CONTRIBUTION OF BUSINESS PROCESS REENGINEERING TO ORGANIZATION PERFORMANCE ։IN THE CONTEXT OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Business Process Reengineering has been found to offer mechanisms for companies and organizations to adjust in order to remain competitive and profitable. This study investigated the contribution of business process reengineering to organization performance in CBE. Specific objectives for the study included; investigate the contribution of organization structure reengineering on organization performance in CBE, to determine the contribution of job redesigning to organization performance in CBE, to examine the contribution of organization culture reengineering to organization performance in CBE. This study adopted a survey descriptive research design. Only primary data were used in the study. A total of 300employees of CBE formed the target population of this study. A sample size of 184 respondents was determined using Yemanef formula. Stratified random sampling procedure employed to select the sample that represented the entire population. This study used questionnaire as the data collection tool which consisted closed questions. Descriptive analysis was computed to generate mean and standard deviation of various variables. Inferential statistics was done through Pearson correlation analysis to determine if there exists any relationship between the variables. Further linear regression analysis was carried out to determine the percentage change in organizational performance that could be attributed to business process reengineering. Statistical package for social science was used as the appropriate tool for data analysis. Results were presented in tables. The findings of this study suggested a positive significant relationship between organization performance and organizational Structure re-engineering (r =.0.741, p<0.01). The findings further indicated that a unit increase in the scores of organization structure reengineering, would lead to a 0.098 increase in the scores of organizations performance, a unit increase in the scores of job redesigning would lead to a -0.114 decrease in the score of organization performance while a unit increase in the scores of organization culture reengineering would lead to a 0.053 increase in the score of organization performance. The study concluded that BPR has an effect to organization performance. Additionally, based on the findings the study concludes that business process reengineering measured in organizational structural re-engineering and organizational culture have an immense contribution to organizational performance. Drawing from the conclusion the current study recommends that Organizations should embrace BPR, through team building, reviewing goals and objectives to enhance organizational performance.