list) and order (operational decisions);
-objectives of the production system - quality, quantity, deadlines and costs;
-production system variants - depending on the size and periodicity of the objectives,
the variability of products and technologies;
-functions of the production system - supply, manufacturing, storage, delivery, etc.
The substantiation of the operations management is achieved through the strategic and
the tactical management, which ensures the fulfillment of the unit's objectives in
conditions of economic efficiency.
Operating flow analysis is a technique for evaluating a process in relation to the stages
of the processing algorithm, starting with inputs and ending with outputs.
The analysis is performed using flow charts that the products go through them during
the processes. Flow analysis allows both highlighting the sequence of operations, as
well as identifying areas with potential problems. Flowcharts depend solely on the
process and can be either very complicated, or very simple.
It doesn't matter how much effort is put into improving operations; the risk that
something unexpected or unusual will happen will always exist, this could partially or
even completely reverse efforts to improve operations. So, an obvious way to improve
the performance of operations is by reducing the risk of failure in the operation.
2.Investigate how business goals and objectives affect business
operations.
2.1: Explain the effect of organisation mission, aims and objectives on the
structure of the organisation.
In the current conditions it is necessary to put a strong emphasis on the organizational
structures of enterprises, this element directly affecting the success of the organization.
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Assignment 4

The organizational structure stimulates the efficient growth of the economy and
participates in a re-used coordination within the organization.
The organizational structure of your business can help your mission and help create an
effective organization that can operate at a higher level of performance. Management
control, employee cooperation is characteristic of different organizational structures that
need to match what you hope to achieve with your business.
Your mission defines what your business does while its organizational structure
supports the mission.
If the company's mission is to do business in a regulated environment, a rigid hierarchy
is an appropriate organizational structure. All decisions are made at the top, being an
extremely efficient structure.
Businesses often have a broader, more product- and market-oriented mission. The
business needs to adapt quickly to change and the competitive environment and need
to be more flexible when rigid hierarchical structures are allowed. The organizational
structure is maintained by the hierarchy for human resources functions, such as
discipline, salary and promotion, but it overlaps two structures for the work. Employees
report to the supervisor immediately for work questions and can receive quick
clarification of decisions.
For a business whose mission includes specific, clear objectives, a basic organizational
structure for design may be most appropriate. At this point, a specific product needs to
be designed and built in terms of search, assigning competent staff to a group of
projects with adequate resources for this effective strategy. Companies can use such an
organizational structure for other specific tasks, such as creating sales to deliver a
specific product or reducing costs for a particular production line.
2.2: Explain the effect of organisation mission, aims and objectives on the
culture of the organisation.
The organizational culture of a company is born with the establishment of the company
and starts from its shareholders and if it is a multinational, then from the top
management of the company. For example, entrepreneurial businesses strongly bear
the imprint of their founders, even if in the meantime they grow and become global
companies.
"Its role is a symbolic one, a kind of social identification that goes beyond the brand
story shared with customers or consumers. From the outside, these codes are less
perceptible to the general public or to the candidate in a recruitment process”, explains
Raluca Pârvu, business manager within BPI Group, a management and human
resources consulting company.
The shareholders or representatives of the top management are the ones who have the
main responsibility in setting up a solid and healthy organizational culture. From them
comes the mission, vision and clear strategy of the organization. The company may
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Assignment 5

already have an organizational culture to which even top management adheres, but the
organizational culture is not something fixed, eternal and unchanged, it always changes
under the action of internal, external or environmental factors.
Two businesses with similar structures can have different effectiveness because of
differences in their cultures. You can encourage a culture in your business that aligns
with your objectives and makes employees more likely to succeed in reaching those
objectives.
The best organizations have incorporated their values into how their business is
conducted. They’re incorporated into employee orientation programs, recognition efforts
and annual appraisals. Most importantly, values are evident in every human interaction.
2.3: Analyse different approaches to goal setting for organisations and set
SMART objectives.
Setting objectives is the responsibility of the management of the public entity,
and the responsibility for achieving them lies with both the management and the
employees.
The objectives must be defined in such a way as to meet the S.M.A.R.T
requirements package.
The more detailed, actionable, and measurable they are, the easier it will seem
to you and your team to achieve those goals.
SMART goals can be set for almost any area of your company's operations,
including the finance department, marketing and sales teams, even company
managers and executives.
HSBC is a public limited company and functions in a private sector. Like every well-
known company, HSBC have a good determine mission, goals and objectives.
HSBC mission: “We aspire to be one of the world’s great specialist banking groups,
driven by commitment to our core philosophies and values”. There are some key points
they will like to accomplish: leading in the market, delivering an excellent experience in
services and solutions for all clients and achieving a superior and long-term return for all
shareholders.
HSBC goals and strategic objectives: “Prioritizing and understanding our goals and
objectives are the first steps in planning a successful financial future. Achieving our
customer’s goals with our personal financial plan.”
The strategic objectives are divided into a SMART criteria:
S - Specific = plans connected about one event, between customers, services
HSBC = providing financial services to the customers
M - Measurable = plans for long term and judge achievement
HSBC = providing financial plans for long - term like life insurance, home insurance
A - Achievable = plans proving to be true
HSBC = all financial plans made with support from the organizations and from the
customer as well; for example, financial form, documentation
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Assignment 6

