Education

Categories of Business Process

  Apr 10, 2021

I. Operational Processes (or Primary Processes)

1. Operational or Primary Processes deal with the core business and value chain. 
2. These processes deliver value to the customer by helping to produce a product or service. 
3. Operational processes represent essential business activities that accomplish business objectives, 

Examples: Generating revenue - Order to Cash cycle, procurement – purchase to pay cycle.

II. Supporting Processes (or Secondary Processes)

1. Supporting Processes back core processes and functions within an organization. 
2. It is different from operational and support processes by the fact that it doesn’t provide value to customers directly. 
3. It certainly impacts the efficiency of the enterprise like management business process. For example - hiring the right people for the right job has a direct impact on the efficiency of the enterprise.

Examples: Accounting, human resource (HR) Management and workplace safety. 

Human Resource Management 

The main HR Process Areas are grouped into logical functional areas and they are as follows:

(i) Recruitment and Staffing

(ii) Goal Setting

(iii) Training and Development

(iv) Compensation and Benefits

(v) Performance management

(vi) Career development 

(vii)Leadership development

III. Management Processes

1. Management processes measure, monitor and control activities related to business procedures and systems. 
2. Like supporting processes, management processes do not provide value directly to the customers. 
3. It has a direct impact on the efficiency of the enterprise.

Examples: Internal communications, governance, strategic planning, budgeting, and infrastructure or capacity management.

Budgeting 

Budgeting is driven by the vision and the strategic plan of the enterprise. 

It is important to have a formal and structured budgeting process to ensure good business management, growth and development.