Impacts of Enterprise Resource Planning (ERP)

Impacts of Enterprise Resource Planning (ERP) 1.0 Introduction This paper will labour to explicate the intricacies of enterprise resource planning (ERP), a concept that has long fascinated many in both academic and professional work environments, including the United Nations (UN). In fact, the UN has expressed the need to implement ERP. As part of their examination into this procedure, the UN has implemented ERP at the United Nations Development Program (UNDP) in Pristine, Republic of Kosovo, and other agencies of the UN. As they look into the ramifications of ERP implementation, so does this case study. This study attempts to make predictions of the impact of ERP implementation on the business processes and organisational culture of the United Nations secretariat based on results from the UNDP. 1.1 Introduction to the Problem Since the late 1990s, businesses have flocked to implement enterprise resource planning (ERP) systems, e.g., one study showed that more than sixty percent of Fortune 500 companies had adopted an ERP system (Stewart et al. 2000). The United Nations, as one of the largest organisations in the world, has lagged behind in adopting the transformation in the management of its resources. The United Nations has been seriously hampered in its ability to deliver results effectively and efficiently due to the lack of an integrated information system for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated system that provides information to support operation management and decision-making functions in an organisation. Therefore, the goal of implementing an ERP system is to build an integrated global information system that fully supports the needs of the United Nations, enables the effective management of human, financial and physical resources, and is based on streamlined processes and better practices (Report of the Secretary-General, 2008). 1.2Background of the Study 1.2.1 Existing System Currently, the United Nations uses an in-house developed system—commonly referred to as Integrated Management Information System (IMIS)—for the management of human, financial and physical resources. The development of IMIS was a milestone in the use of information technology as a discipline that can beneficially affect many, if not all, areas of administration and management in any given organisation. IMIS was developed as a functionally integrated system, which combines all departments to support key processes such as human resources management, payroll, finance and accounting, requisitioning and funds control, budget execution and travel management. IMIS was introduced in conjunction with desktop, networked computing and office automation tools such as electronic mail in many offices. â€Å"If an organisation is not yet sure of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to consider the Integrated Management Information System (IMIS) of the United Nations,† (Rowe Davis, 1996, p. 122). The launching of IMIS was subsequently affected and conditioned by major developments in the technological market, and an accelerated shift of focus in the United Nations to field activities. In short, IMIS was designed and developed at a time when the context began to change rapidly and profoundly. Yet, only a few years after the implementation of IMIS, it has become evident that the system cannot take full advantage of the advancement in technology; e.g., even though IMIS is functionally integrated, it was deployed and managed locally at each geographical location, which makes reporting and global management very difficult. The implementation in the United Nations peacekeeping operation was partial, as it is a separate department in the UN, and was not able to support the supply chain and logistical management (Report of the Secretary-General, 2008). â€Å"The IMIS was not an alternative communication technology to paper and telephones, but it involved the synchronization of multiple data sources and the linking of them to several mainframes,† (Rowe Davis, 1996, p. 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS through interfaces, was able to address the functional gaps of IMIS. However, the organisation today faces challenges that demand profound transformation beyond the capabilities of IMIS and its ancillary legacy systems currently being used (Report of the Secretary-General, 2008). 1.2.2 The need for change â€Å"The United Nations struggled to get everybody in their building to connect electronically. It soon realised that it was time to connect the world with a client-server network,† (Rowe Davis, 1996, p. 122). The need for the United Nations to take on the International Public Sector Accounting Standards (IPSAS) lead to the requirement of significant change in the accounting processes and systems in order to comply with the international public sector standard for accounting. The requisite changes, indeed, were so fundamental that it is fair to say that the life of IMIS had come to an end after fourteen years; moreover, the benefits that the staff and managers expected from the information system in day-to-day operations and decision-making no longer matched the cost of maintenance and ongoing support. This is because IMIS is no longer able to cope with the fast technological development, and the cost of maintenance and ongoing support has become very expensive (Report of th e Secretary-General, 2008). â€Å"The success of your organisations quality initiative depends upon your ability to communicate the need for change throughout the organization,† (Arcaro, 1997, p. 146). The United Nations as an organisation needs to improve the value and cost-efficiency of the services it provides. They report that the existing systems are not up to the standard, not integrated, duplicative, and are inefficient (Report of the Secretary-General, 2008). According to the UN, the effective management, planning and decision-making have been hampered by the lack of integration and complete data on resources (ibid). As the organisation continues to grow in complexity in its activities, they are dissatisfied with the lack of integration and data-sharing between different departments as it has become a bigger problem, and the need for a new ICT global enterprise system for streamlining and simplifying processes has become more crucial as the nature of the organisation is changing itself (ibid). 1.2.3 Goals and objectives of implementing an Enterprise Resource Planning System The United Nations reports that the implementation of an ERP system will present the opportunity to fully combine resources and functions across the organisation by replacing the existing IMIS system (Report of the Secretary-General, 2008). Minahan (1998) reports ERP to be a multifaceted system that integrates and automates the basic processes of a business such as finance and budget management, human resources management, supply chain management, central support services, and other corporate core functions. Most importantly, the main value of an ERP system is the opportunity to streamline and improve the operations of an entire organisation through process reengineering, sharing of common data, and implementation of best practices and standards, and perform as the inter-organisation information backbone for communication and collaboration (OLeary, 2004). According to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP project can be summarised as follows: To have a global operating system that precisely captures core resource data from each department and agency at the UN while linking them together to provide better decision-making. This will minimise the time required to perform administrative processes and enable easy access to necessary reports for each department, thus increasing the efficiency of the organisation and directing the focus to high priority situations. The main functionalities sought from the new ERP system are expected to encompass functions such as programme planning, budgeting, contributions and performance; human resources management and administration; payroll, including management of benefits and contribution to pension, medical and insurance schemes; supply chain management, including procurement; assets and facilities management; general accounting, travel and other administrative flows; reporting to management and stakeholders, and more (Report of the Secretary-General, 2008, p. 8). Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be supported by the new ERP system, as these functions are not held in common with other organisations of the United Nations operations. 1.3Purpose and Significance of the Study The research done in this study will attempt to answer the following question: What will be the impact of ERP implementation on the business transformation and business culture of the United Nations? Specifically, this study will attempt to establish the relationship between the business process transformation and organisational culture change offered as the result of ERP. These questions and findings are expected to provide an increased ability in evaluating the performance and standardisation of the business processes within the United Nations, as well as an increased awareness of its effect on the business culture and productivity over time in the UN. In addition, answers to these questions will subsequently enable other researchers to gain more insight into ERP implementation and business process reengineering. It will also enable the management of the United Nations to see how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing business processes. 1.4 Research Questions The question that constitutes the primary point of pivot for the paper is: What will be the probable future impact of ERP on the business process transformation and business culture of the UnitedNations? The three subsidiary questions of the present work are: > How will ERP implementation make the organisation better off in the foreseeable future? > What will be the effect on the reformed business culture in terms of productivity? > How does the organisation perceive the benefit of ERP on the standardisation of business processes? 1.5Structural Approach The rest of the dissertation has been structured as follows. Chapter 2 provides a review of relevant literature including ERP, business process reengineering, and their impact on organisational culture. Chapter 3 discusses the methodologies used for the case study and describes the data and the various proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides empirical findings on the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes various recommendations for policy direction and potentially fruitful areas of ERP systems for further research. Chapter 8 reflects on the study as a whole. CHAPTER II 2.0 LITERATURE REVIEW The following Literature Review will focus on four main areas of evaluation regarding enterprise resource planning (ERP) on the business process transformation (BPR) in organisations, and more specifically, the United Nations. These are: 1. ERP: definition, evolution, implications 2. BPR: definition, evolution, implications 3. ERP and organisational culture 4. BPR and organisational change This review will analyse the abovementioned systems and related processes insofar as the available data in the literature will allow for a comparison of ERP and BPR and their effects on the United Nations and other large organisations. 