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What is the primary purpose of a reward structure in an organization?
What is the primary purpose of a reward structure in an organization?
Which of the following is a key characteristic of measurement systems?
Which of the following is a key characteristic of measurement systems?
How do management methods impact business process performance?
How do management methods impact business process performance?
What happens if there is a physical or technical change in an organization?
What happens if there is a physical or technical change in an organization?
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What is often a problem with reward structures in organizations?
What is often a problem with reward structures in organizations?
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Which aspect defines the structure of job roles, reporting, and accountabilities within an organization?
Which aspect defines the structure of job roles, reporting, and accountabilities within an organization?
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What is a key characteristic of informal and spontaneous processes within an organization?
What is a key characteristic of informal and spontaneous processes within an organization?
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What dimension focuses on automated systems and technologies that support process structure?
What dimension focuses on automated systems and technologies that support process structure?
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What can be a consequence if the process and organizational structures are misaligned?
What can be a consequence if the process and organizational structures are misaligned?
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Which layer includes the individual belief systems in the dimensions of business reengineering?
Which layer includes the individual belief systems in the dimensions of business reengineering?
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What type of outcomes does the process structure consist of?
What type of outcomes does the process structure consist of?
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What is emphasized as a major challenge in utilizing technology effectively within an organization?
What is emphasized as a major challenge in utilizing technology effectively within an organization?
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What is the primary focus of Business Process Reengineering?
What is the primary focus of Business Process Reengineering?
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Which word in the definition of Business Process Reengineering emphasizes the need to challenge existing assumptions?
Which word in the definition of Business Process Reengineering emphasizes the need to challenge existing assumptions?
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In which dimension are business policies, practices, and procedures integrated?
In which dimension are business policies, practices, and procedures integrated?
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What should be the target improvement goal for Business Process Reengineering?
What should be the target improvement goal for Business Process Reengineering?
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Which of the following dimensions is NOT included in the Business Reengineering Dimensions?
Which of the following dimensions is NOT included in the Business Reengineering Dimensions?
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What does the 'Infrastructure Dimensions' category involve?
What does the 'Infrastructure Dimensions' category involve?
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In which situation is Business Process Reengineering typically considered necessary?
In which situation is Business Process Reengineering typically considered necessary?
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What is an essential characteristic of Business Process Reengineering?
What is an essential characteristic of Business Process Reengineering?
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What type of improvements does Business Process Reengineering emphasize?
What type of improvements does Business Process Reengineering emphasize?
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What is a characteristic of organizational culture?
What is a characteristic of organizational culture?
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Which source of political power includes personal expertise?
Which source of political power includes personal expertise?
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Why is it difficult to change an organization's culture over time?
Why is it difficult to change an organization's culture over time?
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Which of the following is NOT a benefit of reengineering?
Which of the following is NOT a benefit of reengineering?
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What should organization executives demonstrate to facilitate change?
What should organization executives demonstrate to facilitate change?
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Which characteristic influences an individual's belief system in the workplace?
Which characteristic influences an individual's belief system in the workplace?
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What is a primary sign of trouble in reengineering related to bureaucracy?
What is a primary sign of trouble in reengineering related to bureaucracy?
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What component must be included in the leadership and improvement philosophies for successful change?
What component must be included in the leadership and improvement philosophies for successful change?
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Which warning sign indicates a problem with understanding customer needs?
Which warning sign indicates a problem with understanding customer needs?
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What issue arises from the automation of existing bureaucracy?
What issue arises from the automation of existing bureaucracy?
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How can reengineering improve customer interaction with the organization?
How can reengineering improve customer interaction with the organization?
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What does 'elusiveness of accountability' in organizations commonly lead to?
What does 'elusiveness of accountability' in organizations commonly lead to?
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Which of the following describes a consequence of chaos in downsizing?
Which of the following describes a consequence of chaos in downsizing?
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What characterizes bottlenecks in critical cross-organizational processes?
What characterizes bottlenecks in critical cross-organizational processes?
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What concept signifies the struggle of organizations with bureaucratic structures amidst technological changes?
What concept signifies the struggle of organizations with bureaucratic structures amidst technological changes?
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What issue often arises from informal work patterns in a chaotic environment?
What issue often arises from informal work patterns in a chaotic environment?
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What is a primary finding that can indicate an organization's need for change?
What is a primary finding that can indicate an organization's need for change?
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Which of the following is a necessary step in creating a business case for change?
Which of the following is a necessary step in creating a business case for change?
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What does successful business re-engineering (BR) depend on?
What does successful business re-engineering (BR) depend on?
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Which critical success factor emphasizes the importance of a structured methodology?
Which critical success factor emphasizes the importance of a structured methodology?
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What consequence is highlighted if an organization opts against making changes?
What consequence is highlighted if an organization opts against making changes?
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Why is time considered a critical success factor in business re-engineering?
Why is time considered a critical success factor in business re-engineering?
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What does partnership participation imply in the context of business re-engineering?
What does partnership participation imply in the context of business re-engineering?
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Which aspect is not considered a common finding leading to the need for change?
Which aspect is not considered a common finding leading to the need for change?
