Topics: Business process reengineering, Decision making, Management Pages: 3 (914 words) Published: December 27, 2012
What is reengineering? What are the seven principles for reengineering proposed by Michael Hammer? Which principal is the most important in your opinion? According to Wheelen and Hunger (2010) “Reengineering is the radical redesign of business process to achieve major gains in cost, service, or time. It is not in itself a type of structure, but it is an effective program to implement a turnaround strategy.” TheBusinessDictionery.com defines it as a systematic starting over and reinventing the way an organization, or a business process, gets its work done. Hammer proposed seven principles of reengineering. He believes that organizations should one, organizes around outcomes and not tasks. He proposes that the job of an employee or of a department in the organization should be constructed around an objective or an outcome and not tasks. Two, he suggest that those who use the output of the process should perform the process. This allows for those who need the results of the process to do the process themselves. Three, subsume information-processing work into the real work that produces the information. Hammer believes that those departments that engage in the production of information should also engage in processing and interpreting it. Four, treat geographically dispersed resources as though they were centralized. Technology, Hammer pointed out, provides the ability to keep resources in one place while being able to provide flexible services locally. Five, entails linking parallel activities instead of integrating their results. Hammer proposes that instead of different departments or units working on varying activities that later will conflate, that they communicate throughout the process so the integrating can take place simultaneously. Six, put the decision point where the work is performed and build control into the process. Basically what Hammer is proposing is that those who do the work should decide what happens. However, the process must...
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