2.1 Enterprise Resource Planning (ERP): Definition, Evolution, and Implications Enterprise resource planning (ERP) systems are commonly described as commercial software packages that allow the assimilation of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al. 2005). ERP enables the flow of information among all business areas such as â€Å"finance, human resources, manufacturing, sales and marketing,† (Tan Theodorou, 2009, p. 52). Basically, it allows data from all departments to exist in one computer system (Pang, 2001), making the managerial dream of unification of all information systems into one computer system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer many benefits to the UN and other large organisations. Large organisations may have a more difficult time relaying information from one sector to another as they have many different departments and even multiple locations. The combination of all departments in one system, presents benefits of relaying data in a timely mann er. Rather than sending files through inter-office mail or needing to track down one particular staff member, each employee will have access to the information required for their job by simply logging into the system. The researcher will attempt to discover whether this unification does indeed allow for more time-efficiency as well as making simple operations tasks easier to accomplish in the UN. The start of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials Requirement Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and production requirements together. In 1973, the first ERP system was created with the goal of supporting all business needs. Since then, ERP systems have become much more popular. In fact, by the year 2000, enterprise resource planning systems were estimated to have serviced $23 billion USD in profits for the various organisations that have been implementing them (Pang, 2001). ERP systems are larger, more influential and faster growing than any other systems in the industry (Finney Corbett, 2007). This is probably why the UN has shown such interest in ERP. The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system cutting out the previous legacy systems known for their difficulties in maintenance, large size, and old age, as they are segregated systems (Martin, 1998; cited in Boudreau, 1999). This appears to be helpful for the UN as they reported difficulty with their current legacy system (Report of the Secretary-General, 2008). It is likely that employees of the UN will be satisfied with the replacement of the legacy system due to the reported problems it has. However, there is a chance that employees may be intimidated by this change as they will have to learn an entirely new system. Advantages of ERP systems for organisations include overcoming fragmentation by streamlining activities and processes, which provides direct access to real-time information by supplying a group of software modules that encase all departments of a business (Koch, 2003, cited in Finney Corbett, 2007). This implies that all information accessed through the new system will be current as it is constantly being updated by various employees based on the tasks they complete. Rather than there being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need rather than searching through various documents or consulting multiple co-workers. However, it provokes the question as to how employees can be sure the information entered is accurate. This aspect of ERP systems will be investigated at the UNDP in Kosovo in order to determine whether this feature is beneficial. Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). Since the initial costs of implementation are so high, it doesnt seem like cost-reduction can be achieved anytime close to implementation. However, Rowe and Davis (1996) reported, the IMIS system which is the current system being used in many UN agencies does not cut down the amount of paper needed in order to do processes. Switching to an ERP system should reduce costs related to this amongst other things, as suggested by the literature. For the UN, this would mean more money to use for their peacekeeping missions or other operations. The reduction of costs and flexibility appear to be linked in some way as decreasing operation costs would imply having more flexibility to perform other processes. Then again, its possible for the availability of data to imply flexibility in making decisions, or flexibility could result from rearranging t he organisations processes and being better equipped to perform certain tasks. ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the operational efficiency of the company through minimising human error (Shin Knapp, 2001, cited in Wang, 2006). The implication that ERP reduces human error seems to be correct as there is less opportunity to make a mistake for employees because there is generally only one time they need to input information for data-sharing as opposed to the multiple steps needed to take before but how can employees be sure that the initial information entered was accurate? One may argue that if multiple people are doing the same step there is increased accuracy as there are that many more people assessing the situation. Aside from that, it seems these benefits should assist the UN in accomplishing some of their proposed goals, such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their operational efficiency by allowing valuable time to be spent focusing on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008). More advertised benefits include improved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). The UN wants to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions everyday that effect large numbers of people; making a bad decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive; if its easier to access data, and the accuracy of that data is improved, officials can rest assured that they are making decisions with proper knowledge. In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best Business Practices (BBPs), which came into existence around the same time as ERPs. BBPs are general guidelines to assist companies in the way of handling certain business processes, meaning that each company can now improve itself on the basis of the experience of other corporations that share similar functional processes (SAP, 2007, cited in Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risk of failure is not unlikely (Moon, 2007). However, each organisation is unique so BBPs may not work for every organisation. .Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they tend to be â€Å"large, complicated, and expensive† (Mabert et al. 2001, cited in Al-Fawaz et al. 2008, p. 3). ERP implementation calls for serious time commitment from all involved as it is often the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and technical support (Shang Seddon, 2002, cited in Al-Fawaz et al. 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al. 2003, cited in Al-Fawaz et al. 2008). Consequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well as not having a clear plan or realistic projections (Somers Nelson 2004, cited in Al-Fawaz et al. 2008). However, the UN has already proposed clear goals and plans for t heir implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful. Finally, the importance of selecting the appropriate ERP package is stressed. Corporations must make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Finney Corbett, 2007). This seems obvious as every organisation is different. Some corporations strategise around providing excellent customer service while others focus on decreasing costs to customers as a way to attract more business. However, there are studies that show that customising ERP packages beyond minimal adjustments is discouraged; these studies show that organisations should adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz et al. 2008). 2.2 Business Process Transformation (BPR): Definition, Evolution, and Implications Business process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael Hammer and James Champy (Barker, 1995). Hammer and Champy introduced the term â€Å"Business process reengineering† in 1990 and defined it as a â€Å"fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed† (Grover Kettinger, 2000, p. 151). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximum productivity of an organisation (Manganelli Klein, 1994). This would suggest a link between ERP and BPR as they are both structured around the redesign of core business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker producti vity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business processes in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems â€Å"are the major tools for making business processes better, leaner and faster through associated business process reengineering,† (Shang Seddon, 2003, cited in Revia, 2007, p. 25). It is not yet known whether or not BPR will be performed at the UN. It is assumed that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Seebacher Juszczyk, 2002). It seems that in order for ERP to be most successful, BPR should be performed (Sumner, 2000 cited in Law Ngai, 2007), otherwise the UN may not recognise exactly which processes are most important for their operations. Or, they may not be fully aware of the exact way in which ERP should be performed in relation to the core business processes, which is vital to understand for the selection of the proper ERP package. BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to â€Å"improve customer service, cut operational costs, and become world-class competitors,† (Hamid, 2004, cited in Wang, 2006, p. 5). Generally, business process transformation takes business processes and allows them to be done routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs specific to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation as the systems are supposed to be designed around core processes specific to each company. It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. Of course, whether or not this will be achieved is a question of interest. Here is a further look into what a core business process is: A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are core, one may ask the following questions. 