Academic journal article IUP Journal of Organizational Behavior

Correlating Business Process Management and Organizational Performance: A Case Study of J&K Bank

Academic journal article IUP Journal of Organizational Behavior

Correlating Business Process Management and Organizational Performance: A Case Study of J&K Bank

Article excerpt

Business process management as a multidimensional tool utilizes several methods to examine processes from a holistic perspective, transcending the narrow borders of specific functions. It undertakes fundamental reconsideration and radical redesign of organizational processes in order to achieve drastic improvement of current performance in cost, service and speed (Davenport, 1993). Business process management strives to induce a radical change rather than an incremental change. An analytical approach has been adopted for the study. For the present study, the case of J&K Bank, which is a leading private sector bank operating in the state, has been taken for consideration. A sample of 200 customers was selected randomly from Baramulla, Shopian and Pulwama districts. For policy framework, corporate headquarters were consulted. A self-designed research instrument, seeking information from the customers on parameters like cost, quality, services and performance, was used. The present paper tries to take a critical account of existent business process management in J&K Bank and to study the relationship between business process management and organizational performance. The data has been subjected to correlation analysis. The findings of the study reveal that business process management exists in the J&K Bank and it is having a significant relationship with organizational performance.

Business Process Reengineering (BPR): A Conceptual Framework

Business Process Reengineering (BPR) is a well-known value creation technique which was first introduced by Michael Hammer of Massachusetts Institute of Technology (MIT) in 1990. The concept has gained much praise and popularity in the existing corporate world. It became a buzzword in the 1990s. Many organizations started BPR projects to transform the way they work. BPR proved very effective in breaking the status quo within the organizations and helped in creating competitive advantage. But at the same time, the complexities associated with BPR became a concern for organizations while deciding about BPR implementation.

BPR originated in the US defense organization and finds application in a wide variety of fields. It is a popular management tool for dealing with rapid technological and business changes (Ranganathan and Dhaliwal, 2001). It has been defined by Hammer and Champy (1993) as the fundamental rethinking and radical redesign of processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed. It creates changes in people (behaviorand culture), processes and technology (Al-Mashari and Zairi, 1999). It does not seek to alter or fix existing processes; yet, it forces companies to ask whether or not a process is necessary, and then seek to find a better way to do it (Siha and Saad, 2008). Successful implementation of BPR enables organizations to achieve dramatic gains in business performance (Shin and Jamella, 2002).

BPR in Banking Industry

Banking services promote economic development and social security of the public at large (Dutta and Gupta, 2009). The banking sector can also benefit from reengineering. BPR helps banks to deal with new economic challenges and to change their traditional process to improve theircustomersatisfaction, performance and productivity. The different processes performed in commercial banks can be restructured through BPR to achieve operational efficiency. BPR has been implemented by major banking organizations all over the world, which include banking organizations of China, UK, Canada, Iran, Australia, etc.

The Indian banking sector is also feeling the need to implement BPR. Just after Indian economy was liberalized, many private sector banks started to reengineer their processes; this was done to withstand the global competition. Although nationalized banks were not early adopters of reengineering, shortly they too joined the race. At present, all major banks of the country, both from private sector and public sector, have implemented BPR in their organizations. …

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