Critically Discussing Business Process Measurement and MIS Theory

This report provides a critical discussion of the statement "Before we measure something we must ask whether we understand what it is we are trying to measure" in the context of management information systems (MIS) theory and business process measurement. The analysis explores four key areas: knowledge management, intellectual capital, communities of practice, and performance management. The report uses Fly Jamaica Airways as a case study to illustrate the practical application of these concepts. It examines the importance of knowledge management, the development of intellectual capital, and the role of communities of practice in fostering organizational learning and innovation. The report also delves into performance management, including the use of balanced scorecards, challenges in measuring business processes, and the impact of intellectual capital on financial stability. Various authors' perspectives are integrated to provide a comprehensive understanding of the subject, emphasizing the need for clear understanding before measurement and the challenges in implementing effective measurement systems.

Critically discuss the
statement

“Before we measure something we must ask whether we understand what it is we are
trying to measure”. Any organization which is functioning in the competitive environment is
required to opt for the method that can help in fulfilling the aims and objectives of the
organization. The main purpose of the report is to analyse the statement in relation with
management information systems theory and measuring the business processes. In order to
rigorously analyse all the important aspects, there are four basic areas of inquiry that will be
discussed. These are, important aspects having strong relationship to knowledge management,
categories related to intellectual capital, communities of practice and challenges that are linked to
performance management. Critical analysis of the aforesaid statement will be performed where
views of various authors and writers being presented in the books and journals will be presented
in a well-defined manner. Certain examples that will be used in addressing the statement will
very well help in creating a concrete knowledge base regarding management of processes.
Fly Jamaica Airways is an airline which is headquartered in Kingston, Jamaica. It was
able to get itself certified with Jamaica Civil Aviation Authority (JCAA) in September 2012 and
was able to clearly operate with the United States Authorities in December. The inaugural flight
from Kingston to John F. Kennedy International Airport in New York, United States was made
successfully possible on 14th February 2014. The organization have been involved in preparing
strategies so that the available knowledge base can be best utilized by the management. It makes
its process functioned in such a manner that the best it ultimately delivered to the customers. The
organization have been known to achieve heights of success in quite a short span due to its
unique strategy formation and implementation policies being adopted by its management.
According to the views of Hitt, Ireland and Hoskisson, (2012) businesses are mainly
comprised of various business processes. It helps in delivering the activities being decided as
deliverables by the company. However, an irreplaceable thing that becomes quite important in
this process is proper management of business processes. There is actually only one functional
area, however, there are certain other business functions that are also present as well which has
strong association to the core objective of the business. Researchers have been able to develop a
process model for decision making which has helped various companies in redesigning and
developing their various business processes.
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According to Hill, Jones and Schilling, (2014) one of the main aspect that has been
identified is the ability to gain knowledge in such a manner that it can be managed strategically
for the betterment of the organization. Before any other aspect, it is important for the
management to understand that what knowledge is and how it can be applied in various functions
of the organization. However, as per the views of Wheelen and et.al., (2017) employees in the
organization cannot be left with their knowledge and can be relied to assess one their own and
retain and apply it on various business processes. Hence, in that case, management of knowledge
appropriately becomes the core function of the management. Knowledge management is the
broad concept which helps in addressing and encompassing various areas of business processes
in any organization. Knowledge management helps in encompassing organizational learning in
an appropriate format which helps in expansion of innovative techniques, competencies,
expertise and capabilities of the organization. It later helps in developing creative and effective
responses to the present challenges that the company may facing due to adopted practices which
may not prove to be right. In that case, knowledge management comes to rescue the organization
and adopt the practices that can prove to be beneficial for the company in the journey of success.
According to Evans, Stonehouse and Campbell, (2012) it is important for Fly Jamaica
Airways to prepare the strategies in such a manner that intellectual capital of the employees can
be developed. They must have adequate knowledge where they can appropriately operate their
computers or other technology that may be required to successfully fulfil their job role. It also
helps in optimally processing business in a manner that prove to be beneficial for the
organization in both monetary and non-monetary terms. Knowledge management is the method
which can help in sharing the information with the employees that may be held by top level
management. Analysing at the base level, it becomes important to use computers, to access and
implement documents and forms. These are essentially important to coordinate in order to
function all business processes. However, in contrast to this, as per the views of Pinto, (2015) the
company has been involved in adoption of information management techniques that can help in
measuring the performance and ascertaining that whether it has been prove to be useful for the
entity or not. It becomes important for the organization to measure the performance of computers
while measuring overall performance of the company in order to ascertain the achievement of
goals in comparison to the past performances. Hence, it can be stated that, management of
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employees and enhancing their knowledge base is the main activity that is to be performed by the
top level management so that measurement of goals can be performed in a well-defined manner.
