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University of Management

&
Technology
Final Project
Course:
CHANGE MANAGEMENT

Instructor:

Mr. Aamir Aleem Rana

Project:
To Analyze the Structural
Change in PEL

Group: # 03

Group Leader:
Rabail Gul ID # 063832-123
Group Members:

Aabiya Ahmad ID # 074132-141


Sanaa Hameed ID # 060234-008
Toufique Ahmad ID # 060234-026
Umer Javed Durani ID # 063832-086
Irfan Bhatti ID # 063832-053
Program:
MBA-P

Submission Date:

02, June, 2008

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ACKNOWLEDMENT

First of all, our gratitude to All-Mighty ALLAH who gave us the energy,
the motivation and the wisdom to accomplish this project.

Secondly we would like to thank our Resource Person Mr.Aamir Aleem Rana,
who gave us an opportunity to explore, and polish our skills. At this stage, it
was a great learning opportunity for us to understand and analyze an ongoing
change program for a well known company Pakistan Elecktron Limited (PEL).

We would also like to thank the HR executives of Pakistan Elecktron Limited


(PEL) Mr. Yousaf Jamshed, Mr. Salman and Mr.Kamaran Ali for providing us
with the required information and for giving us their precious time.

Lastly we (all the group members) would like to thank each other for
our help and expensive time put into this project. Furthermore we thank each
other for cooperating with each other in the completion of this project.

If we have forgotten someone in the acknowledgment then we are


deeply sorry and would like to say that we appreciate their efforts as well.
Thanks & Best Regards!!!

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Table of contents

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EXECUTIVE SUMMARY

“Change is the most critical aspects of effective management. The


turbulent business environment in which most organizations operate means
that not only change is becoming more frequent, but that the nature of change
may be increasingly complex and the impact of change is often more extreme”
1
(D E Hussey). Organizations don’t adapt to change; their people do (Mark J
Dawson) so they are an important ingredient of effective change program.
In this report we have tried to critically analyze the soft side of
structural change program in the Human Resource Department of Pak
Elektron Limited (PEL). Its HR department was introduced in 2005. Before HR
department there was only Industrial Relation & Adminstration Department
looking after all the employee related issues, their salaries, compensations,
appraisals etc. HR department since its inception is under a constant change
and its role is still not properly defined in PEL. After one year of discussion top
management decided to change the way HR department operated.
PEL needed change in order to bring value to the organization and to
have a sustainable competitive advantage and this could only be achieved
through HR department. It also required an HR department to effectively
handle its huge workforce (more than 6000 employees). Employees were
never given any training and a proper performance appraisal. To resolve all
the issues of the HR department the top management introduce “Journey to
excellence (JTE)” change program which was championed by Mr. Murad
Saigol managing director of PEL.
PEL transformational change initiatives are driven from the strategic
apex of the organization and they target the organization's structures and
systems. The change start point was from top to bottom and it was a directive
approach but the top management proved to be very supportive through out
the change program. The target of the change program is out put
performance of the employees and their behaviour.
PEL have introduced some new ways of working and managing things
during this change. To motivate the employees HR department has been
conducting many training seminars for employees. As PEL’s change program

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was based on a proactive approach to change the organization as a
professional one from the Seth type organization, so PEL had enough time to
respond towards the upcoming challenges in future.
There were many difficulties which PEL had to face while implementing
this change program . Convincing the employees of PEL for the need of
change was much harder but they had many resources to help make change.

As change is an ongoing and never ending phenomenon, same is the case of


PEL. PEL’s “Journey towards Excellence” has not yet ended but has achieved
most of its targets.

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PROJECT INTRODUCTION:

“In today’s business environment, change is the only steady state”


Roger Gill (2001)
Many companies in Pakistan are restructuring their operations to cope with
the ever changing environment. The intention may be great, but success rate
of change programs is not so impressive. Organizational change program
face difficulty largely because employees feel left out of the processes and
end up lacking motivation and knowledge to adapt to new systems and
procedures. Organizations don’t adapt to change; their people do (Mark J
Dawson) so they are an important ingredient of effective change program. In
this report we will try to critically analyze the soft side of structural change
program in the HR Department of PEL.

