INFORMATION BROCHURE 2015 full package

Management unctional ssessment

Model

CHANGE MANAGEMENT TOOL

2 MFA Model

© Dmitry Maslov 2003-2015

Management

unctional

ssessment

Model

move from vertical to horizontal view in decision making taming the energy of the functional management transition path to quality and excellence

3 MFA Model

Dear colleagues, business leaders, change mak-ers, quality professionals, and HR-specialists,

We have designed a new management tool to help you attain and/or maintain a sustainable competi-tive advantage via converting the energy of traditional functional management in your organisation to the energy of quality. You will open new horizons moving from vertical to horizontal decision making process and making new steps to excellence.

The Management Functional Assessment (MFA) Model can be con-sidered as a quality, excellence and change model. It is developed upon previous works including that of Frederick Taylor, Henri Fayol, Edwards Deming, Tito Conti, and self-assessment models of the Baldrige Excellence Framework and the EFQM Excellence Model.

Being a TQM model, MFA is based upon six functions of manage-ment: forecasting and planning; organising; motivation; control; co-ordination; and communication. Using the MFA Criteria for self-assessment you can enhance the quality of your management systems through continuous learning, innovation, and improvement.

The MFA has been designed to aid managers in determining the key activities to be addressed in order to improve corporate efficiency and ef-fectiveness within a framework of obtaining all stakeholder satisfaction in-cluding your employees.

The MFA Methodology has been produced as a result of international cooperation between Russian, British and Australian researchers. I pro-posed The MFA concept in 2003, later two my colleagues, Prof. Paul Wat-son (UK) and Dr. Nicholas Chileshe (Australia), joined the work.

Nowadays the MFA Model is used in organisations of various size and industries, including construction, transport, service, public sector and many others. We do hope to find you among them.

Dr. Dmitry Maslov

Foreword

4 MFA Model

Contents

Introduction .............................................................. 5

Competitive-Orientated Management ........................ 6

Management Functional Assessment Model (Concept) .................................... 8

MFA Criteria description .......................................... 10

Forecasting & Planning ....................................................... 10

Organising ........................................................................ 12

Motivation ......................................................................... 14

Control ............................................................................. 16

Co-ordination .................................................................... 18

Communication .................................................................. 20

MFA Estimation Part ................................................ 21

MFA Self-Assessment Methodology ......................... 24

Diagnostic Express-Assessment ........................................... 24

Two-Sided Assessment ....................................................... 26

Deployment of MFA Model: Issues and Advantages ........................................... 32

5 MFA Model

Introduction

For organisations to attain and/or maintain a sustainable competitive ad-vantage they require a competitive orientated management system. Our ap-proach should address key concepts such as leadership, personnel and devel-opment.

The behavior of an organisation’s leaders creates a clarity and unity of purpose within the organisation and an environment in which the organisation and its people can excel.

The full potential of an organisation’s people is best released through shared values and a culture of trust and empowerment, which encourages the involvement of every employee. This necessitates a holistic approach to people and their operational systems and organisational structure.

Organisational performance is maximised when it is based on the man-agement and sharing of knowledge within a culture of continuous learning, in-novation and improvement.

Organisations perform more effectively and efficiently when all interrelated activities are understood and systematically managed and decisions concerning current operations and planned improvements are made using reliable infor-mation.

Proposed Management Functional Assessment Model recognises that sustainable excellence in all aspects of performance is based on the manage-ment functions of forecasting/planning, organising, motivation, control, co-ordination and communication. 25 different management function and 100 fo-cus areas are correlated with corporate profitability and stakeholder satisfac-tion.

The MFA Model helps organisations to transform energy of traditional (functional) management to improvement energy which is based on total quali-ty principals and concepts of excellence.

The MFA Model has been designed to aid managers in determining the key activities to be addressed in order to improve corporate efficiency and ef-fectiveness.

Organisational two-sided assessment methodology on the MFA Model base gives an opportunity to define, if managers thinking corresponds with employ-ees opinion, helps to identify zones of polarity and unity of judgments inside the collective and shows efficiency of changes in this or that area.

6 MFA Model

Competitive-Orientated

Management

Management Functional Assessment Model forms part of “Competitive-Orientated Management”. This is a system of

management designed to gain and sustain a competitive corpo-

rate advantage by way of continued internal and external self- assessment and an improvement driven agenda.