R - Realistic = plan is relevant and precise about your business
HSBC = providing relevant and suitable plan for each customer, like personal loan,
credit card
T - Time specific = respect the timing for arrangements to be done.
HSBC = respect a timetable for every plan, for example mortgages.
3.Develop and implement plans for an operational area.
3.1: Develop and introduce plans that support the achievement of the
organisational goals and objectives. Use SMART objectives.
Waterstones has a hierarchical and multidivisional organisational structure. Roles
and responsibilities at Waterstones regarding a new strategy implementation are
to cover the six areas of the business-like business awareness, customer
service, stock management, team development, security and health and safety.
However, the organisation ultimate responsibility is to meet the needs of its
stakeholders and that is what business strategy should seek to achieve.
As we have mentioned above, the resource requirements are referring to finance,
allocated time to implement new strategy, materials, equipment and the most
vital resource, employees.
We can also consider as resources training programs and development available
for employees, to achieve future objectives of implementing new activities in
bookshops, reward system for skills, attitude and staff values.
Company goals is encouraging all departments to get involve in the process of
implementation of new strategy. Diversification is recommended to sustain our
new strategy. Some of the diversification drivers are: using economies of scope,
extending corporate management competence and increase market power.
The business mission and objectives should follow SMART model: specific,
measurable, achievable, realistic and time bound.
As Waterstones wishes to open 5 new branches in Ireland and Scotland until the
end of 2015 and also to introduce new activities for children in all London existent
stores until July 2015.
The success of SMART targets can be supervised and evaluated through:
-Benchmarking – measuring quality of an organisation against the standard
measurements;
-Surveys – examination of value, products or services;
-ROI – return of investment, evaluate the performance of an investment and
compared with others.
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Assignment 7

As recommendation for proposing changes we may think to identify new area for
expansion, new branch focusing on other niche market, evaluating realistic the
new financial projects and risk assessment and estimating all costs and benefits
for staff investment. (training, bonuses, wages plus bonus from sales).
We identified some new opportunities and implement changes such as
expansion, innovation and new products and services
The previous business plan was to maintain performance to a high level, to have
better profits and to increase number of customers. A review of the previous plan
creates the prospect to develop a new business plan which include geographic
expansion, innovation of new products and services. Another important aspect of
the plan is to try to avoid risk and try to focus on the return for all investment
made. “Avoiding risk means missing opportunities”. (Burns, 2008).
The new business plan will include some changes.
Market size – expansion in a new geographical area. Opening a second branch
will increase profit but in the same time the expenses as well.
Objectives - a new branch will encourage the owner to achieve his existing
objectives to increase consumer’s number and profit by 15%.
Competition - will also increase. Maintaining a low-price policy and good
customer service, the company will continue to have a good performance.
Advertising and promotion – will maintain the promotion strategy to a high level
for business and customer advantage. New investment in marketing and more
advertising will be necessary for awareness of a new shop.
Equipment - department will also have some changes. Because of expansion,
new furniture, electronic and electric equipment (computers, POS, fridge, other
coffee machine) will be required.
Personnel - will increase. A new assistant manager, plus more employees for till
and delivery to other shop will be needed. The responsibilities of existing key
employees will grow, now being in charge for two shops. (Marketing, IT and
finance department).
Financial – the existing financial documents (Income Statement and Balance
sheet), will provide accurate information to the bank, sustaining the company
request of a long-term loan. This will help to make possible all objectives and
businesses aims.
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Assignment 8

3.2: Monitor and control plans to make sure objectives are achieved.
Monitoring should be integrated into all aspects or phases of the process. The goals
and objectives provide the basis for monitoring and evaluating a project.
Monitoring Indicators are of four types, namely: input indicators, output indicators,
outcome indicators and impact indicators. Writing down the structures and strategies
helps in project monitoring because they specify what will be done during project
implementation. Planning must indicate what should be monitored, who should monitor,
and how monitoring should be undertaken.
Operational planning aims at decisions on investments that determine the operational
capacity of the organization, so as to ensure the balance of processing performance
provided by equipment and labor with the duration of operation and the level of
efficiency achieved. Another objective of operations planning is to ensure the
coordination of operations over both a long and a short time horizon, aiming at major
investments in new facilities and equipment, as well as the concrete distribution of
resources. An operational process involves planning and controlling it in action so as to
ensure that the customer's requirements are met at the lowest cost. The plan is the
document that specifies what will produce the operational operation in a period of time,
taking into account the resources needed to achieve the established level of production.
The measuring mechanisms allow the measurement of the outputs over a certain period
of time and highlight the volume, quantity and assortments of the products made. The
elements of comparison ensure the evaluation of what has been achieved in practice
with what was planned. An analysis of deviations from the plan can provide information
on the causes of its failure. The control measures are adopted according to the
conclusions of the analysis on the deviations of the results from what was foreseen in
the plan. deviations from the results compared to what was provided in the plan. The
establishment of production control and regulation measures is a cybernetic process
that is based on the comparison between the performances achieved (profit, costs,
deviations) and the norms or standards imposed by planning, as a result of the
development strategy of the organization. Depending on the deviations of the
performances from the imposed norms, the decisions are taken to consolidate the
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Assignment 9

production, to improve the errors, to improve the technological or of the operational
management so that the performances are as close as possible to the established ones.
Bibliography.
1.Burduş E., Căprărescu Gh., (1999), Fundamentals of organization
management, Publishing House
Economics, Bucharest;
2. Ciobanu, A., (2006), Enterprise performance analysis, ASE Publishing
House, Bucharest;
3.Iacob, D., Cismaru, D., (2003), Intelligent organization: ten topics of
organization management, Comunicare.ro Publishing House,
Bucharest;
4. Mihalcea, R., Androniceanu, A, (2000), General Management,
Economic Publishing House,
Bucharest;
5. Verboncu, I., Zalman, M., (2005), Management and performance,
University Publishing House, Bucharest;
6. Jörg Becker, Martin Kugeler, Michael Rosemann, (2003), Process
management, Ed. Springer, Münster;
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Assignment 10