In the study of family companies in the Anatolian side of Istanbul a result of the literature studies of reengineering, organizational climate, and psychological capital to what extent and how these affect their performance have been targeted. The Anatolian side of Istanbul that operates on small, medium and large-scale family businesses to their employees completed a questionnaire of 64 questions. 310 surveys were taken into account in total. The results of the questionnaire, SPSS program is used whether the answers are reliability analysis, factor analysis and correlation analysis and regression analysis methods were investigated. The work of this analysis, reengineering, organizational climate, and to identify the impact of psychological capital on firm performance have been made. As a result, a significant relationship with the temperate climate on firm performance has been found. In other words, organizational climate was determined to be a strong factor in improving firm performance.
Change, in the general sense, is a transformation of any system, a process or environment from a certain situation into another situation whether it is planned or unplanned (Dinçer, 1992, 8). When it is considered in general, change represents bringing something from one level to another level. This represents all kinds of differences from changing locations of people and objects to bringing personal knowledge, skills, etc. from their present situation into a different position. The change in organizations also represents coming from the current position (situation) into a different situation in issues related to organizational activities (Koçel, 2014). During the change process, every firm chooses a different strategies or tactics to get the achievement and gain competitive advantage. The using of reengineering could be useful in the dynamic markets. But nowadays, it is not enough to use one strategic tool for winning. A combination of effective strategies may lead to a high performance and kind of victory for the firm.
According to Koçel, there are external and internal reasons affecting the change. External reasons are the forces that compel businesses to change. Technology, competition, economic conditions, social, cultural and demographic conditions and the arrangements made by the government due to economic, natural environment, social reasons are the external causes that play the most important roles in the competitive environment. Internal reasons are related to the developments and events of businesses within themselves. Addressing them as a problem within the business is the business's reason for internal change. The factors that constitute the internal reasons include the issues which are likely to be seen in every sector such as inefficiency, financial problems, mistakes made in management practices, changing the techniques of doing business, business expansion and personnel problems (Koçel, 2014). Many variables such as society, economy, politics, demographics, natural resources and environment, science and technology, globalization, national and international governments and future conflicts have effects that could be protected along with the change of the success factors. Variables are in interaction with each other (Arıkboğa, 2003, 34). Change requires lots of ideas/information, a well-planned scheme, intellectual approach and strong leadership. To be able to benefit from change is a process phenomenon. Business processes are based on three main factors. These factors consist of inputs, processes, and outputs. The reengineering in the business is mainly based on the process section (Zigiaris, 2000).
It is an inevitable process to encounter difficulties in the change process. The reasons for employees to raise difficulties in the change process can be listed as follows:
“People resist the change due to the reasons related to business
- Due to personal reasons and
- Due to social reasons” (Koçel, 2014, 798-799).
The state of lack of self-confidence, giving up the routines, thinking to be unable to keep pace with the new system, having concern for obtaining new information in the system brought by the new business processes and obscurity about what the outcomes of the new system will be lie behind the resistance to change that arise due to personal reasons (Koçel, 2014).
2. Literature Review
2.1. The Concept and Description of Reengineering
In the 1990s, it was considered that the operations of western companies contained business processes that should be reviewed, and the internalization and implementation of radical changes were initiated. The reengineering approach of Hammer and Champy that can be called as "Starting all over again" provides an insight concerning the fact that companies find the correct answers to the correct questions about the business processes within themselves. Generally, the question that companies ask themselves is "Why are we doing what we are doing?", it emphasizes that we need to completely abandon traditional approaches by changing that question with the questions of "How can we do what we are doing faster?" or "How can we do what we are doing better?" (Hammer and Champy 1998).
Reengineering took its place in businesses along with the development of technology in the 1990s, and it is a term translated into our language from the English word “reengineering”. According to Hammer and Champy, “Reengineering is the 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” (Hammer and Champy, 1998).
There are four factors that should be considered in the description of reengineering. These are “fundamental”, ”radical”,” dramatic” and “process”:
- “Fundamental: The style of doing business should be questioned for reengineering. It is necessary to achieve the answers to the question of "Works are done but why are they done?". It is necessary to ask "what" and "why" and to start all over again ignoring the answers received.
- Radical: It is derived from the Latin word “radix”. Radix means root. Radical means redesigning everything all over again by pushing all existing aside.
- Dramatic: A success rate which is increasingly continuing from within the process is never aimed by reengineering. Rapid leaps are aimed in the performance. It is a situation which should not be attempted by a company that is in need of 10% improvement regarding the issues of productivity, quality, cost, and service but which should be attempted by a company that is in a more desperate situation or that hits the top in more success and has no anxiety.
- Process: Although it is the most important point of the description, it is the point that mainly forces companies. Since company managers fail to be process-oriented while getting stuck in the mission, work, employee and structure phenomena. However, the most important point in reengineering is to be processoriented” (Hammer and Champy 1998, 29-32).
According to Hammer and Champy, roles that will perform reengineering are;
- Leader: “Leadership is generally described in terms of a process and also a feature. In terms of process, the leader is the person who directs and organizes the activities of the members of the organization in line with the organizational objectives. Leadership in terms of feature, the leader has the characteristic features that can successfully affect the group members” (Özkalp and Kırel, 2004: 148, cited by. Tunçer, 2011, 60).
- Process Owner: The characteristics of the process owner; process owner is reliable, from within the company, knows fulfilling his responsibilities and can take risks. The process owner, similar to the leader, should ensure keeping the motivation of workmates high, should be a guide and exercise due diligence with a holistic viewpoint for his workmates to concentrate on their job (Hammer and Champy, 1998).
- Reengineering Team: Two types of community are needed as it was mentioned in the team building process of Hammer and Champy. The working hours in that business should be considered while choosing the insiders team. They should be acquainted with the workplace but it is preferred that they do not have too much information about the process.The outsiders team is not responsible for the process; therefore, they can provide different viewpoints by approaching more objectively. It is necessary that the outsiders team should be composed of people with higher communication capabilities working effectively who can take risks and see the big picture (Hammer and Champy, 1998, 100, 101).
- Management Committee: “Process owners and their teams apply to the management committee when they encounter problems that they cannot solve on their own. Committee members listen and resolve the conflicts between process owners” (Hammer and Champy, 1998, 104-105).
- Reengineering Czar: Czar has two functions: The first one is to ensure that each process owner and reengineering team can work by supporting them, the second one is to coordinate all ongoing reengineering activities” (Hammer and Champy, 1998, 105-106).