Fragmentation of work when completed and managed properly, can aid the efficient operation of your business. It allows for job specialisation, different sets of eyes on the same information and better utilisation of employees’ expertise. In addition, all employees get to understand what your business does well and not so well, and can suggest improvements.
In addition, it is also a great way to introduce new and junior employees to your business’s operations. Furthermore, this process allows you to monitor an employee’s performance and suitability for other work or advancement.
As for every process however, if not managed properly, there will be problems of efficiency and employee motivation. Employees which are not encouraged to report on problems, or are treated as drones, or treated less respectively, will reduce the effectiveness and success of work fragmentation.
It is also noted that when technology is used in these systems, the information gathered is usually not utilised further to enhance the business’s operations. Rather, the technology is usually only used for recording purposes with little thought on analysing what is recorded.
In risk and credit or accounts receivable management, there must be proper supervision and action taken to make the work fragmentation maximise cashflow, reduce credit claims and increase profitable sales. There are numerous tasks in credit and accounts receivable operations which need to be completed to achieve these objectives and to identify who will complete:
customer account reconciliations;
recording and management of customer credit claims;
telephone calls or sending correspondence to customers;
review of troublesome accounts and stop supply lists;
maintenance of customer records,
prepare variance reports which may disclose fraud, unwanted behaviour, expose bad processes etc.
It is managing these tasks and issues which are regularly overlooked when setting up fragmented work processes. There rarely seems to be one person managing a customer’s account in many business organisations on a daily basis. The result is, management often does not find out that there is a problem customer until it is too late, a major issue occurs, or an employee takes the initiative and reports a problem.
In conclusion, job fragmentation can work to the benefit of the business. The proviso is however, the fragmentation must be completed and managed properly. Nowhere is this more important than in the credit and accounts receivable operations where the risk of lost cashflow, increased expenses and profits is most important, Afterall, it these factors which negatively affect the survival and growth of your business.