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Study Notes
ASM652 Business Process Reengineering Concepts
- Business Process Reengineering (BPR) defined as "the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as costs, quality, and speed" (Hammer and Champy, 1993).
- Reengineering involves tossing aside existing processes and starting over.
- Keywords in the definition include: fundamental (challenging all assumptions, reasons, and activities); radical (inventing new ways); dramatic (aiming for order-of-magnitude improvements, not just marginal gains); and process (focusing on processes, not just organizational structures).
Objectives
- Define business process redesign.
- Describe the nine dimensions of BPR.
- Discuss the benefits of BPR.
- Identify and describe situations in which BPR is necessary.
- Describe warning signs that indicate the need for reengineering.
- Identify and describe critical success factors for BPR projects.
Dimensions of Business Reengineering
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Physical/Technical Dimensions: Most visible and concrete. Includes process structure, technology structure and organizational structure. This underpins the organization's operational foundation.
- Process Structure: Defines what, when, and how work is performed. Triggered by internal or external stimuli, aiming for quality outcomes in a timely manner.
- Technology Structure: The automated communication, networking, and computer systems supporting the process.
- Organizational Structure: Defines who performs, manages, and is accountable for each business process, including job structure, reporting lines, accountabilities, job content, skills, and knowledge requirements.
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Infrastructure Dimensions: Support the physical/technical dimensions and includes reward structure, measurement systems, and management methods. If the physical/technical aspect changes, the infrastructure must also adapt. Use reinforcement to improve skills, provide managerial support, sufficient incentives, and feedback.
- Reward Structure: Formal, informal, and financial recognition for desirable behaviors; often a disconnect between desired and rewarded behaviors.
- Measurement Systems: Feedback on performance; ensure comprehensive and timely information to identify and address issues.
- Management Methods: The practices and techniques used to supervise, develop, and support employees involved in the process.
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Value Dimensions: Organizational culture, political power, and individual belief systems. These are often the least visible but hardest to change; initial implementation failure can be attributed to neglecting these dimensions.
- Organizational Culture: Unspoken rules, collective beliefs, language, symbols, myths, and rituals; older cultures are harder to change.
- Political Power: The individual's ability to manipulate and shape the actions and behaviors of others, originating from formal authority, expertise, knowledge, or connections; reengineering can threaten loss of power.
- Individual Belief Systems: Attitudes and mental models influencing individuals and their work; encompasses cultural characteristics (impatience, skepticism, openness, control) and executive leadership demonstrating change commitment.
When is Reengineering Necessary?
- Focus on changing customer relationships and marketplace positioning.
- Key benefits of BPR include increasing the organization's ability to customize products, services, increase customer satisfaction, and facilitate a positive customer experience.
- Other situations warranting reengineering include: bringing more customers into the information channels; reducing response time and time-cycle issues, eliminating errors and complaints; processing more customer requests and delivering value-driven pricing; improving individual and overall work life; and enhancing knowledge sharing and utilization within the organization.
Warning Signs for Reengineering
- Explosion of chaos and bureaucracy (evolved processes; informal work patterns; procedures focused on fixing mistakes; untrained employees; veteran mistakes)
- Thinking for customers based on assumptions and inflexible rules
- Automation of existing bureaucracy (reinforces bureaucracy, not breaking through)
- Bottlenecks and disconnects in critical cross-organizational work processes
- Elusiveness of accountability (functions; difficult to trace responsibility for processes crossing departments)
- Chaos from downsizing (demotivation; inadequacy of staff; skill gaps)
- Integration and merger turmoil (conflicting or duplicative work processes)
Diagnosis of Processes of Suspect Products and Services
- Key diagnoses include: lack of a "big picture" concept and poor communication; inattention to detail; designer arrogance and customer exclusion; focus on correction, not error prevention; measurement problems; and a focus only on external customers.
Creating the Business Case for Change
- Key steps include translating existing knowledge into quantitative data (revenues, customer complaints, etc.) and evaluating industry trends, economic conditions, and customer preferences to illustrate the need for change. Conversely, creating an alternative to change (what will happen if no change) by extrapolating current trends.
Commitments
- Framing the project, creating a vision, establishing values and objectives, building a detailed redesign plan, planning implementation strategies, and validating feasibility through a "proof of concept."
Critical Success Factors for BPR Projects
- Business focus: Success depends on integrating process, technology, and organization dimensions with robust infrastructure, values, and goals.
- Methodology and project approach: Systemic approach; fact-focused methodology; funding and power management.
- Time: Executing patience and commitment with the BR program.
- Partnership participation: Collaborative, flexible, and trained teams.
- Visible, active leadership: Crucial to long-term commitment. Commitment demonstrated through financial, human, and visible support.
- BR begins by re-organizing itself into a learning, productive, and customer-focused business organization. Quality measured in terms of added value, cost effectiveness, responsiveness and functionality to emphasize customer needs, as well as employee empowerment.
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Description
This quiz focuses on the fundamental concepts of Business Process Reengineering (BPR), examining its definition, objectives, and critical success factors. Explore the nine dimensions of BPR and understand the circumstances that necessitate a complete redesign of business processes for dramatic improvements in performance metrics.