The methods used to implement change always have an important role in


affecting the nature and strength (Phil Lewis 2000) of a change program in
our case the method adopted was a ‘top-down’ approach as “even the most
brilliant strategy requires leadership to be effective” (Sun Tzu ca. 100BC) in
PEL case vision came through managing director of PEL Mr. Haroon A. Khan
& Murad Saigol. It is due to their initiative that a journey to excellence (JTE)
program started at PEL.

Human resource component in many Pakistani organizations is generally


overlooked and is regarded as an administrative area. Same was the case
with Pak Elektron Limited (PEL). Research showed that Pak Elektron Limited
(PEL) had no HR department. As a result of structural change this department
was introduced along with new systems, process, technological & cultural
interventions.

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in


Pakistan. It was established in 1956 in technical collaboration with M/s AEG of
Germany. In October 1978, the company was taken over by Saigol Group of
Companies. Since its inception, the company has always contributed towards

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the advancement and development of the electrical engineering sector in
Pakistan.
Though it is a very old company but its human resource department was
introduced in 2005. HR department since its inception is under a constant
change and its role is still not properly defined in PEL. In today’s dynamic
competitive environment no organization can afford to stand still. PEL in 2005
realized problems in their existing system. After one year of discussion top
management decided to change the way HR department operates. Initially it
was Industrial Relation & Administration they decided to segregate HR from
IRA as a separate department. In November 2006 an HR professional were
hired to carry out this task.

PEL needed change in order to bring value to the organization and to have a
sustainable competitive advantage and this could only be achieved through
HR department.
The purpose of this report is to assess and analyze the external and internal
forces, goals, and implications associated with this change program at PEL.
This would also enable us to assess our understanding to analyze change
programs in future.

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HISTORY AND BUSINESS NEED:

PEL right from its inception stage has undergone a lot of change and
faced challenges. To begin with in 1948, the Saigols migrated from Calcutta
and initiated their business in Lyallpur (later named to as Faisalabad), the
textile city of Pakistan, under the banner of Kohinoor Industries Limited.
Later in 1978, the Saigol Group of Companies purchased major shares of Pak
Elektron Limited (PEL). At that juncture, the company was only manufacturing
transformers and switchgears. With the Saigols in management, PEL started
expanding its product range by entering into Air Conditioner manufacturing.
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in
Pakistan.
The overall business needs are to provide quality products and
services to the complete satisfaction of their customers and maximize returns
for all stakeholders through optimal use of resources. There other needs were
to improve, bring value to the organization, and have good governance,
promoting corporate values and a safe working environment.
Business need in this change program is personal development of their
Human Resource to meet future challenges, they wanted to take their
employees out of operational activities and bring them into strategic activities.
PEL required an HR department to effectively handle its huge workforce
(more than 6000 employees). The need or the driving force behind PEL
existence can be seen in their mission statement.

MISSION STATEMENT OF PEL

• To provide quality products & services to the complete satisfaction of


their customers and maximize returns for all stakeholders through
optimal use of resources
• To focus on personal development of our Human Resource to meet
future challenges
• To promote good governance, corporate values and a safe working
environment with a strong sense of social responsibility

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PEL mission statement is in line with the change initiatives that the top
management is undertaking.

LEADING PRACTICES OF PAST

As there was not HR department in PEL they had to face a lot of


problems. IRA department was looking after all the responsibilities related to
the employees. The IRA department and Admin were not functioning properly
and up to the standards. There were no policies and procedures defined for
the employees. No formal feed back was given; no performance appraisal
system was implemented. 3 bonuses are given to every employee irrespective
of there performance throughout the year.
Compensation and salary of the employees as not effectively handled. There
was no job description for the employees. Employees were never given any
training. The IRA department was responsible for hiring and firing of
employees, but hiring was done on reference basis and there was no system
of firing which led to extra work force.

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KURT LEWIN’S MODEL
UNFREEZING:
To unfreeze the status quo, management made the employees realize
that how important this change would be for them, how HR department can
work for their betterment and development. They were made to realize that
there is a need to revise the policies for their own and organizational
betterment. They were made conscious that it is difficult for IRA to work for
both executive and labor issues, so there should be a new department
working separately.
In this process top management involved the head of departments to make
this effort more strong because they were quite familiar with the benefits of
this change. In other words we can say it was easy for them to buy in this
change.

MOVING:
The management used some techniques like training and stories to
motivate the employees to make them buy in the change “JTE”. Seminars and
meetings were conducted to realize the importance of HR department and its
functioning.

