REVIEW ARTICLE

Management Insight, Vol. XVII , No. 1; 2021 Print ISSN: 0973-936X; Online ISSN: 2456-0936

Business Process Reengineering – A Review on Change

Management
Prashant Singh1, Pushpa Kataria2
1
Assistant Professor, 2Associate Professor
1&2
Doon Business School, Dehardun, India.

Abstract
With today's highly competitive and rapidly changing world economic marketplace, firms must adopt business process reengineering to
sustain their competitive advantages and increase profitability. BPR is one of the most popular ongoing change management theories as a
solution for firms to improve their performance significantly, upraise their efficiencies, and gain a competitive advantage in this
constantly developing and changing world. BPR usually leads to essential organizational changes in terms of structure and management
processes. This paper aims to explore the change management process through BPR implementation in Radiant Optoelectronics
Company. At the same time, focusing on six interventions, including Open systems planning, Trans-organizational development (TD),
Business process reengineering (BPR), Business Restructuring, Work Redesign, and Socio-technical Systems Approach (STS). Each
intervention is accompanied by its definitions, advantages and disadvantages, and comparison and contrast with other interventions.
These interventions differ from each other primarily in terms of IT innovation, communication environment, and application in product
design and performance. This report recommends BPR as the best intervention for Radiant Company to accomplish its goals because it
emphasizes cost reduction, product and service quality, and organizational system speed. Besides, there is evidence that companies that
implement BPR enjoy significant benefits in improved customer satisfaction, productivity, and profitability. However, this study suggests
that the company must be keen on this strategy since it is time-consuming and may harm people's jobs if proper plans are not done before
implementation. Other issues that the company might experience due to poor planning include lack of sustained management
commitment and leadership, unrealistic scope and expectations, resistance to change, and higher demands.

Keywords: BPR, Change Management, Performance, restructuring, organizational systems

Management Insight (2021). DOI: 110.21844/mijia.17.1.7

Introduction Corresponding Author: Prashant Singh, Lecturer, Assistant Professor,

Doon Business School, Dehradun, India.,
Currently, the world's economic marketplace is rapidly Email: prashant.singhuq@gmail.com
How to cite this article: Singh P., Kataria P.,. (2021). Business Process
changing and highly competitive, that organizations Reengineering – A Review on Change Management. Management
need to give up outdated ways of doing business and Insight, 17(1) 50-55
adjust to changes in their environment. Business Source of support: Nil
Conflict of interest: None
Process Reengineering (BPR) is one of the most popular Received: 02.06.2021; Accepted: 24.06.2021; Published: 14.07.2021
change management approaches which has attracted
significant attention from practitioners and
academicians and has become commonplace among Following the continuous expansion in the application
companies. This study is based on Radiant Opto- of liquid crystal and the consistent development and
electronics Company, a multinational Opto-electronics innovation of new technologies, the backlight module
company established in July 1995. The company's head industry has entered into an inter-regional competition
office is located in Kaohsiung Export Processing Zone from regional competition after more than ten years of
in Taiwan. Radiant Opto-electronics is the first development. In order to prepare to meet more powerful
professional R&D and manufacturer of backlight and high-class competitors, customers' high
modules that focus on designing, manufacturing, expectations, and demands in the future, Radiant is
assembling, and marketing backlight modules. implementing BPR to enhance its global business
 Business Process Reengineering – A Review on Change Management

blueprint and outstanding operating performances and Ramdeo, 2020). According to Singh and Ramdeo, many
to cultivate talented people for crucial long-term organizations nowadays adopt the Trans-organizational
development in national, regional, and global markets development strategy to provide additional resources for
(Radiant, 2009). research and development. Applying diverse
professionalism to solve complex tasks and issues
Literature Review spreads new risks, helps organizations attain economies
of scale, and access more diverse markets can be the
Open systems planning other options.