The concept of Competitive-Orientated Management may be

represented as a tetrahedron (see Fig. 1). It is based upon three principles of competitive achievement, leadership, person-

nel and development. The emphasis should be placed on the

attainment of a “Sustainable Competitive Advantage”.

Leadership: The role of senior management is critical to

the success of any change process and leadership has to be

demonstrated. All employees have to be given the time and skills to make a useful contribution towards the drive for a sus-

tainable competitive advantage.

Personnel: Employers have to be motivated to engage in a corporate culture directed at stakeholder satisfaction. Senior

management must not forget that employees are also stake-

holders. Thus they should remember to engage in “consulta-tion” before “implementation” in corporate plans. This aspect

allows staff to contribute to the decision making process. Cul-

ture is a vital aspect for consideration and a morphogenic cul-ture should be the aim of senior management

Development: The development of an organisation re-

quires the consideration of both business processes and envi-ronmental issues/aspects. Therefore environmental scanning

has to be deployed in order to establish external influences and

may be done by SWOT and PEST analysis. This should be linked

to the RADAR concept for the techniques to be effective.

7 MFA Model

Competitive-Orientated

Management

Competitive-Orientated Management Core Concept

Sustainable organisation

and competitiveness

Development Leadership

Personnel

Management System

Figure 1:

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Management Functional

Assessment Model (Concept)

Management Functional Assessment (MFA) Model is based

upon the six key functions of management:

Forecasting & Planning

Organising

Motivation

Control

Co-ordination

Communication

The first five functions are encapsulated within a framework

of an effective and efficient system of communication (sixth criterion).

In order to have efficient and effective management system

the Deming Plan-Do-Check-Act (PDCA) cycle should be employed as depicted in Figure 2. Two issues are of vital

importance. First “Cycle Time” – how long does it take for

information to circulate around the loop? Secondly, the quality of the information in the loop. High quality information

circulating regularly leads to efficient and effective management

system.

Five functions correspond to five criteria which form the

MFA framework. Each criterion consist of five assessment

categories, each category has four focus areas. Thus MFA framework includs 5 criteria, 25 assessment categories and 100

focus areas (see Fig. 2, 3).

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5. Co-ordination

1. Forecasting & Planning

2. Organising 3. Motivation

4. Control

6. Communication

PDCA cycle

Management Functional Assessment Model Figure 2:

Structure of the MFA Model framework Figure 3:

Criterion (1-5)

Five assessment categories (1.1 - 5.5)

Four focus areas (1.1.a – 5.5.d)

10 MFA Model

MFA Criteria description

“Forecasting & Planning” is

concerned with determining the shape of future strategy; its function

is to answer three questions:

where is the company now in terms of its vision and mission?

where does it want to be as

part of its future corporate plans?

how is the company to achieve

set aims based upon forecasts?

1. Forecasting & Planning

1. Forecasting

& Planning

Setting the objective and strategic planning process in motion 1.1

1.2 1.5

1.4 1.3

Gathering and analysing information related to clients and markets

Detailing business-processes

Gathering and analysing information related to

competitors and benchmarking

Resources planning

11 MFA Model

1. Forecasting & Planning

Focus areas

1.1. Setting the objective and strategic planning process in motion

a. Organisation has the general philosophy, core business principles and values

are corresponding with company’s philosophy.

b. Strategic and operational aims are clear and interrelated, review and update

regularly for each stages of business-process and for each employee.

c. Strong and weak areas of organisation’s activities are determined. Improve-

ment plan is designed.

d. Organisational activities correspond to social requirements.

1.2. Gathering and analysing information related to clients and markets

a. Organisation strongly focuses on customer needs and expectations.

b. There is an organisational system which collects customers’ complaints and

wishes, requirements.

c. Organisation has detailed customers’ database, and uses it in planning and

managing activities.

d. Marketing system concentrates on attraction new customers and simulation

repeated purchases to increase of a share of regular customers.

1.3. Detailing business-processes

a. Organisational processes are defined and confirmed with documents.

b. Inputs, outputs, owners and resources are identified for each process.

c. Detailed business-process helps to satisfy internal customers and improve

quality of each process.

d. Resources are effectively distributed between all processes.