REFREEZING:
After the successful implementation of HR department, the policies and
rules made by this department with the approval of Top management are
being embedded.
Change program at PEL is a continuous on going process. The
decomposition of change into a simplistic three-step process was proposed
by Lewin. Lewins pointed out that each of these three phases of change is
subject to its own issues and problems (Mc Whinney, 1992) which an
organization will have to face. PEL as an organization also had to face these
problems to tackle this problem they made new policies and rules and
regulation for employees and embed these policies on them 2

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YIN AND YANG OF CHANGE

Ideally, change should provide opportunities for learning, improvement and


talent development. These goals can only be reached if all dimensions of the
organization are in sync. That's how rebalancing the yin of structure with the
yang of culture will positively shape the future workplace (Graham Lowe,
2004).

PEL introduction of HR department- A soft-hard change program


Journey towards excellence (JTE) change program was championed by Mr.
Murad Saigol managing director of PEL. Our major focus in this report is on
the soft components of this change program. The journey towards excellence
philosophy rested upon a framework model. The frame work consisted of
eight change components (five soft and three hard components)
JTE Soft components
• Customer satisfaction both internal and external

• Training and development of employees

• Better communications

• Performance measurement

• People management and improved satisfaction

JTE Hard components


• Process improvement

• Profitability

• And Future growth

Through these change components it becomes clear that it’s a structural


change program which is aimed to improve organizational performance.
This change program is designed to cater only managerial level

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CHANGE KALEIDOSCPE

The change kaleidoscope consist of design choices and organizational


contextual features.
CHANGE PATH:

End Result

Transformation Realignment

Evolution
Incremental Adaptation
PEL
Current Path 2
Nature

Reconstruction
Big Bang Revolution
PEL
Initial Path 1

PEL has approached two change paths in its change program. Initially the
management adopted reconstructions as they intervened in the structure of
the PEL by introducing the HR department and then bringing change in their
employee’s behaviour and organizational culture by making operational efforts
of HR functions. PEL’s change program follows a change path which has a
shift from reconstruction to evolution. Thus two change paths are identified in
PEL’s change program:
1. Reconstruction of HR department
2. Evolution in creating HR practices with embedding cultural
changes

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1. Initial Path
Reconstruction

The Nature of Change: Initially the change was big bang as in the result of
the Journey towards Excellence, the management introduce the HR
department and the functionality changed from IR department towards the
functions of Human Resource management.

The End Result of change: the objective of big bang intervention was
realignment of the business practices as it was being operated under IR
department, as a result of this realignment, HR department started operating
independently with 4 subunits as shown below.

HR Department

PM OD T&D R&S

2. Current Path
Evolution

The Nature of Change:


After making structural changes in the hierarchy of PEL the next focus
was to deploy incremental change through step by step change interventions.
Efforts were made to change the behaviour of the individuals and organization
to accept the functions of HR department. It is not possible to change the
culture overnight. However, PEL’s efforts in this regards are highly
appreciable as they introduced an extensive training plan for the employees
and for buying in the HR department’s ideas.

The End Result of change:


The objective of the step by step intervention was to completely
transform the PEL’s employee’s behaviour and to make them effective for

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organizational growth. As all the functions of HR start performing effectively, it
shall boost up the performance of the each employee in PEL.

CHANGE START POINT:

At PEL the change program was initiated by the Managing Director of


PEL Mr. Haroon A. Khan in 2005. It was a top down approach. A consultant
was hired to start the change process. This change program was called
“Journey towards excellence”. Later that year a HR manager was hired but
due to certain problems he left within 6 months. Now the HR manager is the
initiator of the policies, these policies are then sent for approval to a
committee consisting of General Managers & Managing Director. The focus of
HR department is on the proper functioning of Hr department.

CHANGE STYLE:

In case of PEL the change style used is collaborative and educational


though the change start point was top down but the top management is very
supportive; they have given full authority to the MD and the HR department for
bringing the complete structural change in PEL.

CHANGE TARGET:

At PEL the change target is on the output performance of the


employees as well on the change in behaviour. The change in output leads to
the change in behaviour of the employees. “As the main factor in resistance to
change is the attitude of the employees. Attitude towards change in general
consists of a person’s cognition about change, affective reaction to change,
and behaviour tendency towards change” 3. HR department is now more
concerned about its employees. Employees are given trainings on different
topics to increase there capabilities and job knowledge. Initially employees
were not interested in training but now they have geared as a result, their
involvement level has increased and so is there performance.

