What is PROCESS-BASED MANAGEMENT? What does PROCESS-BASED MANAGEMENT mean? PROCESS-BASED MANAGEMENT meaning - PROCESS-BASED MANAGEMENT definition - PROCESS-BASED MANAGEMENT explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
Process-based management is a management approach that views a business as a collection of processes, managed to achieve a desired result. The processes are managed and improved by organisation in purpose of achieving their vision, mission and core value. A clear correlation between processes and the vision supports the company to plan strategies, build a business structure and use sufficient resources that are required to achieve success in the long run.
From a process perspective, an organisation regards its business as a system of vision-achieving vertical processes rather than specific activities and tasks of individual functions. (19:25) The system is not a method or tool for a particular process, but a holistic approach to manage all the processes in one organisation. Therefore, to manage processes effectively, the organisation must have an effective team network and full knowledge of their vision.
The general management system focuses on specific work-knowledge and direct solutions for cost and budget; on the other hand, process based management applies these financial measurements but in an operational way considering how each performance affects the company as an amalgam of different processes. As a result of recent advances in technology and increased international competition, more companies aim for better methods of grouping and integrating organisational activities.
Vision, mission and core value are three crucial factors to manage an organisation from a process perspective. Considering the vision, mission and value as a direction of their business, an organisation can build their corporate strategy and determine the processes they will take into account. As a result, the organisation obtains strengths and competitiveness among other companies.
First, the vision is an aspirational purpose what the organisation would like to achieve in the long run. The vision leads the company to challenge various tasks and develop its own business strategy. In other words, the organisation considers vision as a motivation to build a business structure, determine strategic plans and manage human resources. Therefore, the company carries out the ‘vision-achieving operations’ as their primary goals.
Mission is a fundamental purpose of a company that remains unchanged over time. The mission provides a guidance for decision making and gives a path to successful results. For instance, mission is different from a vision in that mission is a something to be achieved whereas a vision is something to be aimed for achievement.
Core Values is a principle that helps companies to determine whether the actions and decisions are right or wrong. The value is essential to take decision-making and sustain the company’s long-term success.
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.