1.4. Gathering and analysing information related to competitors and

benchmarking

a. Organisation regularly monitors market and its competitors.

b. Information about competitors, their strong and weak areas, is learnt, ana-

lysed and used for planning own improvement initiatives.

c. Best practices, including world and industrial, are gathered, analysed,

adopted and included in strategic and operational plans.

d. Organisation uses benchmarking to find new effective approaches and in-

crease of competitiveness.

1.5. Resources planning

a. An organisational system of suppliers’ selection is established.

b. Investments for business process are effectively attracted.

c. Material, human, finance and other organisational resources are distributed

strongly according to accepted plans.

d. Information computer technologies are widely used for resources planning.

ERP-system is launched within organisation.

12 MFA Model

MFA Criteria description

“Organising” is one of the

main managerial tasks. Busi-

ness-processes are to be or-

ganised with a concentration on

maximising effectiveness and efficiency.

2. Organising

2. Organising

Creating an appropriate organisational structure

2.1

2.2 2.5

2.4 2.3

Establishing authority and responsibility for all personnel

Creating a self-learning organisational culture (morphogenic)

Developing a value system based upon enhancing

performance

Deployment of new technology linked to

corporate enhancement

13 MFA Model

2. Organising

Focus areas

2.1. Creating the correct organisational structure

a. Organisational structure is clear and understandable.

b. Organisational structure reflects business-process framework.

c. Organisational structure is designed to support learning and improvement.

d. Organisational structure is flexible and suitable for deploying accepted plans.

2.2. Establishing authority and the responsibility for all personnel

a. Zones of authorities and responsibility are determined for each employee.

b. There are internal documents which fix and regulate zones of the employees’

authority and responsibility.

c. It is precisely determined, who, when, where and how should act at the each

stage of the business-process.

d. Employees’ authorities and responsibility are not only on paper – it is an es-

sential part of daily organisational activities.

2.3. Creating a self-learning organisational culture (morphogenic)

a. Quality management principals are implemented spread within.

b. Daily organisational activities are supplemented improvement activities.

c. Teamwork principles are widespread within organisation.

d. Previous saved organisational knowledge and experience are accumulated,

learnt, analysed and applied to improve organisational processes.

2.4. Developing a value system based on enhancing performance

a. It is clear understanding of importance to satisfy customers among manag-

ers and employees.

b. Relations between personnel and customers are regulated by employees’ in-

structions and behavior models for each kind of situations.

c. Relations with partners and suppliers of organisation are organised effective-

ly to create value for customers.

d. Support processes are organised effectively and helps to create new values

for consumers.

2.5. Deployment of new technology linked to corporate enhancement

a. Organisation learns and deploys new business approaches to enhance its

performance.

b. Marketing system is established, considering specific features of producing

product (service): sales, pricing, advertising, additional services, etc.

c. Quality of products (services) increases by know-how and new technologies

in design, production, sales, advertising, additional services, etc., that enhanc-

es organisational performance results.

d. Organisation widely uses new information, telecommunication and computer

technologies in its operational and supported activities.

14 MFA Model

MFA Criteria description

“Motivation” has many as-pects both intrinsic and extrinsic.

3. Motivation

3. Motivation

Developing a co-operative

culture based upon stakeholder satisfaction

3.1

3.2 3.5

3.4 3.3

Ensuring staff have the skills, re-

sources and competences to per-form set tasks

A consideration of per-

sonal needs linked to self-actualisation

Engagement in processes, increase areas of

responsibility and self-monitoring

Results satisfaction -

feedback on performance in a

timely manner

15 MFA Model

3. Motivation

Focus areas

3.1. Developing a co-operative culture based upon stakeholder satisfac-

tion

a. Top-managers lead improvement activities within organisation upon stake-

holders' requirements.

b. There is positive working atmosphere within organisation.

c. Organisation has corporate values, aims, mission which focus on stakehold-

ers satisfaction.

d. Organisation's leaders take part in corporate activities, personnel training

and developing.