1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs? 2) Is it important for the production/operation of the company? 3) Can it be used for other businesses? If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh et al. 1995). The UN may consider any process involving cash flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered. The three most basic strategies that increase a business success are lowering prices, offering more value in products, or focusing on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganising core business processes. If the UN is restructuring using BPR, they are likely to focus on a combination of strategies. As already mentioned, the cost of operations is a huge factor for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services. In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh et al. 1995). Concentrating on making sure core processes are completed to the best of the companys ability only ensures the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the organisations efficiency as those components are vital to their operation. These changes would suggest benefits for both the cost-reduction strategy as well as providing better service to â€Å"customers.† 2.3 Enterprise Resource Planning (ERP) and Organisational Culture Organisational culture is a set of core beliefs, values, and behaviours shared by all members of one company, thereby affecting the productivity of the business. It is often described as â€Å"a pattern of shared assumptions produced and manipulated by top management† (Schein, 1992 cited in Boersma Kingma, 2005, p. 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has visible signs and hidden insinuations. Visible signs include behaviour while the hidden insinuations entail morals and beliefs (Rousseau, 1990 cited in Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most departments in a company, they change many business processes and thereby affect the more deep-seated organisational culture of a corporation. Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are happy to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture e.g., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited in Cooper, 1994). These changes are maximal and cannot be simply brushed aside. When a company implements ERP, if the organisational culture is ready for the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al. 2001 cited in Finney Corbett, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transition (Chatterjee et al. 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users. â€Å"System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems,† (Sternad Bobek, 2006, p. 285). The social setting of a company and its technology most definitely shape each other; they are hardly independent of one another (Boersma Kingma, 2005). A mistake companies frequently make is to presume that people can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned sense of familiarity and assurance (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information Officer from Nestle sums up this concept very well—she says, â€Å"‘No major software implementation is really about the software. Its about change management†¦You are changing the way people work[†¦]You are challenging their principles, their beliefs and the way they have done things for many, many years† (Boersma Kingma, 2005, p. 123). It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to feel that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happ Impacts of Enterprise Resource Planning (ERP) Impacts of Enterprise Resource Planning (ERP) 1.0 Introduction This paper will labour to explicate the intricacies of enterprise resource planning (ERP), a concept that has long fascinated many in both academic and professional work environments, including the United Nations (UN). In fact, the UN has expressed the need to implement ERP. As part of their examination into this procedure, the UN has implemented ERP at the United Nations Development Program (UNDP) in Pristine, Republic of Kosovo, and other agencies of the UN. As they look into the ramifications of ERP implementation, so does this case study. This study attempts to make predictions of the impact of ERP implementation on the business processes and organisational culture of the United Nations secretariat based on results from the UNDP. 1.1 Introduction to the Problem Since the late 1990s, businesses have flocked to implement enterprise resource planning (ERP) systems, e.g., one study showed that more than sixty percent of Fortune 500 companies had adopted an ERP system (Stewart et al. 2000). The United Nations, as one of the largest organisations in the world, has lagged behind in adopting the transformation in the management of its resources. The United Nations has been seriously hampered in its ability to deliver results effectively and efficiently due to the lack of an integrated information system for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated system that provides information to support operation management and decision-making functions in an organisation. Therefore, the goal of implementing an ERP system is to build an integrated global information system that fully supports the needs of the United Nations, enables the effective management of human, financial and physical resources, and is based on streamlined processes and better practices (Report of the Secretary-General, 2008). 1.2Background of the Study 1.2.1 Existing System Currently, the United Nations uses an in-house developed system—commonly referred to as Integrated Management Information System (IMIS)—for the management of human, financial and physical resources. The development of IMIS was a milestone in the use of information technology as a discipline that can beneficially affect many, if not all, areas of administration and management in any given organisation. IMIS was developed as a functionally integrated system, which combines all departments to support key processes such as human resources management, payroll, finance and accounting, requisitioning and funds control, budget execution and travel management. IMIS was introduced in conjunction with desktop, networked computing and office automation tools such as electronic mail in many offices. â€Å"If an organisation is not yet sure of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to consider the Integrated Management Information System (IMIS) of the United Nations,† (Rowe Davis, 1996, p. 122). The launching of IMIS was subsequently affected and conditioned by major developments in the technological market, and an accelerated shift of focus in the United Nations to field activities. In short, IMIS was designed and developed at a time when the context began to change rapidly and profoundly. Yet, only a few years after the implementation of IMIS, it has become evident that the system cannot take full advantage of the advancement in technology; e.g., even though IMIS is functionally integrated, it was deployed and managed locally at each geographical location, which makes reporting and global management very difficult. The implementation in the United Nations peacekeeping operation was partial, as it is a separate department in the UN, and was not able to support the supply chain and logistical management (Report of the Secretary-General, 2008). â€Å"The IMIS was not an alternative communication technology to paper and telephones, but it involved the synchronization of multiple data sources and the linking of them to several mainframes,† (Rowe Davis, 1996, p. 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS through interfaces, was able to address the functional gaps of IMIS. However, the organisation today faces challenges that demand profound transformation beyond the capabilities of IMIS and its ancillary legacy systems currently being used (Report of the Secretary-General, 2008). 1.2.2 The need for change â€Å"The United Nations struggled to get everybody in their building to connect electronically. It soon realised that it was time to connect the world with a client-server network,† (Rowe Davis, 1996, p. 122). The need for the United Nations to take on the International Public Sector Accounting Standards (IPSAS) lead to the requirement of significant change in the accounting processes and systems in order to comply with the international public sector standard for accounting. The requisite changes, indeed, were so fundamental that it is fair to say that the life of IMIS had come to an end after fourteen years; moreover, the benefits that the staff and managers expected from the information system in day-to-day operations and decision-making no longer matched the cost of maintenance and ongoing support. This is because IMIS is no longer able to cope with the fast technological development, and the cost of maintenance and ongoing support has become very expensive (Report of th e Secretary-General, 2008). â€Å"The success of your organisations quality initiative depends upon your ability to communicate the need for change throughout the organization,† (Arcaro, 1997, p. 146). The United Nations as an organisation needs to improve the value and cost-efficiency of the services it provides. They report that the existing systems are not up to the standard, not integrated, duplicative, and are inefficient (Report of the Secretary-General, 2008). According to the UN, the effective management, planning and decision-making have been hampered by the lack of integration and complete data on resources (ibid). As the organisation continues to grow in complexity in its activities, they are dissatisfied with the lack of integration and data-sharing between different departments as it has become a bigger problem, and the need for a new ICT global enterprise system for streamlining and simplifying processes has become more crucial as the nature of the organisation is changing itself (ibid). 