Business Organization

(MODULE-1)
Dr Prajna Mohapatra
What is Business:
• Business may be defined as an activity concerned with the production &
exchange of goods and services with the objective of earning profit.
• Business literally means “state of being busy”.
• An entrepreneur runs a factory, trader sells good, a banker lends money, a
transporter carries goods etc are coming under business activities.
• These activities are undertaken to earn a profit or living out them.

A business is an organization or entity that sells goods or services

for a profit. The important part of this definition is that a business is
something that operates in order to make a profit. Not all businesses
actually are successful enough make a profit, but their main purpose is to
generate profits. According to the traditional concept, business exists only
to earn profits by providing the goods and services to the customers. As
per the modern concept, the underlying objective of every business is
customer satisfaction as this is what results in most profits. If the customer
is satisfied, business excels.

Definition
• Business may be defined as human activities directed towards providing or
acquiring wealth trough buying & selling goods.” L. H. Haney
• “An Institution organized & operated to provide goods &services to the
society under the incentive of private gain”. -Wheeler
 • “Business is any enterprise which makes, distributes or provides any
articles or service which the other members of the community need and are
able and willing to pay for.” - Urwick & Hunt
Nature of Business
• Creation of utilities: The goods or service must be such that it creates
form utility – conversion of products in a consumable form,
time utility – making the goods and services available when needed; and
place utility – availability of goods or services wherever required, for the
consumers.
• Continuous Process
Business is not a single time activity. It is a continuous process of production and
distribution of goods and services. A single transaction of trade cannot be termed
as a business. A business should be conducted regularly in order to grow and gain
regular returns. Business should continuously involve in research and
developmental activities to gain competitive advantage. A continuous
improvement strategy helps to increase profitability of the business firm.
• Sale, transfer or exchange of goods/services
The basic activity of any business is trading. The business involves buying of raw
material, plants and machinery, stationary, property etc. On the other hand, it sells
the finished products to the consumers, wholesaler, retailer etc. Business makes
available various goods and services to the different sections of the society.
• Profit motive
Profit is an indicator of success and failure of business. It is the difference
between income and expenses of the business. The primary goal of a business is
usually to obtain the highest possible level of profit through the production and
sale of goods and services. It is a return on investment. Profit acts as a driving
force behind all business activities. Profit is required for survival, growth and
expansion of the business. It is clear that every business operates to earn profit.
Business has many goals but profit making is the primary goal of every business.
It is required to create economic growth.

5. Risk and Uncertainties:

Risk is defined as the effect of uncertainty arising on the objectives of the
business. Risk is associated with every business. Business is exposed to two types
of risk, Insurable and Non-insurable. Insurable risk is predictable. You can insure
certain type of risks such as theft, accident due to fire etc. business can’t claim
for non-insurable risk such as loss due to drop in customer demand, loss due to
natural calamities, change in govt plocies measures etc.

6. Economic activities
Business is an economic activity of production and distribution of goods and
services. It provides employment opportunities in different sectors like banking,
insurance, transport, industries, trade etc. it is an economic activity corned with
creation of utilities for the satisfaction of human wants. It provides a source of
income to the society. Business results into generation of employment
opportunities thereby leading to growth of the economy. It brings about industrial
and economic development of the country.

Objectives of Business
An objective is something you want to achieve. As a learner of NIOS, you
may have many objectives in mind; one could be to perform well in the
examination. Similarly, business objectives are something which a business
organization wants to achieve or accomplish over a specified period of time.
These may be to earn profit for its growth and development, to provide quality
goods to its customers, to protect the environment etc. These are the objectives
of business. In the following section let us classify the objectives of business.
the objectives of business may be classified as
a. Economic Objectives
b. Social Objectives
c. Human Objectives
d. National Objectives
e. Global Objectives

