Process and Change Managment - Research Paper Example

?Management Process and Change Management Contents Introduction 3 2. Literature review 3 2 Organizational change 3 2.2 Business process reengineering 4 2.3 Challenges during BPR implementation 4 2.4 BPR Enablers 5 3. Conclusion and discussion 6 Reference List 7 1. Introduction Increased globalisation and competition has compelled the organisations to be innovative and adapt various change approaches. Business Process Re-engineering (BPR) is one of the most widely accepted approaches of change management that has been successful in bringing incredible business solutions to organisations. BPR has become one of the most popular solutions for improving performances, elevating efficiencies of resources and gaining a sustainable competitive advantage in this continuously changing and developing world. Even though literature has stated both unsuccessful and successful stories, BPR has been regarded as one of the vital tools for dramatic change management, organisational competitiveness and overall improvements. However, proper and careful implementation is extremely important for overall growth and development. In the present study, BPR will be analysed with respect to the challenges faced during this change management process. In today’s business environment, reengineering has become a prominent organisational change management trend. 2. Literature review 2.1 Organizational change In order to maintain success and create competitive advantage, it has become increasingly apparent that organizational change management strategies will come first in mind (Wilson, 1992). Traditionally, organizational change management has been seen as the actions taken by firms in order to alter their internal characteristics for a better fit with the external environment. It is an empirical observation in the entity of an organization varying in quality, shape or time (Van de Ven and Poole, 2002). The main aim of change management is adapting to the environment or performance environment. Organizational theory has indicated that change management involves product change, technology change, human resource change and administrative change (Leana and Barry, 2000). Hayes (2002) has pointed out that modern life has become increasingly transient and impermanent as a result of the rapid expansion of business. This continuous change has affected the relationship status of people with places, things, ideas, organization and other people. These changes require new adaptability level for organizations and individuals. 2.2 Business process reengineering In the current business environment, global organizations are going through a change which is continuous and rapid. Increasingly driven by competition, consumers and change, companies are vigorously trying new ways in order to make their business and organizations more competitive and effective. Companies are evaluating and analyzing their current structures, goals and systems in order to find out new and more efficient solutions to their business issues. A new era came into existence, when high profile organizations such as Taco Bell and IBM came up with an extraordinary solution to improve their present condition. This solution was business process reengineering. This solution then became a rage and was followed by many others such as Hallmark which totally re-engineered its process of new-product development and Kodak, who went on to reengineer its black and white process of film manufacturing (Hindle, 2008). BPR was regarded a novel approach for organizational and corporate change and since then, it is quite popular. During the early 19th century, the concept of reengineering was first developed. After examining the way information technology affected the business process, it was renamed as business process reengineering (Sturdy, 2010). BPR was then described as radical redesign and fundamental rethinking of business process with the objective of achieving dramatic improvements in contemporary and critical performance measures such as quality, cost, speed and service. 2.3 Challenges during BPR implementation Even though BPR has been recognized for its effective and quick recovery strategies, there are many challenges during its implementations. A host of pitfalls have been identified which should be avoided while implementing BPR. One of the major pitfalls which occur during BPR initiatives is distinguishing re-engineering effort from the major organizational goals. BPR should not be comprehended as a separate strategy; rather it should be seen as a ladder to reach organizational goals. This is why organizations should not take on BPR projects without referring their strategic goals. Underestimating the required changes is another area can lead to BPR failure. Organizations expecting dramatic improvements in performances through BPR should organize and prepare themselves and process with confident but slow steps. This implies organizations must be ready to accept the change as well as the way change is brought. Expecting too much and too soon is another reason for BPR strategies going down. For example changes such as employee attitudes and behaviour and cultural changes are not instant. Also the benefits of these changes are visible only after a certain time. Thus, patience and acceptance of the BPR is necessary for companies to realize the real benefit. While undertaking projects on BPR, many managers end up relaying too much on information technology and its solutions. Instead of analyzing the business process managers tend to automate the processes which are ineffective. Although IT is a business enabler it should be noted that business is the one which make BPR projects successful and not only the IT departments (Chan and Choi, 1997). 2.4 BPR Enablers The methodology of BPR required change in the current processes and assigning of new radical changes. It is well known that some factors are responsible for these changes. These factors can be termed as enablers and characterized as elements acting as vehicles for the change process (Olalla, 1999). Enablers can be structural, cultural or information technology. Information technology has been playing a major role in facilitating effective redesign of organizations with the help of process engineering. Because of the growing importance of IT as a BPR enabler it is also described as a facilitator and initiator of change (Chan, 2000). Numerous structural enablers have been identified which can facilitate BPR. Among them organizing functional tasks into teams or group based units is regarded as most effective (Love and Gunasekaran, 1997). The overall performance of team becomes better with the integrating single task units with cross functional skills. Furthermore, broader perspectives and skill-sets increase the changes of output meeting multifunctional requirements. For example, teams engaging in new product development are increasingly including representatives for various functions which are directly or indirectly involved in the process of product development. The major benefits of team composition are that quality of work life is improved while working in teams. Opportunities such as friendships, small tasks, empathic reactions and social interaction are improved and enhanced while working in teams. Participating in the decision making process and providing greater empowerment are few of the trends in organizational change management process which have gained recent attraction. These shifts have given way to a hierarchal structure that is flat and spans broader control in businesses. They have also been praised for greater satisfaction among employees and higher productivity. Using this process, employees become decision makers and furthermore take greater responsibility for the operational and functional procedures. 3. Conclusion and discussion In the current study, one of the most recognized concepts “Business Process Reengineering (BPR) has been evaluated as a tool for change management. BPR has been recognized as an effective approach to management which is applied and adopted widely by organizations for successful and effective results. Support and commitment are important factors for success in BPR projects. Support of top management in terms of resources, capital and leadership for project life is essential which otherwise will weaken the projects and its success chances. Proper communication and teamwork are also vital for successful BPR applications. Apart from the above factors a BPR project will be successful if it is conducted according to the overall strategy of the organization. If the company strategy and BPR projects do not complement each other, the business will only achieve gains which are short term and will lose chances of long term improvements in performance. Reference List Chan, L. C. and Choi, C., 1997. A conceptual and analytical framework for business process reengineering. International Journal of Production Economics, 50, pp. 212-214. Chan, S., 2000. Information technology in business processes. Business Process Management Journal, 6 (3), pp. 224-237. Hayes, J., 2002. The theory and practice of change management. Basinstoke: Palgrave. Hindle, T., 2008. Guide to management ideas and gurus. The Economist in Association with Profile Books Ltd. Leana, C. R. and Barry, B., 2000. Stability and change as simultaneous experiences in organizational life. Academy of Management Review, 5(25), pp. 753-759. Love, P. E. D. and Gunasekaran, A., 1997. Process reengineering: A review of enablers. International Journal of Production Economics, (50), pp. 194-195. Olalla, M. F., 1999. Information technology in business process reengineering, Forty–Seventh International Atlantic Economic Conference, Vienna-Austria, pp. 583. Sturdy, G. R., 2010. Business process reengineering: Strategies for occupational health and safety. Newcastle, United Kingdom: Cambridge Scholars Publishing. Van de Ven, A. H. and Poole, M. S., 2002. Companion to organizations. Oxford: Blackwell Publishers. Wilson, D.C., 1992. Strategy of change. Routledge: London. Read More