Generally, an open system is a framework that often Boje (1979) described TD as collective storytelling
shares feedback with its external environment. In other shaped and co-constructed by the participants in an
words, it is a group of sections adding up to a whole that organization. Each stakeholder expresses their
interacts with their environment through efforts, collective storytelling's points of view, whether
materials, and information exchange, aiming to renew problem-based, issue-based, solution-based, or just
and grow the organizational system (Jaskyte, 2020). fantasy based on the meaning. The main advantages of
Open system planning (OSP) improves individual and TD are that when people communicate their stories, they
organizational effectiveness by enhancing interactions convoke to interact and form everyday experiences,
between the organizational systems and their external form networks for actions. Change develops around
environment. OSP is usually ideal for organizations their collective storytelling (Boje, 1982). However,
seeking a more flexible environment for systems research has shown different impacts on learning and
integration and development. It provides improved knowledge interwork during trans-organizational
utilization of information technology and helps product design and innovation performance (Millar,
organizations be more adaptive to changes (Jaskyte, Demaid & Quintas, 1997). Therefore, TD is similar to
2020). Besides, OSP increases organizational the socio-technical system approach and differs from
performance and functionality through cost reduction work redesign and business restructuring.
using new technology (Martin & Hough, 1992).
However, Chau (1997) has found a significant failed Business process reengineering (BPR)
relationship between these benefits and adoption that is
quite different from other IT innovations studies. Like BPR is the process of redesigning or changing the
the socio-technical system approach and work redesign, prevailing business procedures (Lizano-Mora et al.,
OSP focuses on the communication environment and IT 2021). Lizano-Mora et al. argue that an organization is a
innovation. simple collection of roles and a complete operating
system with very independent sections that work for the
Trans-organizational Development organization's good. In most cases, BPR is considered an
organizational development project led by a project
Trans-organizational development (TD) refers to a team that analyses and implements the required changes.
development strategy for organizations seeking efficacy Lizano-Mora et al. also suggest that BPR creates a vision
and achievement of set goals such as improved financial for businesses and offers a business goal after business
performance, customer satisfaction, and the power to and management redesigning. Ongeri, Magutu, and
adjust to new changes. The core intention of TD is to Litondo (2020) regard information technology as the
facilitate the effectiveness of an organization through core consideration in BPR for a company that seeks to
the application of exceptional proficiencies and make radical changes. Ongeri, Magutu, and Litondo
resources such as innovative products (Singh & further argue that IT utilization in BPR challenges the
Ramdeo, 2020). Furthermore, TD assists organizations traditional notion of discontinuous recognizing or
to develop and maintain multi-organization thinking and deviating from the outdated rules and
connections, transcend the perspective of single fundamental assumptions underlying organizational
organizations and deal with the issues and needs of all operations. They explain BPR stating that IT is a core
organizations or stakeholders involved (Singh & resource that ensures critical changes in marketing,

Management Insight Vol.17, No.1; 2021 51

 Business Process Reengineering – A Review on Change Management

competitive behavior, and customer service and helps products or services' improvement; failure to emphasize
organizations attain competitive advantages. the company's strategy hence cannot lead to radical
improvement (Gupta & Rohe, 1997). BPR can be
The concept and purpose of BPR are to trace its roots defined as the process of a set of connected actions to
back to management and to make all processes the best take an input and transform it into an output. The
(Goksoy, Ozsoy, & Vayvay, 2012). However, the transformation should also add value to the input, thus
foundation of BPR is the growth of the company producing an output that is beneficial to the

Development and
Objectives
Ongoing Continuous
Improvement Understand Exiting
1 Processes
8
2

Evaluate the 7 BUSINESS

New Process PROCESS Identify Process
RE-ENGINEERING for R-design
3

6
4
Make New Process
Operational 5 Identify Change
Levers

Implement the
New Process
Source: Vakola et al. (1998)

Figure1 : The process of BPR

customers (Johansson et al., 1993). However, BPR is may also entail reconfigurations or simple changes such
very time-consuming and with high-risk and high as segregating, adding, dissolving, or transferring
rewards. Some reasons for failing to carry out BPR are business units that may have little or no impact on the
resistance to change, lack of preparation, incorrect deeper structure (Ongeri, Magutu & Litondo, 2020).
strategic mission and vision, and high expectations too Ongeri, Magutu, and Litondo explain that successful
early (Goksoy, Ozsoy&Vayvay, 2012). Unlike business business restructuring requires debtors to make
restructuring that focuses more on downsizing, BPR fundamental and strategic changes to the organization
focuses on innovating and improving organizational and have the required resources to carry out the
performance. significant upheavals.

Business Restructuring Business restructuring is usually essential when firms

encounter changing business environment,
Business Restructuring, often initiated as a rescue tool, unsatisfactory operating performance and stock returns,
mainly when firms are dealing with negative earning, financial distress, economic recession, and corporate
which forces organizations to operate things such as a disciplinary events (Lin, Zu-Hsu & Gibbs, 2008).
t a k e o v e r, m e rg e r s , d i v e s t i t u r e s , fi n a n c i a l Although it is considered as a rescue tool to save firms,
recapitalizations, going-private transactions, spin-offs, there are still some negative impacts. For example, cost
and splits-up (Weston, Jawien, Levitas, 1998; Lin, Zu- control is often the first step to return to profitability.
Hsu, & Gibbs, 2008). When a company undergoes Reducing labor costs, production costs, selling and
business restructuring, it organizes its system in a way administrative expenses, R&D expenditures, and
that improves its functioning. The business restructuring financing costs are standard measures of corporate