3.2. Ensuring staff have the skills, resources and competences to per-

form set tasks

a. Skills, knowledge, experience and qualification of employees are evaluated.

b. A system of professional training is established in organisation.

c. Employees are encouraged for self-education and training.

d. A system of employees’ hiring, selection and rotation is established within

organisation to correspond strategic aims and business-process requirements.

3.3. A consideration of personal needs linked to self-actualisation

a. Low levels of personal employee’s needs (accordingly with Maslow Pyramid -

physiological and safety needs) are satisfied.

b. Employees have needs connected with developing communications and self-

actualisation.

c. Organisation's leaders adequately evaluate needs of employees.

d. An estimation system of employees’ needs is launched in organisation.

3.4. Engagement in processes, increase areas of responsibility and self-

monitoring

a. An atmosphere where the employees can show initiative and improvement

thinking is created within organisation.

b. Teamwork (like “quality circles”), informal communication among employees

are encouraged within organisation.

c. Employees realize their responsibility for quality of their work.

d. Contribution of each department or separate employee in organisation suc-

cess (failure) is evaluated.

3.5. Results satisfaction - feedback on performance in a timely manner

a. A system of employees’ satisfaction is established within organisation.

b. Managers understand interrelation between employees’ satisfaction and cus-

tomers’ satisfaction.

c. Employees recognition system is established within organisation.

d. Financial results of organisation correspond with employees' salaries and

bonuses.

16 MFA Model

MFA Criteria description

“Control” is dependent upon constant feed-

back from each stage of business-process,

checking against quality specifications and

measuring against performance indicators. A

correct monitoring system allows for an

increase in the efficiency and effective-ness of organisational activity. Organi-

sations must consider feedforward of

information for effective control.

4. Control

4. Control

A monitoring system for each key stage of business-process 4.1

4.2 4.5

4.4 4.3

Measuring performance levels

Determining customer satisfaction levels

Determine the efficiency and effectiveness of resource

utilisation

Conduct a comparative analysis between set targets

and actual results, leading to

appropriate actions

17 MFA Model

4. Control

Focus areas

4.1. A monitoring system for each key stage of business-process

a. Quality management is established within organisation.

b. Business process as whole and each process in particular have criteria for

quality measurement.

c. Quality control procedures are existed, and responsibility is determined.

d. Information about processes' defects is collecting in accepted forms and

analysing in quality reports.

4.2. Measuring performance levels

a. Statistic methods are used to evaluate business-process within organisation.

b. A set of quantitative criteria is established measure business-process.

c. Qualitative information about organisational processes is measured.

d. Organisational performance measurement is on the continuous base.

4.3. Determining customer satisfaction levels

a. Criteria of customer satisfaction (dissatisfaction) with products (services) are

established.

b. Feedbacks of different types with customers are conducted.

c. Customers are welcome to state their claims, complaints and opinions about

product (service) which organisation produces.

d. Customer satisfaction surveys are conducted continuously by organisation.

4.4. Determine the efficiency and effectiveness of resource utilisation

a. Organisational resources (human, material, power, financial etc.) distribution

is controlled systematically.

b. Organisational resources are controlled on each separate process.

c. Quality of organisational resources is according to international, state, in-

dustrial and internal standards.

d. Employees’ safety requirements are satisfied within organisation.

4.5. Conduct a comparative analysis between set targets and actual re-

sults, leading to appropriate actions

a. Key strategic results and business-process productivity are measured within

organisation.

b. Actually processes results are conformed to previously set targets.

c. Organisational activities correspond to established principles and corporate

business philosophy.

d. Targets-results analysis helps to precede appropriate actions within organi-

sational business-process.

18 MFA Model

MFA Criteria description

“Co-ordination”: The analysis of

deviations on business-processes and

updating of the current plans in a holistic

manner based on feedback and feedfor-

ward is a critical point in co-ordination. Again this can only be fully attained by

the application of the Deming PDCA cy-

cle.

5. Co-ordination

5. Co-ordination

Unity of all other functions 5.1

5.2 5.5

5.4 5.3

Establishing effective internal communications

Developing a conflict solving system

Updating of deviations:

revision and possible reco-ordination of other

resources

Ensure effective Information

management

19 MFA Model

5. Co-ordination

Focus areas

5.1. Unity of all other functions

a. Forecasting & planning, organising, motivation and control make intercon-

nected management system within organisation.

b. Management system of organisation focuses on continuous improvement

and enhancement of quality of processes.

c. Principles of management system are fixed in the corporate documents.

d. Management system is clear and understandable for the staff.