1.2.3 Goals and objectives of implementing an Enterprise Resource Planning System The United Nations reports that the implementation of an ERP system will present the opportunity to fully combine resources and functions across the organisation by replacing the existing IMIS system (Report of the Secretary-General, 2008). Minahan (1998) reports ERP to be a multifaceted system that integrates and automates the basic processes of a business such as finance and budget management, human resources management, supply chain management, central support services, and other corporate core functions. Most importantly, the main value of an ERP system is the opportunity to streamline and improve the operations of an entire organisation through process reengineering, sharing of common data, and implementation of best practices and standards, and perform as the inter-organisation information backbone for communication and collaboration (OLeary, 2004). According to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP project can be summarised as follows: To have a global operating system that precisely captures core resource data from each department and agency at the UN while linking them together to provide better decision-making. This will minimise the time required to perform administrative processes and enable easy access to necessary reports for each department, thus increasing the efficiency of the organisation and directing the focus to high priority situations. The main functionalities sought from the new ERP system are expected to encompass functions such as programme planning, budgeting, contributions and performance; human resources management and administration; payroll, including management of benefits and contribution to pension, medical and insurance schemes; supply chain management, including procurement; assets and facilities management; general accounting, travel and other administrative flows; reporting to management and stakeholders, and more (Report of the Secretary-General, 2008, p. 8). Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be supported by the new ERP system, as these functions are not held in common with other organisations of the United Nations operations. 1.3Purpose and Significance of the Study The research done in this study will attempt to answer the following question: What will be the impact of ERP implementation on the business transformation and business culture of the United Nations? Specifically, this study will attempt to establish the relationship between the business process transformation and organisational culture change offered as the result of ERP. These questions and findings are expected to provide an increased ability in evaluating the performance and standardisation of the business processes within the United Nations, as well as an increased awareness of its effect on the business culture and productivity over time in the UN. In addition, answers to these questions will subsequently enable other researchers to gain more insight into ERP implementation and business process reengineering. It will also enable the management of the United Nations to see how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing business processes. 1.4 Research Questions The question that constitutes the primary point of pivot for the paper is: What will be the probable future impact of ERP on the business process transformation and business culture of the UnitedNations? The three subsidiary questions of the present work are: > How will ERP implementation make the organisation better off in the foreseeable future? > What will be the effect on the reformed business culture in terms of productivity? > How does the organisation perceive the benefit of ERP on the standardisation of business processes? 1.5Structural Approach The rest of the dissertation has been structured as follows. Chapter 2 provides a review of relevant literature including ERP, business process reengineering, and their impact on organisational culture. Chapter 3 discusses the methodologies used for the case study and describes the data and the various proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides empirical findings on the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes various recommendations for policy direction and potentially fruitful areas of ERP systems for further research. Chapter 8 reflects on the study as a whole. CHAPTER II 2.0 LITERATURE REVIEW The following Literature Review will focus on four main areas of evaluation regarding enterprise resource planning (ERP) on the business process transformation (BPR) in organisations, and more specifically, the United Nations. These are: 1. ERP: definition, evolution, implications 2. BPR: definition, evolution, implications 3. ERP and organisational culture 4. BPR and organisational change This review will analyse the abovementioned systems and related processes insofar as the available data in the literature will allow for a comparison of ERP and BPR and their effects on the United Nations and other large organisations. 2.1 Enterprise Resource Planning (ERP): Definition, Evolution, and Implications Enterprise resource planning (ERP) systems are commonly described as commercial software packages that allow the assimilation of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al. 2005). ERP enables the flow of information among all business areas such as â€Å"finance, human resources, manufacturing, sales and marketing,† (Tan Theodorou, 2009, p. 52). Basically, it allows data from all departments to exist in one computer system (Pang, 2001), making the managerial dream of unification of all information systems into one computer system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer many benefits to the UN and other large organisations. Large organisations may have a more difficult time relaying information from one sector to another as they have many different departments and even multiple locations. The combination of all departments in one system, presents benefits of relaying data in a timely mann er. Rather than sending files through inter-office mail or needing to track down one particular staff member, each employee will have access to the information required for their job by simply logging into the system. The researcher will attempt to discover whether this unification does indeed allow for more time-efficiency as well as making simple operations tasks easier to accomplish in the UN. The start of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials Requirement Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and production requirements together. In 1973, the first ERP system was created with the goal of supporting all business needs. Since then, ERP systems have become much more popular. In fact, by the year 2000, enterprise resource planning systems were estimated to have serviced $23 billion USD in profits for the various organisations that have been implementing them (Pang, 2001). ERP systems are larger, more influential and faster growing than any other systems in the industry (Finney Corbett, 2007). This is probably why the UN has shown such interest in ERP. The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system cutting out the previous legacy systems known for their difficulties in maintenance, large size, and old age, as they are segregated systems (Martin, 1998; cited in Boudreau, 1999). This appears to be helpful for the UN as they reported difficulty with their current legacy system (Report of the Secretary-General, 2008). It is likely that employees of the UN will be satisfied with the replacement of the legacy system due to the reported problems it has. However, there is a chance that employees may be intimidated by this change as they will have to learn an entirely new system. Advantages of ERP systems for organisations include overcoming fragmentation by streamlining activities and processes, which provides direct access to real-time information by supplying a group of software modules that encase all departments of a business (Koch, 2003, cited in Finney Corbett, 2007). This implies that all information accessed through the new system will be current as it is constantly being updated by various employees based on the tasks they complete. Rather than there being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need rather than searching through various documents or consulting multiple co-workers. However, it provokes the question as to how employees can be sure the information entered is accurate. This aspect of ERP systems will be investigated at the UNDP in Kosovo in order to determine whether this feature is beneficial. Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). Since the initial costs of implementation are so high, it doesnt seem like cost-reduction can be achieved anytime close to implementation. However, Rowe and Davis (1996) reported, the IMIS system which is the current system being used in many UN agencies does not cut down the amount of paper needed in order to do processes. Switching to an ERP system should reduce costs related to this amongst other things, as suggested by the literature. For the UN, this would mean more money to use for their peacekeeping missions or other operations. The reduction of costs and flexibility appear to be linked in some way as decreasing operation costs would imply having more flexibility to perform other processes. Then again, its possible for the availability of data to imply flexibility in making decisions, or flexibility could result from rearranging t he organisations processes and being better equipped to perform certain tasks. ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the operational efficiency of the company through minimising human error (Shin Knapp, 2001, cited in Wang, 2006). The implication that ERP reduces human error seems to be correct as there is less opportunity to make a mistake for employees because there is generally only one time they need to input information for data-sharing as opposed to the multiple steps needed to take before but how can employees be sure that the initial information entered was accurate? One may argue that if multiple people are doing the same step there is increased accuracy as there are that many more people assessing the situation. Aside from that, it seems these benefits should assist the UN in accomplishing some of their proposed goals, such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their operational efficiency by allowing valuable time to be spent focusing on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008). More advertised benefits include improved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). The UN wants to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions everyday that effect large numbers of people; making a bad decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive; if its easier to access data, and the accuracy of that data is improved, officials can rest assured that they are making decisions with proper knowledge. In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best Business Practices (BBPs), which came into existence around the same time as ERPs. BBPs are general guidelines to assist companies in the way of handling certain business processes, meaning that each company can now improve itself on the basis of the experience of other corporations that share similar functional processes (SAP, 2007, cited in Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risk of failure is not unlikely (Moon, 2007). However, each organisation is unique so BBPs may not work for every organisation. .Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they tend to be â€Å"large, complicated, and expensive† (Mabert et al. 2001, cited in Al-Fawaz et al. 2008, p. 3). ERP implementation calls for serious time commitment from all involved as it is often the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and technical support (Shang Seddon, 2002, cited in Al-Fawaz et al. 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al. 2003, cited in Al-Fawaz et al. 2008). Consequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well as not having a clear plan or realistic projections (Somers Nelson 2004, cited in Al-Fawaz et al. 2008). However, the UN has already proposed clear goals and plans for t heir implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful. Finally, the importance of selecting the appropriate ERP package is stressed. Corporations must make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Finney Corbett, 2007). This seems obvious as every organisation is different. Some corporations strategise around providing excellent customer service while others focus on decreasing costs to customers as a way to attract more business. However, there are studies that show that customising ERP packages beyond minimal adjustments is discouraged; these studies show that organisations should adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz et al. 2008). 2.2 Business Process Transformation (BPR): Definition, Evolution, and Implications Business process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael Hammer and James Champy (Barker, 1995). Hammer and Champy introduced the term â€Å"Business process reengineering† in 1990 and defined it as a â€Å"fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed† (Grover Kettinger, 2000, p. 151). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximum productivity of an organisation (Manganelli Klein, 1994). This would suggest a link between ERP and BPR as they are both structured around the redesign of core business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker producti vity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business processes in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems â€Å"are the major tools for making business processes better, leaner and faster through associated business process reengineering,† (Shang Seddon, 2003, cited in Revia, 2007, p. 25). It is not yet known whether or not BPR will be performed at the UN. It is assumed that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Seebacher Juszczyk, 2002). It seems that in order for ERP to be most successful, BPR should be performed (Sumner, 2000 cited in Law Ngai, 2007), otherwise the UN may not recognise exactly which processes are most important for their operations. Or, they may not be fully aware of the exact way in which ERP should be performed in relation to the core business processes, which is vital to understand for the selection of the proper ERP package. BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to â€Å"improve customer service, cut operational costs, and become world-class competitors,† (Hamid, 2004, cited in Wang, 2006, p. 5). Generally, business process transformation takes business processes and allows them to be done routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs specific to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation as the systems are supposed to be designed around core processes specific to each company. It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. Of course, whether or not this will be achieved is a question of interest. Here is a further look into what a core business process is: A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are core, one may ask the following questions. 1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs? 2) Is it important for the production/operation of the company? 3) Can it be used for other businesses? If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh et al. 1995). The UN may consider any process involving cash flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered. The three most basic strategies that increase a business success are lowering prices, offering more value in products, or focusing on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganising core business processes. If the UN is restructuring using BPR, they are likely to focus on a combination of strategies. As already mentioned, the cost of operations is a huge factor for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services. In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh et al. 1995). Concentrating on making sure core processes are completed to the best of the companys ability only ensures the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the organisations efficiency as those components are vital to their operation. These changes would suggest benefits for both the cost-reduction strategy as well as providing better service to â€Å"customers.† 2.3 Enterprise Resource Planning (ERP) and Organisational Culture Organisational culture is a set of core beliefs, values, and behaviours shared by all members of one company, thereby affecting the productivity of the business. It is often described as â€Å"a pattern of shared assumptions produced and manipulated by top management† (Schein, 1992 cited in Boersma Kingma, 2005, p. 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has visible signs and hidden insinuations. Visible signs include behaviour while the hidden insinuations entail morals and beliefs (Rousseau, 1990 cited in Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most departments in a company, they change many business processes and thereby affect the more deep-seated organisational culture of a corporation. Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are happy to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture e.g., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited in Cooper, 1994). These changes are maximal and cannot be simply brushed aside. When a company implements ERP, if the organisational culture is ready for the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al. 2001 cited in Finney Corbett, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transition (Chatterjee et al. 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users. â€Å"System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems,† (Sternad Bobek, 2006, p. 285). The social setting of a company and its technology most definitely shape each other; they are hardly independent of one another (Boersma Kingma, 2005). A mistake companies frequently make is to presume that people can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned sense of familiarity and assurance (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information Officer from Nestle sums up this concept very well—she says, â€Å"‘No major software implementation is really about the software. Its about change management†¦You are changing the way people work[†¦]You are challenging their principles, their beliefs and the way they have done things for many, many years† (Boersma Kingma, 2005, p. 123). It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to feel that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happ

High School vs. University

Every September, high school graduates must prepare for the drastic transformation from high school to university. High school is a teaching environment which a student acquires facts and skills. University is a learning environment in which a student must take responsibility for thinking and applying what you have learned. This step in life students will either adjust to or struggle with. High school students are told university life is exciting, unpredictable, and entertaining.Also, students are informed university life is costly, demanding, and stressful. In order to adapt to the transition, students must understand and recognize the different teaching styles, testing, and grading. Teaching styles change as class sizes vary. Teachers in High school cover course material in depth and over a long period of time. Professors cover textbook material quickly. High school teachers check homework, remind students of incomplete work, and approach students if assistance is needed.Professors do not check completed homework and will assume students can complete the same tasks on tests. It is left up to the student to communicate with their professors in order to receive extensions ensuring the student will not be penalized. Professors do not approach students or notice students who are struggling. Therefore, students may approach professor in given office hours for one-on-one help. Finally, in university due to large class sizes and minimal lecture time keeping up with assignments and readings is critical.Cramming the night before a test and receiving a good grade is more likely to occur in high school, where testing in subjects is very frequent. Preparation for testing becomes more crucial in university because tests are infrequent, covering large amounts of material. Also, students in high school may be awarded a make up test normally without an explanation. Whereas in university, in order to receive a make up test a reasonable explanation must be given.Review classes are given in high school to help prepare students and give them a clear idea of the material that will be tested. Rarely, are review sessions provided for university students, if they are, professors expect participation from students who attend. Success on tests can be mastered by applying acquired knowledge to new situations or to solve new problems. The grading system becomes very important as students enter university. High school students are used to courses that are usually structured to a â€Å"good-faith effort†.In high school grades are given for most assignments. Students are also given grades for consistently good homework, which may help boost marks when test grades are low. Students who may not have a good overall mark occasionally have the opportunity to complete extra credit projects. Comparing this to university grades on tests and major papers usually provide most of the course grade. Extra credit projects are not normally allowed to raise a grade in a unive rsity course.Therefore, the â€Å"good-faith effort† is important in regard to the professor’s willingness to help students achieve good results; it will not substitute for results in the grading process. Adjustment is required for a high school graduate to be successful in university. Before entering university, high school students must be aware of these differences. Therefore, they must know how to adapt to new teaching styles, to successfully prepare themselves for testing, and the changes in grading systems. Recognizing these differences before entering a university can help prepare students for greater success.