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CHANGE LEVERS:

Following are the change levers and interventions used by PEL change team.
(see figure A & B, appendix)
Stories:
To ensure a positive approach of employees towards the structural
change in PEL, Top management made use of stories about the best
practices performed by their competitors and other multinational companies.
The Managing Director Murad Sehgal used this approach to convey his vision
to the top management. He shared success stories of foreign companies to
convince them for the introduction of HR department.

Symbols:
Following symbols were adopted and their implementation
emphasised:
Performance appraisal
Continuous learning through training (1000 of hours of training in April 2008)
A new, eye-catching HR department
Parking allocation for Executives
Slogan (journey to excellence)
Training & Development Culture

Routines and Rituals:


PEL have introduced some new ways of working and managing things
during this change. To motivate the employees HR department has been
conducting many training seminars for employees. Head of the department
identifies the need for training and forwards it to the training and development
department. A log of employees training is being maintained by the HR
department.
The past practice at PEL was to hire employee with some reference. This
practice led to the excessive hiring so HR department has made Recruiting &
Selection polices. Now the recruitment is on merit basis.

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Control system:
Hr department have made a web based portal for employees to set
there goal so that there work can be evaluated on the basis of these goals.
They preserved the ISO certification. They have improves their supervision
form old systems. The performance appraisals of the employees are available
on the web based portal, and nothing is hidden from the employees.

Power Structure:
Before the implementation of policies made by HR department, they
were approved by the MD and GMs. They have the authority to approve or
disapprove the policy.

Organizational structure:
This structural change at PEL has brought a new department in being,
which is HR department. Formerly there was IRA department which was
performing the duties of HR department. But this structural change has
separated the IRA and HR department to perform there duties independently.

CHANGE ROLES:

Who is going to do what? Change is only likely to succeed if some one


is responsible for leading that change. As, generally we all behave like
sheep’s and require a Shepard, a person who has vision and authority.

Perhaps the most challenging task in a change program is defining roles and
responsibilities and selecting right people for the right job. A change program
can be managed through a number of different ways. The primary change
agent roles in PEL are listed below

• Leadership:

Mr. Haroon A. Khan and Mr. Murad Saigol gave success to the change
program a key pivotal figure. Their leadership style was quite supportive
and co-operative. This made others involved in the program to know the

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change very closely and felt the need of it. Hence it was seen that there
was a single leadership role, as the MD, with local leaders or change
champions in the HR department. Mr. Waqar, the new HR head, took the
responsibility and started to appoint efficient people for PEL.

• External Facilitation:

Mr. Zafar was appointed as the consultant to help look for the loop holes
that will come to implement the change. The consultant was not trained, he
was given a time to understand the organization. This made him play a
pivotal role in the change process.

• Change Action Team:

The new HR department was now working as a team to implement and


maintain the policy that have to be exercised in the organization. The
department is working in a very supportive manner and each person is just
committed to his work. The responsibility that has been assigned to
someone is being followed till its completion. The changes that are
envisaged in the organization are giving their flavor because of the hard
work of the HR team. People are quite satisfied with them and want to
work for PEL.

• Functional delegation:
Change responsibility in PEL case was assigned to HR department. It was
further strengthened by hiring additional competent employees.

CHANGE CONTEXT FEATURES:

TIME:
Significant organizational changes often begin slowly, are
4
incrementally implemented (Stuart M. Klein, 1996). In 2005 PEL
executives realized that there is a need of a Human Resource department

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which will help them in making the workforce efficient. The executives also
thought of appointing right employee for the appropriate job. The
organization did not want to have a rapid change or a turnaround but
wanted to adopt a proactive approach towards implementing the change.
PEL realized that in order to have a competitive edge towards the rivals,
development of the product and services is must. So they initiated a
change program to have the workforce change their attitudes towards their
work by giving efficient output. This would give the company an advantage
in terms of products that they manufacture. To know the time for the
change to occur the organization is also trying to give training to their
employees.

SCOPE:
The Scope of structural change at PEL, with respect to the physical
spread of this change, is at all the executive level staff of PEL. There are
almost 600 to 700 Executive employees.

