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Analysing and Applying Business Process Reengineering

In the first part of the assignment this is of business process reengineering (BPR) is analysed. In additional information, it is discussed how business techniques might be reengineered to boost company or organizational performance. The styles covered are:

The need for BPR in organizations

The objectives of applying BPR

The specific techniques you can use (like process mapping)

The required training

The possible problems in implementation (like resistance)

As about the second part, a crucial evaluation is made concerning the assertion of McCabe (2004: 851): "BPR will not challenge hierarchical power, but instead makes an attempt to reconfigure authority and power relationships to be able to obscure them through the vocabulary of consensus". In this portion of the assignment it is critically examined the proposition that BPR in truth does very little to question the essential tenets of hierarchical control and in a number of important respects simply reinforces them.

ANALYSIS OF PART 1.

The term of BPR

Today the business world is characterized by unpredictable changes, under the global competition and the customers' needs. To reach your goals in this environment, a company must operate with quickness, flexibility, low overheads and a obviously defined customer concentration. The word business process reengineering (BPR) identifies an approach that is employed by organizations seeking improvements in their business performance (Anonymous, 2007).

The importance of BPR

There is a series of driving makes, which induce companies to attempt reengineering projects. These are customers, competition, change, cost, technology and shareholders and they lead to a requirement of new organizational structures and a modification of the original way to do business. Organizations consider BPR as an important tool of organizational improvement, as it helps them achieve the radical change essential for today's volatile business environment. On top of that, BPR stresses the value of linkages in a organisation. Though its structure included processes are generated concerning the mother nature of people's jobs and exactly how people are grouped and planned in the working environment. Furthermore, through BPR people's careers become multidimensional instead of thin and traditional activity orientation. When the idea of process is promoted in the BPR, mix boundary teamwork is contained and process shifts the goal give attention to performance way of measuring and managerial responsibility from a function or responsibility center to an activity derivative process concept. So, BPR identifies process clubs as an important component available environment where work becomes multidimensional, substantive and even more rewarding (Anonymous, 2007).

It can be concluded that the value of BPR is found at the actual fact that it's a strong tool for increasing operations. BPR offers a process view of the company and a means of improving processes. Using this process a firm will be prepared based on procedures. As a result, techniques are simplified, flows are increased and non - value added work is taken out (Schroeder, 2000). BPR is a total life cycle approach. This gives the scope for problem identification and also answers to implement the successful business businesses. BPR can significantly improve cost, quality, service and speed all together, so important results are provided to customers (Thyagarajan and Khatibi, 2004).

It can be backed that organisations should give attention to BPR for three key reasons: Firstly, there is a lot to be gained by increasing business process. Second of all, business functions can be manipulated and lastly business operations are relatively more important than development procedures (Anonymous, 2007).

The goals of BPR

BPR is a simple element in enhancing business performance and success. The BPR aims make reference to:

improved functional performance, by shutting performance gaps

improved competencies, by shutting skill and competency gaps

reduced costs and manpower cost savings, by request of management analysis tools and techniques

improved customer services or staff quality of life

increased customer satisfaction

increased output in the workplace

continuous improvement of services' quality

delivered quality goods at competitive prices in a timely fashion

(Anonymous, 2010a).

The technical tools used in BPR

There are different improvement techniques that can be used to analyse the BPR. These techniques enable the organization to understand, simplify and improve functions that already exist, not only to meet, but also to surpass the objectives of customers and offer a coordinating discipline for overall performance improvement (Anonymous, 2007).

The selection of technological tools for BPR depends upon:

(i) the nature of decision areas,

(ii) the nature of data to be analysed, and

(iii) the background of users.

Table 1. The specific techniques you can use in BPR

Areas to be reengineered

Techniques used in BPR

BPR strategies

Decision support system and Knowledge-based models

Business process system design

Analytical models such as queuing and simulations models

Project management

PERT/CPM and Circulation Charts

Reengineering business process

Activity-based research and workflow model including movement chart

Design of information system for reengineering business process

Object-oriented models and programming

Understanding of the business enterprise process system

IDEF Models, EFQM Models, Petri-Net Models

(Gunasekaran and Kobu, 2002).

Process Mapping is a method known as Process Charting or Move Charting and it is one of the oldest, simplest & most valuable techniques for streamlining work. It is one of the most effective ways to lessen errors, increase efficiency and affect customer support. It generally comes after these steps:

Choose a process.

Assemble a team.

Map out just how work happens to be done.

Identify problem areas.

Brainstorm solutions.

Evaluate action steps.

Assign duties.

Create a get good at plan.

Follow through.

(Anonymous, 2010b).

Process Mapping can be an important tool in examining work move and customer - company human relationships, which is the foundation for appropriate advancements. Additionally, this can be a cost - effective training tool for everyone interesting in increasing the efficiency of the organization and bettering communication. (Damelio, 1996).

Many organizations use this technique as part of their reengineering jobs, as it provides a variety of benefits (body 1).

