MFAM brochure 2015

CHANGE MANAGEMENT TOOL

Management unctional ssessment Model

INFORMATION BROCHURE 2015 full package

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

MFA Model Š Dmitry Maslov 2003-2015

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Foreword

Dear colleagues, business leaders, change makers, quality professionals, and HR-specialists, We have designed a new management tool to help you attain and/or maintain a sustainable competitive 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 considered 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 management: forecasting and planning; organising; motivation; control; coordination; and communication. Using the MFA Criteria for selfassessment 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 effectiveness within a framework of obtaining all stakeholder satisfaction including your employees.

The MFA Methodology has been produced as a result of international cooperation between Russian, British and Australian researchers. I proposed The MFA concept in 2003, later two my colleagues, Prof. Paul Watson (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

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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

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Introduction

For organisations to attain and/or maintain a sustainable competitive advantage they require a competitive orientated management system. Our approach should address key concepts such as leadership, personnel and development.

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 management and sharing of knowledge within a culture of continuous learning, innovation 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 information.

Proposed Management Functional Assessment Model recognises that sustainable excellence in all aspects of performance is based on the management functions of forecasting/planning, organising, motivation, control, coordination and communication. 25 different management function and 100 focus areas are correlated with corporate profitability and stakeholder satisfaction.

The MFA Model helps organisations to transform energy of traditional (functional) management to improvement energy which is based on total quality 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 effectiveness.

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

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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 corporate advantage by way of continued internal and external selfassessment 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, personnel 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 sustainable 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 stakeholders. Thus they should remember to engage in “consultation” before “implementation” in corporate plans. This aspect allows staff to contribute to the decision making process. Culture is a vital aspect for consideration and a morphogenic culture should be the aim of senior management Development: The development of an organisation requires the consideration of both business processes and environmental 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.

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Competitive-Orientated Management

Sustainable organisation and competitiveness

Personnel

Leadership

Management System

Development

Figure 1: Competitive-Orientated Management Core Concept

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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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6. Communication 5. Co-ordination

2. Organising

1. Forecasting & Planning

3. Motivation

PDCA cycle

4. Control

Figure 2: Management Functional Assessment Model

Five assessment categories (1.1 - 5.5)

Criterion (1-5)

Four focus areas (1.1.a – 5.5.d)

Figure 3: Structure of the MFA Model framework

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MFA Criteria description

1. Forecasting & Planning “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?

Setting the objective and strategic planning process in motion

1.1 Gathering and analysing information related to clients and markets

Resources planning

1.5

1.2 1.

Gathering and analysing information related to competitors and benchmarking

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1.4

Forecasting & Planning

1.3

Detailing business-processes

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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. Improvement 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, analysed 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 increase 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.

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MFA Criteria description

2. Organising

“Organising� is one of the main managerial tasks. Business-processes are to be organised with a concentration on maximising effectiveness and efficiency.

Creating an appropriate organisational structure

Deployment of new technology linked to corporate enhancement

Establishing authority and responsibility for all personnel

2.5

Developing a value system based upon enhancing performance

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2.1

2.2 2.

2.4

Organising

2.3

Creating a self-learning organisational culture (morphogenic)

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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 essential 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 managers and employees. b. Relations between personnel and customers are regulated by employees’ instructions and behavior models for each kind of situations. c. Relations with partners and suppliers of organisation are organised effectively 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 enhances organisational performance results. d. Organisation widely uses new information, telecommunication and computer technologies in its operational and supported activities.

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MFA Criteria description

3. Motivation

“Motivation� has many aspects both intrinsic and extrinsic.

Developing a co-operative culture based upon stakeholder satisfaction Results satisfaction feedback on performance in a timely manner

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

3.5

Engagement in processes, increase areas of responsibility and selfmonitoring

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3.1

3.2 3.

3.4

Motivation

3.3

A consideration of personal needs linked to self-actualisation

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3. Motivation Focus areas 3.1. Developing a co-operative culture based upon stakeholder satisfaction a. Top-managers lead improvement activities within organisation upon stakeholders' requirements. b. There is positive working atmosphere within organisation. c. Organisation has corporate values, aims, mission which focus on stakeholders 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 perform 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 selfactualisation. 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 selfmonitoring 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 success (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 customers’ satisfaction. c. Employees recognition system is established within organisation. d. Financial results of organisation correspond with employees' salaries and bonuses.

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MFA Criteria description

4. Control “Control� is dependent upon constant feedback 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 effectiveness of organisational activity. Organisations must consider feedforward of information for effective control.

4.1 Conduct a comparative analysis between set targets and actual results, leading to appropriate actions

4.5

Determine the efficiency and effectiveness of resource utilisation

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A monitoring system for each key stage of business-process

4.2 4.