Organisational Development Assignment

I POL POYTECHNIC OF NAMIBIA Harold Pupkewitz Graduate School of Business ASSIGNMENT COVER SHEET ————————————————- HP-GSB STAMP Assignments must be submitted in hard copy to:- The Secretary HP-GSB Reception Tel 061 207-2850 Date Received: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Time Received: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. ————————————————- I declare that this assignment is our own work. I further declare that where material has been used from other sources, whether by paraphrasing or by direct quotation, it has been fully acknowledged and referenced.I have retained a copy of this assignment for my records. ————————————————- Student’s Signature†¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦ (Signed below) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Date: 28 September 2012 SURNAME &| Mr. Anton Scheun | †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | FIRST NAME:| | | STUDENT NUMBER:| | | COURSE TITLE:| Masters in Leadership and Change Management| | MODULE TITLE| ODOrganisational Development| | MODULE FACILITATOR:| Dr. S. Pillay| | ASSIGNMENT DUE DATE:| 10 October 2012| | This is to certify that the assignment is the work of the student, Mr A. Scheun and where sources were consulted; reference was made to them under he reference table. ii Mr. ANTON SCHEUN 9328548 ORGANISATIONAL DEVELOPMENT ASSIGNMENT iii EXECUTIVE SUMMARY 1. Learning Organisation A Learning Organisation is organisations or enterprises that continuously needs to learn and renew themselves. This indeed has many advantages for both the individual and organisation in that continuous transferring of knowledge and changing of behaviours takes place. The best way to implement such intervention, to become a learning or ganisation, is to link it to the Strategic, Tactical, Operational and Individual Plans of staff members in the organisation.This will ensure integration and everyone contributing to the achievement of the goals and objectives of the enterprise. By so doing, members and the organisation become learning organisations, because this create dialogue, debate, problem solving skills, communication, buy-in and a win-win combination to all parties. 2. Performance Management System The purpose of Performance Management systems for organisations is to measure the achievement and performance of both individuals and the organisation as a whole. The PSN has already implemented a PMS at Offices, Ministries, Agencies and Regional Councils.A Performance Management System can only â€Å"survive† if all staff members are committed, trained and have the culture to effectively implement such a system. The advantages are enormous of which individual as well as organisational goals are met at the e nd of the day. The effective implementation of a PMS for the OPM will indeed contribute to effective and efficient customer needs and satisfaction levels. 3. Total Quality Management Total Quality Management is an area which has been neglected in the past by the Public Service of Namibia (PSN).As an example, all secretaries, institutional workers, drivers and courier’s individual performance plans are integrated and aligned to the Strategic Plan of the OPM for the support and attainment of corporate functions. 2. 2. 4 Team Learning; Team learning involves relevant thinking skills that enable groups of people to develop intelligence and an ability that is greater than the sum of individual members’ talents. As an example, team meetings are conducted during Annual Management Strategic formulation and development sessions by all team unit members.This indeed creates team learning, because all ideas, inputs and strategies being formulated are considered and the best are in corporated in respective plans. By so doing, all team members are buy-in and all sub-units contribute to the achievement of the overall goal and objectives of the OPM. 2. 2. 5 Systems Thinking: Systems thinking involve a way of thinking about, and a language for describing and understanding forces and interrelationships that shape the behaviour of systems.It helps managers and employees alike to see how to change systems more effectively and to act more in tune with the larger processes of the natural and economic world. For example, all unit members of the OPM were involved with the formulation and /or review of their business re-engineering processes. These business processes, such as the recruitment process, were amended to consider and improve time, manpower needs, costs and approval authorities in order to improve, integrate and streamline such processes to the betterment of the OPM.Through this process, policies, structure and budgets were identified for further amendment and alignment to the organisations systems and strategic plans. System thinking also involves the identification of appropriate systems that should be upgraded, such as an appropriate Human Resources Information Management System in order to accommodate personal particulars, performance appraisals, rewards and salary increments to mention a few. 4 3. The under-mentioned interventions are recommended for the Permanent Secretary (PS) of the Office of the Prime Minister (OPM): 3. That the OPM’s Strategic Plan be amended to incorporate a goal: â€Å"Creating a Learning Organisation by 2015†, and objectives with strategies or initiatives, as spelled out below, be included. 3. 2 That the following strategies/interventions be considered: (a) That all management cadre and managers/supervisors be included in the review of the Annual Management Plan of the OPM on a yearly basis. This will allow for buy-in, developing of intellectual stimulating, argumentation and strategy formulatio n for the respective tactical, operational and individual plans of the units. b) That the same team retreat to review, amend and/or formulate all business re-engineering processes of the OPM. This will allow for team building, building a sense of commitment system thinking and creating mental models based on reflecting of where the units are and where they want to be in terms of business processes. (c) That a Training needs assessment be conducted by the training components in order to identify competency, skills and behavioural deficiencies. This will enable the OPM to identify and ectify these deficiencies and also to build capacity in the OPM and Public Service of Namibia. (PSN) (d) That staff members be identified and trained as mentors and coaches to affect mentorship programmes in the OPM and to become coaches in their respective units. This will enable transfer of knowledge, skills and change in behaviours of staff. Further that mentors and coaching will contribute to persona l mastery of individual needs and objectives with OPM’s objectives. e) That units should developed in-service –training programmes in areas of identified deficiencies, such as policy formulation, disciplinary procedures, recruitment and placement, etc. This will contribute to capacity building and attention to day-to-day deficiencies in the work place. It will allow for cross cultural and unit team building and problem solving issues. (f) That the training budget be utilised to accommodate for short courses and leadership/ management development for individuals, teams and the broader organisation.This will indeed contribute a link between individual and organisational goal achievement, capacity building, inputs, innovation and team learning. (g) That as part of career development, managers be transferred, every five years to new posts. Further, that job rotation and job enlargement is implemented in job descriptions to stretch the work and employee capacities for devel opment of prospective staff members to higher posts as part of the succession plan of the OPM. 5 (h) That a Bursary Scheme be created to allow staff members to study in identified fields where capacity is needed in the OPM.This will assist the OPM in skills shortages and to develop capacity of staff and the organisation. (i) That focus groups, tasks teams and committees be created as a stimulus for ideas, problem solving, creating of new innovations in the fields of disaster management, employment creation and measures to retention staff members at the OPM. (j) That a more generative learning approach be adopted by the OPM, whereby staff has the opportunity to take risks, make mistakes, reflect on their decisions they had taken and change their behaviours accordingly. 3. 3. Conclusion:The OPM, as well as any organisation are facing constant challenges in the creation of themselves to become a learning organisation. The creation of a learning organisation is not a short term strategy and cannot be done overnight, but should rather be long-termed focused and be part of any strategic plan of a given enterprise. In its guest to become a learning organisation, the Public Service of Namibia and the OPM are facing the problem to be used as a springboard to obtain relevant experience and qualifications, where after staff members resign to look for greener pastures.The organisational interventions that were recommended will definitely assist the OPM to become a more effective learning organisation in the near future. 1. 2 Performance Management 1. 2. 1 The following definitions are postulated: (a) Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization†. (www. humanresources. about. com ,cited 6/10/2012) b) Performance means:† the act or process of performing or carrying out†. (Oxford Dictionary, page 885) (c) â€Å"An assessment of an employee, process, equipment or other factor to gauge progress toward predetermined goals† (www. businessdictionary. com,cited 6/10/2012) (d) The students own definition is: â€Å"Performance management is a management system, used by managers, to appraise employees with relation to goal achievement, corrective measures to be implemented and identifying future knowledge, skills and behaviours to improve performance of people†. 6 1. 2. What are the challenges with regard to a Performance Management System (PMS)? The challenges are: (a) Line managers are not always totally committed to the implementation processes of the PMS. (b) It requires total commitment from top management, management cadres, line managers, supervisors, performance champions and staff members. (c) It requires a mind shift to a new performance culture. (d) It is an integrated approac h that links to Directives, Rules, and Regulations.