Anda di halaman 1dari 21

ASSIGNMENT

MS-25

Course Code : MS - 25

Course Title : Managing Change in Organizations

Assignment Code : MS-25/TMA/SEM - II /2012

Coverage : All Blocks

Note: Answer all the questions and send them to the Coordinator of the Study Centre
you are attached with.

1. Describe the factors to taken care of before proceeding for cultural change. Briefly
discuss indigenization and the complexities involved in the Management of change.

2. What is turn around management? Briefly explain the kinds of Turn around
situations before an organization goes ahead with strategies. Give an example
where turnaround was used. Briefly discuss the organization you are referring to.

3. Explain the concept of Intervention and discuss different types of interventions.


Briefly describe comprehensive interventions and their relevance.

4. Describe various reasons for resistance to change. Discuss different ways by which
resistance to change can be handled. Discuss with reference to an organization how
change process has taken place and handled resistance to change. Briefly describe
the organization you are referring to.

5. Discuss the reasons for the process change to occur. Illustrate any one of these
processes with reference to an organization where this process was used and it’s
effectiveness. Briefly describe the organization you are referring to.

  1
Ans.1
CULTURE CHANGE
Culture change is a term used in public policy making that emphasises the
influence of cultural capital on individual and community behaviour. It places
stress on the social and cultural capital determinants of decision making and the
manner in which these interact with other factors like the availability of
information or the financial incentives facing individuals to drive behaviour.

These cultural capital influences include the role of parenting, families and close
associates; organisations such as schools and workplaces; communities and
neighbourhoods; and wider social influences such as the media. It is argued that
this cultural capital manifests into specific values, attitudes or social norms which
in turn guide the behavioural intentions that individuals adopt in regard to
particular decisions or courses of action. These behavioural intentions interact
with other factors driving behaviour such as financial incentives, regulation and
legislation, or levels of information, to drive actual behaviour and ultimately feed
back into underlying cultural capital.

The term is used by Knott et al. of the Prime Minister's Strategy Unit in the
publication: Achieving Culture Change: A Policy Framework (Knott et al., 2008).
The paper sets out how public policy can achieve social and cultural change
through 'downstream' interventions including fiscal incentives, legislation,
regulation and information provision and also 'upstream' interventions such as
parenting, peer and mentoring programmes, or development of social and
community networks.

The key concepts the paper is based on include:


• Cultural capital - such as the attitudes, values, aspirations and sense of
self-efficacy which influence behaviour. Cultural capital is itself influenced
by behaviour over time

  2
• The shifting social zeitgeist - whereby social norms and values that
predominate within the cultural capital in society evolve in over time
• The process by which political narrative and new ideas and innovations
shift the social zeitgeist over time within the constraint of the 'elastic band'
of public opinion
• The process of behavioural normalisation - whereby behaviour and
actions pass through into social and cultural norms (for example, Knott et
al. argue that the UK experience of seat belt enforcement established and
reinforced this as a social norm)
• The use of customer insight
• The importance of tailoring policy programmes around an ecological
model of human behaviour to account for how policy will interact with
cultural capital and affect it over time Knott et al. use examples from a
range of policy areas to demonstrate how the culture change framework
can be applied to policymaking. For example:
• To encourage educational aspiration they recommend more use of early
years and parenting interventions, an improved childhood offer, and
development of positive narratives on education as well as integrated
advisory systems, financial assistance and targeted social marketing
approaches.
• To promote healthy living and personal responsibility they recommend
building healthy living into community infrastructure, building partnerships
with schools and employers, more one-to-one support for wellbeing
alongside use of regulation and legislation on unhealthy products,
provision of robust health information and health marketing to promote
adaptive forms of behaviour.
• To develop environmentally sustainable norms they recommend
reinforcing sustainability throughout policy narratives, using schools and
the voluntary sector to promote environmental messages, development of
infrastructure that make sustainable choices easy, together with a wider

  3
package of measures on fiscal incentives, regulation, advisory services
and coalition movements.