5.2. Establishing effective internal communications

a. Departments and other organisational units communicate well.

b. Internal relations within organisation are regulated with documents.

c. Organisational structure is flexible and adaptable for interfunctional activities

and project management.

d. Information, telecommunication and computer technologies are widely used

for internal communications.

5.3. Developing a conflict solving system

a. Organisation's leaders are skilled in Conflict management.

b. Organisation has an effective policy of changes and resistance taming.

c. Employees understand and shear corporate values, aims, mission and core

business principles.

d. Energy of the informal leadership uses to solve conflicts within organisation.

5.4. Updating of deviations: revision and possible reco-ordination of

other resources

a. A system of fast-response on the customers’ complaints and requirements is

created in organisation.

b. The Plan-Do-Check-Act cycle (Deming PDCA cycle) is implemented for con-

tinuous improvement within organisation at each stage of business process.

c. Each employee is appreciated to introduce an improvement to business pro-

cess.

d. Employees have basic skills in quality management (Control Charts, SPC,

7 statistical tools, etc.)

5.5. Ensure effective Information management

a. Management system is based upon facts and actual information.

b. Information management is a valid part of the whole management system.

c. Information flows are organised effectively within organisation.

d. Telecommunication and computer technologies increase quality and sustain-

ability of information.

20 MFA Model

MFA Criteria description

“Communication” is the link and the life blood of corporate activity and its effectiveness is measured within the context of

the five other functions.

6. Communication

21 MFA Model

MFA Estimation Part

The MFA Estimation Part is composed of 5 functions (Fig.

2) of management criterion each with five sub basic categories as illustrated in Table 1 which indicates the assessment catego-

ry.

Criteria Assessment category Max

1. Forecast-

ing / Plan-ning

1.1 Setting the objective and strategic planning process in motion 4

1.2 Gathering and analysing information related to clients and markets 4

1.3 Detailing business-processes 4

1.4 Gathering and analysing information related to competitors and benchmarking 4

1.5 Resources planning 4

Criterion total 20

2. Organis-ing

2.1 Creating the correct organisational structure 4

2.2 Establishing authority and the responsibility for all personnel 4

2.3 Creating a self-learning organisational culture (morphogenic) 4

2.4 Developing a value system based on enhancing performance 4

2.5 Deployment of new technology linked to corporate enhancement 4

Criterion total 20

3. Motiva-tion

3.1 Developing a co-operative culture based upon stakeholder satisfaction 4

3.2 Ensuring staff have the skills, resources and competences to perform set tasks 4

3.3 A consideration of personal needs linked to self-actualisation 4

3.4 Engagement in processes, increase areas of responsibility and self-monitoring 4

3.5 Results satisfaction - feedback on performance in a timely manner 4

Criterion total 20

4. Control

4.1 A monitoring system for each key stage of business-process 4

4.2 Measuring performance levels 4

4.3 Determining customer satisfaction levels 4

4.4 Determine the efficiency and effectiveness of resource utilization 4

4.5 Conduct a comparative analysis between set targets and actual results, lead-ing to appropriate actions

4

Criterion total 20

5. Co-ordination

5.1 Unity of all other functions 4

5.2 Establishing effective internal communications 4

5.3 Developing a conflict solving system 4

5.4 Updating of deviations: revision and possible reco-ordination of other re-sources

4

5.5 Ensure effective Information management 4

Criterion total 20

Total Management Estimation (TME) 100

MFA Scoring System: Estimation Part Table 1:

22 MFA Model

The total management estimation (TME) helps to define a Level of Management Maturity (Table 2)

Level TME Assessment

I (0~20) No methodology or system, management purposes

are not defined. For further development it is nec-

essary to reconsider core business principles.

II (21~40)

Management has the potential for development.

Managers should develop their leadership skills, de-fine organisational purposes clearly and develop a

strategy based on TQM principles.

III (41~60)

Management systems are in evidence. It is neces-

sary to pay attention to the optimisation of business processes and improvement of quality at each stage. Perfecting a control system and taking into

account the importance of stakeholders.

