Advanced organisational behaviour - Assignment Example

?Advanced Organisational Behaviour Table of Contents Introduction 3 Evolution of BPR in the Early Stages 4 Tools and Techniques of BPR 6 The Role of Information and Communication Technologies (ICTs) in BPR 7 Factors Concerning the Failure of BPR Programmes 9 Factors Concerning Organisational Structure 10 Communication and Organisational Resistance Concern 10 Factors Relating to Lack of Willingness for Change 11 Factors Concerning Goals and Measures 11 Factor Concerning IT Infrastructure 12 Factor Concerning Change of Management System and Culture 12 Conclusion 13 References 14 Introduction Business Process Re-engineering (BPR) is regarded as a business management related strategy, which was initially pioneered in the early period of 1990s primarily focusing on the design as well as the analysis of workflows along with processes in an organisation (Zigiaris, 2000). The rising technological advancement and the development of human and organisational dimensions are a few of the major considerable steps of BPR in the present business world. In this context, the Information and Communication Technology (ICT) plays a crucial role in BPR through providing office automation. It facilitates to expand the business locations, provides feasible flexibility in the production levels and allows faster delivery of products and services to the customers. Eventually, the use of ICT in BPR also facilitates effective and efficient development of the processes through which the organisations perform their business activities (Zigiaris, 2000). Keeping in consideration the pace of transformational changes in the internal structure of business processes and the promising growth of the modern ICTs, the paper intends to briefly discuss about the initial role played by BPR and its various implications towards the continuous development of the modern business organisations during the period of 1990s. The discussion of this paper will also focus on recognising the major factors causing failure of BPR in various dimensions of the organisations across the different regions of the world. Moreover, whether one of the prime causes of failure of BPR was due to insufficient consideration towards the human dimension or not would also be discussed in the paper. Evolution of BPR in the Early Stages Business process re-engineering can be considered as fundamental rethinking as well as essential redesign of business processes in order to accomplish dramatic developments in contemporary measures of performances including product/service, quality, cost and speed of delivery. Furthermore, the re-engineering process comprises a planned, controlled and measured set of actions which are designed to produce outputs in order to attain the interests of the particular market or audience. It involves a well-built importance on the procedure of accomplishing tasks within the organisation (Hammer & Champy, 2000). During the period of 1990s, the BPR had played a dominant role in developing organisational structures as well as processes through effectively implementing ICTs within the business processes. The continuous and radical development of ICTs has been witnessed to play a key role in developing the organisational performance in their ways of providing goods or services (Netjes & et. al., n.d.). In the past few years, the BPR has gained substantial growth in the organisational development with respect to the various operations of the organisations across the world. During the commencement of the notion of BPR in the early part of 1990s, it was considered as a revolutionary development for the organisations with regard to their different processes including planning, designing, manufacturing, financing, human resource as well as sales and marketing (CSC, 2009). Source: (Center for Advanced Technologies, n.d.) The evolution of BPR had initially appeared in business management during the mid of 1990s through the publication of influential article of Michael Hammer. The article portrayed an advanced and changed management philosophy which was significantly focused on transforming business processes beyond the traditional form and offered quantum changes on the business performance and improvement. The traditional form of business practice was considered to be inefficient, while the innovation, quality as well as customer-centric approach in business performance possess paramount significance to achieve substantial business position, which were not considered in traditional form (Broadbent & Butler, n.d.). According to the aforementioned diagram of BPR process, it can be observed that the strategy of the model significantly focuses on four major approaches such as identification of the processes, re-evaluation and update of the process (information/ideas), designing effective process structure and investigating and implementing new processes in the business (Srinivasan, 2011). Tools and Techniques of BPR The process strategy of BPR is considerably focused to implement new technological advancements in the business processes in order to develop the global business market. With reference to the various discussions in different researches on the significance of BPR, it can be recognized that the fundamental