Re-engineering and lessons for HRM functions

I. Executive summary
The report aims to provide our research on the topic "Re-engineering and lessons for HRM functions".
The report addresses three main sessions. Firstly, Knowledge and Theories summarise the key points
of "Re-engineering" which were presented by Group 1 to provide you with a brief literature revision.
Accordingly, the key functions of HRM as regards business reengineering processes are also illustrated.
For further insights, in the third sesion, three cases in the book "Re-engineering" such as Duke Power,
IBM and Deere are analyzed to explain how HRM functions involve in the process of reengineering of
each company. In addition, the example of the local firm Minh Long I that re-engineered successfully
will be introduced in the last session.
II. Knowledge and Theories
A. Reengineering
At the beginning of this report, we will talk about the concept of re-engineering. It involves the
fundamental rethinking and radical redesign of business processes in order to achieve dramatic
improvements in critical, modern performance measures like cost, quality, service, and speed. The three
main keywords that need to be in this concept are fundamental, radical, and dramatic. By answering
some fundamental questions, people are forced to examine the implicit rules and assumptions that
underpin their business practices. From there, the basis for re-engineering decisions stems from
determining what a company must do, and then how to do it. Radical redesign entails going to the root of
the issue, rather than just making temporary changes or limiting fiddle with what is already in place. It
often entails throwing out the current systems and processes and inventing entirely new ways of doing
things. Finally, reengineering is not about making small improvements, but about achieving performance
leaps and bounds. This should be done only when there is a need to make a major breakthrough because
it requires drastic improvements to blow the old and replace it with new ones.
In order to understand why our company needs reengineering, it is necessary to be clear in what situation
we should make this decision and the benefits to be gained. Reengineering is carried out by three types
of businesses. The first are businesses that have run into serious financial difficulties. They do not have a
selection. Second, there are businesses which are not yet in danger but whose management foresees
trouble on the horizon. These businesses get the foresight to start reengineering before they face
adversity. Businesses in peak condition are the third category of enables the leaders reengineering. They
don't seem to be having any problems right both now and in the near future, but their leadership is
ambitious and aggressive. These companies consider reengineering as a way to extend their competitive
advantage.
Stronger alignment of key processes to growth strategy, and the development of consumer value is a
catalyst for all business operations are among some of the key benefits of reengineering. Moreover, the

company architecture has been designed for cross-functional efficiency. In addition, benchmarking is a
method for reviewing information and stimulating progress. The most important and conspicuous benefit
is likely to increase a company's ambitions from its enhanced capabilities and performance.
The above diagram shows the participating positions and the function of each position during
reengineering. The leader assigns the process owner, that forms a reengineering team with the help of
the czar and under the supervision of the steering committee to reengineer the process. The distinction
between a leader and a process owner is that a leader is in charge of large-scale reengineering while the
process owner is in charge of small-scale reengineering at the particular process level.
Another concept that can easily be confused with reengineering is the restructure concept. Different from
reengineering, restructuring involves financial matters, focusing on shareholder structure. When having
problems, shareholders will modify the financial and operational aspects, reorganize legal issues,
ownership rights, operations, company structure in a more profitable, more organized direction.
Meanwhile, reengineering is concerned about ineffective processes from employees to customers. This
review process focuses on workflow and business processes, rethinking how to work more efficiently, and
increasing productivity.
Business Diamond System

According to Hammer and Champy (1993), the business diamond system is a framework that
summarizes the changes within a company’s business reengineering processes while employees, jobs,
managers and values are related in a model. As can be seen, at the top of the business diamond
system, the business process determines jobs and structure which describe the ways in which work
is performed determine the nature of people’s tasks and how the people who perform these tasks are
grouped together. As a result, the changes in the content of jobs and of organisational structures lead to
the changes for all employees and therefore, changes in management principles and performance
measurement systems are essential. From that, labors are recruited, evaluated, and compensated by
means of appropriate management systems. Accordingly, these new management principles and
performance measurement systems induce change in values and beliefs, which in turn enable the new
business processes. In general, reengineering is not completed until all the business system
diamond’s components have been changed and aligned.
B. HR functions
1. Job analysis
Job analysis is the process of gathering and analyzing information about the content and the human
requirements of jobs, as well as, the context in which jobs are performed (Mathis & Jackson, 2010). It
includes job descriptions (list of tasks, duties, and responsibilities needed for work) and job specification
(list of knowledge , skills, abilities, and other characteristics an employee needs). In reengineering, it
involves the analysis of company workflows, finding processes that are sub-par or inefficient, and figuring
out ways to get rid of them or change them (Pearson, 2015).
2. HR planning
HR planning (HRP) is a process of forecasting the future human resource requirements of the
organization and determining as to how the existing human resource capacity of the organization can be
utilized to fulfill these requirements (Hayes, 2021). In reengineering, it keeps the HR managers from being
surprised by the transition of market outcomes, prevents the business from falling into the trap of labor

market mobility, organizations in growth phase can be well prepared to meet their necessary HR needs,
and HRP also enables to detect, pick out and advance the required ability or capability (Nkomo, 1987).
3. Recruitment
Recruitment is the process of generating a pool of qualified applicants for organizational jobs (J.Richard
Hackman, Greg R. Oldham., 1976). It is important that recruiting be treated as a part of strategic HR
planning because it is a key mechanism for filling positions necessary to get the work done. In
reengineering, recruitment identifies and secures people needed for an organization to survive and
succeed in every case (Elwood., & James A. P., 1996), and creates a pool of suitably qualified candidates
to enable the selection of the best candidates for the organization (Gamage, 2014).
4. Selection
The selection process refers to the steps involved in choosing people who have the right qualifications to
fill a current or future job opening (Barrick, Gatewood, & Field, 2011). In reengineering, it is cost-effective
and reduces time and effort, helping to avoid biases and eliminate bad candidates to get the right one,
and increase the overall performance by hiring good resources.
5. Training & Development
Training is the process whereby people acquire capabilities to perform jobs. It helps frontline workers
understand the business implications of making decisions, improves the capacity and performance of
employees (Randhawa, 2007). Training and Development have a significantly positive impact on
employees for the skilled and educated workforce in case the company is in the RE process (Hammer., &
Champy, 1993). Teaching workers how to perform a particular job or how to handle one specific situation
or another, increases skills and competence and teaches employees the “how” of a job.
6. Performance management
This function is an ongoing process of communication between a supervisor and an employee that occurs
throughout the year, in support of accomplishing the strategic objectives of the organization, including
clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results
(Cardy & Leonard, 2011). In the reengineering process, it provides an approach to identifying the success
and potential management strategies, facilitating the understanding of the situation and assists in
directing management attention, and revising company goals (Sarode, A. D., Sunnapwar, V. K., &
Khodke, P. M., 2008).
7. Compensations & Benefits
The compensation and benefits is about managing the personnel expenses budget, setting the
performance standards, setting the transparent compensation policies and introducing the competitive
benefits for employees (Randhawa, 2007). The impact of this function in the reengineering process is that
the organization can find ways for compensation issues (Greengard, 1993), like HR usually provided the
framework, guidance and monitoring, leaving the decisions on individual pay increases to the line
managers. Or salaries and rewards scales must be restructured to create in order to attract, motivate and
retain workers.
8. Employee relation