Figure 1. The main benefits of employing process mapping technique

(Image offered by the web site http://www. google. gr, reached 8-10-2010)

The BPR training

Implementing efficiently BPR in an organisation's environment is not a simple job, as the appeared changes require changes in behaviour and deep involvement of labor force both in specific and team level. Because of this, the fact that a major facet of BPR is human being factor, it creates clear that appropriate training is required in order to implement efficiently BPR available environment. Companies should ensure that their employees are suitably determined and the technology necessary for training comes in employing BPR.

Training is one of the very most frequently used approaches to changing the organisation's attitude. A company might offer the ideal training programs to be able to effectively put into action BPR functions (Daft, 2006)

According to White (2010) business process reengineering education and training will come in a variety of ways, including:

Learning more about process design at a graduate level.

Using online continuing education options for even more education.

Attending workshops that cover various aspects of business process reengineering.

The possible problems in BPR implementation

Various radical changes happen when BPR takes place. Hammer and Champy (1993, cited in Anonymous, 2007) have stated the various varieties of changes that take place whenever a company re-engineers its business process.

A shift from efficient departments to process teams

Job change

A reversal of the power romantic relationship: from superordinate to subordinate empowerment.

Today marketplaces are characterized by a high flow of information and companies face competitive business conditions. Under this actuality, organizations must follow effective strategies related to change management (Robbins, 2001). BPR is due to enhancing company or organizational performance, so its implementation requires the changes mentioned above - often in an instant way of implementation - in attitudes and deep participation of labor force both in specific and team level. These changes often refer to redefinition of chart's composition and/ or redesign of the workforce's functions and responsibilities. The brand new situation can bring resistance to change, so managers should take a look at carefully the way BPR implementation will need place. Managers should support understanding and trust concerning the new situation and reduce doubt within the office.

The ideas for dealing with the possible resistance to change are the following:

Determining the goals of BPR execution.

Establishing an obvious view about the changes that will appear in the workplace.

Applying a direct communication method between professionals and employees

Checking the procedures of re-engineering, in order to package with possible problems and discover solutions.

Focusing on performance procedures and settlement shifts

Enhancing customer target as about value change

Showing an appropriate management behaviour, through control and supervision

Under these recommendations the changes available process, lob and constructions, management and way of measuring systems, beliefs and beliefs will cause a flatter organizational framework. As a result all the aspects (people, jobs, managers and worth) are associated together and the organization can be more reactive in BPR execution (Anonymous, 2007).

ANALYSIS OF PART 2.

In this section it'll be critically evaluated the declaration of McCabe (2004: 851): "BPR does not challenge hierarchical authority, but instead attempts to reconfigure authority and power relationships so as to obscure them through the vocabulary of consensus".

In order to get this to evaluation, it is vital to introduce the issue of hierarchical expert in an organization's environment. Hierarchical buildings are present generally in most organizations today. Smaller organizations may have only two levels, while larger ones may have a multitude of levels. These structures are used as a way of communications so when the lines of power. In an organizational environment, the hierarchy mainly apart of a singular/group of electric power at the very top with subsequent degrees of power beneath them. Users of such buildings chiefly talk to their immediate superior and with their immediate subordinates. Hierarchical specialist constructions are providing the chance for higher decision-making width for individuals and more adaptable explanations of job activities. That is difficult to existing organizational varieties (Zhao, Rosson and Purao, 2007).

In a hierarchical organisation employees are placed at various levels within the company, each level is one above the other. At each stage in the string, one individual has a number of workers straight under them, within their course of control. A tall hierarchical organisation has many levels and a flat hierarchical organisation will only have a few (Anonymous, 2010d). At amount 2 a traditional hierarchy is given.

Figure 2. A traditional hierarchy diagram

(Hierarchical Organisation, available at the website http://www. learnmanagement2. com, seen 18-10-2010)

CHIEF EXECUTIVE

MANAGER

MANAGER

MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

STAFF

STAFF

STAFF

STAFF

STAFF

STAFF

STAFF

STAFF

STAFF

It is apparent that hierarchies within control systems are a definite dependence on business surroundings. Without some type of hierarchy, a low level of control can create numerous problems in an corporation. There ate two varieties of control systems: level and hierarchical. Hierarchical architectures have a far more indirect coupling of perceptions to actions by way of a hierarchical control structure. Both varieties of control systems have benefits, but hierarchical structure can support faster learning and a much better way to cope with resistance to change (Digney, 1998)

Control is a simple managerial function. It's the process of regulating organizational activities so that actual performance conforms to expected organizational specifications and goals and means that necessary corrective action is taken. Actually, control is guaranteeing work accomplishment relating to plans. It is an activity of ensuring that activities are producing desired results. We are able to support that control can be an executive function regarding three elements, i. e. , expectations, evaluative and corrective action. BPR is the latest influx in some management initiatives to increase managerial control (Gupta, 2010).

