The effect of business process reengineering (BPR) on human resource management in Addis Ababa City Administration

Abstract

In Ethiopia, Addis Ababa City Administration is implementing business process reengineering in order to improve the performance of its public institutions. During the period June to October 2008, experts drawn from different sectors participated in the redesigning and organizing of business processes through shifting from functional /departmental structure to process-centered organizing practices. This study is part of the initial evaluative studies to assess the effect of business process reengineering on the management of human resources in Addis Ababa City Administration. It is based on a sample of 480 employees drawn from various city departments. Focus group discussions, key informant interviews and personal observations were used to collect data for the study. The study results show that the number of employees in the city increased after reengineering. This was due to new posts created during the reengineering process through the decentralization of some processes to the local levels (sub-city and kebele levels) of the city. Study results further show that even though process selection was adequately done in many departments, some activities were not properly regrouped after processes were redesigned which resulted in multiple approvals and delays in decision making. Employee participation during reengineering was weak. The front line employees did not get sufficient information and proper performance evaluation was not undertaken. Managers were not involved in the designing, coaching and advocacy roles, and are still engaged in operational and routine activities. Employee satisfaction was found to be low because there is no incentive system. However, employees’ efforts to achieve the set standards and improve service delivery and their initiation for change improved despite the fact that the system as whole is not automated. Further, accountability and responsibility of management also improved as a result of the BPR.