What is the Resources Processes Values Framework?
The Resources Processes Values Framework is utilized to efficiently allocate employees to certain tasks or responsibilities. Three sets of factors have an effect on what an organization’s capabilities, its processes, resources, and values.
What are Resources in the Organization?
Resources include equipment, people, product designs, technology, information, cash, brands, and relationships with suppliers, customers, and distributors. They should be valuable and flexible.
What are Processes in the Organization?
Organizations create value as employees function to convert resource inputs into products and services of higher value. Processes refer to the interaction, communication, decision making, and coordination. Processes comprise not only manufacturing processes but those through which market research, procurement, product development, employee development, employee compensation, budgeting and allocation of resources are accomplished.
Processes evolve de facto or are defined in a bid to address certain tasks. This implies that when managers utilize a process in the execution of tasks for which it was created, it would most likely function effectively. Contrary to resource flexibility, processes are inherently inflexible. Hence, a process which defines its ability in carrying out a specific task concurrently defines its inabilities in carrying out other tasks. In order to ensure consistency, processes should not be changed. In cases where they do, they should change through strictly controlled procedures. Good managers focus on aligning tasks and processes.
What are Values in the Organization?
An organizations values are the third class of factors which affect what an organization can accomplish. Values, by definition, has an ethical meaning. The values of an organization are the prerequisites through which employees prioritize decision making. Employees at all levels make decisions concerning priorities. A major metric of good management is whether these precise and consistent values have penetrated the organization.
By necessity, a company’s values must reflect its business model and cost structure, because they state the rules its employees must abide by for the company to succeed. The values of profitable firms likely evolve in a predictable manner on a minimum of two dimensions. The first dimension is related to acceptable gross margins. Companies usually add overhead cost just as they include features, as well as, functionality to their products and services in a bid to get more attractive customers. As a result of this, gross margins which at a point were absolutely attractive, eventually become unattractive at a later stage. Their values alter or change.
The next dimension within which values change relates to market size. The market opportunity size necessary to meet a company’s growth needs varies.