IV (61~80)

Constant quality checks within the management

system take place. Utilisation of external bench-marking in order to improve corporate perfor-

mance.

V (81~100)

The maximum outcomes in all areas of corporate

activity are reached; the management system is benchmarked and monitored in a drive for continu-ous improvement.

The presentation of the analysis can be more easily com-

municated to all staff via the application of a communication

MFA pentagonal profile as depicted in Figure 4. The scores can be plotted upon the profile and a corporate profile established.

This process will also demonstrate where organisational effort

should be placed. As an example, Figure 5 contains some fic-tional data plotted on the profile.

MFA Levels of Management Maturity Table 2:

23 MFA Model

Communication MFA Pentagonal Profile Figure 4:

Fictitious Company Plotted on the Pentagonal Profile Figure 5:

Forecasting / Planning

Motivation

Control

Organising

Co-ordination

Prof. P.Watson

8.94

11.57

9.30

11.17

13.67

20 points 20 points

20 points 20 points

20 points

communication profile

Forecasting / Planning

Motivation

Control

Organising

Co-ordination 20

Prof. P.Watson

15

10

5

5 10

15 20

5 10

15

20

5 5

10 10

15 15

20 20

24 MFA Model

MFA

Self-Assessment Methodology

The MFA Diagnostic Express-Assessment is a “survey-

based” approach to self-assessment, which requires managers to complete a questionnaire with a number of statements, rec-

ognized as focus areas within management system.

The present questionnaire consists of about 100 state-ments, which correspond with MFA focus areas. The statements

are grouped according to the 25 assessment categories and 5

criteria of the MFA Model. Managers are asked to indicate their degree of agreement of disagreement of each statement in rela-

tion to their organisation on a binary scale (1 point – “Yes.

Agree” 2 points – “No. Disagree”). In addition to agreement, re-spondents are also asked to rate the importance of each state-

ment (1 point – “Yes. Important” 2 points – “No. Unimportant”.

So all the statements are evaluated in the two dimensions – agreement and importance. An example of statements from

questionnaire is below in Table 3

Statement Agree? Important?

Yes (1) No (0) Yes (1) No (0)

a. Organisation has the general philosophy, core business princi-ples and values are corresponding with company’s philosophy.

b. Strategic and operational aims are clear and interrelated, re-view and update regularly for each stages of business-process and for each employee.

c. Strong and weak areas of organisation’s activities are deter-mined. Improvement plan is designed.

d. Organisational activities correspond to social requirements.

MFA Express Assessment Questionnaire Table 3:

Diagnostic Express-Assessment

25 MFA Model

We suggest of the survey approach for self-assessment as an “easy to use” tool – the MFA Improvement Matrix which

helps to achieve a common understanding of organisation’s

problems and identify the most important improvement areas in management system.

In the example provided in Figure 6, the most important ar-

eas to improve are in the right lower corner of the matrix. These are the areas that are perceived to be most important to the or-

ganisation and where the organisation does not perform well.

On the other side, left upper corner characterizes with low im-portance while the organisation performs quite well. The com-

pany should instead discuss if too many resources are used in

these areas.

MFA Improvement Matrix Figure 6:

AGR

IMP 0

0,5

1

0,5 1

Areas

to improve

1.2.a

1.4.b

26 MFA Model

MFA

Self-Assessment Methodology

The organizational two-sided self-assessment of the man-

agement system on the Management Functional Assessment Model base is conducted with questionnaire survey.

The feature of this two-sided assessment approach is two

groups of the respondents: managers and employees. The form of the questionnaire is identical to both those groups. The objec-

tivity of results is achieved by involvement in survey 100 % of

managers and not less than 50 % of the employees.

The questionnaire is divided into five groups according to

criteria of the MFA Model. Twenty five questions correspond to

25 assessment categories (Table 4).

Each question has 5 variants of the answer and possibility

to choose only one. The evaluation scale is as follows: min –

0 points, max – 4 points.