INDEGENIZATION AND THE COMPLEXITY OF MANAGEMENT OF CHANGE


Indigenization in management is a complex process. It is largely endogenous,
utilizing fix management some of the basic tenets of Buddhism, Confucianism,
Taoism and Hindu ism as also the 'models' set by experiences in the family and
other social institution still powerful in many countries of Asia. But by and large, it
is a process in which there is positive valence towards one's own traditions and
cultural heritage as well towards the one that is 'foreign' and imported. It would
be an over-simplification to consider the two as opposite and inimical, as pitted
against each other, and regard the process of indigenization as representing a
clash between tradion and modernity. In essence, indigenization implies that
what are useful and valuable in the two systems in the contemporary context are
retained and integrated to generate a synergic work culture that is not only
congruent with socio-cultural realities but also functional and effective. It is an
'assimilative synthesis' of the two systems. As illustrated by the case of Korean
corporate culture. It results from interaction between specific characteristics of
organization (size, technology, human and material capital and organizational
climate), task environment (consumers, government and labour market) and
social environment (societal factors such as education and cultural dimensions).
It does not in any way imply that the 'foreign' has to be rejected per se because
the influence has come from outside, or that indigenous practices are good and
are to be revived and retained simply because they are 'local' and rooted in the
culture. In short, work organization and management practices are aligned with
cultural values as well as with the needs and demands of modern technology
(Sinha and Kao, 1988).

In the context of the globalization of economy and business enterprises and the
ceaseless onslaught of television and other mass media catering to Western
values and lifestyles, a question that is automatically raised is whether, in years

  4
to come, the process of indigenization shall continue to have relevance or
significance. The revolution brought about in international travel and
communication by the marvels of science and technology has fostered
intercultural contact at the global level on a scale undreamt of a few years ago.
The world has shrunk and transformed itself into the proverbial 'global village'.

With the globalization of business and the jet-age of travel, individuals frequently
move between cultures, and intermingle across national boundaries. People
possessing divergent systems of values rub shoulders and work together. This is
likely to foster the emergence of a common pattern of attitudes and behaviour in
management and organizations all over the world. Further, people with diverse
cultural backgrounds now work and closely interact in the same organization and
share common organizational goals. They tend to acquire values and behaviour
patterns that constitute the 'culture' of the organization. As a result, individual
cultural proclivities are likely to be whittled down and rounded off. That being the
case, individual behaviour is expected to conform progressively to universally
prevalent norms and behaviour patterns.

The fact of the matter, however, is that neither organizational socialization nor
the intermingling of people of diverse cultures brings about complete uniformity of
attitudes, values and behaviour dispositions. Similarities may appear in some
superficial features, like dress, diction, manners and fashion. The experience of
countries that have followed the 'melting pot' policy has shown that the basic
cultural features of most ethnic groups tend to persist. What may be called the
'social traits' of groups, learned through generations of collective experience and
having functional significance in their respective eco-cultural contexts, continue
to linger. The process of indigenization thus remains important. Therefore, to
function effectively in settings where people have divergent perceptions,
expectations and norms of superior subordinate relationships, it is not only useful
but also essential to be adequately sensitive to the various cultural influences
and their impact on employees' behaviour both as individuals and collectively,

  5
and to the indigenous transformations that take place in the functioning of
organizations.

Exposure to electronic mass media and the consumerism they foster are serious
matters. The influence of the media is so powerful and widespread that the
possibility of 'homogenization' erasing to a very large extent the richness and
uniqueness of different cultural groups cannot be brushed aside. The question
that is pertinent is whether, if such cultural homogenization becomes a reality,
indigenization of management--or, for that matter, indigenization as such-will
continue to have relevance. The point can be debated endlessly. It would suffice
here to point out that even in countries which boast of rich and ancient cultural
heritage and continuity, many uniformities called 'modernity' are apparent.
Western management practices are increasingly being adopted. In the Chinese-
speaking world, the influence and importance of the family network in business is
no longer what it used to be. Confucian values and familism in the function of the
work organizations are not as strong as they were two or three decades ago.
Need for autonomy participation in decision-making and many other values
typical of work organizations in the West are gradually becoming features of
organizational functioning in many Asian countries.