development of the business processes is the main objective of BPR (SAGE Publications, 2006). Therefore, the tools and techniques that were implemented in the BPR can be characterised into five major types in order to employ best redesigning applications. These comprise process visualisation, process mapping or operational method, change management technique, benchmarking as well as process and customer focus techniques (O’Neill & Sohal, 1999). Process Visualisation Process visualisation is one of the initial and major steps for any organisation in order to practice reengineering process of the business. The method can be stated as an important step which encompasses a brief discussion with regard to the process planning and execution (Aversano & et. al., 2002). Process Mapping Method Process mapping is an important tool of BPR which significantly provides the operational framework that is required to develop within the business process. The method involves various descriptions of different desirability levels of the process (Aversano & et. al., 2002). Change Management Technique The management of change in the business process is one of the major tasks in the re-engineering process. It involves major steps that are to be executed in terms of conducting re-engineering process of the business organisation. It also incorporates effective steps for the business process in terms of modelling the flow of the different activities within the processes (Aversano & et. al., 2002). Benchmarking Benchmarking is a powerful instrument for BPR and it can be considered as the major aspect for various BPR processes. The significant benchmarking tools in BPR also provide benefits in terms of identifying goals and objectives of the processes (O’Neill & Sohal, 1999). The Role of Information and Communication Technologies (ICTs) in BPR BPR is significantly designed as a methodology which promotes improvement and initiates new processes as well as new and advanced ways of working procedures. Therefore, it possesses certain major components in order to make possible changes within the business processes. These components are considered as the enabler and can be defined as crucial aspects which convey the process to change. ICT encourages organisations to adapt changes in the business processes. Principally, it involves developing process of the business, making incorporation of organisational functions as well as ensuring required transformations for achieving competitive advantages (Olalla, 2000). ICT can further be considered as one of the fundamental capacitors, which significantly helps to make changes and which also plays the role of enabler in the redesigning process of BPR. The business strategies and the practice of ICTs certainly developed along with its industrial structure. In keeping with the increasing pace of computing and internet accessing, the communication technologies have enormously urbanized since the foundation of Computer Reservation Systems (CRSs) in the period of 1970s and consecutively in 1980s with the radical establishment of Global Distribution Systems (GDSs) (Johnson, 2011). Moreover, with the continuous transformation of the ICTs, it had facilitated a deep-seated enlargement in the business processes from the 1990s. The modernisation of the communication technologies has provided an extended scope for the international players through facilitating a wide range of new contrivances and services across the various regions within the globe. It has been observed that the Information and Communication Technologies (ICTs) are also rapidly transforming globally (Buhalis & Law, 2008). Therefore, it can be recognised that the ICTs considerably are a major contributing facilitator for BPR process. Moreover, the effective practice of ICTs and function competencies of various computing tools had been offered as the most significant aspects that contributed to the immense success of BPR. These aspects enabled building and developing efficient IT infrastructure, preparing adequate investment portfolios in the ICTs, ensuring satisfactory measurement of the effectiveness of ICTs, making proper IT integration in the business process and ensuring effective redesigning of legacy IT (Sturdy, 2010). Factors Concerning the Failure of BPR Programmes BPR possesses potential aspects that are significantly useful to increase productivity of the business processes and it also offers benefits by reducing the process related costs and time. Moreover, it also facilitates the businesses to maintain effective quality and to ensure greater customer satisfaction with the implementation of the re-engineering process. However, in various scenarios of redesigning phases, BPR failed to deliver mainly due to its insufficient consideration of the human dimension for making radical changes in the business process (Knights & Willmott, 2007). From the perspective of organisational process, it can be observed that the managements of the organisations intending to incorporate BPR frequently lacked the potential and the authority for imposing BPR on the workers who initially regarded it as a disruptive practice against their roles and functions. Moreover, the failure of BPR can also be observed to occur due to various factors including