(e) It identifies and needs coaching, mentoring, training and in-service training programmes. f) It provides for an integrated budget approach. (g) Performance champions and drivers should be identified and trained. (h) PMDS Moderating Committees should be established to monitor, evaluate and provide corrective actions. (i) It is time consuming to conduct performance appraisals and keep records of performance and behaviours of employees. (j) It should be benchmark with other organisations to effect total quality management and to keep abreast with latest developments and performance management computerized systems. 1. 2. What are the benefits of a Performance Management System? The benefits are: (a) To generate information that supports other human resources activities, i. e. recruitment and selection, rewards and special treatment, disciplinary and grievances,HIV/AIDS and wellbeing, bursary, training and development to mention a fe w. (b) It serves as a two way communication channel between line managers and staff members through which clarity is obtained regarding the achievement of goals and objectives and what each party expects from the other. 7 c) It helps to clarify job descriptions, organisational goals and objectives. (d) It is a long term (continuous) process in which performance improves over time. (e) It relies on consensus and cooperation between employer and employee, rather than control or coercion. (f) It requires a management style which is open and honest and encourages two-way communication and constant feedback on level of staff members’ performances. (g) It assists managers and staff members to measure and assess performance against jointly agreed objectives, standards and key performance indicators. h) It contributes to organisational learning, organisational renewal and total quality management and to the achievement of Vision 2030 of Namibia. 1. 2. 4 The under-mentioned interventi ons are recommended for the Permanent Secretary (PS) of the OPM: (a) The PSN should establish and operationalized a PMS, based on the Balance Score card approach of Dr’s Kaplan and Norton. To do this, a PMS Policy framework and guiding manual for staff members should be compiled and linked to the Public Service Act, Act No. 13 of 1995.(b) In order to roll-out the PMS, the following sub-interventions are needed: 1) Strategic Plans need to be developed and explained to all staff members in order to get buy-in and change mind sets of public servants. (2) Strategic Plans should be cascaded to tactical, operational and group/individual performance plans and performance contracts to legalise and create accountability for the achievement or non- achievement of organisational goals, objectives and activities. (3) Strategic Plans should be supplemented by structural changes, job analysis, manpower planning to effectively integrate PMS with other main and sub-systems of the PSN. 4) The PMS should be market through a vision, mission, values, communication and training strategy. To this performance champions should be identified, trained and use to train –the –trainer in Offices, Ministries, Agencies and Regional Councils (OMARC’s). Training interventions should be develop to train ministers, permanent secretaries and management cadres to obtain buy-in and commitment. (5) Different committees should be established to oversee the implementation, monitoring, evaluation, corrective action, appeal procedures and reward systems of the PSN.To this, a PMS Management Committee, a PMS Working Committee and a PMS Training and Champion Committee should be established to effect implementation with terms of references. 8 (6) In order for PMS to be effectively and efficiently implemented, it should be rolled-out as a project. To this J. P. Kotter’s Eight- Step model is recommended to implement the PMS as a change management initiative. (Robbins & Judge, 2011). Refer to Appendix: A- a presentation which was given by Group 2. (c) Performance Agreements or Packs should be compiled and sign-off between the supervisors and staff member. d) Job profiles or descriptions should be compiled and attached to performance agreements. These two elements display the incumbent position to what is required, whereby the performance agreement emphasized the goals and objectives that need to be achieved by the individual or group. (e) The Disciplinary Policy should be amended to cater for under performers and staff who fail to perform at all. (f) Rewards, both intrinsic and extrinsic should form part of the PMS Policy framework. (g) The appraisal procedure, assessment marks and template to enter performance data should form part of the PMS Operational Manual. h) Recognition to staff should be given, annually, on the 23 June of each year, to coincide with the celebration of Africa Public Service Day. (i) A budget vote should be given to OMARCâ⠂¬â„¢s to cater for financial expenses. (j) The appraisal of staff should be conducted on a quarterly basis. (k) OMARC’s should submit a performance report to the OPM on an annual basis as part of their Annual Report on their respective performances. 1. 2. 5. Conclusion: It is the opinion of the student that the OPM and any organisation should have a PMS system to track performances of people against those objectives in their performance contracts.The PMS system will not only contribute to performance per se, but will encourage open communication, feedback, problem solving issues which inter alia contribute to organisational learning and a system of total quality management. The effective implementation of a PMS for the OPM will indeed contribute to effective and efficient customer needs and satisfaction levels. 9 3. Total Quality Management 3. 1 Introduction: Total Quality Management (TQM) has started in the USA in the mid-1970’s. Philip Crosby, one of the founders of TQM claimed that over 90% of TQM initiatives failed.Studies in European countries found a failure rate of 70% or more. The reason for this is that managers experience problems how to manage the change process in implementing a total TQM system. (Burnes, 2009). TQM exceeds the product quality approach, involves all employees in the organisation and encompasses all functions, i. e. administration, communications, distribution, manufacturing, marketing, planning, training, etc. (www. businessdictionary. com ,cited 2012) 3. 2 The following definitions are postulated: a) TQM can be defined: â€Å"as an executive commitment to a management culture which fosters the improvement of quality of all activities and products via the prioritisation of quality plus companywide organisational development and training†. (Hill, 2011). (b) â€Å"Total Quality Management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes†. ( www. wikipedia. com ,cited 2012) (c) â€Å"TQM is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organisational infighting†. www. acounting4management. com/total _quality management. htm, 2012). 3. 3 The meaning of Total QualityManagement: TQM has different meanings that include the following features: (a) The commitment and direct involvement of the highest-level executives in setting quality goals and policies, allocation of resources, and monitoring of results. (b) Realisation that transforming and organisation means fundamental changes in basic beliefs and practises and that this transformation is everyone’s job. (c) Building quality into products and practices right from the beginning. d) Understanding of the changing needs of the internal and external customers, stakeholders, and satisfying them in a cost effective manner. 10 (e) Institutin g leadership in place of mere supervision so that every individual performs in the best possible manner to improve quality and productivity, thereby reducing total cost. (f) Eliminating barriers between people and departments so that they work as teams to achieve common objectives. (g) Instituting flexible programs for training and education, and providing meaningful 3. 4 The advantages and disadvantages of Total Quality Management: .4. 1 The advantages are: (a) Lower costs. â€Å"TQM lower costs throughout the business infrastructure and organisation. Because it is an all-encompassing quality management programme, TQM helps different departments to communicate their needs, problems and desires with each other, so that workable solutions can be found that will help the organisation cut costs throughout the supply chain, distribution chain, shipping and receiving, accounting and management departments without losing productivity or the ability to operate rapidly in the face of chang e. (www. ehow. com ,cited 7/10/2012) (b) Improved Reputation. â€Å"TQM has the advantage of improving corporate as well as product reputations in the marketplace, because errors and defective products are discovered much more rapidly than other a non-TQM system, and often before they are ever sent to market or found in the hands of public†. (www. ehow. com ,cited 7/10/2012) (c) Higher employee morale. â€Å"Workers are motivated by extra responsibility, team work and involvement in decisions of TQM†. (www. ehow. om ,cited 7/10/2012) (d) Quality control inspectors. â€Å"Inspectors will ensure that the products and services meet the requirements and standards of the client and organisation, which indeed contribute to better service delivery†. 3. 4. 2 The disadvantages are: (a) Resistance to change. † Workers may feel that their jobs or occupations within the company are at risks under a comprehensive TQM program, and as a result, they may be slow or resist ant to making the necessary changes for the TQM to work properly.In addition, skilled workers may be lost as they decide to leave because of their unease at the direction that things are headed within the company, or they may not implement things properly, costing increase cost†. (www. ehow. com ,cited 7/10/2012) 11 (b) High cost of time. The high cost of implementing a TQM program, and the fact that it may take several years for the program to be fully implemented before results and benefits are seen, can be a huge disadvantage to a TQM program, especially in today’s uncertain economic conditions.TQM should be considered a long-term investment†. (www. ehow. com ,cited 7/10/2012) (c) Resistant to change. Workers may be resistant to change and may feel less secure in their jobs†. (www. ehow. com ,cited 7/10/2012) 3. 