Management of Business Processes produce a large volume of documents
To manage the continuous flow of documents a good document management system is essential
A typical business involves many processes, such as the following:
- Procurement of merchandise/materials and operating supplies
- Production Planning & Control
- Inventory Management
- Asset Management
- Human Resources Management
- Workplace Safety & Health
- Budgeting and Accounting
- Managing Legal and Regulatory Matters
- Management Information Systems
- Public Relations
All these major processes would involve many sub-processes and sub-sub-processes, ultimately involving very specific actions. Detailed procedures specify how to carry out these specific actions.
Control is exercised by establishing comprehensive procedures. And procedures invariably involve documentation. Plans are documented to establish performance targets. Actual performance is recorded on day-to-day operating documents. Control reports are prepared comparing performance with target. Documents evidence compliance with government regulations.
Procedure Manual Essentials
Procedure Manuals lay out the steps to be followed for specific activities coming under each process. The processes might be major ones like procurement or smaller ones like travel for sales and general purposes. Staff working on the processes would know exactly what to do, and how to do it.
The steps to be followed are spelt out in small detail, like what forms to be used, what is to be done with the forms, who is to do what, and so on. Good procedure manuals provide clear guidance and also create a trail to indicate what happened during each business operation.
With this kind of documentary trail, it would be possible to establish individual accountability. Malpractices would be made difficult, and easier to detect, in such an environment.
Procedures Can Also Lead to Bureaucracy
Unless properly developed through observation of ground realities and an overriding goal of smoothing business operations, procedure manuals could lead to a bureaucratic environment. We can define bureaucracy as the tendency to use rules to hinder essential business actions.
It is a difficult task to balance business needs with control requirements. Every business has to tackle this difficult task, however. Too much control leads to tardy business performance. Too little control could lead to waste of business resources.
Development of a Procedure Manual
Developing procedures from scratch is likely to be a high-cost exercise. Instead, you could look at the procedure manuals used by other businesses in your industry, and adapt these to your particular setup.
The procedure manuals need to be regularly reviewed for their practicality and effectiveness. Changes in the business, such as an expansion, would also require modifications to procedures.
Procedure Manuals and Document Management System (DMS)
Procedures produce a large volume of documents. You need a good DMS to manage the continuous flow of documents. The documents must be sorted in a meaningful manner, and stored in a way to facilitate easy retrieval and protection against loss and damage.
Procedure Manuals and Policies
In addition to meeting control and regulatory requirements, procedures must also be aligned to the document management policies laid down by management. For example, management might decide to retain documents for a period longer than is needed by regulations. Policies might also specify how obsolete documents are to be destroyed.
Detailed procedures at specific activity level provide guidance to staff. The procedures also create a trail of accountability through documents. However, procedures could also lead to bureaucratic obstacles to successful business operations. A balance needs to be struck between control and business objectives while developing procedures.