Organizational approach developing process-oriented hei management system in innovation economy environment

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ORGANIZATIONAL APPROACH TO DEVELOPING PROCESS-ORIENTED HEI MANAGEMENT SYSTEM IN INNOVATION ECONOMY ENVIRONMENT

Oxana Denissova

Annotation

The article gives an innovative approach to reforming the current higher educational institution management. The “process-oriented system of higher educational institution management” is introduced. The given system is a new type of a higher educational institution “business model”, in which business-processes transformations are of practical and theoretical significance.

Key words: higher educational institution, process-oriented management system, business model, business process, business function, business operation, index.

Анотація

Оксана Дєнісова

ОРГАНІЗАЦІЙНИЙ ПІДХІД ДО ФОРМУВАННЯ ПРОЦЕСНО-ОРІЄНТОВАНОЇ СИСТЕМИ УПРАВЛІННЯ ВИЩИХ НАВЧАЛЬНИХ ЗАКЛАДІВ В УМОВАХ ІННОВАЦІЙНОЇ ЕКОНОМІКИ

У статті пропонується інноваційний підхід до реформування існуючих механізмів управління вузами. Вводиться поняття процесно-орієнтованої системи управління вузами. Дана система являє собою новий тип «бізнес-моделі» вузу, для якої питання трансформації бізнес-процесів стають актуальними теоретично і практично.

Ключові слов: вищий навчальний заклад, процесно-орієнтована система управління, бізнес-модель, бізнес-процес, бізнес-функція, бізнес-операція, показник.

Аннотация

Оксана Денисова

ОРГАНИЗАЦИОННЫЙ ПОДХОД К ФОРМИРОВАНИЮ ПРОЦЕССНО-ОРИЕНТИРОВАННОЙ СИСТЕМЫ УПРАВЛЕНИЯ ВЫСШИМИ УЧЕБНЫМИ ЗАВЕДЕНИЯМИ В УСЛОВИЯХ ИННОВАЦИОННОЙ ЭКОНОМИКИ

В статье предлагается инновационный подход к реформированию существующих механизмов управления вузами. Вводится понятие процессно-ориентированной системы управления вузами. Данная система представляет собой новый тип «бизнес-модели» вуза, для которой вопросы трансформации бизнес-процессов становятся актуальными теоретически и практически.

Ключевые слова: высшее учебное заведение, процессно-ориентированная система управления, бизнес-модель, бизнес-процесс, бизнес-функция, бизнес-операция, показатель.

Problem statement

Developing effective management systems in various organizations of all spheres of activity is one of the crucial problems, the dynamic management is to solve now.

The existing mechanisms of organization management do not meet the requirements of the time as they have not been able to quickly react to changes in the global economy of the recent years which makes it necessary to find a new approach to management agents and, in particular, to find ways to increase their productivity for their “survival” and further development. Non-adaptive methods should be substituted by management systems able to quickly and decisively act in case of changes and achieve the desired results. One of the modern organization management systems reflecting global management development tendency is a process-oriented one. Its essence is in dedication the net of business processes and their management in order to make the activity of an organization maximally effective.

Global changes going on in the world speak to the effect that the higher education sphere is seen as a means to increase competiveness of a country and make it a leader at the world market, as a guarantee of its national security. The future of our civilization depends upon the knowledge and skills a person, getting higher education now, will have. High tempo of the social and economic development is impossible to achieve without highly efficient management in higher educational institutions (HEI). To ensure high quality training in HEIs in accordance with the requirements of the innovation economy the process-oriented management system should be developed.

Analysis of recent research and published works

Some issues of process management formation and development have been studied by both Kazakhstan and foreign scientists, among them being Т. Davenport (1990,1993), M. Hammer, J. Champy (1993), M. Havey (2005), M. Porter (1985), M. Robson, P. Ullah (1996), V.G. Eliferov, V.V. Repin (2004,2005), А.V. Shadrin (2003), E.V. Shelmin (2007), Е. Askarov (2007), etc. Despite the scientific interest and the research conducted it is necessary to note that issues improving higher educational institutions management mechanisms with process methods have not been fully developed and demanded.

Detecting unsolved problems within the general one. Scientific research in implementation of the given system is generally either of theoretical character or only touch upon some aspects of its application, e.g. in mass industrial production. It will not allow apply the theoretical and methodological developments to enhance introduction and development of process-oriented HEI management in the innovation economy environment. All this emphasizes the significance of the problem.