In scoring 0 - 4 the following criteria should be used:

0 No activity demonstrated

1 Activity not consistently utilised

2 Activity utilised but dependent upon the situation

3 The activity is deployed permanently and systematically

4 The activity is deployed permanently and systematically, moni-tored and reviewed via benchmarking for improvement

Two-Sided Assessment

27 MFA Model

Criterion / Question

1. Forecasting & Planning

1. Are the organisational aims clearly established in the mission statement?

2. Is there a mechanism for gathering and analysing information and data about

the customers?

3. Are the zones of powers and responsibility strongly determined within the or-

ganisation?

4. Does the organisation engage in gathering and analysing information relating

to its competitors?

5. Are resources (materials, manpower, money, management, information) ra-

tionally distributed within the organisation?

2. Organizing

6. Is there an appropriate and visible organisational structure?

7. Are there documents and standards within organization which regulating func-

tions and zones of powers and responsibility for separate divisions and each

employee?

8. Are conditions for improvements and development created at the company?

9. Is the process of products (services) production organized effectively?

10. Are produced products (services) attractive to the customer?

3. Motivation

11. Does the organization have a visionary leadership and strong executives?

12. Are conditions for employee training and development created within the or-

ganisation?

13. Are the personal needs of the employees satisfied?

14. Do employees take part in organizational improvement actively?

15. Are employees satisfied with results of their work?

4. Control

16. Is there an evaluation system of produced goods or services and business-

process quality within the organisation?

17. Is there an evaluation system of received results within the organisation?

18. Are customers’ opinions and requirements taken into account in the organisa-

tional activities and plans?

19. Is there an effective evaluation of resources within the organisation?

20. Do received results correspond with established aims and plans?

5. Co-ordination

21. Is there is an effective management system in the organisation?

22. Are internal links between divisions clearly established within the organisation?

23. Are there activities on settlement and prevention of conflicts carried out at the

company?

24. Is there an updating and clarification of aims and plans made at the company?

25. Is the Information collected in a timely manner and sufficient detail to inform

valid corrective actions?

MFA Two-Sided Assessment Questionnaire Table 4:

28 MFA Model

Calculation of Criterion Total (CT)

CT =

5

1nWiXi

where W - Score of the attribute (Min = 0 and Max = 4);

n - Number of divisions in item scale.

So, maximum score of each of five criteria - 20 points and the bench score for whole management system is 100 points.

Calculation of Total Management Estimation. TME helps

to define Level of Management Maturity (Table 2)

TME =

5

1nCT

where the TME is the sum of the criterion total (max possible = 100).

The advantage of two-sided assessment is an opportunity to define, if managers thinking corresponds with employees opin-

ion. Average managers evaluation (Iman.av.) of five criteria is

compared with an appropriate average employees evaluation (Iemp.av.). And the Management Adequacy Index (MAI) is

calculated under the following formula as shown in equation 3.0

where MAI - Management Adequacy Index;

IMAN.AV. - Average managers evaluation;

IEMP.AV. - Average employees evaluation;

4 - Max score.

The Management Adequacy Index shows the level of ac-

cordance between managing decisions and its perception by

employees. The value of The Management Adequacy Index var-ies from “-1” up to “1”. The manager can define whether the

management decisions in different ways are effective or not

(Fig. 7).

Equation 1.0

Equation 2.0

Equation 3.0

4

I I

MAI EMP. AV.

MAN. AV.

29 MFA Model

Zone of adequate estimation of management enables (-0.1 0 0.1)

This zone characterizes adequate perception by the employees of managerial

decisions, managers and employees are guided by identical principles in work that

promotes harmonious development of organization. Managers, using such situation,

have good chance to improve business - process.

Zone of underestimation estimation of management enables (-1 < -0.1)

The underestimation zone reflects insufficient leadership of managers. There

are hide opportunities for improvements for management system. Employees eval-

uate performance higher than managers. It is necessary to use this situation for

updating management policy and start improvement process.

Zone of revaluation estimation of management enables (0.1 < 1)

Zone of revaluation reflects divergences of opinions of managers and employ-

ees concerning business activity in this field. In this case majority of the adminis-

trative decisions can collide with internal resistance of employees, and all planed

improvements will be absolute inefficient. Critical issues for management are fol-

lowing:

Revealing the reasons of discrepancies, analysis of categories, where the

maximum divergences in an estimation are traced;

Set more close contact with staff;

Measure of an employees' satisfaction;

Strengthening corporate culture.