Economic Objectives
Economic objectives of business refer to the objective of earning profit and also
other objectives that are necessary to be pursued to achieve the profit objective,
which include, creation of customers, regular innovations and best possible use
of available resources. Let us learn about these. i. Profit earning Profit is the
lifeblood of business, without which no business can survive in a competitive
market. In fact, profit making is the primary objective for which a business unit
is brought into existence. Profits must be earned to ensure the survival of
business, its growth and expansion over time. Profits help businessmen not only
to earn their living but also to expand their business activities by reinvesting a
part of the profits. In order to achieve this primary objective, certain other
objectives are also necessary to be pursued by business, which are as follows:
• Creation of customers
A business unit cannot survive unless there are customers to buy the products and
services. Again, a businessman can earn profits only when he/she provides quality
goods and services at a reasonable price. For this it needs to attract more
customers for its existing as well as new products. This is achieved with the help
of various marketing activities.
 • Regular innovations
Innovation means changes, which bring about improvement in products, process
of production and distribution of goods. Business units, through innovation, are
able to reduce cost by adopting better methods of production and also increase
their sales by attracting more
customers because of improved products. Reduction in cost and increase in sales
gives more profit to the businessman. Use of power-looms in place of handlooms,
use of tractors in place of hand implements in farms etc. are all the results of
innovation.
• Best possible use of resources
As you know, to run any business you must have sufficient capital or funds. The
amount of capital may be used to buy machinery, raw materials, to employ
manpower and have cash to meet day-to-day expenses. Thus, business activities
require various resources like men, materials, money and machines. The
availability of these resources is usually limited. Thus, every business should try
to make the best possible use of these resources. This objective can be achieved
by employing efficient workers, making full use of machines and minimizing
wastage of raw materials.
Social Objectives
Social objectives are those objectives of business, which are desired to be
achieved for the benefit of the society. Since business operates in a society by
utilizing its scarce resources, the society expects something in return for its
welfare. No activity of the business should be aimed at giving any kind of trouble
to the society. If business activities lead to socially harmful effects, there is bound
to be public reaction against the business sooner or later.
Social objectives of business include production and supply of quality goods and
services, adoption of fair-trade practices and contribution to the general welfare
of society and provision of welfare amenities.
i. Production and supply of quality goods and services
Since the business utilizes the various resources of the society, the society expects
to get quality goods and services from the business. The objective of business
should be to produce better quality goods and supply them at the right time and
at a right price. It is not desirable on the part of the businessman to supply
adulterated or inferior goods which cause injuries to the customers. They should
charge the price according to the quality of the goods and services provided to
the society. Again, the customers also expect timely supply of all their
requirements. So, it is important for every business to supply those goods and
services on a regular basis.
ii. Adoption of fair-trade practices
In every society, activities such as hoarding, black-marketing and over-charging
are considered undesirable. Besides, misleading advertisements often give a false
impression about the quality of products. Such advertisements deceive the
customers and the businessmen use them for the sake of making large profits.
This is an unfair trade practice. The business unit must not create artificial scarcity
of essential goods or raise prices for the sake of earning more profits. All these
activities earn a bad name and sometimes make the businessmen liable for penalty
and even imprisonment under the law. Therefore, the objective of business should
be to adopt fair trade practices for the welfare of the consumers as well as the
society.
iii. Contribution to the general welfare of the society
Business units should work for the general welfare and upliftment of the society.
This is possible through running of schools and colleges for better education,
opening of vocational training centres to train the people to earn their livelihood,
establishing hospitals for medical facilities and providing recreational facilities
for the general public like parks, sports complexes etc.

Human Objectives
Human objectives refer to the objectives aimed at the well-being as well as
fulfilment of expectations of employees as also of people who are disabled,
handicapped and deprived of proper education and training. The human
objectives of business may thus include economic well-being of the employees,
social and psychological satisfaction of employees and development of human
resources.
i. Economic well-being of the employees
In business employees must be provided with fair remuneration and
incentives for performance, benefits of provident fund, pension and other
amenities like medical facilities, housing facilities etc. By this they feel
more satisfied at work and contribute more for the business.

ii. Social and psychological satisfaction of employees

It is the duty of business units to provide social and psychological
satisfaction to their employees. This is possible by making the job
interesting and challenging, putting the right person in the right job and
reducing the monotony of work. Opportunities for promotion and
advancement in career should also be provided to the employees. Further,
grievances of employees should be given prompt attention and their
suggestions should be considered seriously when decisions are made. If
employees are happy and satisfied, they can put their best efforts in work.
iii. Development of human resources
Employees as human beings always want to grow. Their growth requires
proper training as well as development. Business can prosper if the people
employed can improve their skills and develop their abilities and
competencies in course of time. Thus, it is important that business should
arrange training and development programmes for its employees.

iv. Well-being of socially and economically backward people

Business units being inseparable parts of society should help backward
classes and also people those are physically and mentally challenged. This
can be done in many ways. For instance, vocational training programme
may be arranged to improve the earning capacity of backward people in
the community. While recruiting it staff, business should give preference
to physically and mentally challenged persons. Business units can also
help and encourage meritorious students by awarding scholarships for
higher studies.

