THE EFFECT OF BUSINESS PROCESS REENGINEERING ON THE ORGANIZATION OBJECTIVES

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.

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:

1. Examine the effect of business process re-engineering on the objective of First Bank. The specific objectives are to:
2. To evaluate how workflow redesign can affect the operation of First Bank Plc Kaduna Main Branch
3. To identify the methods of business process re-engineering used in redesigning the operations of First Bank Kaduna
4. To find out issues and constraint hindering business process re-engineering projects in First Bank Plc Kaduna Main Branch
5. 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

1. To what effect is business process re-engineering towards achieving the organizational objective of First Bank
2. How does workflow re-design affect the operations of First Bank Plc Kaduna?
3. Which method of business process re-engineering did First Bank Plc use in re-designing their operation in recent time?
4. What are the constraint hindering business process re-engineering projects in First Bank Plc Kaduna?
5. What are the possible solutions to this constraints