When the process is redesigned, new processes are implemented. Process matrices are used for measuring managerial efficiencies as a whole, while evaluating individual task efficiencies.
Computers are used to measure the effectiveness of reengineering. Many traditional bureaucratic controls have loosened because of their ineffectiveness.
The process of reengineering is decided after considering several relevant factors influencing the productivity and efficiency of employees.
They are policy, technology, competition, information systems, cost benefit and future challenges.
Corporate policies are moulded to suit reengineering requirements. Similarly, reengineering is done as per the existing corporate policies, which ensures efficiency and higher growth rate.
Government policies are also influencing factors for reengineering. For example, the present economic policies have facilitated reengineering of jobs.
Rationalization of the tax structure, reduction of tariffs, encouragement of foreign investment, freeing capital issues and policy of new issues have helped industrial development and modernization of industries.
Technological development has necessitated reengineering of jobs. Only those industries can survive which opt for the latest technology.
Innovation and technological advancement have helped to manage industries effectively. The redesigning of the job process becomes essential.
Production functions, marketing extraction, human resource development and information systems are being redesigned by modern techniques. Environment consciousness has added a new dimension to technologically based reengineering.
Competition compels an organization for reengineering its functioning, for survival and growth. Unless resources are effectively utilized, a business unit cannot compete with other units.
Total quality management is considered one of the effective tools to beat the competition. Total quality management is based on redesigning jobs according to the present needs and future prospective.
4. Information system:
The information system has become a very important subsystem of the management system. Price policies, marketing techniques, production functions, etc. have to depend on the information available.
Adequate and correct information is needed for managing an organization effectively. The success of reengineering depends on the volume and value of information. Inadequate information leads to poor reengineering.
Recently, industrial units have developed wide networks that provide information. Internal and satellite networks have helped to acquire adequate and up-to-date information.
5. Cost benefit:
While redesigning jobs, cost-benefit analysis is exercised. If the reengineering process involves higher costs than the benefits expected; it would be futile to resort to reengineering. The cost-benefit analysis is done based on risk, uncertainty and discounting factors.
6. Future challenges:
Future prospects decide the reengineering process. The expectancy theory is applied for the purpose.
The success of reengineering depends on the appraisal of future events. Employees who contribute towards lesser growth may be motivated by job redesigning in the anticipation of development by the corporate sector.