The Management Adequacy Index Figure 7:

-1.0

0

0.1

1.0

1 2 3 4 5 … 25 Question №

Adequate

estimation

Revaluation

Under estimation

-0.1

MAI

…

30 MFA Model

The important element of our self-assessment methodology is the Index of Inside Employees Consent (IIEC). The In-

dex of Inside Employees Consent shows polarity of judgements

of employees. On each problem the dispersion of employees as-sessment is defined.

The Index of Inside Employees Consent settles up under the

formula in equation 4.0

where IIEC - Index of Inside Employees Consent;

n - Number of the employees in the survey;

IEMP. - Employee assessment;

i - Number of the question.

The analysis of employees’ responses with index IEC use

enablers to define zones of polarity and unity of judgements in-

side the collective.

Zone of unity (0 - 1) means equivalence of employees’

judgements on the given problem.

Zone of polarity (1 - 4) speaks about absolute polarity of employees’ judgements.

The categories, on which employees have given an equiva-

lent estimation, have greater potential for realization of effective changes, since managers and employees think the same way.

The categories from the zone of polarity require analysis of the

reasons of disagreements, otherwise any improvement plans will be inadequately perceived by employees, and the productiv-

ity of changes will low, or the effect will be negative. The further

analysis of survey results assumes revealing correlations be-tween factors of adequacy of management and factor of the

consent in collective. The basic problem of a final stage of a

self-assessment is the exact definition of efficiency of changes in

this or that area. Analysis tool here is a Matrix of Areas of

Improvement Abilities (Fig. 8)

2

2

.

2

. )()(

n

IInIEC

iempiemp Equation 4.0

31 MFA Model

Depending on in what of zones the point with coordinates

(MAI; IIEC), the degree of Improvement Abilities is defined. We select four Areas of Improvement Abilities:

1. Effective – the efficiency of improvements is high.

2. Sure – high probability of improvement.

3. Available – all improvements requires detailed prepara-

tion and preliminary analysis of factors.

4. Problem – improvements should begin only after deep study of unsatisfactory MAI and IIEC.

Matrix of Four Areas of Improvement Abilities Figure 8:

Improvement

-1,0

-0,9

-0,8

-0,7

-0,6

-0,5

-0,4

-0,3

-0,2

-0,1

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1,0

0 1 2 3 4

Effective improvements

Sure improve-

ments

Available im-

provements

Problem improve-

ments

MAI

IIEC

32 MFA Model

Deployment of MFA Model:

Issues and Advantages

The application of the MFA Model will address the key deploy-ment issues shown in Table 5 and empower the resulting benefits.

Key Deployment Issues Resulting Benefits Process improvements A clear understanding of how to deliver value

to clients and hence gain a sustainable com-

petitive advantage via operations

Attaining an organisation’s

objectives

Enabling the mission and vision statements to

be accomplished by building on the strengths

of the company

Benchmarking Key Perfor-

mance Indicators (KPI’s)

Ability to gauge what the organisation is

achieving in relation to its planned perfor-

mance (Plan, Do, Check, Act)

Development of clear, concise

action plans resulting in a fo-

cused policy and strategy

Clarity and unity of purpose so the organisa-

tion’s people can excel and continuously im-

prove

Integration of improvement

initiatives into normal opera-

tional activities

Interrelated activities and systematically man-

aged with a holistic approach to decision mak-

ing

Development of group/team

dynamics

People development and involvement. Shared

values and a culture of trust, thus encouraging

empowerment in line with a post-modernist

company

“Desirable increase of efficiency and profitability will be shown by fi-

nancial results. Now it is obvious that our new approach to management on the self-assessments basis made company start improvement process on

the system principles. Our business grows, and it is more difficult to man-age, therefore decision to apply Functional Assessment Model was accepted with an aim to design an effective SYSTEM of management. The Sustainable

management system is one of major competitive advantages and key fac-tors of success in business”.

Ernest Belokorovin, CEO, “Morservice Ltd.”, Russia

MFA Two-Sided Assessment Questionnaire Table 5:

33 MFA Model

For more information contact Dr. Dmitry Maslov

E-mail maslow@bk.ru LinkedIn https://ru.linkedin.com/in/academicmaslow