Analysis of Selected Aspects of an Organisation: The Organisation as an Instrument, an Interest Group and as a Process

Gošnik, Dušan; Kavčić, Klemen

doi:10.26493/1854-6935.19.167-181

Cited by 1 publication

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“…Organisations perform business processes more effectively if they involve internal participants such as managers and employees and their interests (Trkman et al 2015). This aspect is described as the interest aspect of an organisation (Gošnik and Kavčič 2021), which we address further in this research. The use of BPM for better company performance is affected by many external and internal factors that cannot be included in one study.…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Leadership in BPM and Company Profitability

Gošnik

Meško

Stubelj

2023

Administrative Sciences

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This paper studies the relationship between leadership as an activity of business process management (BPM) and company performance. Business process data about leadership and business processes in SMEs were collected via questionnaires on the population of 3007 SMEs in Slovenia. Aspects of leadership such as the involvement of employees, middle management, customers and suppliers were studied. The financial data of the SMEs of the sample were obtained from publicly available financial statements to assess relative residual income profitability ROEr and ROEa. Data analysis was performed using Bartlett’s, Kaiser–Maier–Olkin and nonparametric Mann–Whitney U tests. We confirmed a positive relationship between employee involvement in leadership as an activity of BPM and company profitability. It was proved that companies that involve employees and middle management in improving core business processes to a greater degree are more profitable. Intense involvement of employees in changes in core business processes results in higher company profitability, which has been detected by the higher risk-adjusted profitability measure ROEa. Companies that involve middle management to a greater degree by leading employees based on their interests are more profitable. The results are important for managers as decision-makers and other company stakeholders, especially those responsible for business process improvements. Theoretical and practical implications and further research possibilities are discussed.

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Section: Introductionmentioning

confidence: 99%