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Creating a Process and Organization Fit Index: an Approach toward Optimal Process and Organization Design
Author(s) -
Hearn SungNyun,
Choi Injun
Publication year - 2013
Publication title -
knowledge and process management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.341
H-Index - 44
eISSN - 1099-1441
pISSN - 1092-4604
DOI - 10.1002/kpm.1400
Subject(s) - business process reengineering , computer science , business process , organizational architecture , process (computing) , process management , organizational structure , index (typography) , identification (biology) , artifact centric business process model , organizational effectiveness , organizational performance , business process modeling , knowledge management , work in process , business , management , marketing , economics , botany , lean manufacturing , biology , operating system , world wide web
Fitting organizational units to business processes and vice versa is critical to design optimal organizational structures and processes, which is very important for business process reengineering. Business processes and organizational structures are designed separately and independently, however, because there are very few studies to analyze the relationship between them for their effective design. This paper introduces an approach to evaluating the fit between business processes and organizational structures. An index is proposed to evaluate the process and organization fit in terms of the overhead incurred by organizational structures for transfers of work in business processes. Furthermore, indices for relatively evaluating the overall fit are proposed to compare alternative processes and structures. Finally, a case study is presented to illustrate the validity and applicability of the approach. The proposed indices will allow not only the rapid evaluation of alternative organizational structures and business processes but also the identification of problems that cause the lack of fit between them. Copyright © 2013 John Wiley & Sons, Ltd.