TOPIC:

Difference B/w Functional and Process Organization

Implications of Business Process Re-engineering

Difference between Functional and Process Organization:

Functional based organization:
In a functionally structured organization, the activities are grouped together and managed as separate
entities. The machines, equipment’s and human resources which are used to carry out similar activities
are grouped together and a manager is placed in charge of these activities. In a functionally structured
organization, management boundaries are set clearly and there is no overlapping of function between any
two departments.

Process based organization:

A process focused organization or a project organization groups all the functions such as research and
development, manufacturing, marketing, finance etc., under each project headed by a project manager
who in turn report to the project director who is at the top management level. Process focused
organizations deviate from traditional vertical functional structure in that they use cross-functional
teams (temporary or permanent), task forces or project teams.
 Cross-functional teams consist of employees from various functional departments who are responsible
to meet as a team and resolve mutual problems. Team members report to their functional departments, but
they also report to the team leader of the cross-functional team to which they belong.
A task force is a temporary team or committee formed to solve a specific short-term problem involving
several departments.
A project team is a group of participants from several departments who meet regularly to solve ongoing
problems of common interest or to work on a specific project (a complex task) assigned to them. The
project team is headed by a project manager

BPR:
Business process reengineering is a process of redesigning workflows and business processes within an
organization to achieve improved company performance the in the form of cost efficiency, improved
quality, service, and speed.

Concept of Process Reengineering:

Concept of re-engineering process emerged in early 1990s when two American authors Michael Hammer
and James Champie launched reengineering as a title for their famous book "Organization reengineering."
Since then, reengineering has revolutionized modern management science with its unconventional ideas
and an explicit call for radical revision of all activities, procedures and strategies that have been
established by many organizations and companies operating in our world today. Perhaps the most
important call for this concept is to invite employees to creativity in their work and get rid of repetition
and monotony constraints

Impact of Business Processes Reengineering on Employees Performance in Jordanian

Electricity Distribution Company:

Study Statement:
This study is an attempt to investigate the impact of processes re-engineering on Jordanian Electricity
Distribution Company employees performance because the services provided by the company affect all
citizens to whom the company provides its services. This requires improving employee’s performance in
order to give a good picture of the company. Therefore following main question can be formulated: What
is the effect of processes reengineering in Jordanian Electricity Distribution Company employees
performance?

Explanation:
This study aimed to investigate the impact of processes re-engineering on Jordan Electricity Distribution
Company employees performance. The main goals for this study were to propose a model of how the
business process reengineering affects the performance of employees of the company, what more changes
can be done by redesigning and how the process of reengineering can be improved for the company. The
researcher adopted a Quantative approach with an analytical descriptive methodology that was more
suitable for the research. The descriptive survey methodology describes the research statement through
self-administrated questionnaires to find out the impact of reengineering process on employees
performance. There are two main data collection methods that were used in this research first one is
Primary data collection that was handled through questionnaires and the second one is Secondary data
collection that included data that was gathered from all sources such as books, journals, newspapers,
periodicals etc. Based on the analysis, the research revealed that there is a significant statistical impact of
procedures simplification on Electricity Distribution Company employee’s performance. The main impact
of reengineering were on service quality, creation of new processes, performance and Information
Technology of Electricity Distribution Company. The study findings were kind of limited so the research
results cannot be generalized to cover all other service companies. Moreover, the company’s managerial
staff can improve the distribution services with the help of this research and there can be other research
studies based on this study in Jordan.