Unit-7

Re-engineering ,Multi-
skilling & Business Process
Reengineering

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 What is a Process?

• A specific ordering of work activities across

time and space, with a beginning, an end, and
clearly identified inputs and outputs: a
structure for action.
(Davenport, 1993)

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 What is a Business Process?
• A group of logically related tasks that use the
firm's resources to provide customer-
oriented results in support of the
organization's objectives
• Business processes are simply a set of
activities that transform a set of inputs into a
set of outputs (goods or services) for another
person or process using people and tools.

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Business Process

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 What is a Re-engineering?
• Reengineering (or re-engineering) is the
radical redesign of an organization's processes
, especially its business processes.

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 Why Reengineer?
• Customers
– Demanding
– Sophistication
– Changing Needs
• Competition
– Local
– Global
• Change
– Technology
– Customer Preferences
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 Business Process Reengineering
• Business Process Reengineering is a
management approach that examines aspects
of a business and its interactions, and
attempts to improve the efficiency of the
underlying processes. It is a fundamental and
radical approach by either modifying or
eliminating non-value adding activities.

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 Business Process Reengineering

• Reengineering is the fundamental rethinking

and redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.
(Hammer & Champy, 1993)

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 Business Process Reengineering
• Business process reengineering is the
redesign of business processes and the
associated systems and organizational
structures to achieve a dramatic
improvement in business performance.  The
business reasons for making such changes
could include poor financial performance,
external competition, erosion of market share
or emerging market opportunities. 

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BPR is the examination and change of
five components of the business.

• Strategy
• Processes
• Technology
• Organization
• Culture

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 BPR
• "BPR, seeks radical improvement rather than
merely continuous improvement. It escalates
the efforts of JIT and TQM to make process
orientation a strategic tool and a core
competence of the organization. BPR
concentrates on core business processes, and
uses the specific techniques within the JIT and
TQM ”toolboxes” as enablers, while
broadening the process vision."

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 BPR Methodology
• Envision new processes
• Secure management support
• Identify reengineering opportunities
• Identify enabling technologies
• Align with corporate strategy
• Initiating change
• Set up reengineering team
• Outline performance goals
• Process diagnosis
• Describe existing processes
• Uncover pathologies in existing processes
• Process redesign
• Develop alternative process scenarios
• Develop new process design
• Design HR architecture
• Select IT platform
• Develop overall blueprint and gather feedback
• Reconstruction
• Develop/install IT solution
• Establish process changes
• Process monitoring
• Performance measurement, including time, quality, cost, IT performance
• Link to continuous improvement 12
 Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision of Improved Process

Identify Action Plan

Execute Plan

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 1st Step-Select the Process & Appoint
Process Team

• Two Crucial Tasks

– Select The Process to be Reengineered

– Appoint the Process Team to Lead the

Reengineering Initiative

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 Select the Process
• Review Business Strategy and Customer
Requirements

• Select Core Processes

• Understand Customer Needs

• Don’t Assume Anything

• Select Correct Path for Change

• Remember Assumptions can Hide Failures

• Ask - Questionnaires, Meetings, Focus Groups

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 Focus Group
• A focus group is a form of
qualitative research in
which a group of people are
asked about their
perceptions, opinions,
beliefs and attitudes
towards a product, service,
concept, advertisement,
idea, or packaging.
• Questions are asked in an
interactive group setting
where participants are free
to talk with other group
members.
 Appoint the Process Team
• Appoint BPR Champion

• Members were chosen from all

the specialist areas

• Establish Executive Improvement Team

• Provide Training to Executive Team

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 2nd Step-Understand the Current Process
• Develop a Process Overview
• Clearly define the process
– Mission
– Scope
– Boundaries
• Set business and customer
measurements
• Understand customers expectations
from the process (staff including
process team) 18
 Understand the Current Process
• Involves the examination of relevant
documentation ,interviews with
relevant personnel's.
• Clearly Identify Improvement
Opportunities
• Document the Process
– Cost
– Time
– Value Data
• Carefully resolve any inconsistencies
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 Develop & Communicate Vision of
Improved Process

• Communicate with all employees so that they

are aware of the vision of the future

• Always provide information on the progress of

the BPR initiative - good and bad.

