Business process re-engineering affects the way in which work is undertaken in an organisation.
Explain this effect as it relates to:
a) Employees’ behaviour. (10 marks)
b) Work structure.
Business Process Reengineering (BPR)
BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed.
BPR is a radical technique that has been advocated to overhaul existing business processes and practices with a view to improving organizational performance. BPR places emphasis on processes as a change mechanism. Typical processes include ordering, buying, manufacturing, product delivery and invoicing.
In each case the idea is to ask radical questions about why things are done in a particular way and whether alternative methods could achieve better results.
a) Employees’ behaviour:
• Likelihood of resistance to the radical changes requiring new work methods
• Incidents of go-slows and handing tools down as a result of some employees being relieved of their roles
• Formation of new social groups as a result of employee transfers and deployments
• Motivation because the decision point is where the work is performed. The people who do the work are empowered.
b) Work structure:
• The focus of performance and payment shifts from activities to results (expressed in terms of value created for the customer).
• Organize around outcomes not tasks.
• Ensure that those who use the output perform more of the process themselves rather than passing it on.
• Link parallel activities rather than integrate results i.e. consolidation of tasks
• Capture information only once – ideally at its source.