Process-Oriented Organization of Public Utility Companies Have Better Business Performance than Function Oriented Organization

Abandoning the traditional functional model of business organization and implementing the concept of process-oriented organization, managements of companies engaged in public utility operations can significantly improve business performance. Traversing to process-oriented organization and business process management within the company contribute to a clear division of responsibilities. In such a way that the owners of single process, the core process, support process or management process is appointed. Also, thus during the course of an action is shortened which makes the overall operations more efficient. The entire organizational structure is more flexible. It is more easily and quickly adaptable to external changes in the environment that are not under the control of management. This contributes to lower number of hierarchical levels in an organization that should be shallow but with a very developed lateral communication. Organizational structure takes on the characteristics of the process-oriented one. It is done by combining managerial and non-managerial activities, training and education of employees, grouping employees in teams and by developing multiple competencies. Process-oriented organization creates a competitive advantage over the slow traditional organizational structure through implemented business process management. In transitional countries, awareness and knowledge of the importance and benefits of implementation of the process concept in an organization is very small, so it is high time traditional organizations started leaving the functional model and building process-oriented organization. Today, in modern times, when changes in business environment are more frequent and increasingly demanding, it is not possible to operate without a developed IT support. The degree of development of IT support affects the timely elimination of “bottlenecks” in the business, rationalization of operations, transparency of business processes and cost savings in human resources. Automation of business processes, rationalizes the number of executors of an action, which creates financial requirements for implementing a new system of rewarding employees. The concept of process-oriented organization of public utility company is based on the changes. A great degree of flexibility that exists in these organizations enables the various business units to create their own solutions for conducting business and to carefully monitor and record the process efficiency. Changing approach to business and implementing process changes, sharing the ideas about the processes as well as the results lead to the basis of management, and this is precisely the knowledge and organizational learning. The aim of the organization of public utilities is to make them more flexible, easier, cheaper and more efficient through the various functions of expertise. All these changes should be accomplished through a management process that must be planned and in long-term build on one-time change of organizational structure. Top managers in utility companies should be named the owners of certain processes, and authorized to work and budget. Thus the business focus is corrected the focus of process measurement systems become process goals. Possible further success may be based on compensation policy of the selected company. After completing the organizational and functional redesign of the selected utility company, it can be said that the organizational culture that is now radically changed, and that in the middle of business are teamwork business and end-user satisfaction, rather than hierarchy managerial authority. After all changes are made, the chosen utility company becomes process-oriented enterprise whose management structure is in balance with its key core process management. Thanks to such changes benefits for the company are numerous, and it is reflected in better overall business performance.