Every culture has its inherent strength and vitality not easily swept away by
external influences. Monotonic cultural homogenization is certainly a possibility,
but is not likely to turn into a reality given the strength and resilience of each
culture. While globalization may result in drastic reduction of diversities and
emergence of similarities at the surface level, the core elements of cultures
would prevail and influence the behaviour of individuals and work organizations,
often in very subtle forms. Despite globalization and the forces of
homogenization, cultural proclivities would remain, and differences in the hopes,
beliefs, perceptions and expectations regarding the behaviour of superiors and
subordinates shall persist and continue to inl1uenc.e the functioning of
organizations. It is noteworthy that even European countries which belong to

  6
'Western' culture and to that extent are exposed to very similar homogenizing
influences, display very distinct 'intercultural differences in the field of
management. In countries like France and Italy managers tend to emphasize the
importance of power motivation within the organization more than their
counterparts in the United Kingdom, the Netherlands and Germany. Again,
managers in France and Italy are seen as 'experts' who are expected to have
answers to any problem while those from the Netherlands and the United States
are regarded as 'participative' problem-solvers. What is encouraged in one
culture as 'participative management' is seen in another as managerial
incompetence. These countries belong to Western culture and share Western
values. Yet they display interesting basic differences. Even in the context of
globalization, awareness of the operation of cultural factors and insight into
indigenization in organizational behaviour are going to remain effective tools for
managers. The culture-technology interface will remain a significant feature of
work organizations as long as complete homogenization does not come all out –
and this is quite unlikely. A look at the processes involved reveals that
management and organizations are culture-specific and at the same time have
tendencies towards universally valid characteristics.
 
ANS. 2
‘Turnaround Management’
Turnaround management is a process that involves establishing accountability,
conducting diagnostic analyses, setting up an information system, preparing
action plans, taking action, and evaluating results. The need for turnarounds is, in
part, attributable to factors such as increased competition, overinvestment in
technology, more knowledgeable shareholders, and a willingness to gamble on
the part of managers This need often is felt most in the small business sector,
which is particularly distressing because small firms contribute so much to our
economy. For the purposes of this article, a small business is defined as a
company with fewer than 100 employees and sales of less than $5millon. Such
companies comprise] 97 percent of all enterprises in the United States and

  7
employ more than 58 percent of the labor force . Between 1976 and 1986, small
firms created more than three million new jobs. However, despite these
accolades, all is not rosy in the small business sector.

The failure rate among small firm is high, although the exact rate is not known.
Some researchers suggest that 67 percent of new businesses fail within four
years. Others state that nearly one-half of startups fail within 18 months.
Furthermore, although an extensive review of the literature has produced little
information concerning turnaround strategies for small firms, a common theme
has been detected. There are many turnaround used in the organization (1)
propose a typology for categorizing causes of small business failure, (2) propose
a set of generic approaches to counteract the causes of failure identified within
the typology, and (3) provide examples of how the generic approaches translate
into specific actions. Contrary to conventional wisdom, a majority of businesses
have failed because of internal factors affected by managerial action and
discipline. Examples include failure to control operational costs and failure to
analyze financial statements. In fact, the literature indicates few business failures
can be attributed to competion and other outside (external) forces (e.g., national,
regional, or industrial economic downturn).

PROPOSED TYPOLOGY
The 24 factors identified through the literature search can be analyzed from a
number of different perspectives. Some of the obvious typologies include
categorizing factors by: (1) business functions such as finance, marketing, and
human resources; (2) whether they originate internally or externally, (3) whether
they are strategic or operational (short- or long-term) in nature, and (4) whether
they are within or outside of the firm's control. A simple yet elegant way to
capture the value of all these perspectives was to develop a 2 x 2 matrix.

