UGM June 2019 Q16
- Option : D
- Explanation : Re-engineering refers to the radical redesign of a business process to achieve quantum gains in cost, service, or time. It can be an effective way to implement a turnaround strategy. This concept was popularised by Michael Hammer. He suggests the following seven principles:
1. Organize around outcomes, not specific tasks. Design a person’s or a department’s job around an objective or outcome instead of a single task or a series of tasks.
2. Have those who use the output of the process, perform it. With computer-based information systems, processes can now be re-engineered such that the people who need the result of the process can do it themselves.
3. Subsume information processing work into real work that produces the information. People or departments who produce information can also process it for use instead of sending raw data for people in the organization to interpret.
4. Treat geographically dispersed resources as though they are centralized. With modern information systems, companies can provide flexible service locally while keeping the actual resources in a centralized location for coordination purposes.
5. Link parallel activities instead of integrating their results. Instead of having separate units perform different activities that may eventually come together, have them communicate while they work so that they can do the integration.
6. Fix the decision point where the work is performed, and build control into the process. The people who do the work should make the decisions and be self-controlling.
7. Capture information once and at the source. Instead of having each unit develop its own database and information processing activities, it can be put on a network so that all can access it.