According to Dyer and Singh, (2015) it is important for the management to present the
information in reliable manner. It can be stated that management must be able to measure
subjective perception of information systems and business process and must have clear idea of its
execution as well. The main challenges that is faced by the management is how to execute the
knowledge base that has been collected by the employees. Barney, (2012) has claimed that the
management of Fly Jamaica Airways have the ability to develop dense social capital which help
in facilitating the creation of intellectual capital and therefore creating a new value. Intellectual
capital of a company is also the amalgamation of people and technology which helps in
evaluating, utilizing and revealing knowledge.
According to Sakas, Vlachos and Nasiopoulos, (2014) communities of practice is the best
method to develop knowledge but conceptualizing the same can be the prime challenge that can
be faced by the management in this regard. How a particular thing happens and how the same
can be continuously kept on the elevated platform can be the concern for the organization who
may be struggling in maintaining their position in the market or those who have recently entered
to the industry. The idea behind this practice is analyse while humans are operating within a
management of information systems. Hence, interpersonal collaboration at the continuous level
can help in efficiently pushing the learning aspect in the employees. However, in contrast to this,
as per the views of Campbell, Coff and Kryscynski, (2012) when the company is involved in
functioning traditional concept of learning, then in that case, the learners are distanced from the
knowledge that they have gained. It reduces their efficiency to a great extent. In that case,
adoption of dynamic quality of community of practice is considered to be one of the most
important aspect of human capital in management information system. Goetsch and Davis,
(2014) have been able to describe lave and Wenger’s concept with respect to communities of
practice. It helps in understanding subjectivity of humans who are involved in operating
management information systems, where it lies in the domain of granting informal education.
This type of learning practice has been very well adopted by Fly Jamaica Airways for enhancing
the process of learning.
Various researchers have also been able to introduce and analyse the concept of performance
management for the business as well. Meihami and Meihami, (2014) have claimed that balanced
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scorecard is the best method that can be adopted by any organization to measure the performance
so far. Balanced scorecard is the strategy performance management tool that is commonly used
by the top-level management of Fly Jamaica Airways in order to keep a track record of execution
of activities. These activities are generally performed by the staff after controlling and
monitoring the consequences that can arise when the function is actually performed by the
management. It is an important aspect that is adopted by the management where it becomes a
knowledgeable field for business processes management. The concept of business process
management may be different for every organization. Some may opt for performance
management tools. However, other may only compare the overall performance of the business
with that of past years. It can lead to lack of clarity and create confusion and emerge confusion in
comparisons where it becomes difficult for researchers to rely upon each other’s work. However,
in comparison to this, as per the views of Leonidou and et.al., (2013) there are various definitions
that have been given by various researchers with respect to business process management. There
are contracting statements that are present as well with respect to how to measure various
particularities of business performance management as well. Hence, the policies and procedures
adopted by various organization may different from one another. It is basically chosen based
upon the availability of resources and available knowledge base of the employees within
management information systems.
Foss and Knudsen, (2013) in their journal have claimed that, there are various ways based
on which intellectual capital can be measured based upon its impact on sustainability and
competitiveness. These are the new yet precise measures that companies these days adopt for its
better output. Fly Jamaica Airways is also being involved in adoption of these methods for better
business process management. The role of intellectual capital in financial stability for long term.
It is an important aspect from both theoretical and professional point of view. The main
challenge faced in the same is to assess that which evaluation technique is to be adopted so as to
formulate the effective evaluation model. Another researcher named Saeidi and et.al., (2015)
have stated regarding processual and qualitative nature based on which balanced scorecard
approach can be developed by them over time. It is the collection of systematic idea that is
adopted by the corporation with the aim to compare business processes overtime. It also helps in
addressing that which technique can be used by the organization so that the best output can be
derived as the performance indicator for the entity. Balanced Scorecard plays an important role
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which can make use of performance indicator techniques to ascertain that what types of decisions
are required to be made by the management for the company in the near future. The researchers
have not been able to reach to any consensus where they can define that what type of
performance management system is the best while adopting the method of balanced scorecard.
Development of decision support system is also the reason based on which balanced scorecard
has lost its charm. However, both the performance indicators play an important role to ascertain
that what types of strategies are there that is to be formulated by the management of Fly Jamaica
Airways so that the best output can be attained by the organization. It helps in measuring
majority of the management business process in the most well defined manner.
According to the views of Marchi, Maria and Micelli, (2013) there are various challenges
that can be faced by the organization while measuring its business processes. There are both
professional and academic standpoints with respect to this. Indulging in decision making is rather
an easy task as, it involves learning and thinking. Hence, it is subjective in nature. Measuring the
performance of the company is rather a practical approach where objective and explicit
knowledge is more required in comparison to the theoretical one. There are various other
organizations which are involved in business process improvements, where fair degree of efforts
is put so that adequate amount of success can be initiated by the organization. It also helps the
entity in achieving its goals. As per the views of West, Ford and Ibrahim, (2015) the common
method that is generally adopted by the organization for measuring success is through
measurement of Return on Investment (ROI). It helps in understanding that whether the business
is able to achieve its target investment or not. However, it is able to give only rough
quantification regarding magnitude being expected out of the efforts of the organization. There
are certain difficulties that can be faced by the organizations while managing performances. It is
inclusive of access to the data that can be required by the management to perform this function.