The vertical axis of the "Environment/Response" matrix divides the factors based
on whether they are part of a firm's internal environment (under management's

  8
control) or its external environment (beyond management's control). The
horizontal axis distinguishes among the factors based on whether they are
administrative or strategic in nature. Administrative factors include short-term
operational activities, such as scheduling procedures, managing employees, and
analyzing reports. Strategic factors include long-term tasks such as planning. At
first glance, it is apparent that a majority of the factors fall within the Internal-
Administrative Cell.

There are a number of demographic factors--such as owner's education, age,


gender, and race--that seem also to be related to the survival or failure of a firm.
Older, non-minority, male entrepreneurs with four years or more of college
education seem to be associated with surviving firms (Cooper, Dunkelberg, and
Woo 1989). Although important, these demographic factors were not included in
the analysis of factors contributing to small firm failure, because the focus in this
article is on approaches small firms can take to avoid failure. For the most part,
these demographic factors cannot be changed.
 

Ans. 3
Intervention
The term intervention refers to all the planned programmatic activities aimed at
bringing changes in an organization. These changes are intended to ensure
improvement in the functioning of the organization in its efficiency and
effectiveness. The changes are brought through the employees in the
organization while consultants facilitate the change process. Any OD
intervention, therefore, involves close interaction between the consultants and
the client organization.

Intervention basically refers to an intended activity to bring change in the


organization and the consequent activities within the organization. In a general
sense, intervention refers to activities that happen in the organization's life.

  9
Who makes the interventions? The intervention can be brought by an external
consultant who acts in consultation with the client members. A member within the
organization, acting as the in-house consultant can also make the intervention.
The organization itself could plan the intervention without employing either an
internal or external consultant. Where a consultant is employed, any intervention
is a collaborative activity between the client and the consultant.

Where does an intervention take place? An intervention can take place at the
task, process, and system levels and their interface or at any hierarchy levels of
an organization.

For example, it can be at a task level as to how a decision is made or at the level
of a series of tasks to improve their interconnectivity, to identify an underlying
problem or at ii team level to create a better synergy at work. The intervention
can also relate to the whole organization as to how to achieve better vertical
integration/horizontal integration among all the different levels.
Organizations need to basically analyze where, how, when, what etc., to carry
out an intervention to improve their performance, which in other words, refers to
'intervention strategy'.
Interventions are carried to move an organization from its current position to a
desired position and to achieve the desired change a number of techniques are
used.
To quote, French & Bell, Jr. (1994), "Interventions are sets of structured activities
in which selected organizational units (target groups or individuals) engage in a
task or a sequence of tasks where the task goals are related directly or indirectly
to organizational improvement. Interventions constitute the action thrust of
organization development; they "make things happen" and are "what's
happening".

As suggested above a number of interventions can be carried out. They may be


classified as to their focus and purpose and the intensity or depth.

  10
The focus of intervention could be: Individual, interpersonal, group or team (intra
and inter-group), system or subsystem, organization and the external
environment.

The purpose of intervention could be to improve the process (for ex., process
reengineering), Action (ex., performance), and provide feedback (ex., has the
system produced the intended results)?

The depth of intervention could be less intensive (setting up of a task force) or


more intensive (dealing with individual self and emotions).
Specific reasons for intervention could be:
• to provide feedback about task, individual, team and other aspects of
organizational dynamics
• to provide awareness of changing norms, to confront and deal with issues
constructively
• to develop positive attitudes, openness and improve interaction among
people,
• to educate employees, improve their knowledge and skills
• to bring constructive and desirable changes to improve individual and
organizational performance.

