A Study into the Process of Downsizing and Reengineering - Essay Example

The business process re-engineering helps companies to restructure their organizations by emphasizing on the design of business processes. The business process can be defined as the tasks which are logically related and a defined business outcome can be achieved by these tasks. The process of re-engineering focuses on the objectives of business by encouraging the recreation of processes in a full scale rather than optimization of sub processes. Business process re-engineering is also called as business transformation, business process redesign and business process change management.

Downsizing A concept incorporated into many models of reengineering is downsizing or reduction of staff. It refers to reducing the excess staff members and cut down costs. When it happens, it is required to handle the layoffs in a manner without striking fear into the main employee base. It loses the competitive edge of the company. It creates the employees to wonder for what is going to happen the next. If the majority of problems lie at the top of company, the managers will be the first to be let go.

On occurrence of this situation, the new team of business management, in their reengineering efforts, is expected to lead the company forward. Their duty is to get the rest employees of the company with their new line of thinking on board. This participation requires cooperation, trust and commitment from everyone involved in it. Reengineering traits and downsizing To be successful in achieving the goal of downsizing, an internal team of reengineering is required to be formed. If people with different opinions could be selected for the team then chances for success will be greater.

It can include such people who are familiar with the internal operations of the company, customers, those having little knowledge in the area and outside consultants. When choosing the members of team from within the company, if people having different areas of expertise could be selected, then the selection will be the best. This will facilitate the company to get numerous and diverse ideas from the members of team. It is suggested not to make a team of more than ten; otherwise, the team could become unmanageable.

So the team should not get too big. The process of business reengineering can be drastic. The employees within the company can experience emotions like fear, anger, shock, anxiety and denial. Management of the company should be prompt and quick in noticing it and should try to calm such resentment growing within the company. The process of rebirth of organization should be stressed by them. Rather, they should try to create enthusiasm. If they become successful, replacement can be made to the fear of employees with anticipation as they help the company to grow into a competitive entity.

The process of reengineering involves reinvention of company from its ground up. It involves abandonment of old habits and adoption of new ones. This should be implemented in rapid motions rather than in smaller steps as initiating the same with smaller steps can fall back the company into its older habits. This can lead to mergers, liquidations and outsourcing of jobs. At the same time, history of company, relationship with customer, strength of past assets should also be considered.