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THE EFFECT OF BUSINESS
PROCESS RE-ENGINEERING ON THE ORGANIZATION OBJECTIVES
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
Business process re-engineering (BPR) is the analysis and
design of workflow and process within an organization. According to Davenport
(1990) a business process is a set of logically related task performed to
achieve a defined business outcome. Re-engineering is the basis for many recent
developments in management. The cross functional team, for example, has become
popular because of the desire to re-engineer separate functional task into
complete cross-functional processes. Many recent management information systems
developments aim to integrate a wide number of business functions. Enterprise
resource planning, supply chain management, knowledge management, groupware and
collaborative system, human resource management systems and customer
relationship management.
Business process re-engineering (BPR) began as a private
sector technique to help organizations fundamentally rethink how their work in
order to dramatically improve customer service, cut operation cost, and become
world-class competitors. A key stimulus for re-engineering has been the
constituting development and development of sophisticated information system
and networks. Leading organizations are becoming bolder in using this
technology to support innovative business processes, rather than refining
current ways of doing work (Marshal, 2007).
Business process re-engineering is basically the fundamental
re-thinking and radical re-design, made to an organization’s existing
resources. It is more than just business improvising.
The importance of business process re-engineering cannot be
overemphasized within the framework of assessment of organizational objective.
Hence the need to study the subject matter of this research: the effect of
business process re-engineering on the organizational objective in first Bank
Plc Kaduna main Branch, becomes worthy of investigation.
1.2 Statement of
Problem
Business process re-engineering has earned a bad reputation
in several organization because such project have often resulted in massive
layoffs (Roberts, 2004). This reputation is not altogether unwarranted, since
companies have often downsized under the banner of re-engineering. Furthermore,
re-engineering has not always live up to its expectation because re-engineering
assumes that the factor limiting an organization’s performance is
ineffectiveness of its process (which may or may not be true) and offer no
means of validating that assumption. Hence the need to investigate business
process re-engineering become the problem in which this research is triggered.
1.3 Objectives of
the Study
The central objective of the study is to:
i. Examine the effect of business process
re-engineering on the objective of First Bank. The specific objectives are to:
ii. To
evaluate how workflow redesign can affect the operation of First Bank Plc
Kaduna Main Branch
iii. To
identify the methods of business process re-engineering used in redesigning the
operations of First Bank Kaduna
iv. To find out
issues and constraint hindering business process re-engineering projects in
First Bank Plc Kaduna Main Branch
v. To proffer
workable solutions to such constraint
1.4 Significance of
the Study
The study will be beneficial to corporate organization and
First Bank in particular especially as they use the findings of this research
as a basis to re-design their workflow or process. The study will add to
existing knowledge on business process re-engineering and would serve as a good
reference materials to individual students, scholars and researcher who may
wish to use this research work as a spring board to undertake similar research
work.
1.5 Research
Questions
i. To what
effect is business process re-engineering towards achieving the organizational
objective of First Bank
ii. How does
workflow re-design affect the operations of First Bank Plc Kaduna?
iii. Which
method of business process re-engineering did First Bank Plc use in
re-designing their operation in recent time?
iv. What are
the constraint hindering business process re-engineering projects in First Bank
Plc Kaduna?
v. What are
the possible solutions to this constraints
1.6 Scope of the
Study
The study covers an examination of the effect of business
process re-engineering on organizational objective of First Bank Plc Kaduna as
well as the evaluation of workflow re-design and its effect on the operation of
First Bank and the issues and constraints hindering business process
re-engineering in First Bank. Collection of primary data will be restricted
First Bank Plc Kaduna Main Branch. The study covers a period from 2011 to 2012
being the time allowed for this study.
1.7 Limitation of
the Study
The limitation of this study arise from the shortcoming of
the research design, the instrument of data collection and the non-challant
attitude of respondents. For the fact that the survey study is used it is not
certain whether other research design such as the descriptive design,
historical design or ex-post design will yield the same result. It is not also
certain if the same result would be obtained if other kind of instrument of
data collection other than the questionnaire is used to obtain data. Besides,
the non-challant attitude of the respondents and the over exaggeration or
understatement of their responses when scoring the items in the questionnaire could
affect the validity of their responses. These limitations should be taken
cognizance of by other researchers conducting similar studies.
1.8 Definition of
Terms
Re-engineering – re-design of work process
Workflow –
work process or procedures
BPR – This is
an acronym for business process re-engineering
BPM – This is
an acronym for business process management
Process innovation – Introduction of new technique in work
procedure
Process improvement – this is the incremental, gradual and
constant change or innovation in workflow
TQM – This is an acronym for total quality management
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