National Objectives
Being an important part of the country, every business must have the objective of
fulfilling national goals and aspirations. The goal of the country may be to provide
employment opportunity to its citizen, earn revenue for its exchequer, become
self-sufficient in production of goods and services, promote social justice, etc.
Business activities should be conducted keeping these goals of the country in
mind, which may be called national objectives of business. The following are the
national objectives of business.
i. Creation of employment
One of the important national objectives of business is to create opportunities for
gainful employment of people. This can be achieved by establishing new business
units, expanding markets, widening distribution channels, etc.
ii. Promotion of social justice
As a responsible citizen, a businessman is expected to provide equal opportunities
to all persons with whom he/she deals. He/She is also expected to provide equal
opportunities to all the employees to work and progress. Towards this objective
special attention must be paid to weaker and backward sections of the society.
iii. Production according to national priority
Business units should produce and supply goods in accordance with the priorities
laid down in the plans and policies of the Government. One of the national
objectives of business in our country should be to increase the production and
supply of essential goods at reasonable prices.
v. Contribute to the revenue of the country
The business owners should pay their taxes and dues honestly and regularly. This
will increase the revenue of the government, which can be used for the
development of the nation.

v. Self-sufficiency and Export Promotion

To help the country to become self-reliant, business units have the added
responsibility of restricting import of goods. Besides, every business units should
aim at increasing exports and adding to the foreign exchange reserves of the
country.
Global Objectives
Earlier India had a very restricted business relationship with other nations. There
was a very rigid policy for import and export of goods and services. But, now-a-
days due to liberal economic and export–import policy, restrictions on foreign

investments have been largely abolished and duties on imported goods have been
substantially reduced. This change has brought about increased competition in
the market. Today because of globalisation the entire world has become a big
market. Goods produced in one country are readily available in other countries.
So, to face the competition in the global market every business has certain
objectives in mind, which may be called the global objectives.
Raise general standard of living
Growth of business activities across national borders makes available quality
goods at reasonable prices all over the world. The people of one country get to
use similar types of goods that people in other countries are using. This improves
the standard of living of people.
ii. Reduce disparities among nations
Business should help to reduce disparities among the rich and poor nations of the
world by expanding its operation. By way of capital investment in developing as
well as underdeveloped countries it can foster their industrial and economic
growth.
iii. Make available globally competitive goods and services
Business should produce goods and services which are globally competitive and
have huge demand in foreign markets. This will improve the image of the
exporting country and also earn more foreign exchange for the country.
Prerequisite of Successful Business
➢ Setting Objectives
The setting up of business objectives is the first thing to be done by
the management. One must know as to what is to be done. Only after
deciding the objective, the ways and the means will be determined
to achieve the objectives. If it is a producing business, the nature of
product to be produced, whether to produce the whole product or

part of it should be decided. In case of service business, the nature

and type of service to be provided should be decided. It is not only
the management which should be conversant with the business
objectives but every person in the concern should know the aims and
goals of the business.
➢ Proper Planning
After determining, the objectives, the work should be planned in all
its perspectives. Planning involves forecasting and laying down the
course of action. It involves planning for both present and future.
What is to be achieved and how it is to be achieved is of primary
significance for the present. Future is always uncertain and the
estimation of future happenings is very difficult. In planning for the
future, an effort is made to estimate the future uncertainties and
determine the possible course of action for the coming period. Thus,
planning also helps the management to prepare itself for facing the
uncertainties of tomorrow.

➢ Sound Organization
Organisation is an arrangement by which tasks are assigned to
employees so that their individual efforts contribute effectively to the
 achievement of clearly defined purposes. The duties and responsibilities of
all are defined and they should know what they are expected to do. An
effective organisation system is essential for the success of a business.
Firstly, a decision should be taken about the form of ownership, i.e., sole
trade, partnership, Joint Stock Company. Then a suitable internal
organisation should be developed. No work should be left unassigned. The
supervisors and subordinates should know their roles in the business.