Management Insight Vol.17, No.1; 2021 52

 Business Process Reengineering – A Review on Change Management

restructurings (Lin, Zu-Hsu & Gibbs, 2008). In and technical factors that affect the operation and
addition, firms will lose their talent, and organizational utilization of computer-based systems. Failure to do so
knowledge will outflow. Nevertheless, compared to can alter the ability of the systems to make the desired
other interventions, business restructuring saves the contribution to the organizational goals.
firm from financial loss and deficit, unlike others, by
mainly focusing on organizational improvement and The benefits of STS are that it enables the firms to
innovation. redesign job-related processes and holds jobs in
organizations that can be conceived in terms of social
Job or work redesign and technical subsystems. On the one hand, the social
subsystem comprises the profile and expectations of
Job or work redesign refers to activities that involve the employees, patterns of supervisory-subordinate
alternation of specific jobs to improve both relationships, interpersonal relationships of employees,
productivities and benefit both employees' work and the natural interaction of subgroups within the
experiences and their employers (Hackman, 1980; population. On the other hand, an organization's
Hornung et al., 2010). Further benefits include more technical subsystem involves tools, work techniques and
intrinsically satisfying work and greater wellbeing for procedures, skills, knowledge, and devices used by the
employees, along with gains in employee attendance, social subsystem employees to complete the
retention, performance, and productivity that organization's tasks (Ghosh & Sahney, 2011).
employers value. Moreover, this positive work- Nevertheless, according to Ghosh and Sahney (2011),
outcome will lead to employees' initiative, STS has significantly influenced managerial retention.
organizational commitment, empowerment, and Comparing STS to others, this intervention focuses
increasing work engagement, reducing work stressors more on internal communication between social aspects
(Hornung et al., 2010). However, an empirical study has and technology for change management, similar to
found a negative impact on the government in Taiwan. trans-organizational development.
Therefore, organizations must provide a way to counter
negative attitudes toward change among employees' In contrast, STS, unlike business restructuring, is a big
resistance to change, which may hamper the project. Several authors' viewpoints are that businesses
organization's effectiveness (Chen & Chen, 2008). should reap significant bonuses by thinking of
Compared with other interventions, work redesign businesses in terms of process rather than just jobs
focuses on employees' productivity and performance (Gupta &Rohe, 1997; Johansson et al., 1993).
outcomes, whereas other interventions focus on Furthermore, instead of reducing the size of functions to
organizational performance and innovation. cut cost, several authors advocated reform process to
create more value for less effort (Johansson et al., 1993;
Socio-technical Systems Approach (STS) Hammer & Champy, 1993; Alter, 1990; Venkatraman,
1991; Davenport & Short, 1990; Wastell et al., 1994).
STS are design methods that consider human, social,
organizational, and technical factors in the Conclusion And Future Business Implications
organizational systems design process (Ongeri, Magutu
& Litondo, 2020). STS aims to ensure that the BPR is defined as a management tool to streamline and
organizational and technical dimensions of a system are simplify operations and business processes so that
addressed together. However, although many managers organizations become ready to compete and survive
recognize the importance of socio-technical issues, STS (Gupta & Rohe, 1997). Besides, BPR helps
methods are rarely utilized, primarily due to challenges organizations to accomplish significant improvements
in using the methods and the lack of connection between by rethinking and redesigning the way that business
these approaches and technical engineering issues. systems work, with the help of information technology
Besides, many individuals usually encounter issues (IT) as the primary facilitator. (Jain, Chandrasekaran &
interacting with technical systems. Ongeri, Magutu, and Gunasekaran, 2010; Lee, Chu & Tseng, 2009). BPR is
Litondo view that systems design should consider social also the best approach to achieve all the Radiant factors

Management Insight Vol.17, No.1; 2021 53

 Business Process Reengineering – A Review on Change Management

because it is highly founded on innovation and This literature has recommended Business Process
improvement, process redesign, and information Reengineering for Radiant to sustain competitiveness in
technology. today's global economy. There is an urgent need to
rethink and transform the existing business process for
Furthermore, BPR emphasizes cost reduction, product improved quality and efficiency, reduced costs, and
quality, service, and speed of organizational systems increased profitability. However, the company's
from the literature. Organizations that have commenced management must be aware of the associated risks to
reengineering projects report significant benefits from place the necessary measures to counter any risks.
their BPR experience in many areas, such as customer
satisfaction, productivity, and profitability (Goksoy, This study defined six interventions - Open systems
Ozsoy & Vayvay, 2012). Furthermore, the human planning, Trans-organizational development (TD),
dimension is also a crucial factor, as all employees will Business process reengineering (BPR), Business
be involved in the change. Ongeri, Magutu, and Litondo Restructuring, Work Redesign, and Socio-technical
state that a total commitment for employees is the most Systems Approach (STS), with their definition,
crucial aspect in successfully implementing BPR since advantages, and disadvantages, compare and contrast
none of the strategies explored can be successful with other interventions. Finally, the report suggested a
without employee engagement. However, in this regard, significant recommendation towards implementing
the key challenge for managing change is to fully BPR in change management in Radiant Company, with
understand and positively instill change desires among the associated potential advantages and disadvantages
them (Goksoy, Ozsoy & Vayvay, 2012). of implementing the organization development
intervention to improve its innovation and performance.
On the other hand, BPR is also a time-consuming
management tool to act, and it is harmful to people's References
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