Impact of Bpr on Organizational Performance

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European Journal of Social Sciences – Volume 7, Number 1 (2008)

Impact Assessment of Business Process Reengineering on Organisational Performance Mrs. Adeyemi, Sidikat Department of Business Administration, Faculty of Business and Social Sciences University of Ilorin, P. M. B. 1515 Ilorin, Kwara State, Nigeria E-mail: sidiadeyemi@yahoo.com Tel: +234 8054451111 Mr. Aremu, Mukaila Ayanda Department of Business Administration, Faculty of Business and Social Sciences University of Ilorin, P. M. B. 1515 Ilorin, Kwara State, Nigeria E-mail: aremuilalaa@yahoo.com, aremuilala@unilorin.edu.ng Tel: +234 8036718531 Abstract In Nigeria, the changing dynamics of banking and other financial institutions market forced players at all levels to re-engineer their business organisations. The banking operations and functions which is intend to meet emerging challenges of bank consolidation, slashing operating cost, outsourcing, portfolio investment, payments and settlement system call for innovative banking practices through Business Process Re-engineering. This is to enable Nigerian banks to incorporate strategic innovative customer schemes in order to bridge the service gap inherent in Nigerian banking sector. The objective of this paper is to assess the impact of reengineering on organizational performance and to uncover how business process reengineering can help organizations to effect innovative and strategic changes in the organisation. The data for this current investigation were obtained from primary source that was analysed through simple percentage analysis and regression analysis. The paper concludes that business process reengineering has become useful weapon for any corporate organisations that is seeking for improvement in their current organizational performance and intends achieve cost leadership strategy in its operating industry and environment. It recommended that reengineering process remains effective tools for organizations striving to operate as effectively and efficiently as possible and organizations are required to reengineer their business processes in order to achieve breakthrough performance and long term strategy for organizational growth and performance.

Keywords: Business Process, Business Process Performance, Information Technology

Reengineering,

Organisational

1. Introduction
The goal of business process re-engineering is to redesign and change the existing business practices or process to achieve dramatic improvement in organisational performance. Organizational development is a continuous process but the pace of change has increased in manifolds. In a volatile global world, 115

European Journal of Social Sciences – Volume 7, Number 1(2008) organizations enhance competitive advantage through Business Process Re-engineering (BPR) by radically redesigning selected processes. Sharma (2006) posited that business process re-engineering implies transformed processes that together form a component of a larger system aimed at enabling organization to empower themselves with contemporary technologies business solution and innovations. Organizational effective performance has become a watchword in modern business; as a result there are inexorable pressure for Business Process Re-engineering. The rampant and rapid expansion of competition across markets and geographic raises important questions such as “how should work be redesigned”, “who does it”? and “where do they do it”? “how to get it performed”? These questions necessitate venturing of Business Process Re-engineering into the overall strategy for sustained competition advantage, check costs, differentiate products and effective price management with greater intensity and then flawless execution. At this juncture, it is pertinent to ask what is “Business Process” and as well as “Business Process Re-engineering”. According to Stoddard and Jarvenpea (1995) Business Process are simply a set of activities that transformed a set of inputs into a...
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