According to the problems protected in the evaluation of part one of the assignment, business process reengineering is proved to be a innovative, radical change method of enhancing organizational performance through transformation. BPR methodologies aim for a flatter organizational framework, promoting the development of empowered process employees who are encouraged to use information technology in radically new ways to handle business operations. In BPR solutions, empowerment is inflicted by command changing worker beliefs and through the use of information technologies enables managerial control. Empowerment through BPR will not automatically release control but will change the way control is exercised. Authority continues to be enforced through hierarchical control of culture. The reengineering strategy polishes the management of vitality relations, when endeavors are created to change traditional electric power structures and everyday power relationships through the flattening of the hierarchy (Sayer and Harvey, 1997).

The introduction of reengineering presents a new marriage of power by means of a discipline that your reengineering sustains through discourse control. On this new situation any self-discipline includes its buildings, its hierarchies, its inspections, exercises and ways of training and conditioning (Foucault, 1980, p. 158). BPR can be an approach that facilitates transformation with the idea of producing the flatter company. Hierarchy and control remain promoted and within BPR, the emphasis lays on changing the formal patterns and using mechanisms of control to improve the casual (Sayer and Harvey, 1997).

BPR is a solid tool of managerial control. Controlling is the fourth function of management process (the other functions are organizing, arranging and leading). Through BPR professionals can identify if the company is on target towards its goals and can make better corrections if possible. In BPR, information technology is generally considered as playing a role as enabler of new kinds of managing and collaborating. New information technology can help professionals provide needed organizational control without stringent top - down constraints. A representative example is that of Cisco Systems: By using information technology to organize and screen several aspects of operations, the company keeps tabs on employee and organizational performance without retaining daily authoritarian control over staff. Cisco employees have amazing flexibility to make decision and take activities, nonetheless they also know that top managers keep a detailed eye on what is going on throughout the business (Daft, 2006).

Most businesses make an effort to take benefit of BPR concerning working with the essential tenets of hierarchical control. BPR assumes radical redesign of business procedures. Many procedures simply can't be further advanced in small steps and need a complete redesign to be able to boost them in a major way. Hierarchical control is a fundamental factor in this work and managers who desire to organize around effects, have people refined their own information, put your choice point where the work is performed and build control in to the process, should support the view that BPR can reinforce the essential tenets of hierarchical control.

BPR is a management system of compelled, rapid culture change, highly associated with hierarchical control. In fact it does hardly any to question the fundamental tenets of hierarchical control and in several important respects simply reinforces them.

CONCLUSIONS

Business Process Reengineering includes changes involving both constructions and procedures identified in a small business environment. Man, organizational, technological dimensions that characterize a business can transform through BPR. Using this approach, organizations can seek advancements in their business performance.

As it was analysed at the first part of this task, organizations consider BPR as an important tool of organizational improvement, as it can help them achieve the radical change necessary for today's volatile business environment. Additionally, BPR stresses the importance of linkages in a organization. What is more, through BPR people's jobs become multidimensional instead of slim and traditional job orientation. In final result, the importance of BPR is available at the actual fact that it's a dynamic tool for improving operations.

BPR is a simple element in bettering business performance and profitability. The primary BPR objectives make reference to improved operational performance, improved upon competencies, reduced costs and manpower savings, better customer services or staff standard of living, increased customer satisfaction, increased productivity at work, ongoing improvement of services' quality and delivered quality goods at competitive prices in due time.

There will vary improvement techniques that can be followed to analyse the BPR. Included in this, Process Mapping is a method known as Process Charting or Flow Charting which is one of the oldest, simplest & most valuable approaches for streamlining work. It really is an expense - effective training tool for everyone interesting in increasing the efficiency of these organization and increasing communication and is also highly preferred by companies today.

Implementing successfully BPR within an organisation's environment is not a fairly easy task, as a significant aspect of BPR is real human factor. So, companies should ensure that their workers are suitably determined and the technology required for training comes in putting into action BPR.

Various radical changes happen when BPR takes place, so managers should carefully examine the strategies in change management so as to achieve the best efficiency and offer correctly with the possible level of resistance to improve that BPR will bring.

The second part included a crucial evaluation of the affirmation of McCabe (2004: 851): "BPR will not challenge hierarchical expert, but instead makes an attempt to reconfigure expert and power relations to be able to obscure them through the language of consensus". According to the relevant examination, within control systems are a specific need for business environments. Without some type of hierarchy, a minimal level of control can create numerous problems within an organization. Hierarchical structure can support faster learning and a much better way to cope with resistance to change, so BPR helps the management initiatives to increase managerial control. . In BPR approaches, empowerment is inflicted by control changing worker ideals and through the use of information technologies permits managerial control. Empowerment through BPR will not automatically release control but will change just how control is exercised.

Most businesses should make an effort to take good thing about BPR concerning working with the fundamental tenets of hierarchical control. This is because BPR is a management system of compelled, fast culture change, highly associated with hierarchical control. In fact it does very little to question the essential tenets of hierarchical control and in several important respects simply reinforces them.

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