Reengineering and the insanity of right-sizing

This article examines the degree to which reengineering is a new management concept and the promise it holds as an effective productivity-enhancing strategy. This examination is not simply an output-over-input analysis; it considers the systemic, cultural, and human resource aspects in organizational dynamics. The authors contend that organizational dynamics are messy and must be dealt with as such. Simple solutions that may produce immediate results may also generate long-term side-effects that are harmful to an organization. Reengineering is analyzed with regard to factors such as the need for organizational changes, human resistance to change, climates that support continuous improvement, work design, the human value of work, and the effects of such action on an organization's culture. The importance of fairness and job security to effective performance improvement is questioned and discussed