PRESERVATION:
PEL believes in preservation of its skilled labour. In PEL case all resources
that contributed to organization competitive advantage were retained. There
was no downsizing- it was right sizing, identifying the right person for the right
position. In order to avoid alienating the employees a collaborative or
educative style was adopted by the HR department.

DIVERSITY:
“Diversity refers to any attribute that happens to be salient to an
individual that makes him/her perceive that he/she is different from another
individual (Williams and O’Reilly, 1997). PEL is a huge organization in terms
of human capital they have. Employees at PEL come from different
backgrounds and cultures and managing this diverse work force is an up hill
task. Rather than being reactive and waiting for a “diversity crisis” to take
place before a change is made (i.e. Coca-Cola, Denny’s, Publix, and Texaco

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settlements) an organization like PEL should be proactive in handling
Diversity” 5.
The organization has 6500 – 7500 employees that are from different
national cultures. The employees or the managers that are currently present
there are heterogeneous because of different subcultures or different national
cultures. They are not as such discriminated from each other but due to our
national and Islamic culture; they are discriminated. The discrimination does
not occur from the top management but from the employees working together
in same department at a same level or lower level.

CAPABILITY:
There are three levels of capability: individual, managerial and
organizatinal.

PEL’s management focus on continuous improvement in their Systems


thus establishing Good Management Practices, they are committed in making
continuous efforts in developing and strengthening their internal and external
customers and suppliers. Employees training & development and their
participation are the KEY forces which are increasing their organization's
capabilities thus making it more competitive and fast growing company.

Top management is not only tremendously improving their working


environment but also investing in improving internal communication network
for better teamwork.

CAPACITY:
The PEL’s capacity is measured in terms of three resources: financial,
time & staff.

Financial Resources:
PEL has wide capacity in terms of financial resources as PEL’s annual
sales for the year 2007 were 13 billion Rupees and net income or profit was
582 million Rupees and the reserves of capital in 2007 were as 69 million
rupees. PEL’s extensive training program for the awareness of change is also

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costing them a lot but due to financial capacity PEL is investing heavily on
trainings to inculcate the HR practices and to enhance their employee’s skills
level.

Time Resource:
As PEL’s change program was based on a proactive approach to
change the organization as a professional one from the Seth type
organization, so PEL had enough time to respond towards the coming
challenges in future.

Staff:
The only constraint in staff resources for PEL was the number of
mangers involved in this change program. The change vision was
communicated from the top management and there were few managers to
take up the responsibility and implement this change program. Initially this
problem was very severe but now after 3 years of this change program PEL
has developed a team of 11-12 highly educated professionals.

READINESS

PEL’s Readiness for the change program was headed under two issues one
is the awareness of the need of change and the other is the commitment
towards the change program.

Awareness:
As it was a top to bottom approach towards change program so the
awareness was high at the top level. The top management had to develop the
means to communicate this change vision to the lower level to increase the
awareness of the need of the change. As a result, knowledge sharing practice
came into being.
Commitment:

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As different means were used to increase awareness including in
house and out door trainings and with the increasing awareness of the need
of the change the commitment level was also increased.

Overall in PEL the readiness of change program is high at top


management level as compared to the lower and middle managerial level and
supervisory level. So PEL had to get their change vision’s receive more
readiness as the supervisors and the middle line managers are working since
many years they feel this HR department intervention is directly affecting and
challenging their status quo. Even if they are aware of this change program,
they do not show commitment. In this regard PEL is facing resistance in
readiness of change.

POWER:
The top management of PEL is very supportive and participative in the
implementation of the change. The power hence lies at the top management.
The stake holders that can or could be influenced by the change are:

1. 600 – 700 Managers (Under HR dept.)


2. Employees
3. HR Executives
4. Share Holders
5. IRA (Industrial Relations Admin.)

As the main strategies are approved from the top management and then
implemented, employees are totally satisfied with what they are getting. The
compensation and loan policies are revised to make the workforce benefit out
of it. The power is used positively as 3 bonuses are given to each and every
employee whether his or her performance is excellent or fair.

The change paths (initial and the current) from reconstruction to the
evolution stage are been influenced positively by the power users at the top.
No resistance is seen in the evolution in creating HR practices with

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embedding cultural changes. The powerful individuals are trying not to stop
this ongoing change but to facilitate it some manner.