Comprehensive Interventions
PERSONAL, INTERPERSONAL, AND GROUP PROCESS INTERVENTION
The central theme of the interventions is learning through an examination of
underlying processes. In process consultation, which is generic to OD
interventions, the focus is exclusively on the diagnosis and management of
personal, interpersonal, and group processes. Third-party peacemaking focuses
on interpersonal conflict and the dynamics of cooperation and competition among
groups. Sensitivity training typically yields learning's about self, interpersonal
relations, and group dynamics. Transacrional analysis (TA) can be a form of

  11
psychotherapy, a framework for analyzing interpersonal relations and
transactions. TA has also been used as a technique for team building. Behaviour
modeling is a training technique designed to increase effectiveness in
problematic interpersonal situations. Life-and career-planning interventions are
less process oriented than the other interventions and reflect more a systematic
approach to a substantive area.

Process Consultation Intervention


Process Consultation (PC) is a method for intervening in an ongoing system. In
this approach, a skilled third party (consultant) works with individuals and groups
to help them learn about human and social processes and learn to solve
problems that stem from process events. This is an often- used approach by
many OD consultants and practitioners.

The process consultant helps the organization to solve its own problems by
making it aware of organizational processes, of the consequences of these
processes, and of the mechanism by which they can be changed. It is to enable
the organization to address its problems by itself.

Third-party Peacemaking Interventions


Third-party interventions have the potential to control (contain) the conflict or
resolve it. The two groups must be willing to deal with the conflict and appreciate
that it has consequences for their effective functioning. The third party must know
how, when, and where lo utilize confrontation tactics in resolving the conflict.

First it must be able to diagnose conflict situations. The Diagnostic model of


interpersonal conflict is based on four basic elements: what are the conflict
issues? What events, factors have precipitated it? What are the conflict-relevant
acts of the groups involved and the consequences of the conflict. Conflict is a
cyclical process, and the cycles may be benevolent, malevolent, or self-

  12
maintaining. The accurate diagnosis of conflict will be facilitated if the source of
the conflict is identified.

In a conflict situation both substantive and emotional issues are involved.


Substantive issues relate to disagreements over policies and practices, sharing
of resources, and differences in the perception of roles and role relationships.
Emotional issues arise from negative feelings between the parties finding
expression in behaviors such as anger, distrust, scorn, resentment, fear,
rejection.

Sensitivity Training Laboratories


A T-group is an unstructured, agenda less group session for about 10 to 12
members. A professional "trainer" acts as a catalyst and facilitator. The data for
discussion arises from the interaction of the group members as they strive to
create a viable society for themselves. What are discussed and analyzed etc.,
are the actions, reactions, interactions, and feelings arising out of the member
interactions. Conceptual material relating to interpersonal relations, individual
personality theory, and group dynamics also form a part of the program. The
'group-experiences' form the fulcrum of learning.

The T-group is a powerful learning laboratory facilitates learning more about


oneself as a person, learning how others react to one's behaviour, and learning
about the dynamics of group formation, group norms and group growth. It assists
to improve one's interpersonal skills.

Life and Career-planning Interventions


Managing against a set of objectives is important for individual and organizational
effectiveness. A series of interventions are planned that focus on the life goals
and the career goals of employees so that they may better exert control over
their own destinies. 'The interventions have a time focus i.e. past, present, and

  13
future. The tasks are completed by individuals and then discussed in small
groups.