The goal of the research is to develop recommendations on ways to increase efficiency of higher educational institution management system with process management methods.

management institution innovative educational

The results of the research

Management can be really effective in case it is continually developing, if it is oriented on changes which provide an organization's stability and accumulation of innovation potential. Implementation of the above-mentioned idea is possible if the management systems undergo thorough analysis which will result in the development of their most effective organizational variants.

At present most organizations, including higher educational institutions, have the function-oriented management system based upon the universal principle of distribution of responsibilities among structural departments which have their specific functions, fulfillment of which includes an increasingly greater number of operations. Such a management system makes an employee perform his highly specialized work well, but does not make him oriented on the result which is, in higher educational institutions, stated to be “meeting needs of the customers in high-quality educational services” though it is the result that indicates how efficient an organization is. Thus, the basis of the university's activity should be the principle of maximal satisfaction and development of customers' needs. The change of the “we produce what we can” position into “we produce what is necessary” one is demanded which requires an entirely new methodological approach to organization of higher educational institution activity management.

The principles of the function-oriented management system, undoubtedly, worked in the plan economy. However, the need to cope with modern economic realia in the market environment made higher educational institutions implement more effective management systems which provide management structure stimulating continual improvement of the product quality. And the product must be of a specific use value which is a unity of knowledge, skills and competences of HEI graduates who are highly qualified working force at the labor market.

One of the most advanced models of developing effective HEI management system is a process-oriented model providing stable transition from hierarchy management structures to more flexible structures able to quickly adapt to current trends of the economy innovation development.

Author's interpretation of the given system based on the analysis and systematization of approaches to process-oriented management system with consideration of HEI operation specifics has been developed, according to which the process-oriented HEI management system is interpretation of a HEI activity as a complex of business processes and development of its management system to ensure maximal efficiency of its work.

In a number of cases attributing the term “business process” to a higher educational institution is disputable as it is not considered to be a commercial organization and cannot get profit as a result of its activity. However, the traditional use of the term makes it necessary to interpret it in the following way: if the result of a process is meeting needs of customers in quality educational services, such a process should be referred to as a business one. From this viewpoint the author defines business process as a complex of business functions specifically structured in time and space, aimed at providing the desired results and achieving strategic objectives by means of transforming “inputs” into “outputs”, valuable for the customer.

Comparison of the “function” and “process” organizations showed their basic difference: the process-oriented management system requires shift of management from managing separate structural elements to managing business processes, connecting activities of these structural elements. In the organizational management structure the focus is not on the vertical links which are well-developed but on the horizontal links which are “weak points” of the effective HEI management.

It is obvious that business processes as activities transforming “inputs” into “outputs” can be found in a function-oriented organization.

Both the process and the functional approaches enable us to define different properties of the object of research indispensable for realization of the research goal.

Thus, we are coming to the conclusion that contraposition of the function and process-oriented management systems is incorrect as, being equally important concepts of the management activity, functions and business processes cannot exist separately. It is not just functions or business processes that should become the management object but the wholesome system of interconnected business processes cresting values for the consumer and functional areas uniting similar functions of different business processes.

The concept model of developing HEI management system, oriented on business processes in the innovation economy environment and based on the comprehensive approach, has been developed (Fig. 1).

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Figure 1 Concept model of HEI process-oriented management system Source: Author'

HEI activity analysis singled out four business processes which were modeled by means of IDEFO method (Fig.2). The model development resulted in coordination of HEI business processes in order to create the use value of the commodity.

Figure 2 HEI business processes model in IDEFO notation

HEI business processes are large elements of the system, characterizing its activities. For efficient HEI management it is necessary to focus on managing business functions. In the educational business process three functions have been defined: admission of students to the HEI, training students in an academic program, arrangement of final state examinations (Fig. 3).

Figure 3 Structural-functional Model of the HEI Educational Business

As a business function is a set of interconnected business operations which are done in the order presupposed by its logic, its graph (net) description model is preferable. Figure 4 shows the net model of “Training Students in an Educational Program” business function. Its cycle is divided into four temporal periods characterizing changing sequence of actions during an academic semester: [t₀;t₁] - preparatory; [t₁;t₂] - educational; [t₂;t₃] - examination period; [t₃;t₄] - assessment of the examination period results, [t₄;t] - updating students' contingent.

Figure 4 Graph Model of the “Training Students in an Academic Program” Business Function Presentation

Business operations: 1 - forming contingent of first-year students; 2 - updating organization and management data; 3 -improving material and technical resources of the university; 4 - forming students contingent at the beginning of the academic semester; 5 - teaching theory and practical training of students; 6 - preparation of examination materials; 7 - conducting examinations; 8 - semester courses development; 9 - sizing-up results of the examination period; 10 - forming students contingent at the end of the academic semester; 11- forming contingent of students with low grades for summer term training.