STAKE HOLDER ANALYSIS OF PEL


Major Stake holders include:
1. Top Management / Managing director / Directors
2. Departmental Heads / General Mangers
3. HR Executive & Mangers
4. Line Managers/ Supervisors
5. Shareholders
6. Labor Unions

Stake Holder Analysis for Attitude & Influence

Favor
3 1

ATTITUDE 5 2

Neutral
6

4
Against

Low Medium High

INFLUENCE

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Stake Holder Analysis for Power & Influence

High 5
1

2
POWER
3
6
Medium

Low

Low Medium High

INFLUENCE

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TRANSITION STAGE OF PEL:
(See figure C, Appendix)
Stage 1: Mobilization
In this stage PEL introduced a new department as HR department in
2005, at the individual level it was shocking and employees did not accepted
new structures and responsibilities, initially the employees thought that it will
not help them in performing their daily tasks and activities. From the
organizational perspective PEL was in the state of mobilizing its employees
and with the interventions of change into the structure they were preparing
their employees for the future state. PEL tried to reduce the shock of the
transition by giving its employees the sense that they are not changing IR
department’s responsibility rather they are sharing the responsibilities of IR &
administration department.

Stage 2: Moving
After intervention of HR department PEL started giving its employees
awareness about the out comes and value of HR department through training
and indoor sessions and started trying to get buy in of the employees. The HR
department initially implemented the new revised system of performance
appraisal within the HR department and then gradually in other departments.
This helped the employees to gain the understanding of the benefits of
change. Organization’s perspective in transition stage was more concern with
the shift in the move of this transition stage for implementing change and
getting into the desired future stage.

Stage 3: Sustaining
Now in the year 2008 PEL is trying to sustain this transition stage by
embedding these changes in the organizations culture and behaviours of the
employees and the system of the organization. PEL is doing this sustaining
action by promoting the healthy results of the performance measurement and
new policies which are in the favour of the employees. They are integrating
these changes with the daily activities and promoting the effective learning for

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the sake of successful change efforts. This process will be continuing until the
proper functionality of HR department is achieved.

BARRIERS TO CHANGE:

Introducing change into an organization usually raises resistance from


those who have most to lose because of the introduction of the envisaged
change (Tony Proctor and Ioanna Doukakis, 2003). There were many
difficulties which PEL had to face while implementing this change program

As the HR activity increased resistance increased, employees feared


that their performance would now be measured; they would no more receive
three bonuses per year. IRA department feeling threats to their status and
scope of activity. Another major resistance that PEL had to face was that
people didn’t give time to HR activities they considered the to be a wastage of
time. HR department is working to reduce these barriers through better
communication and information but as it’s a behavioural change and it will
take some time.

MOBILIZING FOR CHANGE:


Mobilization for change in PEL occurred due to the change in the
environment that led to a decline in the organizational performance that is
tangible to the employees. This was only because the top management
wanted to polish the employees in learning new skills and have an efficient &
effective workforce. Basically the theme of mobilization was to generate
readiness of change in the employees. The Change initiator in the
organization wanted the employees to know what the exact position they were
in. The MD of PEL made the employees to feel that the changes were viable
and achievable through training and emphasis on continuous development.

The IR dept. was previously looking after all the employees that are
above 7000 in numbers. When an employee was ignored, he would become
dissatisfied. Hence the change champions thought that there should be a

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separate dept. for managerial level employees. This was achieved through
questioning the employees about the change and then challenging of the
status quo. New hiring was done because the vision of the structural HR
change was to have a workforce which will have different skill sets. Symbolic
changes were also taken to make the employees realize that the change was
happening. It was made compulsory that the employees at the managerial
level will dress neatly and like professionals. This gave an image to the
employees that the behaviors of the employees were also changing.

The only strategy that they acquired was to have a totally new HR
department and in it totally new people. Various communication and training
interventions were also used to educate people as to why change is needed,
what changes are needed and to provide them with the skills they need to
make change happen. The executives of PEL realized that genuine change
requires considerable investment in mobilizing the workforce. By providing
extensive training to the employees others thought that they also have to
change. Hence it was an intensive personal development intervention aimed
at altering the employees’ attitudes to their situation. In PEL as there is a lot of
time to make the things change, the top management is trying to educate and
train their employees. The ultimate goal is to change the behavior of the
employees towards their personal establishment and the betterment of the
organization.