4.4

Measuring performance levels

Control

4.3

Determining customer satisfaction levels

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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, industrial and internal standards. d. Employees’ safety requirements are satisfied within organisation.

4.5. Conduct a comparative analysis between set targets and actual results, 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 organisational business-process.

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MFA Criteria description

5. Co-ordination

“Co-ordination�: The analysis of deviations on business-processes and updating of the current plans in a holistic manner based on feedback and feedforward is a critical point in co-ordination.

Again this can only be fully attained by the application of the Deming PDCA cycle.

Unity of all other functions

5.1 Establishing effective internal communications

Ensure effective Information management

5.5

5.2 5.

Updating of deviations: revision and possible recoordination of other resources

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5.4

Co-ordination

5.3

Developing a conflict solving system

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5. Co-ordination Focus areas

5.1. Unity of all other functions a. Forecasting & planning, organising, motivation and control make interconnected 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 continuous improvement within organisation at each stage of business process. c. Each employee is appreciated to introduce an improvement to business process. 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 sustainability of information.

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MFA Criteria description

6. Communication

“Communication� is the link and the life blood of corporate activity and its effectiveness is measured within the context of the five other functions.

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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 category.

Table 1: MFA Scoring System: Estimation Part

Criteria 1. Forecasting / Planning

2. Organising

3. Motivation

4. Control

5. Coordination

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Assessment category 1.1 Setting the objective and strategic planning process in motion 1.2 Gathering and analysing information related to clients and markets 1.3 Detailing business-processes 1.4 Gathering and analysing information related to competitors and benchmarking 1.5 Resources planning Criterion total 2.1 Creating the correct organisational structure 2.2 Establishing authority and the responsibility for all personnel 2.3 Creating a self-learning organisational culture (morphogenic) 2.4 Developing a value system based on enhancing performance 2.5 Deployment of new technology linked to corporate enhancement Criterion total 3.1 Developing a co-operative culture based upon stakeholder satisfaction 3.2 Ensuring staff have the skills, resources and competences to perform set tasks 3.3 A consideration of personal needs linked to self-actualisation 3.4 Engagement in processes, increase areas of responsibility and self-monitoring 3.5 Results satisfaction - feedback on performance in a timely manner Criterion total 4.1 A monitoring system for each key stage of business-process 4.2 Measuring performance levels 4.3 Determining customer satisfaction levels 4.4 Determine the efficiency and effectiveness of resource utilization 4.5 Conduct a comparative analysis between set targets and actual results, leading to appropriate actions Criterion total 5.1 Unity of all other functions 5.2 Establishing effective internal communications 5.3 Developing a conflict solving system 5.4 Updating of deviations: revision and possible reco-ordination of other resources 5.5 Ensure effective Information management Criterion total Total Management Estimation (TME)

Max 4 4 4 4 4 20 4 4 4 4 4 20 4 4 4 4 4 20 4 4 4 4 4 20 4 4 4 4 4 20 100

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

Table 2: MFA Levels of Management Maturity

Level

TME

I

(0~20)

Assessment  

II

(21~40) 

III

(41~60) 

IV

(61~80) 

V

(81~100)

No methodology or system, management purposes are not defined. For further development it is necessary to reconsider core business principles.

Management has the potential for development.

Managers should develop their leadership skills, define organisational purposes clearly and develop a strategy based on TQM principles.

Management systems are in evidence. It is necessary 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.

Constant quality checks within the management system take place. Utilisation of external benchmarking in order to improve corporate performance.

The maximum outcomes in all areas of corporate activity are reached; the management system is benchmarked and monitored in a drive for continuous improvement.

The presentation of the analysis can be more easily communicated 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 fictional data plotted on the profile.

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Co-ordination

20 15 10

Organising

Motivation

5

20 15

10

5

5 5 10

Forecasting / Planning

15

10

15

5

20

ďƒŁ Prof. P.Watson 10 15

20

Control 20

Figure 4: Communication MFA Pentagonal Profile

Co-ordination

20 points

communication profile 13.67

Motivation

Organising 20 points

20 points 8.94

9.30

ďƒŁ Prof. P.Watson 11.57 11.17

Forecasting / Planning

Control 20 points

20 points

Figure 5: Fictitious Company Plotted on the Pentagonal Profile

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MFA Self-Assessment Methodology

Diagnostic Express-Assessment

The MFA Diagnostic Express-Assessment is a “surveybased” approach to self-assessment, which requires managers to complete a questionnaire with a number of statements, recognized as focus areas within management system.