5 The under-mentioned interventions are recommended for the Permanent Secretary (PS) of the OPM: The Total Quality Management System is highly re commended for the Public Service due to the following reasons: (a) The PSN needs an instrument which can measure products (i. e. annual reports, speeches, etc. and services(i. e. Health, identity cards, Namibian passports, birth and death certificates, vehicle fleet services, maintenance and fuel consumption, the return on investment of training ) to improve service delivery clients, customers and the public at large. (b) Total Quality Management will ensure the minimisation of wastage. (c) TQM will contribute to effective and efficient service delivery to internal and external clients, and especially to the Presidents Office, Prime Minister, and cabinet. d) TQM will ensure that the food donated to crisis areas, such as Katima Mulilo and Oshikoto Region, during the extreme rainy seasons as well as drought relief programmes, be monitored and/or not get rotten. (e)TQM will contribute to team building and cross functional interaction, problem solving and sound debate between Offices, M inistries, Agencies and Regional Councils (OMASRC’s). (f) It will ensure that product and services could be branded which in turn will have a positive impact on the OMASRC’s and government as a whole. g) It will create stimulus to team work, higher sensitivity levels, greater responsibilities and even empowerment of staff members in the execution of this specific function. It may also make staff members proud to see the end results of product and services in which they were directly involved in. (h) It will force the OPM to set standards and requirements for products and services which will eventually lead to the creation of Namibia’s own government brand, such as the SABS standards. (i) It will create further employment of specialist as inspectors that will not only be utilised for inspection of such products and services, but can also 2 be incorporated in a Department of Inspectorate for the Public Service of Namibia. Such a Department doesn’t exist and need serious consideration. (j) As with resistance to change, it’s recommended that Kotter’s eight step plan be followed, as indicated in Appendix: A. (k) That a vote is created and the Ministry of Finance be assigned to allocated funds for the implementation of TQM in the PSN. (l) That the OPM, Ministry of Defence, Ministry of Transport and Communications be used as pilot ministries in the first two years during roll-out of the project. 3. 6.Conclusion: The PSN and the government need a quality software system to evaluate its products and services. There is a public outcry that the PSN and Government should improve customer satisfaction by bringing their services to the public and that they should change. It’s the opinion of the student that TQM, as a management tool will provide for such a measurement in order to provide effective and efficient service delivery to clients, customers and stakeholders. TQM will significantly help to improve the standard and mea surement of performance management in the PSN. . Six Sigma: 4. 1 Introduction: The originator of the Six Sigma concept was Bill Smith in 1986. Quality improvement controls, such as TQM, were used to pioneer this concept. Six Sigma is the process of eliminating and perfect data entry. This concept is based on project methodologies used to strengthen performance levels, according to www. insigma. com. In 2006, Motorola issued a press release stating that they had $17 billion saved from Six Sigma†. (www. ehow. com ,cited 7/10/2012)4. 2 Definition: a) The project definition of TQM is defined as;† Six Sigma projects have clearly defined deliverables, are management approved, are not so big that they’re unmanageable and not so little that they’re unimportant or uninteresting, and relate directly to the organisation,s mission, according to www. isixsigma. com†. (www. ehow. com ,cited 7/10/2012) 13 4. 3 Advantages and disadvantages of six sigma: 4. 3. 1 The a dvantages are: (a) â€Å"The advantage is that Six Sigma is a quality standard that establishes a goal of no more than3. 4 defects per million units or procedures â€Å". b) â€Å"Six Sigma aims to maximize customer satisfaction and minimize defects†. (c) â€Å"Six Sigma is a tool that if used correctly, can identify key areas of business processes that need attention to lower effect rates. One of the greatest advantages is that all the measured improvements achieved through this technique can be directly converted into financial results†. (d) â€Å"Research proves that firms that successfully implement Six Sigma perform better in virtually every business category, including return on sales, return on investment, employment growth and stock value growth†.Source: (www. ehow. com , cited 7/10/2012). 4. 3. 1 The disadvantages are: (a) The eventual costs to implement Six Sigma are very high. To this, Becthel Corporation in the USA has spent USD 30 million to imple ment Six Sigma. (b) According to a quality expert, Joseph M. Duran, Six Sigma is described as â€Å"a basic version of quality improvement† stating that â€Å"there is nothing new there†¦they have adopted more flamboyant terms, like belts with different colors† Source: (Integrating Organisational Development and Six Sigma. Jeffrey, B. ) 4. Recommendations to the Permanent Secretary: (a) Six Sigma should not be implemented in the Public Service of Namibia in the short to medium term, but it should be considered whether the Namibia Defence Force can do research and conduct a feasibility study to determine the viability of Six Sigma for the PSN. Research indicated that the United States of America has introduced it in their Navy with success. Source: www. accounting4management. com, 2012). (b) The TQM intervention should be given first priority in OMASRC’s, before Six Sigma is considered in the PSN. c) It is further recommended that financial and manpower be a llocated to conduct such a feasibility study and that the Ministry of Finance release funds and a vote to source this research. 14 (d) The above should be carried out according to project management principles and procedures. (e) The feasibility study should be submitted, after presentation to the Permanent Secretaries meeting on 30 June 2013. During this meeting it can further be recommended whether Six Sigma should be introduced and be roll-out to the PSN. 4. 5 Conclusions:Although Six Sigma is widely used, especially in the USA and Europe, no evidence could be found that Namibia is using it currently. This may be, because it is not cost effective and/or there is not yet a market for it. It is strongly recommended that the NDF, especially the Navy should conduct a research and feasibility study to determine whether it is viable for Namibia and if the Defence Force may benefit in the long run. This report will indicate whether Six Sigma can be roll-out to the rest of the Public Ser vice of Namibia.REFERENCES Burnes, B. Managing Change. Fifth Edition. 2009. Pearson Education Limited. England. Nel, P. S. , Gerber, P. D. , Van Dyk, P. S. , Haasbroek, G. D. , Schultz, H. B. , Sono, T. , Werner, A. Human Resources Management. 5th Edition. 2011. Oxford University Press. Southern Africa. Hill, M. Study material on Managing People and Organisations. July 2011. Windhoek. Robbins, S. P. , & Judge, T. A. A. , Organisational Behavior. Global Edition. 2011. Prentice Hall. New Jersey. www. acounting4management. com/total quality management. htm, Definition and Explanation of the Concept of Total Quality Management System. Cited 7/10/2012. www. businessdictionary. om. Definition of Total Quality Management System. Cited 7/ 10/2012. www. businessdictionary. com . Cited 6/10/2012 www. ehow. com. Advantages and disadvantages of TQM. Cited 7/10/2012. www. humanresources. about. com. Cited 6/10/201 www. hrfolks. com. The Learning Organisation. Review- Rohan Nagwekar. Cited 1/ 10/2012. www. see. ed. ac. uk. Learning organisations. Cited 1/10/2012. www. wikipedia. com. Cited 6/10/2012. 15 APPENDIX Appendix: A- Leading change: Why transformational efforts fail. Presented by Group 2 of Masters in Leadership and Change Management, dated September 2012

Workers Compensation due to Their Injuries or Illnesses Free Essay Example, 1250 words

In all the US states, it is illegal for an employer to fire an employee for filing for or using workers compensation benefits. Under the law, an employer who fires an employee for seeking workers compensation undermines the policy of the act. Workers compensation statutes are in favor of workers receipt of compensation for a work-related injury. Perritt (69) argues that allowing employers to terminate employees who file workers compensation claims is likely to disappoint the filing of claims and the receipt of compensation. The purpose of this statute would ultimately be jeopardized. However, an employee may be fired out on worker s compensation if he violates the neutral and consistency enforced employee absence program. It is illegal for an employer to threaten an employee so as to discourage him from filing a worker s compensation claim or to offer personal cash to an employee with the aim of covering the medical expenses to deter an employee from filing formal claims benefits. E mployers are limited by law from terminating employment as a way of avoiding a worker s compensation claim. Several reasons exist under which an employee may be fired while receiving workers compensation benefits. We will write a custom essay sample on Workers Compensation due to Their Injuries or Illnesses or any topic specifically for you Only $17.96 $11.86/page This law varies from state to state. Employees returning from workers compensation leave may be physically disabled such that they cannot perform their usual duties in their old jobs. According to the Equal Employment Opportunity Commission (EEOC) guidelines, an employer is required by law to look for an alternative job (including a light duty) for employees with a permanent disability.