​Which of the following are the important principles of Re-engineering according to Michael Hammer?

(A) Develop value-added jobs to balance out job elimination.
(B) Take specific actions to make the program operational.
(C) Subsume information processing work into the real work that produces the information.
(D) Develop an action plan of activities needed to achieve the objectives.
(E) Treat geographically dispersed resources as though they were centralized.

Choose the correct answer from the options given below:

Correct option is C

The concept of Business Process Re-engineering (BPR) was pioneered by Michael Hammer, who emphasized radical redesign and fundamental rethinking of business processes to achieve dramatic improvements in performance.

1. Subsume information processing work into the real work that produces the information (C):

   • This principle of BPR suggests that information processing should be an integral part of the work process rather than a separate administrative function.

   • Instead of relying on separate reporting and data processing departments, modern businesses integrate information technology directly into the workflow.

   • For example, in an automated inventory management system, employees at retail outlets enter sales data directly into the system, which updates stock levels instantly.

2. Treat geographically dispersed resources as though they were centralized (E):

   • This principle focuses on leveraging technology to create a virtual organization, where resources can be managed centrally, even if they are geographically dispersed.

   • Cloud computing and real-time communication have made it possible for companies to manage resources globally while maintaining centralized control.

   • A good example is a multinational company using cloud-based software to manage HR, finance, and operations across multiple locations.

These principles are critical in modern business re-engineering as they eliminate unnecessary processes and enhance operational efficiency.

Information Booster:

1. Business Process Re-engineering (BPR) is about rethinking and redesigning the way work is done to better support an organization’s mission and reduce costs.

2. Key features of BPR:

   1. Radical change: Instead of small, incremental improvements, BPR suggests fundamental redesign.

   2. Process orientation:Focuses onprocessesrather than tasks.

   3. Use of technology:IT plays a crucial role in integrating operations.

   4. Eliminating unnecessary work:Removes non-value-adding steps.

   5. Customer-focused approach: Enhances customer satisfaction by improving response times and service delivery.

3. Companies like Ford and IBM successfully implemented BPR to streamline operations and cut costs.

Additional Knowledge:

1. Develop value-added jobs to balance out job elimination (A):

   • While BPR does aim for efficiency, it does not focus on creating jobs to balance layoffs. Instead, it focuses on eliminating inefficiencies and redundancies, which may lead to job elimination.

2. Take specific actions to make the program operational (B):

   • This is more of an implementation strategy rather than a core principle of re-engineering. BPR focuses on rethinking and redesigning, not just taking actions for operational purposes.​

3. Develop an action plan of activities needed to achieve the objectives (D):

   • BPR is not about step-by-step planning but about fundamental rethinking. Traditional process improvement techniques use detailed action plans, whereas BPR focuses on radical transformation.​