THE EFFECT OF BUSINESS PROCESS RE-ENGINEERING ON THE ORGANIZATION OBJECTIVES IN FIRST BANK PLC, KADUNA
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THE EFFECT OF BUSINESS PROCESS RE-ENGINEERING ON
THE ORGANIZATION OBJECTIVES IN FIRST BANK PLC, KADUNA
ABSTRACT
The
study examined effect of business process re-engineering on the organizational
objectives of First Bank Plc, Kaduna. A survey study was used to obtain
empirical data from the field, through the use of 21 item questionnaire design
in five likert scale. The population consisted of staff of First Bank Kaduna
main branch Yakubu Gowon Way. Out of a total population of 125 staff 100 was
selected using the simple random selection technique. The research findings
indicate that business process re-engineering facilitates goal attainment
through improvement in the workflow of an organization thereby increasing
efficiency and enhancing customer satisfaction. The method of business process
re-engineering in First Bank is basically continuous process improvement,
value-stream reinvention and enterprise redesign. Inspite of the positive
effect of re-engineering in an organization, it is confronted with the problem
of change resistance by employees, cultural resistance, implementation risk as
well as the problem of delegating re-engineering task to outsiders.
TABLE
OF CONTENTS
Title Page - - - - - - - - - - i
Declaration - - - - - - - - - ii
Approval Page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vi
Table of Contents - - - - - - - - vii
CHAPTER
ONE – INTRODUCTION
1.1 Background of the study - - - - - - 1
1.2 Statement of the problem- - - - - - - 2
1.3 Objective of the study - - - - - - - 3
1.4 Significance of the study - - - - - - 4
1.5 Research questions - - - - - - - 4
1.6 Scope of the study - - - - - - - 5
1.7 Limitation of the study - - - - - - 5
1.8 Definition of terms - - - - - - - 6
CHAPTER
TWO – LITERATURE REVIEW
2.1 Introduction - - - - - - - - 7
2.2 Concept of business process re-engineering - - - 7
2.3 The effect of business process re-engineering
on organizational objectives - - - - - - - - - 14
2.4 Various method of business process
re-engineering - 16
2.5 The challenges of business process
re-engineering - - 26
2.6 Summary of the literature - - - - - - 32
CHAPTER
THREE – RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - - 34
3.2 Research design - - - - - - - - 34
3.3 Area of Study - - - - - - - - 35
3.4 Population of study - - - - - - - 35
3.5 Sample size and sampling techniques - - - - 35
3.6 Instrument of data collection - - - - - 35
3.7 Validity - - - - - - - - - 36
3.8 Reliability - - - - - - - - - 36
3.9 Method of data collection - - - - - - 37
3.10 Method of data analysis - - - - - - 37
CHAPTER
FOUR – DATA PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - - - 39
4.2 Respondent characteristics - - - - - - 39
4.3 Data analysis - - - - - - - - 40
4.4 Summary of finding - - - - - - - 48
4.5 Discussion of Finding- - - - - - - 49
CHAPTER
FIVE – SUMMARY, CONCLUSION RECOMMENDATION
5.1 Summary - - - - - - - - - 52
5.2 Conclusion - - - - - - - - - 53
5.3 Recommendation - - - - - - - 53
Bibliography - - - - - - - - 54
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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