The Evolution Of Corporate Operations

824 WordsDec 1, 20164 Pages
The Evolution: Hammer and Champy discuss the evolution of corporate operations. The begin when early on when companies had more control over markets and customers, to Adam Smith’s corporate reengineering, to today’s needs for continuous organizational change. The evolution of operations is both fascinating and stagnant. Smith’s idea of shifting the work to the worker versus the worker following the work from start to finish was revolutionary. This ideology allowed companies to keep up with the demands of customers, eliminating the ratio of one worker per product. Companies took production and compartmentalized the process into tasks, allowing workers to excel at a particular task of making the full product. This innovation proved to be successful and also brought new challenges to the companies that were unforeseen. Companies found they needed a managerial structure that allowed supervision of each tasks. Instead of one individual monitoring the tasks and quality of multiple workers or tasks, companies adopted a leadership structure similar to Smith’s operational design. Corporations distributed responsibilities amongst multiple supervisors and leaders to allow more quality control at the various steps along the process. As time progressed, corporations found them needing to grow in additional functions such as accounting, development, training and etc. Hammer and Champy use the railroad industry as an example of this reengineering. How the railroad invented
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