Reengineering the Corporation
Running Head Reengineering the Corporation
Reengineering the Corporation
In the book “Reengineering the Corporation”, Hammer and Champy create a new frame of managerial relations and organizational bureaucracy. The authors address such important problems as impact of technology on business environment, new labor relations and organizational structures affected a modern corporation. The book consists of 13 chapters and an Epilogue discussing different problems and issue of modern organizational bureaucracy. The authors criticize old approaches to management based on Adam Smith 's division of labor and methods of business relations. At the beginning of the book the authors question: “If managements want companies that are lean, nimble, flexible … why are so many businesses bloated, clumsy, rigid, inefficient, disgraceful to customers needs, and loosing money” (p.9). Through discussions and analysis of current management practices, the authors try to explain these problems and give solutions to modern management. The first chapter “Te Crisis That Will Not Go Away” illustrates that Adam Smith 's theories do not work in modern environment preventing many corporations from effective use of resources. The authors state that in their attempt to push the boundaries of organizational design, companies occasionally design structures that cannot be built because the technology does not yet exist to help them realize their vision. This phenomenon is often cited as a major cause for the cost and schedule overruns encountered on the project. In spite of great changes in technology and information resources, many companies often are ill-equipped to identify their needs and wants (p.20). They never really think about what it takes to articulate needs and wants clearly. Also, they do not understand the technical implications of their requirements. Consequently, when meeting with the technical team, they state their requirements vaguely. The second and the
Reengineering the Corporation
In the book “Reengineering the Corporation”, Hammer and Champy create a new frame of managerial relations and organizational bureaucracy. The authors address such important problems as impact of technology on business environment, new labor relations and organizational structures affected a modern corporation. The book consists of 13 chapters and an Epilogue discussing different problems and issue of modern organizational bureaucracy. The authors criticize old approaches to management based on Adam Smith 's division of labor and methods of business relations. At the beginning of the book the authors question: “If managements want companies that are lean, nimble, flexible … why are so many businesses bloated, clumsy, rigid, inefficient, disgraceful to customers needs, and loosing money” (p.9). Through discussions and analysis of current management practices, the authors try to explain these problems and give solutions to modern management. The first chapter “Te Crisis That Will Not Go Away” illustrates that Adam Smith 's theories do not work in modern environment preventing many corporations from effective use of resources. The authors state that in their attempt to push the boundaries of organizational design, companies occasionally design structures that cannot be built because the technology does not yet exist to help them realize their vision. This phenomenon is often cited as a major cause for the cost and schedule overruns encountered on the project. In spite of great changes in technology and information resources, many companies often are ill-equipped to identify their needs and wants (p.20). They never really think about what it takes to articulate needs and wants clearly. Also, they do not understand the technical implications of their requirements. Consequently, when meeting with the technical team, they state their requirements vaguely. The second and the
Cited: 1. Hammer, M., Champy, J. Reengineering the Corporation: A Manifesto of Business Revolution. HarperBusiness. 2001.