• Demonstrate assurance that the BPR initiative is

both necessary and properly managed
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 3rd Step-Develop & Communicate Vision of
Improved Process
• Promote individual development by indicating
options that are available

• Tackle any actions that need resolution

• Direct communication to reinforce new

patterns of desired behavior

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 4th Step-Identify Action Plan
• Develop an Improvement Plan

• Simplify the Process to Reduce Process Time

• Remove any Bureaucracy that may hinder

implementation

• Remove non-value-added activities

• Standardize Process and Automate Where

Possible 22
 Identify Action Plan

• Up-grade Equipment

• Plan/schedule the changes

• Construct in-house metrics and targets

• Introduce and firmly establish a feedback system

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 5th Step-Execute Plan
• Frequent monitoring is essential

• Define and eliminate process problems

• Evaluate the change impact on the business and

on customers

• Ensure No negative effects on employee morale

• Provide advanced team training

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 Barriers to Business Reengineering

• Potential Project Implementation Success : No

drastic results
• High Project Risk: Depends on Knowledge
Management of project (risk factors)
• Implementation Barriers: Obstacles to overcome on
a day-to-day basis
• Role of a Leader/ Manager is crucial: Managing
human resources is critical at every stage

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 LIMITATIONS OF BPR
• It only combines the element of older concepts.

• Do not devote enough attention to power issues

and change management

• BPR provides minimal or no methodological

support to implementation.

• BPR is impossible to be conducted totally .

• BPR advantages are short lived

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 The Principles of Business Reengineering
• Concentrate on outputs rather than inputs, and link
performance measures and rewards to customer related
outputs.
• Give priority to the delivery of value rather than the
maintenance of management control .
• Encourage involvement and participation. This requires
error-tolerant leadership.
• Ensure people are equipped, motivated and empowered to
do what is expected of them.
• Where ever possible, people should assume full
responsibility for managing and controlling themselves.
• Build learning, renewal, and short feedback loops into
business processes.

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 The Principles of Business Reengineering
• Focus on harnessing more of the potential of people
and applying it to those activities which identify and
deliver value to customers .
• Encourage learning and development by building
creative working environments.
• Think and execute as much activity as possible
horizontally, concentrating on flows and processes
(including communication) through the organization.
• Remove non-value added activities, undertake
parallel activities, speed up response and
development times.

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 Success of BPR

• Top Management Sponsorship

• Strategic Alignment
• Compelling Business Case for Change
• Proven Methodology
• Effective Change Management
• Line Ownership
• Reengineering Team Composition

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HR AND BUSINESS PROCESS
REENGINEERING

BPR HR

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 HR’S ROLE IN REENGINEERING
• Building Commitment

• Building Teams

• Redesigning Compensation

• Redesigning the Work Itself

• Moving from Controlled to Empowered Jobs

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CASE STUDY

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 MAHINDRA & MAHINDRA LTD.

Facts:

• 1945:
J.C.Mahindra and K.C.Mahindra,

• 1948:
Renamed Mahindra & Mahindra Ltd.

• Employed:
Over 17000 people

• Fact-Six state-of-the-art manufacturing facilities

spread over 500,000 square meters.

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 M&M's Problem
In the mid-1990s:

• M&M was facing serious

problems at its Igatpuri and
Kandivili plants in Maharashtra.

• Suffering:
manufacturing inefficiencies,
poor productivity,
long production cycle,
sub-optimal output.
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 M&M's Problem
The reason:
• Highly under-productive
• Bloated workforces
• Lenient towards running the plants
• Frequently crumbled under the pressure of
union demands.
• Very unhealthy and corruption was widespread
in various departments

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 M&M's Problem
• The unions went on a strike
• Senior staff come down to the plant and work in
their place.
• 100 officers produced 35 engines a day
1200 employees producing 70 engines
• After five months, the workers ended the
strike.
• Focus on two issues :
Reengineering the layout
Method of working, and productivity. 36
New Organizational Model

Automotive

Automotive
Tractors
Components

Main head

Tele
Infrastructure
communication

Trade &
financial
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 Critique
• BPR concerns the strict focus on efficiency and technology and
the disregard of people in the organization that is subjected to a
reengineering initiative .
• Lack of management support for the initiative and thus poor
acceptance in the organization.
• Exaggerated expectations regarding the potential benefits from
a BPR initiative and consequently failure to achieve the
expected results.
• Underestimation of the resistance to change within the
organization.
• Implementation of generic so-called best-practice processes
that do not fit specific company needs.
• Over trust in technology solutions.
• Performing BPR as a one-off project with limited strategy
alignment and long-term perspective.
• Poor project management
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 CONCLUSION
• BPR deals with Changes in all aspects of
businesses and people.