Ans. 4
RESISTANCE TO CHANGE
With the preferred normative-re-educative approach, knowledge is also seen as
a source of influence, but less so than is a system of mutual influence. The major
objective is "learning to learn;" clients must develop their own ability to examine
and reconstruct premises, and will be able to apply this process in dealing with
future similar problems. Theories of planned change acknowledge the presence
of forces for change and resistance to change, but resistance tends to be
interpreted as the client's problem (the coach is usually seen as a source of
positive energy). The social and cultural values we bring into the system, along
with our individual predispositions, are rarely taken into account. The coach's
conscious task is to use knowledge for change within a system of mutual
influence. The client and coach share knowledge and the coach aids the client's
growth, partly through examining together the premises of their relationship. But
it's important to openly examine the extent to which the coach may fail to
collaborate; otherwise, we maintain the status quo as expert. Second, the bias
that views resistance as the client's problem maintains the status quo of the client
as dependent. It's inherently contradictory to argue on the one hand that change
occurs through a relationship and on the other hand that resistance to change is
not a property of the relationship, but rather is the fault of only one party. Every
time we say the system must change, the underlying status system is being
maintained (coach as expert). Every time we label the client as "resisting
change" the underlying status system is also being maintained. These are both
behaviors that reinforce the status quo! By ignoring the role of the coach in
maintaining the status quo, we may block the normative, re-educative approach's
highly valued goal of learning to learn about the system's premises.

  14
Sources of Resistance: Resistance to change is functional when not carried to
extremes. In other words, the energy we put into resisting change also permits us
to preserve balance in our lives through habits relegated to the unconscious. If
we couldn't do this we'd go crazy, continually bombarded with data we'd have to
assess anew every moment. In this sense, some resistance is inevitable. Two
key components of resistance are selective perception and selective retention --
these generalizations help us organize our understandings of our environment.
Unfortunately, they also keep us from exploring the differences between
experiences that are otherwise similar. As we grow up, we learn to depend on
others' expertise in various roles -- parents, teachers, doctors, sports coaches.
Basically, society teaches us to accept the status quo. This leads to self-distrust
in the face of potential change ("I shouldn't") and even to regression (as in
reverting to old, familiar practices in new situations). All of these, of course, are
processes to which the coach would be as readily subject as the client. Yet
resistance is almost always discussed in the context of client behavior;
furthermore, while resistance is theoretically functional, the word takes on a
pejorative quality when we talk about client resistance. No one else seems to
have written about resistance as a property of an interpersonal interaction;
rather, there are theories of resistance in social systems and resistance in
individuals. Attempts to eliminate resistance, therefore, tend to focus on the
targets of change. If team members are "resisting" their manager's directives, for
example, we might facilitate group meetings where we communicate the need for
change and encourage group plans to enact the change. In doing this we might
use joint diagnosis and consensus-building to reduce feelings of threat, to
engage peoples' interest, to help them feel the project is at least somewhat their
own, and try to make it fit their values and ideals. We search for the key
"defenders" of the status quo and try to enlist their support for the change effort
by taking their concerns seriously:
• What are the threats to their well-being?
• What might be dysfunctional about the change that we've overlooked?
• What have we not yet understood about the sources of their mistrust?

  15
• We can use resistance to show the "sore spots" in the change situation.
These efforts may well be helpful, but they only reinforce the unexamined
premise that we (or their managers) are not part of the problem.

Anthropologists are good role models for us. If we could see organizations as if
we were anthropologists, we would be better able to observe even subtle
differences between our perceptions and those of our clients. We would know the
importance of understanding clients' values and sources of identification and of
determining where our values are likely to fit, rather than vice versa. We would
be less likely to forget that difficulties in a change effort may stem from our own
assumptions about what clients need. What actually takes place in so-called
collaborative relationships may differ only in degree from the more traditional role
interaction of doctor-patient, marked by feelings of dependency (or counter-
dependency) and deference, accompanied by some degree of discomfort and
non-compliance. However, because collaborative behaviors on the part of the
coach are assumed, we tend to explain any resistance we encounter on some
other basis than resistance to (our) authority.

