WHAT IS BPR IN HRM?
We will discuss an important concept of HRM Syllabus 2022 in the post for CAIIB DEC 2022 Exams i.e. BPR (Business Process Reengineering)
Certified Associate of Indian Institute of Bankers is referred to as CAIIB. The Indian Institute of Banking and Finance (IIBF) conducts these tests twice a year. Since its founding in 1928, the IIFB has included 700 financial institutions. In order to acquire the finest performance out of the officials who are currently employees of the Indian foundation of Banking and Finance, the IIBF has directed one of the special tests. The purpose of this test is to evaluate the development strategies for general and dynamic financial administration. It consists of two mandatory papers and one optional paper. It anticipates providing advanced knowledge and skills related to dynamic CAIIB, which is how the financial industry is typically viewed.
DEPARTMENT OF HR
In essence, it is a team in charge of overseeing the administration of employee benefits and the management of the employee lifecycle. Employee benefits include keeping track of time and creating salary sheets, among other things, whereas the employee life cycle comprises hiring, training, onboarding, and terminating the employees.
Role of the HR department
The HR department at your company may be the most perplexing because everyone understands its importance, but very few employees are aware of its full scope.
Businesses are aware of how crucial it is to have an HR department. As human resources began to be viewed as capital rather than as an expense, they gained importance within the company.
In contrast to the previous HR job, which was restricted to the recruitment process, a strong human resource department now significantly contributes to the expansion of the firm.
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BUSINESS PROCESS REENGINEERING (BPR)
Business process reengineering (BPR) is the analysis and redesign of fundamental business processes with the goal of significantly enhancing their effectiveness, productivity, and quality. The collection of related operations or activities carried out to accomplish a particular goal is referred to as a business process.
Simply put, business process reengineering refers to altering how someone does their duties in order to achieve better results. Redesigning the workflows is the goal of business process reengineering in order to significantly enhance customer service, reach new levels of efficiency, lower operating costs, and establish yourself as a global competitor.
Reengineering business processes elevates enterprise to a whole new level. management that cannot be accomplished using the traditional management model. A business process is a group of actions that combine to produce an outcome from one or more inputs. Value addition is the process’s ultimate goal. The steps taken to accomplish a business’s objectives are called processes. The process can also be characterized as a structure or a collection of actions intended to yield a particular outcome for a particular client or market.
The following factors necessitate reengineering the business process:
- The necessity for re-engineering emerges as a result of the departmentalization of the workforce, which causes each employee to concentrate on the performance of his or her department while potentially omitting the crucial difficulties developing in other areas of the company.
- Reengineering is necessary in order to keep up with the always evolving technologies.
- The company’s current procedures may be no longer effective or relevant given the state of the market.
Therefore, the goal of business process reengineering is to achieve significant improvements in terms of price, time, output, quality, and customer response. Additionally, it places a focus on streamlining and simplifying company processes by getting rid of pointless or time-consuming tasks and accelerating workflow by using high-tech solutions.
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Principles Of BPR
- It is important to create work that is result-oriented rather than process-oriented.
The first principle states that several tasks can be integrated into a single, specialized task. Consider redesigning a manufacturing corporation with distinct divisions carrying out various tasks sequentially.
A third party transmits this information to numerous plants and warehouses once the first assesses the consumer requirement and the second enters the information.
- Combining data processing and collection units
The division of labor is an example of how this notion has developed. This implies that the person collecting the data must also handle the data. By removing external interaction for a process, lowers the number of errors.
For instance, a business might have a structure where one department gathers data while the other logs it. As the information is transferred from one department to another, the shared database will frequently contain errors.
- Bringing together processes that are going in the same direction
Hammer contends that rather to focusing on the outcomes, we should incorporate the processes of the activities. Utilizing communication networks and shared databases, the parallel functions must be coordinated. At the process execution stage, these simultaneous operations need to be continuously connected and coordinated. By doing this, the process’s excessive costs and delays will be eliminated.
- The work that is done should include making decisions as well.
To eliminate pointless controls and maintain process control, decision support technology is required. According to Hammer, the individual doing the labor should make the decision.
By giving the authority of the resource the obligation to decide and improve the workflow, the processes can be made better. A workforce that is educated and knowledgeable may accomplish this.
- Take data collection at the source
By minimizing pricey re-entry and inaccurate data entries, this strategy reduces costs. It is based on the idea that information should only be recorded once at the point of creation.
By doing this, the information may be transmitted more easily and doesn’t need to be recorded in multiple places at various times.
Benefits of establishing a BPR in advance
To satisfy the demands and expectations of the changing society, the business process must be continually assessed. It analyses the business processes within an organization and designs the workflows.
With business process re-engineering, a company can do the following:
- Complete client satisfaction
Prioritizing customer demands helps the firm maintain a focused mission. When clients receive superior service that meets their expectations, their loyalty is increased.
To ensure that performance meets customer expectations, the business process design and delivery are revised.
- Cost-Benefit
Through the value chain, superfluous costs are removed as the entire process is rebuilt. Removing the ineffective activities and setting up the teams, it decreases the cost and cycle time. The effectiveness and efficiency of operations have significantly increased.
- Competitive Benefit
An organization gains a competitive edge by focusing on its core capabilities with the aid of business process re-engineering.
Since they have become the company’s defining characteristic, these core principles are challenging for the rivals to imitate. Firm excellence in the larger business process results from gaining a competitive advantage.
- Adds value for clients
A corporation strategically integrates essential processes to design, create, market, and support its product to deliver value to customers during the re-engineering process.
Business process improvement (BPI) and business process reengineering (BPR) are they the same thing?
BPR initially resembles business process improvement (BPI). The two are, nevertheless, distinct due to certain essential differences. BPI may involve a few minor rule changes here and there. Reengineering, however, is an unrestricted strategy to explore beyond the bounds set and introduce seismic alterations.
BPI is an incremental setup that concentrates on tweaking current processes in order to improve them, whereas BPR considers the bigger picture. BPI doesn’t deviate from the norm. It pinpoints the process bottlenecks and suggests modifying particular functionalities. When BPI is in use, the process framework essentially stays the same. BPR, on the other hand, disregards the current guidelines and frequently adopts a novel path to rework procedures from a high-level management viewpoint.
BPI is comparable to updating your project car’s exhaust system. Business process reengineering, or BPR, entails completely reevaluating how the exhaust is managed.
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HR and BPR
Let’s examine the connection between human resource management and business process re-engineering (BPR). In order to test a number of hypotheses about various facets of human resource management, top managers in UK organizations with ongoing or completed business process reengineering projects conducted interviews with them. Four main categories are used to analyze the propositions: structure and culture, managers’ roles, teamwork, and reward systems. The study’s findings indicate that the majority of the organizations under investigation appear to fully implement the BPR principles on human resource management as outlined in the literature. Two exceptions to the assumptions in the literature did exist, though. The first was that a shift from a process-based structure would occur; in most cases, this has happened, but to a matrix form of organization. The second was the suggestion that team-based reward systems would emerge; in reality, this has only sometimes happened. Overall, a highly distinct pattern with regard to human resource management practices emerges for the organizations investigated that have undergone BPR.
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