• It requires not only jobs and skills change but

also people's styles.

• Indispensable factors to determine whether

reengineering succeeds or not.

• Leaders must help people to cope with these

changes.
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Multi-skilling

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 Multi-skilling
• Multi-Skilling is usually defined as " a technician of one skill of
a high level who is trained in theory and practice to perform
at least two or more skills to a basic, or pre defined level.

• Multi-skilling- the ability of an employee to perform more

than one function or the cross-training of an employee in
several disciplines or tasks.

• A "skill" , is a trade for every industry; Electrical, Instrument,

Mechanical and Operations technicians.
• Dual Skilling is little less adventurous; but much more
realistic and workable. It is defined as " a technician of one
skill of a high level who is trained in theory and practice to
perform one more skill to a basic level or above".

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 Multi-skilling
• Managers views of  Multi skilling
Unless the manager comes from an engineering/operational 
background  they will have little comprehension of  skill levels
and what it takes in  training, experience, theoretical
knowledge and motive skills to become a proficient
technician. Multi/Dual skilling is primarily seen as a way to
reduce costs by cutting manpower.

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 Personal Check-In: Skills Inventory

Can you use a scale accurately?

Do you have communication skills?
Do you have time management skills?
Can you interview candidates for an open position
and select the most qualified?

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How skill inventory is created?
Job Analysis: The study of what the
employees are doing and what the job is
expected to accomplish.

Requirements of the job:

Tasks
Duties
Equipment used

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Job Analysis: The study of what the
employees are doing and what the job is
expected to accomplish.

Requirements of the employee:

Training or educational tasks
Physical demands of the job
Technical and computer skills
Interpersonal skills
Attitude requirements

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Job Assessment: Assess the accuracy of the
current job description with the information
derived from the job analysis.

Job Description: Here condition is that every

organization should update the job
descriptions regularly.

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 Advantages of Multi-skilling
Work force is more flexible.
Employees become more aware of the workflow.
Employees are better prepared to anticipate
problems or requirements of other areas.
Employees can assume other tasks when there is
absenteeism.
Employees can be moved into other positions at
peak times of the operation.
A new employee at a job may have new ideas to
fine-tune that job.
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 Advantages of Multi-skilling

Employees overcome feelings of having a

dead-end job.
Jobs remain interesting and challenging.
Tedious tasks can be spread around,
decreasing turnover.
Boredom in the workplace is reduced.
Cohesiveness is enhanced.

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Disadvantages of Multi-skilling

Possible reduction in productivity during the

training period.
Increased supervisory time is required until
the employee is up to speed.
Competence assessments may be more
detailed than in traditional systems.

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 Reality Practice: Case Study

A rural district on the eastern seaboard is experiencing

a tremendous growth in population. The beach has
attracted a great deal of tourism, increasing the
hospitality industry. With that, the permanent resident
population has truly exploded, and the school board
has had to build two new elementary schools to
accommodate the influx of students. Mary Smith, the
manager at Lincoln Elementary with an enrollment of
750, has had a stable staff for over ten years. All her
employees know their jobs well, and Ms. Smith was
very proud that her staff had won numerous awards for
zero absenteeism over the years.

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This year, with the opening of two new schools, half of Ms.
Smith’s staff has requested a transfer to the new schools.
They have told Ms. Smith they really like working with her;
but they want to see what it’s like working in a new school,
and the new schools are a little closer to their homes. At
the end of the school year, Ms. Smith will be left with a
baker, cold/salad prep person, and the dishwasher. She will
have to replace at least four of her current employees—two
cashiers, one veg. cook, and one non veg. cook.

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Reality Practice: Case Study Worksheet

Q1-Could there be another reason why so many of Ms.

Smith’s workers chose to leave their current jobs to
start with a new manager?

Q2-With such a stable work force, how could Ms.

Smith have averted this situation?

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Reality Practice: Case Study Worksheet

• Ms. Smith has to determine how she is going to

utilize her remaining employees. List the skills each
remaining employee has.

• How many of these skills can be applied to the other

positions that will be vacant? List the skills and
positions below:

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Checking Out: Skill Development
Think about the advantages of having multiskilled employees
in your operation. Using the skill list from the Reality
Practice, group different jobs in the kitchen which may have
similar skill requirements. Develop a plan to cross-train your
current employees in a systematic fashion until you have
achieved your goal of a multiskilled team.

Job Skill Required

____________ ________________________________
____________ ________________________________

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The End

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