➢ Proper Financial Planning

• The requirements of finance and its possible sources should be decided at
the time of starting the enterprise. The purpose of financial planning is to
make sure that adequate funds are raised at the minimum of cost. The
required capital should be made available at all times, otherwise, it will
hamper the work. The scarcity of capital and too much of it both will be
bad for the concern.
• The availability of excess capital may tempt the management to spend
more money on inventory and on fixed assets. A proper plan is necessary
for providing funds for the present needs and future developmental plans.
➢ Location & Layout Plan
• One of the important decisions to be made by the management at the time
of starting a concern is regarding the location of the plant. The plant should
be located at a place where all factors of production arc available at lowest
costs. The aim of reaching an optimum point will be achieved only if the
place of location of the businesses is suitable. Raw materials, labour, power
and markets for the finished products should be available near the place of
location.
• After deciding about location, a decision is made about layout of the plant.
The setting up of the machinery and equipment should be systematic so
that the flow of production should be smooth and uninterrupted. The office
building and warehouse etc., should be located near the factory. Proper
layout will enable the economical use of available space. Proper location
and layout of the business are necessary for the success of a business.

➢ Marketing System

The marketing aspects of a business are more important than even

production. There is no use of producing a thing if it cannot be sold.
Marketing management is essential for earning profits. Management
should decide about the channels of distribution. Whether to sell
directly to consumers or to sell through wholesalers? It should be
decided after taking into consideration various aspects of goods.
➢ Research
In the changing technological world, it is essential to use latest
devices for production and marketing of goods. Change is the
essence of business. Every day, new production methods are found.
Consumers’ needs and preferences should be taken into
consideration in devising production and marketing policies.
Research and development should be given due place in the
business. One can compete with changing business world only
through research programmes. If attention is not given to research
work then it will become difficult to stay in business for a large
period. So, research activities are necessary for the success of an
enterprise.
➢ Dynamic Leadership
The success of an enterprise will depend upon the efficiency of its
management. The task of management is to plan, organise, co-
 ordinate and direct various activities for achieving business
objectives. This will be possible only if the leadership is dynamic.
The operation managing the concern should have foresight,
initiative, courage and aptitude for a change. These qualities are
necessary in the leadership to take the concern on the road of
progress.

CLASSIFICATION OF INDUSTRY:
industry, is a group of productive enterprises or organizations that produce
or supply goods, services, or sources of income. industries are customarily
classified as primary, secondary, and tertiary;

Primary industry
Primary industry is defined as an industry that is concerned with extracting the
natural resources on the earth so that they can be converted into
consumable products.
This sector of a nation’s economy includes agriculture, forestry, fishing,
mining, quarrying, and the extraction of minerals etc. It may be divided into two
categories:
Genetic Industry, including the production of raw materials that may be
increased by human intervention in the production process; and extractive
Industry, including the production of exhaustible raw materials that cannot be
augmented through cultivation.
The genetic industries include agriculture, forestry, and fishing—all of
which are subject to scientific and technological improvement of renewable
resources. The extractive industries include the mining of mineral ores, the
quarrying of stone, and the extraction of mineral fuels.
 Primary industry tends to dominate the economies of undeveloped and
developing nations, but as secondary and tertiary industries are developed, its
share of the economic output tends to decrease.

Secondary industry
This sector, also called manufacturing industry,

(1) It takes the raw materials supplied by primary industries and processes
them into consumer goods, or
(2) It processes goods that other secondary industries have transformed into
products, or
(3) It builds capital goods used to manufacture consumer and non-consumer
goods. Secondary industry also includes energy-producing industries
(e.g., hydroelectric industries) as well as the construction industry.
Secondary industry may be divided into heavy, or large-scale, and light, or small-
scale, industry.
Large-scale industry generally requires heavy capital investment in plants and
machinery, serves a large and diverse market including other manufacturing
industries, has a complex industrial organization and frequently a skilled
specialized labour force, and generates a large volume of output. Examples would
include petroleum refining, steel and iron manufacturing, motor vehicle and
heavy machinery manufacture, cement production, nonferrous metal refining,
meat-packing, and hydroelectric power generation.
Light, or small-scale, industry may be characterized by the nondurability of
manufactured products and a smaller capital investment in plants and equipment,
and it may involve nonstandard products, such as customized or craft work. The
labour force may be either low skilled, as in textile work and clothing
manufacture, food processing, and plastics manufacture, or highly skilled, as
in electronics and computer hardware manufacture, precision instrument
manufacture, gemstone cutting, and craft work.

Tertiary industry
This sector, also called service industry, includes industries that, while producing
no tangible goods, provide services or intangible gains or generate wealth.

In free market and mixed economies this sector generally has a mix of private and
government enterprise.
The industry includes sectors like banking, finance, insurance, investment,
and real estate services; wholesale, retail, and resale trade; transportation,
information, and communications services; professional, consulting, legal, and
personal services; tourism, hotels, restaurants, and entertainment; repair and
maintenance services; education and teaching; and health, social welfare,
administrative, police, security, and defence services.