Lack of knowledge regarding information technology system that is to be used to perform this
function, can act as a challenge for the management. Another challenge that ca be faced is
regarding time and efforts that are required to be present in the individual while access and
manipulating the data that has been received from the IT systems. It can help in generating the
ultimate reports and dashboards that can ultimately be used in decision making process of Fly
Jamaica Airways. Another challenge that can be faced by the organization is regarding difficulty
to define and prioritize relevant and meaningful measures which can be used by the management
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to evaluate process performance. Ineffective tool being used to perform this function can give
ineffective results which may not prove to be beneficial for the organization. The consequences
can be ascertained only if right type of management technique has been used for this function.
Negative personal attention on their side can be harmful for the functions of the entity. Hence, it
becomes important for the management to opt for understanding and communicating anticipated
value of the business that can make the business management processes strong. It helps in
ensuring visible leadership commitment, proactively involving in change management and
overcoming the roadblocks that may arise in the successful path of the organization.
According to Daley, (2012) business processes comprises of various components that needs
to be taken care of in a dynamic manner. It helps in successfully transforming the inputs in
effective outputs. Instead of treating business process as a machine, having dynamic positive
aspect, it becomes important to pursue for clear objectives that can be used to ascertain different
values, expectations and hidden agendas of the organization. Hence, it is the reason due to
which, the organizations are currently opting for automated designed technologies. Balanced
Scorecard Basics, (2018) have stated in its research that increased used of tools by the
organization for measuring performance helps in continuous improvement of the enterprise.
However, in contrast to this, as per the views of Hill, Jones and Schilling, (2014) no two
businesses are considered to be the same. Fly Jamaica Airways, which belongs to the aviation
sector consumer services company can have different key performance indicators in comparison
to the company which works on retail format. Since, the input in aviation sector company is quite
high in comparison to other industry, hence, the requirement of measuring performance is also
quite higher in this case. Based on the output of measurement of the performance, the
management can indulge in decision making activities.
Out of all the methods available that are being adopted by the organizations for
measurement of performance, balanced scorecard is the widely accepted methodology that is
adopted by majority of the organization in the current scenario. It helps in giving the best results
which are reliable and valid enough to be adopted by decision making board. However, another
method that are generally adopted by the organization with the aim of measuring performance is
related to sine qua non of performance management. The notion related to it is that every
manager, employee and community of practice are involved where each of them are involved in
their own management information systems. It is considered as one of the main method that can
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be used by the businesses which actually helps in measuring the performance of the business in
the most specific manner. Hence, in that case, the same can also be adopted by the organization
for its better implementation of the activities that ultimately helps the organization in decision
making actions.
The management of Fly Jamaica Airways, have been able to form a particular team that
has been involved in measuring the performance of the business in such a manner that it can be
helpful for the business to make present the ideas that are beneficial for the success. The
businesses which are process oriented that to opt for these types of activities for indulging in
continuous improvement. In this regard, managing entire chain of events become can important
task where major decisions of the organization are taken based on it. It ultimately helps in adding
value to the customers where they can be served in the best possible manner (Goetsch and Davis,
2014). The current trajectory of resources also helps in boosting up the efficiency and
effectiveness of the business which helps in fulfilling the framed and aims and objectives as well.
In this regard, various researchers have been able to develop and present a strong link between
business process performance and organizational performance. The two terms can be distinctive
in nature but their strong association have also been found on success of the business.
Nonetheless, various models on performance measurement are able to give idea on how various
performance indicators of the business can be chosen and can be brought to operation for the
company for their better adoption. Alternative indicators are also used by the organizations to
check the ultimate results. Evaluation of performance and work routines can strategically be
aligned to the ultimate planning that is made by the team (Daley, 2012). Hence, the method also
proves to be effective so as to form the ultimate decisions for the business that are adopted for
growth. Moreover, it can be stated that, researcher have stated that, “Before we measure
something we must ask whether we understand what it is we are trying to measure.” It ascertains
that right type of measuring tool and in the right manner can help in generating better outputs for
the company.
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REFERENCES
Books and journals
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The relevance of resource‐based theory. Journal of supply chain management. 48(2).
pp.3-6.
Campbell, B. A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage
from human capital. Academy of Management Review. 37(3). pp.376-395.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Dyer, J. H. and Singh, H., 2015. The relational view: Cooperative strategy and sources of
interorganizational competitive advantage. Academy of management review. 23(4).
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Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
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Meihami, B. and Meihami, H., 2014. Knowledge Management a way to gain a competitive
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Pinto, J. K., 2015. Project management: achieving competitive advantage. Prentice Hall.
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