Reengineering increases productivity and empowers employees
This article reports on the results of a survey of 100 Fortune 500 companies by the research firm of Kane, Parsons & Associates in 1994. The findings indicate that 83 percent of the respondents have introduced reengineering initiatives with many reporting benefits in cost efficiency, increased profitability, and improved customer services. However, 68 percent of the companies have also experienced negative outcomes to the workforce as a result of these initiatives, including increased fear of job loss, overburdens of responsibility, and suspicions that reengineering is an excuse for downsizing. The human element is one of the most critical factors in implementing reengineering initiatives and should be taken into account as future employment trends toward downsizing and outsourcing continue.