Modern Business Environment:

• The term ‘business environment’ implies external forces, factors and
institutions that are beyond the control of the business and they affect the
functioning of a business enterprise.
• These include customers, competitors, suppliers, government, and the
social, political, legal and technological factors etc. While some of these
factors or forces may have direct influence over the business firm, others
may operate indirectly.
• Thus, business environment may be defined as the total surroundings,
which have a direct or indirect bearing on the functioning of business.
 • It may also be defined as the set of external factors, such as economic
factors, social factors, political and legal factors, demographic factors,
technical factors etc., which are uncontrollable in nature and affects the
business decisions of a firm.

Features: On the basis of the above discussion the features of business

environment can be summarised as follows.

(a) Business environment is the sum total of all factors external to the business
firm and that greatly influence their functioning.
(b) It covers factors and forces like customers, competitors, suppliers,
government, and the social, cultural, political, technological and legal conditions.
(c) The business environment is dynamic in nature, that means, it keeps on
changing.
(d) The changes in business environment are unpredictable. It is very difficult to
predict the exact nature of future happenings and the changes in economic and
social environment.
(e) Business Environment differs from place to place, region to region and
country to country. Political conditions in India differ from those in Pakistan.
Taste and values cherished by people in India and China vary considerably.

Importance:
There is a close and continuous interaction between the business and its
environment. This interaction helps in strengthening the business firm and using
its resources more effectively. As stated above, the business environment is
multifaceted, complex, and dynamic in nature and has a far-reaching impact on
the survival and growth of the business. To be more specific, proper
understanding of the social, political, legal and economic environment helps the
business in the following ways:
(a) Determining Opportunities and Threats: The interaction between the
business and its environment would identify opportunities for and threats to the
business. It helps the business enterprises for meeting the challenges successfully.
(b) Giving Direction for Growth: The interaction with the environment leads to
opening up new frontiers of growth for the business firms. It enables the business
to identify the areas for growth and expansion of their activities.

(c) Continuous Learning: Environmental analysis makes the task of managers

easier in dealing with business challenges. The managers are motivated to
continuously update their knowledge, understanding and skills to meet the
predicted changes in realm of business.
(d) Image Building: Environmental understanding helps the business
organisations in improving their image by showing their sensitivity to the
environment within which they are working. For example, in view of the shortage
of power, many companies have set up Captive Power Plants (CPP) in their
factories to meet their own requirement of power.
(e) Meeting Competition: It helps the firms to analyse the competitors’
strategies and formulate their own strategies accordingly.
(f) Identifying Firm’s Strength and Weakness: Business environment helps to
identify the individual strengths and weaknesses in view of the technological and
global developments.
Characteristics of Modern Business environment
• Bulk Size of business
the mass production has been an integral part of modern environment. As
volume with expected lower cost rises, it helps to attain higher rate of
output at low unit cost.
• Diversification
Presently every business invests its capital in diversified economic
activities so that it can avoid negative effect of market fluctuation. Many
firms invest their funds in different market location and foreign economies
in order to avoid the impact of adverse business situations, such as
recession, high inflation, lockout, strikes etc.
• Change in consumer’s taste & preference

Presently consumer’s taste & preference of modern consumers have

completely clanged because of change in standards of living, consumption
pattern, technology advancement etc. now people spend more money on
service. Modern consumers like to spent their income in quality product
rather than cheap one.

• Change in Distribution Channel

The revolutionary change in technology has drastically changed the
conventional distribution system. Introduction of e-commerce has taken
important place in distribution channel. As per consumer preference most
business organization offer their product and services at the doorstep of their
consumers.
• Globalization of business
Modern business has now global. MNC’s are dominating the global market.
The government of different countries are also liberating the economies by
 allowing foreign countries to enter the domestic market. The mergers and
acquisitions are across the national boundaries have also been increasing the
presence of business firm in international market.
• Emergence of International Organization
With the increase in cross boarder trade, the role of various international
institutions such as WTO, IMF, World Bank etc has also increased. These
organizations set rules and regulations for international trade.
• Intense Competition
Globalization of economies has increased the competition in international as
well as domestic markets. In present business scenario no firm wants to remain
with the regional boundaries of a country. They enter international market to
explore new business possibilities.