The present questionnaire consists of about 100 statements, 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 relation to their organisation on a binary scale (1 point – “Yes. Agree” 2 points – “No. Disagree”). In addition to agreement, respondents are also asked to rate the importance of each statement (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 Table 3: MFA Express Assessment Questionnaire

Statement

Agree?

Yes (1) No (0)

Important?

Yes (1)

No (0)

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. Improvement plan is designed. d. Organisational activities correspond to social requirements.

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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 areas to improve are in the right lower corner of the matrix. These are the areas that are perceived to be most important to the organisation and where the organisation does not perform well.

On the other side, left upper corner characterizes with low importance while the organisation performs quite well. The company should instead discuss if too many resources are used in these areas.

AGR 1

Areas to improve 0,5 1.2.a 1.4.b

0

0,5

1

IMP

Figure 6: MFA Improvement Matrix

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MFA Self-Assessment Methodology

Two-Sided Assessment

The organizational two-sided self-assessment of the management 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 objectivity 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, monitored and reviewed via benchmarking for improvement

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Table 4: MFA Two-Sided Assessment Questionnaire

Criterion / Question 1. Forecasting & Planning 1.

2.

3.

4.

5.

Are the organisational aims clearly established in the mission statement?

Is there a mechanism for gathering and analysing information and data about the customers?

Are the zones of powers and responsibility strongly determined within the organisation?

Does the organisation engage in gathering and analysing information relating to its competitors?

Are resources (materials, manpower, money, management, information) rationally distributed within the organisation?

2. Organizing 6.

7.

Is there an appropriate and visible organisational structure?

Are there documents and standards within organization which regulating functions 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 organisation?

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 businessprocess 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 organisational 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?

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Calculation of Criterion Total (CT) 5

CT =

 n 1

WiXi

Equation 1.0

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) 5

TME =

 n 1

CT

Equation 2.0

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 opinion. 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

MAI  where MAI IMAN.AV. IEMP.AV. 4

IMAN. AV.  IEMP. AV. 4

Equation 3.0

- Management Adequacy Index; - Average managers evaluation; - Average employees evaluation; - Max score.

The Management Adequacy Index shows the level of accordance between managing decisions and its perception by employees. The value of The Management Adequacy Index varies from “-1” up to “1”. The manager can define whether the management decisions in different ways are effective or not (Fig. 7).

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1.0

MAI Revaluation

0.1

Adequate estimation

0 -0.1

Under estimation -1.0 2

1

3

4

5

…

…

25

Question №

Figure 7: The Management Adequacy Index

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 evaluate 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 employees concerning business activity in this field. In this case majority of the administrative decisions can collide with internal resistance of employees, and all planed improvements will be absolute inefficient. Critical issues for management are following: 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.

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The important element of our self-assessment methodology is the Index of Inside Employees Consent (IIEC). The Index of Inside Employees Consent shows polarity of judgements of employees. On each problem the dispersion of employees assessment is defined.

The Index of Inside Employees Consent settles up under the formula in equation 4.0

IEC  where

n ( I emp.i ) 2  ( I emp.i ) 2 n IIEC n IEMP. i

Equation 4.0

2

- Index of Inside Employees Consent; - Number of the employees in the survey; - Employee assessment; - Number of the question.

The analysis of employees’ responses with index IEC use enablers to define zones of polarity and unity of judgements inside 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 equivalent 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 productivity of changes will low, or the effect will be negative. The further analysis of survey results assumes revealing correlations between 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)

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MAI 1,0 0,9 0,8

Effective improvements

0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0

IIEC

-0,1 -0,2 -0,3 -0,4 -0,5 -0,6

Available improvements

-0,7 -0,8

Problem improvements

Sure improvements

-0,9 -1,0 0

1

2

3

4

Improvement

Figure 8: Matrix of Four Areas of Improvement Abilities

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 preparation and preliminary analysis of factors.

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

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Deployment of MFA Model: Issues and Advantages The application of the MFA Model will address the key deployment issues shown in Table 5 and empower the resulting benefits.

Table 5: MFA Two-Sided Assessment Questionnaire Key Deployment Issues Process improvements

Resulting Benefits A clear understanding of how to deliver value to clients and hence gain a sustainable competitive 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 Performance Indicators (KPI’s)

Ability to gauge what the organisation is achieving in relation to its planned performance (Plan, Do, Check, Act)

Development of clear, concise action plans resulting in a focused policy and strategy

Clarity and unity of purpose so the organisation’s people can excel and continuously improve

Integration of improvement initiatives into normal operational activities

Interrelated activities and systematically managed with a holistic approach to decision making

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 financial 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 manage, 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 factors of success in business”.

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

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For more information contact Dr. Dmitry Maslov E-mail maslow@bk.ru LinkedIn https://ru.linkedin.com/in/academicmaslow

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