Levels of Business Organization
There are different ways to define levels of business
organization such as the terms used in business process modeling. This method
has three levels of organization -- the organizational level, the process level
and the business activity level. Each level offers a different perspective of
an organization's activities. In business process modeling, levels of
organization help managers analyze how to increase efficiency.
Business Process
Modeling
A business can use three levels of business process modeling to
analyze how work is performed. Every work process must be documented in a form
that includes flowchart symbols and written descriptions. This written form
shows how any product or service is handled by different employees. Using a
flowchart, stakeholders such as managers and employees can troubleshoot
problems and suggest improvements to the way business activities are organized.
Organizational
Level
At the organizational level, it's important to consider all major
functions of the business. An organizational-level analysis might include
listing functions that support each product family in a manufacturing company.
Listing the functions helps to define the business's overall capacity to serve
its customers. In a smaller company, such as a construction company, there
might be only a few functions -- such as a sales function, a project management
function and an accounting function. Other functions might be important to the
construction company, but might be performed by outside labor, such as
subcontractors.
Process Level
Inside the organization, it's important to study the flowcharts
of all business activities in one process. A process might consist of all
activities that support a major service that a company provides to customers.
Experts in different areas of the business process can analyze how the business
process works in an interdisciplinary task force. Experts in one activity might
suggest improvements for another business activity to make it more efficient, with
the end goal of benefiting the customer.
Activity Level
Inside a business process,
each business activity consists of a manager and employees who assist in
creating very detailed descriptions of work tasks performed. These employees
have firsthand knowledge of work tasks and can suggest improvements to their
own work. They also understand how tasks performed by others in their activity
contribute to the activity's efficiency. When these task experts participate in
cross-functional task forces, involving employees from different business
processes, they can suggest how changes at the organizational level will impact
their activity. A task force might decide that one business activity should
occur in a different order in the sequence of work activities in a business
process, or chain of production.