Resistance as a System Variable: Lewin's force-field analysis is the most


commonly used model to illustrate elements of change and resistance to change:

  16
According to this model, pressing for change tends to threaten stability and thus
increases the power of forces maintaining the system. Therefore, the most
effective way to bring about change is to reduce the forces of resistance. Lewin's
model, however, implies that resistance exists only on one side of the force field.
The energy to restrain movement toward change and the energy to move toward
change are treated conceptually as arising from different places. This can be
seen in the graphic depiction above. As coaches, we take our place under the
banner of change agents. Thus theory guides practice when we interpret
resistance to change as a force emanating from clients ("forces for status quo
maintenance").
But both forces (for change and for resistance to change) exist within the
interaction system; if the system depicts an interaction, the forces need to be
conceptualized as interactive:

  17
This theoretical approach would guide us to interpret resistance to change as
potentially emanating from both parties to a relationship. Some behaviors of both
in the present state of interaction would be expected to resist change where
stability in similar relationships had been functional and thus reduced to more
habitual levels of learning. Where resistance exists, it cannot be a property solely
of one individual in the system. It must have its counterpart in the other person.

  18
Ans. 5
REASONS FOR THE PROCESS CHANGE
1. Technological Advancement
With the (emergence of new technologies, basically CRM, e-business and
Knowledge Management, technology is now considered as a strategic tool,
rather than an automation tool is in the past. As newer technologies are
developed and implemented, the skills and work habits required of employees
change as well. This necessitates upgrading of the existing skill sets of
employees, providing them advance training, improving their communication
skills, encouraging collaborative team work etc. Similarly, technology has created
more flexible, dynamic organisaton structure that facilitates change and
adaptation to changes in the organisation's environment The growing trend for
'Total Quality Management initiatives for employees focus on collaborative
attempts lo improve organizational processes to ensure continual improvement in
the quality of the organisation's product process or service.

The advancement in the Information Technology requires organisations to:


• Be able to develop an IT strategy that fully supports and enables the
business strategy to develop and grow.

• Listen to business needs and translate them into technology requirements.

• Make the common database available to all in customer service


management thereby joining market and business strategy with data
provision.

• Use easy access to a knowledge management approach and technology


to turn individual knowledge into company wide knowledge speedily and
effectively.

  19
Technology has also facilitated the relocation of work from the office to the home.
Telecommuting has, as a result, become more prevalent and estimated to grow
at a pace of 20% annually (Harvey, 2000). All these technological changes
require the people to change the fundamental way of their working, and also to
constantly review and evaluate HR practices to allow an organization to respond
to changes taking place in the environment.

2. Business Process Reengineering (BPR)


Re-engineering has been a popular activity and another name for making major
organisation-wide improvements. These are decisions by management based
primarily on cost refduction. It has become more than just business process
improvement and simplification. Breakthrough redesign and process
improvement, not structure reorganization are the common objectives of
reengineering

The classic definition of Business Process Reengineering (BPR) is given in


Michael Hammer's and John Champy's pioneering book, "Reengineering the
Corporation-A Manifesto for Business Revolution", 1992. They define BPR as,
"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." From this definition it is
clear that BPR is an ongoing, iterative process itself requiring strong commitment
and vision from senior management

During the Forum organized at Warwick University on April 30th 1996, a number
of defining characteristics of BPR were proposed. The following are ones about
which there was most agreement.

• Regard organisations as open socio-technical systems that must


constantly adapt in an integrated way in order to improve customer
service.

  20
• Adopt a process-oriented view of how the business operates
• Pursue a radical business process redesign policy which starts with a
'clean sheet' that seeks to recreate from the ground upwards how the
business should be run ideally.
• Unlearn past habits of thinking and adopt new ways.
• Treat stability as dysfunctional, seeking improvements relentlessly and
continuously.
• Set 'stretch targets' which seek to make major 'breakthroughs' in
measurable benefits in competitive performance, such as increased
revenue, enhanced quality, shorter cycle times and an improved cost
base.
• Move away from centralised command and control processes to more
devolved management styles with more local empowerment and
autonomy.
• Encourage greater team working in which each member has multiple
skills.
• Pursue a radical business process redesign policy which starts with a
'clean sheet' that seeks to recreate from the ground upwards how the
business should be run ideally.

There are usually two methodologies to reengineering activities: (i) Critical


Redesign Activities and (ii) High-level Reengineering Activities.

  21