Professional Documents
Culture Documents
Sriparna Basu
2 types of Culture
Ensures participative management Open communication Greater employee satisfaction Employees also get involved in BPR
Empowermentoriented
Controloriented
Reduced employee involvement Hierarchical structure Narrow span of control BPR can work where jobs are protocol bound and technology plays a significant role in achieving quality & effectiveness
Example: McDonalds
Core philosophy is to achieve worldwide the same quality the same level of service. To ensure these, the company has developed standard operating procedures (SOPs), detailing each and every activity and sub-activity. Employees are supposed to perform their jobs along the lines of SOP details, and cannot be innovative. Innovation-based BPR through employee empowerment cannot fit in McDonalds type of organization.
3 Phases of BPR
Realize:
Organization creates the new corporate culture
Strategy
Structure
Shared Values or Superordinate goals
Systems
Staff
Skills
Style
Hard S: Factual and easy to identify. They can be found in strategy statements, corporate plans, organization charts & other documentation
The Soft Ss are difficult to describe, they are continuously developing and changing. They are highly determined by people at work in the organization
Consistency Environment
C o n s i s t e n c y
Fit
Fit
HR Strategies
Fit
Fit
Organizational Characteristics
Consistency
Organizational Capabilities
Principles for determining the basis for BPR or BPM in Organizations (Peters & Waterman, 1982)
A bias for action (excellent firms make things happen) Closeness to the customer Autonomy & entrepreneurship Productivity Hands-on, value-driven management Stick to the knitting (always deal from strength) Simple form lean staff Simultaneous loose-tight properties (de-centralize decisions while maintaining tight control)
Example 2: P&G
Being an innovation driven organization with 300 branches worldwide, P&G cannot afford to stop its brand portfolio increase They re-engineered the brand management activity introducing the innovating innovation program P&G used a scorecard to evaluate which innovative idea can payoff better This approach helped the company to introduce selectively the innovative brands to suit the market The digital scorecard significantly improved the overall performance of P&G P&G expects to conduct 90% of its R&D in virtual mode, and the remaining 10% only for physical validation of results
Criticism of BPR
BPR may lead to large-scale layoffs in organizations BPR is often perceived as a downsizing tool Often BPR mentality becomes that the existing performance of the company is not good, without examining existing processes thoroughly It focuses on technological efficiency, ignoring people There may be lack of support for implementation, or exaggerated expectation of benefits It does not consider resistance from people There is lack of focus on strategy alignment
Lean Management & Culture The Lean Enterprise Institute at Cambridge, UK defines lean as: a business system for organizing and managing product development, operations, suppliers, and customer relations that require less human effort, less space, less capital, and less time to make mass production