organisational structure, communication and organisational resistance, factors relating to readiness to change, business goals and measures oriented issues, factor concerning IT infrastructure and factor concerning change of management system and culture (Sturdy, 2010; Al-Mashari & Zairi, 1999). Factors Concerning Organisational Structure BPR facilitates to build developed processes that identify roles and responsibilities of the overall existing performances of the organisational functions. The model redesigns the organisational structure including the employee position and their roles and functions. Therefore, it can be recognised to build a new organisational structure which is highly required to evaluate the changes by BPR in the business process. Similarly, the changes due to BPR can cause significant restructure of the activities performed by the human resources and in the roles and the responsibilities of the employees within the organisation. Hence, the organisations must have the capability of rebuilding the organisational structure without affecting the existing performance potentials of its workforces. Furthermore, the organisations must also have the ability to build productive teams and structures which can also impact on the organisational productivity (Sturdy, 2010). Communication and Organisational Resistance Concern Building effective communication and loyalty among the employees is a major aspect of BPR and the process facilitates the management to communicate with each level of the organisation during its implementation in the organisation. The BPR involves effective communication along with interpreting initiatives with regard to the vision and the goal of the management. With this concern, the management must have to build an effective communication structure in order to implement a successful BPR programme within the organisational processes. Therefore, it can be identified that inadequate communication among the BPR members concerning the change in organisational process can cause a lack of motivation among the employees within the business process (Sturdy, 2010). In addition, the concern regarding security and job loss can also be considered in terms of practicing BPR because job security and job loss are merged with controlling and positioning of the members within the BPR programmes. Therefore, the organisational resistance can also be affected in terms of practicing inadequate communication among the BPR members and employees of the organisation related to any change or development (Al-Mashari & Zairi, 1999). Factors Relating to Lack of Willingness for Change In accordance with the BPR approach, it can be observed that the model does not involve or understand the need for conducting change in the processes. It is recognised that at times, the line managers of the organisations may not be eager to adopt radical changes due to lack of determination, skills and cross-functional support through implementing BPR in the business processes (Chen, 2001). Factors Concerning Goals and Measures Issue relating to the goals and the measures can be recognised due to lack of effective performance goals in BPR. The structure of BPR ineffectively identifies the needs for change which can further cause difficulties to establish performance goals. Moreover, the aspect of measuring of project performance in BPR model is also insufficient which requires excess time in terms of analysing processes (Kock & et. al., n.d.). Factor Concerning IT Infrastructure The failure of BPR can also be considered in terms of building effective IT infrastructure for the organisations to accept radical changes in the processes. The approach involves different problems concerning IT investment as well as sourcing decisions in terms of optimising lower-level processes which can be outsourced in support of low cost and efforts. Moreover, the costing model of BPR system is also found to have failed in terms of considering the overall system elements of the processes. In addition, the improper integration of information system in BPR caused by inadequate resolution method of compatibility issues, insufficient capability of database infrastructure and unsatisfactory telecommunication infrastructure can lead to its failure (Al-Mashari & Zairi, 1999). Factor Concerning Change of Management System and Culture The underestimation of human dimension in the re-engineering process can be considered as one of the major concerns of BPR programmes. The model does not consider the existing organisational management structure and culture in the changing process which can lead to create a vulnerable condition among the employees with respect to their roles and responsibilities within the organisation. Moreover, the ignorance towards values and moralities of the employees along with lack of trust among the management personnel can also be considered as one of the major problems of BPR to adopt change in the business processes (Weerakkody & Currie, 2003). Conclusion According to the above discussion, it can be observed that BPR is a constructive methodology that significantly assists the organisations to adopt changes within the business processes. BPR significantly focuses on the changes that need to be implemented within the processes to