Functional and process approach to management. How and what to manage?

The article describes the most common management models that are used by Russian companies. In particular, a comparative analysis of the characteristics of the functional and process approach to the organization of the control system is given.


At present, it is hardly possible to surprise anyone with the concept of “business process” or “process approach”, however, few are able to explain the main essence of this methodology, and even more so, successfully and effectively implement it in their company. Let's see what a process approach is.


The process approach was formulated in the second half of the last century and still remains one of the most effective methods of organizing a management system in a company. The cornerstone of this methodology is the concept of “process”. A process is a combination of interrelated activities that transforms inputs into outputs that are of value to the consumer. Thus, the concept of the process approach as a management system consists in highlighting specific business processes of the company, identifying one of the participants as the owner of the business process and delegating authority and responsibility to manage this process.


In this case, the company is considered as a system of individual types of activities (business processes) aimed at achieving a specific result and interacting with each other through inputs and outputs. The inputs to the process methodology can be: information, documentation, materials, equipment, human resources and so on. The outputs of business processes is the result of activities that have value both for the external customer and for the internal. It is worth noting that an important distinguishing feature of the process approach from other management models is not only the allocation of business processes, but also their continuous improvement.


Unfortunately, despite all the advantages and advantages of the process methodology, most of the domestic companies still use a functional management model. Unlike the process one, the concept of a functional approach to management is based on the delegation of authority and responsibility through the functions performed. In other words, the functional approach consists in uniting employees into separate structural business units (departments, departments, etc.) according to the principle of uniformity of the activity performed with a rigid vertical hierarchy.


Let's look at how functional and process management models are implemented using an abstract company as an example. Let our company have the organizational structure shown in figure No. 1.


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"You may not change. Survival is not a duty."
William Edwards Deming


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