Management System-Processes

Despite its general definition that process includes limited number of activities which transforms specific inputs to aimed outputs, it particularly constitutes combination of variety of functions leading to major strategic goals of an organization. In the issue of organization set up, the design of an organization could either be functional or process based, or the combination of functional and process based. This differentiates functions and processes.

 Whereas a set of functions with the same nature provide outputs which when combined with other sets of functions, these outputs together lead to strategic goals, a single process performs the same .

When an organization sets its major goals, there shall be well defined processes to map the way to achieve those goals. From other perspective, organizations may define their processes and from time to time attribute specific goal to them.

We in Raya have set these processes which are generally consisting of two categories. The first category includes processes having time independent goals, whereas the goals of the second processes are time dependent and varies from time to time. These processes are described herein below with the aim to define their goals, and their accountable person in the company:

1. Revenue Generating Project’s Process

The first and most important process in Raya is the process for accomplishment of the projects which generates revenue for Raya. There are two major goals for this process including a) customer satisfaction and b) performing the project within the approved budget. Projects Director is accountable for this process. This process is time independent because a) as target number one the ratio of actual cost to budget which is always one and the budget is always the sum of baseline costs of the current projects; and b) as target number two the accepted client’s satisfaction index is always 75 percent.

2. Financial Process

Financial process targets no gain no pay goal in respect with the costs and revenue pertaining to tax, Social Security Organization Contribution (SSOC) and exchange rate difference. Projects generate revenue in respect with tax and SSOC and the company has to pay for corporate tax, project SSO settlement and also pays for personnel SSO and gains or pays for exchange rate differences. The accumulated amount of these revenues and costs which is the goal of this process is to be zero. The Finance Manager is accountable for this process and is authorized to forecast and define currencies exchange rate, SSOC and tax percentages for the projects which shall be taken into account when preparing projects commercial offers.

The target of this process as clearly described is time independent and always is zero.

3. Support Process

Support process and its subordinates are of cost incurring nature and rarely may generate revenue. The subordinates of support process includes finance, HR, administration, marketing, proposal development, IT and system development functions. The target for this process is to minimize the cost and secure their compliance with the commitment taken by the relevant Line Manager who is accountable for his function.  The target of this process is time dependent and varies from time to time.

4. Management Process

Management process mainly targets the company’s profit which is the commitment of the board of directors towards the shareholders. As such the managing director of the Raya which is also a board member is accountable for this process. Profits generated by the projects, project’s management reserves, external investments profit and cost for social commitment functions shape the target of this process. The management commitment in respect with this process (process target) is defined in the company’s plan and budget, and the ratio of the achievement to the commitment measures the success.

As a matter of fact the outcomes of the above processes which may or may not meet the relevant target constitutes company’s profit and loss statement that defines each processes’ contribution in the profit or loss.