develop or redesign the overall processes of the organisations. It offers the opportunities for the business processes to adopt technological benefits in different processes of the organisation. The main purpose of designing BPR is to recognize the problems and to improve information and material flows along with developing the entire performances of the processes. However, in various cases, BPR had been found to be a failure in terms of conducting radical changes in the business process. With this concern, various factors related to failure of BPR have been identified for conducting radical changes in the business process. From the perspective of the factors related to the failure of BPR, it has been observed that the redesigning approach through BPR may possess certain crucial inadequate and insufficient factors which might hinder to ensure effective changes in the business process. Furthermore, an ineffective practice of BPR in the business process without the required consideration of the human dimension can lead the organisations to face challenges in their various business activities. References Al-Mashari, M. & Zairi, M., 1999. BPR Implementation Process: An Analysis of Key Success and Failure Factors. Business Process Management Journal, Vol. 5, No. 1, pp. 87-112. Aversano, L. & et. al., 2002. Business Process Reengineering and Workflow Automation: A Technology Transfer Experience. The Journal of Systems and Software, Vol. 63, pp. 29-44. Broadbent, M. & Butler, C., No Date. Implementing Business Process Redesign: Early Lessons from the Australian Experience. Evolution of BPR. [Online] Available at: http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CEkQFjAD&url=http%3A%2F%2Fdl.acs.org.au%2Findex.php%2Fajis%2Farticle%2Fdownload%2F404%2F368&ei=BCTAUNrvEI7OrQf3vICACg&usg=AFQjCNFoz98ViodhTQidwcNhtL0nK_J0wg&sig2=dhfsEr5Qz48tb66Wz_FGbA&cad=rja [Accessed December 05, 2012]. Buhalis, D. & Law, R., 2008. Progress in Information Technology and Tourism Management: 20 Years On and 10 Years after the Internet—the State of e-Tourism Research. Tourism Management. Vol. 29, pp. 609-623. Center for Advanced Technologies, No Date. Business Process Engineering. What are the components of Business Process Reengineering Life Cycle? [Online] Available at: http://www.cat.aum.edu/Content.aspx?cid=76ccdd68-b940-4446-aeda-5b97ca50264f [Accessed December 05, 2012]. Chen, Y. C., 2001. Empirical Modelling for Participative Business Process Reengineering. Chapter Three Business Process Reengineering. [Online] Available at: http://www2.warwick.ac.uk/fac/sci/dcs/research/em/publications/phd/ychen/files/chap-3.pdf [Accessed December 05, 2012]. CSC, 2009. Business Process Reengineering: Adapt, Change, Grow. Reengineering Taking A New Look At Business. [Online] Available at: http://assets1.csc.com/be/downloads/CSCO_Premium_VBelg.pdf [Accessed December 05, 2012]. Hammer, M. & Champy, J., 2000. Reengineering the Corporation: A Manifesto for Business Revolution. Section 1the Reengineering Concept. [Online] Available at: http://cs5852.userapi.com/u11728334/docs/8425ed172b16/Reengineering_The_Corporation_383831.pdf [Accessed December 05, 2012]. Johnson, A., 2011. Role of IT in BPR. IT Capabilities and Reengineering. [Online] Available at: http://www.slideshare.net/abhinavjohnson/business-process-reengineering-bpr-role-of-it [Accessed December 05, 2012]. Knights, D. & Willmott, H., 2007. Introducing Organizational Behavior & Management. Cengage Learning EMEA. Kock, N. F. & et. al., No Date. BPR in the Public Sector: A Case of Successful Failure. WAS The Attempt A Genuine Re-Engineering Attempt? [Online] Available at: http://www.mngt.waikato.ac.nz/bmcqueen/WEBDOCS/pubs/aib96.pdf [Accessed December 05, 2012]. Netjes, M. & et. al., No Date. An Evolutionary Approach for Business Process Redesign: Towards an Intelligent System. Evolutionary Approach. [Online] Available at: http://wwwis.win.tue.nl/~wvdaalst/publications/p387.pdf [Accessed December 05, 2012]. Olalla, M. F., 2000. Information Technology in Business Process Reengineering. IAER, Vol. 6, No. 3, pp. 581-589. O’Neill, P. & Sohal, A. S., 1999. Business Process Reengineering A Review of Recent Literature. Technovation, Vol. 19, pp. 571-581. SAGE Publications, 2006. Chapter 5 Business Process Modeling Approaches and Diagrams. Why Model Business Processes? [Online] Available at: http://www.uk.sagepub.com/upm-data/11315_Chapter_5.pdf [Accessed December 05, 2012]. Srinivasan, R., 2011. Business Process Reengineering. Tata McGraw-Hill Education. Sturdy, G. R., 2010. Business Process Reengineering. Business Process Reengineering: Strategies for Occupational Health and Safety. [Online] Available at: http://www.c-s-p.org/flyers/978-1-4438-2509-2-sample.pdf [Accessed December 05, 2012]. Weerakkody, V. & Currie, W., 2003. Integrating Business Process Reengineering with Information Systems Development: Issues & Implications. IS Development and Process Redesign: The Relationship. [Online] Available at: http://www.bus.iastate.edu/nilakant/MIS538/Readings/Integrating%20BPR%20with%20ISD.pdf [Accessed December 05, 2012]. Zigiaris, S., 2000. Business Process re-Engineering BPR. Description. [Online] Available at: http://www.adi.pt/docs/innoregio_bpr-en.pdff [Accessed December 05, 2012]. Read More