ASSESSING THE EFFECT OF BUSINESS PROCESS REENGINEERING ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF BUREAU OF FINANCE AND ECONOMIC DEVELOPMENT (BoFED), OROMIA REGIONAL STATE, ETHIOPIA

Organizational processes today are markedly different than they were 100 years ago. Processes are what organizations do. When processes become old and inefficient and can’t deliver results that they were originally designed to, they can’t cope up the business dynamics in the environment in which they operate, they must be redesigned or replaced. Business Process Reengineering (BPR) is a process-based management tool that can deliver, redesign or replace inefficient processes, as required, with a breakthrough results. As such it can be applied to a single process, a group of processes, or the entire processes comprising the organization. The purpose of this study is to assess the effect of BPR on organizational performance of Bureau of Finance and Economic Development(BoFED).The data for this current study were obtained from primary source that was analyzed . In the study, both quantitative and qualitative data collection methods were employed. The instrument used to gather data for quantitative study was Likert scale questionnaire whereas for qualitative was used observation and interview. Major findings were customers of BoFED satisfied with speed of service delivery, quality of service, cycle time. However in the bureau still there is no strong base line performance evaluation system, employees have not given any benefits regarding salary increment, compensation, promotion and empowerment up to this moment. Based on the finding of the study the paper concludes that business process reengineering has become useful weapon for any organization that is seeking for improvement in their current organizational performance and intends to achieve organizational objective. It recommends that reengineering process remains effective tool for organizations striving to operate effectively and efficiently.