Business Process Management Process Change

Question: Explain and give an example that supports the following statement: Each time we change characteristics of one or more of the components of the organization (organization structure, people, business processes, and information technology), we must consider compensating changes in the other components. Answer: Organization is the combination of different components namely organization structure, people, business processes, and information technology so in case one or more of the component is changed each time there is compensating changes in other. To understand this one needs to know the different components in detail (Harmon, 2010). Organization structure This is way the organization is perceived by the people working in the company. It includes how the company achieves the goal by allocating task, coordination and supervision. Thus if the structure is changed from tall structure to flat structure it has compensating effect in the reporting system of the people working in the company (Harmon, 2010). For example if the company had tall structure then executive working in the bottom level cannot contact the GM of the company directly whereas if the company has flat structure then the executive can directly contact the GM of the company. Information technology (IT) This is the machinery and equipment used by the company to conduct the business. When the company implement IT such ERP system then it has compensating effect on the other component such as the people and business process (Jeston, Nelis, 2014). For example if the ERP is implemented then the sales manager (people) can send real time information of payment collection to the finance manager (people). This is due to the fact that ERP (IT) integrates the business function such as marketing, finance and human resources. Thus the above statement is proved that when one or more of the components of the organization (organization structure, people, business processes, and information technology), there is compensating change in other component and it needs to be considered for better performance (Jeston, Nelis, 2014). References Harmon, P. (2010).Business process change: A guide for business managers and BPM and Six Sigma professionals. Morgan Kaufmann. Jeston, J., Nelis, J. (2014).Business process management. Routledge.