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Adam Smith thought up the principle of division of labor two centuries ago. Well, to be honest, he couldn’t be said to have invented it; the principle was used by the ancient Egyptians to build the pyramids. He was however the person who put it down in writing, and it became 5 the classic principle on which the Industrial Revolution was based. Now, it’s time for Adam to move over. Re-engineering has appeared and appears to be taking over from the old principles.

If you want to make a good company a better one, you need re-engineering. 10 The book by Michael Hammer and his co-author, Re-engineering the Corporations, calls for radically changing the way most companies are run. No longer should work be divided into different tasks, but instead the whole process of work has to be re-conceptualized. That is if a company wants to achieve more than an acceptable increase 15 in productivity and profits.

Today business is no longer a series of functions, but a process of work that requires a horizontal set-up. There should be team work. New procedures and new strategies should be continually established. 20 Information technology must be fully utilized. Above all, production should be geared towards serving customers better and taking full advantage of new technologies. Re-engineering involves a totally new approach to business, one which if achieved will lead to steady, even sensational, improvements in performance and consequently in 25 market share.


1. What is the main topic of the passage?




2. What does the author imply about Adam Smith?




3. What doesn’t re-engineering call for?




4. What is the most important factor in re-engineering?




5. Which of the following best describes the author’s attitude to re-engineering.




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