Challenges:
We live in rapidly changing times where everything is dynamic and change is the
only constant. New technologies become obsolete in days, new business trends
emerge every day, new issues and rules regarding labour laws, new managerial
and HR policies, the uncertainty regarding the future, the management of
resources and power etc keep taking place. The business environment is
challenging and the business needs to take governance and risk issues seriously
to adapt and prepare itself for these challenges.
Some of the various challenges that businesses have to face are as follows:

• The challenge of Globalization

• The challenge of Diversity
• The challenge of Ethics and Governance
The challenge of Globalisation
Globalisation is the interaction of companies and businesses on a world wide
global scale. Understanding the basic overview of the global economy as it
changes is extremely helpful for managerial and business level applications. The
main challenge faced by businesses is that businesses are faced with the challenge
of localizing products and services effectively and efficiently in a way that
minimizes the adverse cultural and environmental effects caused by this rapid
global expansion to maintain an ethical operation.
On the flipside, globalisation presents enormous opportunities for businesses to
grow. Intercultural marketplaces allow for differing demographics, larger market
potential, a more diverse customer base, more diverse product offering and a
highly valuable human resource potential.

The challenge of Diversity

With globalisation comes and enormous percentage of cross-cultural
relationships and domestic diversity. Globalization has created higher potential
value in approaching diverse markets and demographics. Because of this,
understanding how to manage a diverse community internally has now become a
priority for management.
Businesses and managers must be not only be aware of diversity in the
workplace but also be open-minded and empathetic to perspectives other than
their own. The goal for management is to ensure everyone is working to
assimilate to everyone else in a balanced and effective manner that harvests
differences rather than smoothing them over.

The challenge of Ethics and Governance

Ethics is at the core of corporate governance, and management must reflect
accountability for their actions on a global community scale. Business itself
cannot be ethical: only the managers and corporate strategists can implement
ethics within the framework of the business strategy. Corporate ethics and
shareholder desires for profitability are not always aligned, and it is the
responsibility of executive management to ensure ethics supersede profitability.

In its simplest form, corporate ethics is a legal matter. Corporate governance and
ethics become more difficult with the indirect implications of particular practices,
making it important to assess the way in which certain operations may adversely
affect the community at large. Managers are the primary decision makers, and
therefore must hold themselves accountable for the way in which a business
operates and affects stakeholders, shareholders, employees, and the community
at large.

Functioning in the business world is full of challenges. Businesses should adapt

to it and adopt a proactive approach towards dealing with it. Apart from the
challenges mentioned above, businesses also have to deal with the challenges and
penalties of non-compliance, risks and governance.
Business Process
A business process is an activity or set of activities that can accomplish a specific
organizational goal. Business processes should have purposeful goals, be as
specific as possible and have consistent outcomes.
Every business should define its processes, analyse and measure the results to
ensure that the process is meeting expectations and is getting better. Usually,
these activities can be visualized as a workflow of connected stages that can be
performed in parallel or sequentially depending on specific rules or decisions.
That means that every person in the company should follow the exact same steps.
If someone misses one step, it will probably lead to a disoriented employee and
the productivity will be reduced.
Importance of Business Process
• Identify what tasks are important to your larger business goals
• Improve efficiency
• Streamline communication between people/functions/departments

• Set approvals to ensure accountability and an optimum use of resources

• Prevent chaos from doing the day-to-day operations
• Standardize a set of procedures to complete tasks that really matter to your
business
Business Process Cycle
• Step 1: Define your goals
What is the purpose of the process? Why was it created? How will you
know if it is successful?

• Step 2: Plan and map your process

What are the strategies needed to achieve the goals? This is the broad
roadmap for the process.

• Step 3: Set actions and assign stakeholders

Identify the individual tasks your teams and machines need to do in order
to execute the plan.

• Step 4: Test the process

Run the process on a small scale to see how it performs. Observe any gaps
and make adjustments.

• Step 5: Implement the process

Start running the process in a live environment. Properly communicate and
train all stakeholders.

• Step 6: Monitor the results

Review the process and analyse its patterns. Document the process history.

• Step 7: Repeat
If the process is able to achieve the goals set for it, replicate it for future
processes.
Example of Business Process:
As an example, let’s consider the hiring process of an HR department. Right from
posting the job opening to onboarding the employee, there are multiple steps

involved in the process. Although this can vary from organization to organization,
a simple workflow might look like this:
• The HR executive posts the job update
• Multiple candidates apply in a portal
• The HR executive screens the candidates and filters the best-fits
• The selected candidates are called for the next stages of the recruitment
• The right candidate is chosen at the last stage of the recruitment
• Salary and policy negotiations take place
• The offer letter is sent and the candidate accepts
……………………………………………………………………………….