Implementation of Business Process Reengineering in Human Resource Management

Abstract

© 2014, Kaunas University of Technology. All rights reserved. The whole business of an organization is carried out through business processes. The process is a set of interconnected activities with interactions, which are transforming the object (as its input) into a result (as its output), where employees are adding a certain procedural values, using the resources of the organization. There are permanent requirements for the changes in performances, innovations, increasing flexibility and improving the economic performance of the company trough the process orientation. The main objective of this paper was to explore possibilities for improvement of important business processes, such as human resource management, in petroleum industry with the technique of business process reengineering and business process improvement. In this paper the authors presented the improvement process of one of the most important function in each organization – human resources function, by using management tools of BPR supported with the lean tools such as value stream mapping VSM. Methodology used in this paper included step approach in line with the Harvard Business School Business (HBS, 2010) process improvement supported with value stream mapping (VSM) lean tools. In the first part of the paper, the authors presented a theoretical review of the literature of business process reengineering and human resource management (HRM), with a special focus on the function of human resources in large companies where the research was done. After the theoretical review, business process improvement (BPI) of HRM in specific company was presented trough comparison of the state of HR function before restructuring and the state of the performances of the HR function after the BPI implementation with all the characteristics and efficiency indicators. Based on the obtained results, it can be concluded that the combination of HBS methodology and VSM tools can contribute to the improvement in the form of the reductions of hierarchical levels in organization within the company and in the form of advancement of work processes within the company. This was primarily reflected in the increase of the effectiveness and efficiency, in reducing of the time required for the execution of the processes, and saving resources. This paper presents one year case study, where the research was made to point out the significance of BPR of HR function in large companies. The authors tried to explain the main areas of HR process in a large production companies so as the improvements could be achieved by using BPR techniques supported by VSM lean tools.