Running Head Reengineering the Corporation
Reengineering the Corporation
In the book “Reengineering the Corporation”, Hammer and Champy create a new frame of managerial relations and organizational bureaucracy. The authors address such important problems as impact of technology on business environment, new labor relations and organizational structures affected a modern corporation. The book consists of 13 chapters and an Epilogue discussing different problems and issue of modern organizational bureaucracy. The authors criticize old approaches to management based on Adam Smith 's division of labor and methods of business relations. At the beginning of the book the authors question: “If managements want companies that are lean,
…show more content…
Reengineering is inherently complex undertaking. Changes are made up of interrelated parts, meaning that the failure of one part may have significant downstream consequences. They are unique, so past experience is an imperfect guide to the future. They entail the use of borrowed resources that may not be available when they are needed. They operate in a management quagmire where accountability is unclear and key actors who follow their own agendas may operate at cross-purposes. Such an environment is ideal for errors and omissions. There is a constant lurking threat that the best intentions will go awry, that promises made will not be kept (p. 128). It can be contained to a degree by the implementation of thoughtful methods and procedures. Reengineering has radically changed corporations: one element of organizational change that is often overlooked is compensation strategies. Most companies still compensate employees the way they did decades ago. However, these pay strategies no longer work in process and team-based cultures. The authors identify four work cultures (functional, process, time-based, and network) and explain how to align pay strategies with each one. Chapters 8 and 9, “The Experience of Process Redesign” and “Embanking on Reengineering” discuss methods and procedures which should be taken into account on making sure that nothing falls through the cracks. They describe the steps that should be taken
One of the important aspects of business management is having a proper compensation system. Compensation ensures that the staff of the company obtains the results of their efforts. Compensation is a cost to the enterprise and, therefore, a proper remuneration model must demonstrate its ability to produce returns. Also, since compensation is what the employees get in exchange for their services, the type used must be one that will motivate the employees (Belcourt & McBey, 2015). Henderson printing company is a mid-level company. Therefore, it requires a very critical remuneration system that will help it to survive. This memo explores the compensation models that Henderson printing operates as well as suggests the necessary changes.
Hammer and Champy provide a case based on the re-engineering of Ford Motor's "Account's Payable" department. Which of the following ideas best describes how Re-engineering helped reduce cost and effort in dealing with the problem?
This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.
A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:
Reengineering differs from reorganizing, downsizing and other concepts of organizational restructuring because reengineering includes much more than reorganizing, downsizing and other named concepts of organizational restructuring. Reengineering is defined as "the systematic redesign of a business's core processes, starting with desired outcomes and establishing the most efficient possible processes to achieve the outcomes."
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
Organized Change Consultancy. (2010). Re-engineering and TQM: Approaches to Organizational Change . Available: http://www.organizedchange.com/village.htm. Last accessed 2nd January 2014.
This last question opens a new chapter in implementation of change for the manager and organization. Many times change is difficult because the change will affect various units of the organization and how they impact other units. For example to implement an Electronic Health Record (EHR) system will change the structure of the technology department, which in turn changes the structure of the entire organization. Management will need to access all the needs the organization will have such as new equipment, new staff, new policies, etc.
This paper will examine setting the stage for strategic compensation and bases for pay. There are three main goals of compensation departments: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems define the relative value of each job among all jobs within a company. (Martocchio, pg. 22, 2011) With this system companies want employees to be paid more based on their qualifications and responsibilities. They believe someone with less experience should be paid differently. To determine such evaluation companies use job analysis in order to provide job descriptions. The job evaluation is to determine pay according to a particular position. Market-competitive
Change has become necessary for every organisation there is. World is moving rapidly towards better technologies, efficient systems, new techniques, compact profits, different friendlier environments and organisations are always in the race to reach new heights by thriving effectively in this competitive environment (Kotter, 1996).
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
Change management is relevant as though the research finds that change is taking place at an ever-increasing pace, the evidence suggests that most change initiatives fail. For example, recent CIPD research suggested that less than 60% of re-organisations met their stated objectives which are usually bottom line improvement. This is consistent with other published research.
Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration. Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process. Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).
In the book Reengineering the Corporation: A Manifesto for Business Revolution, Michael Hammer and James Champy discuss a concept that he originated known as “reengineering”. The process of reengineering involves coming up with new ideas, specifically processes, which are technologically advanced and extremely effective in completing corporate work. Companies must think ahead so that they will not only succeed today, but also set the rules for future business. A critical part of reengineering involves ignoring the current procedures and structures that have been set by a company and replacing them with more efficient processes. In creating these new processes, companies must focus on the needs and wants of consumers. This will ensure customer satisfaction, which is a key part of maintaining a competitive advantage in today’s world.
The purpose of this report was to examine organization restructuring. Research for the report included literature based on organizational restructuring and the various processes involved in restructuring. The major findings indicate that the two methods commonly used for organizational restructuring to be downsizing and reengineering of business processes(Cummings & Worley, 2008). Downsizing assist the company to reduce its workforce, and this saves cost in terms of payroll reduction. Reengineering allows a company to change and adapt to the way it