Re engineering practices generates many changes

Process Teams: Instead of functional teams spread across the whole spectrum of organization, the re-engineered organization brings forth process team assigned one particular process; say fulfilling the orders. Work becomes integrated. The artificial separations are dispensed with. Such process teams can come for a short period too, say the new product development team, which is dismantled after the new product becomes a reality.

Job Structuring: In assembly line work, each individual performs a particular task, in which he becomes a specialist. In reengineering, process team workers are responsible for the overall process and are expected to have generalist skills. Individuals continue to perform certain tasks, but may perform several other tasks too. It becomes a multidimensional work. Work becomes more broad based process performance borders on entrepreneurship. Work becomes rewarding. We can grow with work. More time is spent on work which adds value. Work is upgraded, and becomes more challenging and complex.

Empowered Team Members:
In re-engineered processes teams are given authority to take decisions. Red-tapism is cut. It is a team that is self directed. If they have to get supervisor sanction to proceed, they are not process teams. Recruitment and selection in re-engineered organization become crucial. Job specifications just do not spell out the qualifications. They are equally emphatic about character. Self discipline and motivation are important.

Training Vs Education: A team has to exercise judgment by having an insight and understanding of the problem. This comes after education. Training just improves skills.

Efficiency Vs Effectiveness: In traditional organization, efficiency matters though it may not lead to improved process performance. Effectiveness means doing the right things. It creates value. Re-engineering is result oriented. In re-engineered organization, the criteria of measuring performance and compensation change. Persons are not paved in re-engineered organization on the basis of their position. They are valued for their contribution and performance.

Promotion: Promotion is based on ability and compensation on performance. We may make a good salesman a sales manager. The assumption is that a person who is good at sales will make a good manager of sales people. Often, this is not true. We may get a bad sales manager at the cost of a good salesman. Promotion or advancement should always be related to ability.

Values: In traditional organization, there is commitment to loyalty towards the boss. Though consumer orientation is given top sympathy, it is not practiced. In re-engineered organization, the bonus is paid on the basis of customer satisfaction. Managers then shift their focus. The organizational systems decide the values and beliefs. Management itself must be committed to these values. Changing process by itself would not work. It must be accompanied changing values. There should be realization that we exist because of our customers. Value statements are meaningless without supporting management systems.

Less Supervision, More Loading:

In a re-engineered organization, simple jobs become complex, and complex processes become simple. Process teams have no need to have close supervision. They require coaching for advice. Managers in a re-engineered organization are facilitators. They provide the conducive environment. They must have good HR skills.

Flat Structures: Work is organized around process and teams which perform these processes. Communication is need based. Control is vested in the people performing the process. Organizations tend to become flat after re-engineering. Structures are not rigid. They become flexible.

Leadership: As managers enable the workers to perform their leadership role acquires greater importance. They influence and reinforce employee’s values and beliefs.

An organization follows a business system. The business process changes, and consequently jobs and structure changes. It also changes the personnel aspects – measurement of performance and compensation. These influence the values and beliefs of the employees which in turn support the business process. The integration of these four elements is important. Re-engineered organization replaces the existing diamond by a new diamond.