In the graph business operations are marked as circles with their identification numbers. The arcs show links between business operations and give information on management, execution, monitoring and analysis. The business function is given for the winter semester, dotted lines show business operations repeated in the spring semester drawn as arched arrows that mean “repeated iteration”.

Such presentation of all HEI business processes is necessary to detect in what way management information moves, how well it is executed, monitored and analyzed, as well as to find “weak points” in management process.

In the process management hierarchy the management scheme includes processes of all levels: business processes business functions business operations. According to this structure a business process model can be defined as

, (1)

where is a multitude of business functions ; is a multitude of business functions performers; is a multitude of resources involved in the business process ; is the type of a business process.

The business function () is shown as a consequence of the business operations conducted:

, (2)

where .

As a business operation model we have defined the following set:

, (3)

where is a set of business operation indices which are managed in the observed period of time t; - is a set of business operation performers.

The desired index values are achieved by the HEI business process management system based on implementation of continual improvement cycles. The system is developed in accordance with work regulations business process performers observe to improve the HEI's performance providing for obtaining certain results.

To indicate the degree of conformity of the results obtained to the set objectives the estimate index is introduced:

, (4)

where -is the level of achieving the objective of a business operation; is the value of the index in the current period; is the value of the index in the planned period.

Formula (4) is analogous for calculating indices at business function and business process levels as well as for the system, in general.

To calculate the integral index of achievement level of the set objectives we are suggesting the complex method considering influence level of certain business functions' indices on the final estimation of the business process results .

We have shown the synthesizing function as a linear convolution.

, (5)

where - integral index of business function objectives achievement; is a weight coefficient of the business function, is taken as 0 to 1, and the total of all weights providing for the efficiency of the business process should be equal to one.

As a tool for defining the priorities of the weight coefficient () we have chosen the hierarchy analysis technique, developed by T. Saaty and K. Kearns (1985) in the 70s of the XX century, which is quite effective for solving multicriterion problems with hierarchic structures. The method consists in the problem decomposition into simpler components and further sequence of statements of a person solving pair equations. Then the statements are expressed by means of matrix algebra method and final results are formulated by expert judgment.

The content and phased introduction of the hierarchy analysis technique is shown by the example of the comparative assessment of business functions of the educational business process. The results analysis speaks to the effect that the “Training students in an Academic Program” business function is most important from the viewpoint of the above-mentioned criteria (Table 1).

Table 1

Importance of Business Functions of the Educational Process

The management system mechanism of HEI business processes has been developed in the research (Fig.5).

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Figure 5 The Management System Mechanism of HEI Business Processes, Source: Author'

The “input” () of the management system under study are induces of the HEI activity. Business processes performers (SP) form control action vectors (, , ) on corresponding business processes (BP₁, BP₂, BP_n). Moreover, control objects are influenced by external disturbances (, , ), having both direct and indirect impact on the system's efficiency which managers need to eliminate. In the “output” of the system there are vectors of indices characterizing different states of the business processes (,,) which accumulate in vector . This vector enables one to assess the effectiveness of a HEI's management, in general.

The process-oriented management model is a multilevel one: output values of the strategic level indicators are the desired management results and are used as input information for management on the operating level (), which is shown in Fig. 5 in the “Operational management” column and is feedback of the system strategic management column. In the both columns management by difference is conducted ( и ). The information goes via the feedback channel to the block of assessing the effectiveness of a business process.

If the multitude of indices lies within variation limits we can say that the system is efficient. However, such a result should be treated as a possibility for further improvements by means of modifying the strategic development plan of the higher educational institution and motivating the teachers and the staff to achieve better results.

If the current values obtained are beyond the established limits, the deviation should be noted, the causes of the problem should be analyzed, steps for elimination of the problem in the course of the business process should be taken. As a result, the business process activities are stabilized.

Summary

As practice shows it, the appropriateness to apply process-oriented management in higher educational institutions in innovation economy environment is due to the following characteristics:

- it gives a better choice of ways in which the activities of a higher educational institution can be assessed, thus, it is transition from abstract to more specialized assessment.

- the existing management system (with vertical hierarchy structure) is not rejected but treated as horizontal representation of interconnections in a higher educational institution.

- management of a higher educational institution by means of business processes makes it possible to strategically assess all aspects of a higher educational institution activity and apply an effective strategy of its development.

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