Organisational Systems and Processes

Organisation use systems and processes to enable it to perform organisational activities. More specifically, systems are used to perform activities, and processes to operate systems in a logical, systemic and productive manner. Resources are used to implement these procedures.

Organisational systems

Organisational systems can be manual or electronic. A simple example of a manual procedure is a meeting. The process followed to conduct the meeting in a systemic, logical manner, is good practice meeting procedures, whereby an agenda is distribute to inform participants about the meetings and its purpose; the guidance of proceedings during the meeting by the chairperson, and the recording of decisions through the meeting minutes. Other examples may be the procedural design of workflow whereby orders are placed and payments made through a manual system including delegation of authority and internal checking. The same goes for a personnel recruitment and selection system.

Electronic systems are commonplace in modern organisations. It is basically similar to manual systems (before computerisation of the workplace, most of these systems were operated manually anyway). Most transaction processing, record storage and information reporting take place through electronic systems in the modern workplace. This include financial management systems, procurement – and supply chain management systems and human resources systems.

Organisational processes

Organisational systems are operated through processes. Essentially, processes must ensure that systems are utilised and applied productively.

Examples of organisational processes are the application of theoretical and scientific principles in the application of a system such as Project Management or Strategic Planning. Another example is the procedural manuals that prescribe the process flow whereby electronic systems must be operated.

Organisational processes are essential to promote optimal efficiency and to ensure proper controls in the operation of systems.

Value-for-Money

Organisational structures, systems and processes are the main contributing elements of organisation to value-for-money. Organisational effectiveness is planned and measured in terms of strategy, and economy in terms of resources. It is structures, systems and processes that determine efficiency. Resources must be obtained economically in order to operate processes and systems (that are clustered together in structures) productively. If this can be achieved, effectiveness (goal-achievement) will be secured.

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