An Integrated Methodology for Evaluation of Business Process and Organization Structure using Simulation

Abstract

Organizations constantly redesign their business processes and/or organizational structures to adapt to the rapidly changing environments. Most existing redesign approaches, however, consider only business processes and not organizational structures that can significantly affect business process performance. This paper presents an integrated methodology for evaluation of business process and organizational structure using simulation. First, a data model is defined for analyzing business process and organizational structure simultaneously. Then, a new approach for the business process simulation incorporating the effect of organizational structure is proposed. To evaluate and redesign business process more appropriately, this paper extends the analysis methodology not only in terms of the task execution, also in terms of the transfer of work between human resources, departments, or hierarchy levels. Further, it demonstrates how to use and analyze the proposed model. Finally, a case study of the Korean prosecutor’s office is presented to illustrate the importance and feasibility of the proposed approach, which will enable a more precise prediction of the changes caused by process and organizational redesign.