URGENCY FOR CHANGE:


Guiding change may be the ultimate test of a leader – no business
survives over the long term if it can’t reinvent itself. The urgency of change at
PEL was to make a fundamental change in how business is to be conducted
in order to help cope with a new and more challenging market environment.
The change champion had to have a hard look at the company’s competitive
situation, market position, technological trends and financial performance. He
knew that he had to communicate the change information about the Human

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Resource department broadly and dramatically. Without motivation, people
won’t help and the effort goes nowhere.

There was a little resistance at the lower level but overall the
employees wanted the change to be implemented. The senior employees in
the company didn’t become defensive. PEL’s managements mandate was to
minimize risk and to keep the current system operating. The HR head was a
newly appointed person as the previous head had left after 5 – 6 months of
implementing the change. The head of the HR dept. was a key. Convincing
the employees of PEL for the need of change was much harder but they had
many resources to help make change.

The employees facilitated a frank discussion of potentially unpleasant


facts about the new competition, shrinking margins, decreasing market share,
flat earnings, a lack of revenue growth or other relevant indices of a declining
competitive position. The change agent recognized that the high sense of
urgency will help enormously in putting a guiding coalition together. This
coalition consisted of 20 – 25 people from different levels. The vision of the
change process was to deliver at all levels of the organization telling everyone
the reason to change and give a direction. The employees were told about the
benefits they shall get out of this change. In short the vision was completely
circulated with in the organization. The change champion allowed the human
resource systems to remain intact because they were clearly consistent with
the new ideas. Creating a short term win is different from hoping for short term
wins.

Basically in PEL change was urgent because the employees at many levels
were dissatisfied with their current job descriptions and compensations. PEL
really wanted its employees to be satisfied and remain competitive in the
industry; hence it implemented the change through great coordination at all
levels. The change urgency level was known to every employee at PEL and
the HR department came into being by the positive attitudes and behaviors of
the employees towards the change.

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Change Process Model for PEL

High Performance

PEL’s Future
Desire Position
In 2015

PEL’s Current
PEL without HR
Position in 2008
department HR Intervention
in 2005
From
1956-1990
Time
Reconstruction

Transformation &
Acceptance of HR
Resistance for
HR department Slow Acceptance of
Low
HR department

Stage 1: Late Status Quo at PEL----PEL without HR department


Since the establishment of the PEL in 1956, the company is operating with
humans being but there was no human resource department. As the seth
culture prevails and there were no proper department or rules & regulations
regarding the employees. The Company’s efficiency was just to meet
deadlines and keep on producing as PEL was recognized as a production and
sales oriented company. People were used to work casually if the supervisor
was effective there would be efficiency in sales. Authority people were
enjoying “might is right” rule.

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Stage 2: Resistance against HR Department
Mr. Murad Seghal had a desire to introduce HR Department as it as the need
of the hour. With his continued efforts and a positive vision HR department
came into being in 2005. because of the HR department the supervisors and
employees started resisting against it and did not accepted its functions and
procedures.

Stage 3: Confusion of accepting HR functions


When PEL’s top management started educating and communicating the
benefits of HR department that how would it be beneficial for the other
departments and whole organization, then the people who were resisting
earlier started facing confusion about the acceptance of HR department. The
acknowledged the HR department’s importance and its functions but did not
wanted to accept and implement them. Thus in this case PEL’s top
management had to make plans for training and educating its employees to
get buy in of their vision. This was very critical stage for PEL’s transformation
part of the change path.

Stage 4: Slow acceptance & transformation for Hr Department


After getting initial Buy in of the middle management and employees, now it is
the point where PEL is making efforts to embed these changes in the culture
of the organization and behaviors of the management and employees through
their practices, implementation of the processes and by developing training
and learning culture with in the Company. With these practices the PEL’s
employees are slowly accepting HR’s function and have started realizing that
how much these issues are important for their growth. Now in 2008 HR
department and top management is working and investing heavily on the
growth of company and development of its employees. As job descriptions are
being revised and roles are being defined by the HR managers.

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Stage 5: Prospect functionality of HR department
In future PEL is prospecting that the company will be long ahead of where it is
today. learning and knowledge sharing culture will be develop in the
organization. Full and optimal functionality is expected from the HR
department. They need 6 to 7 years to complete their HR department change.
It is expected that by the year 2015 the HR department will be fully operating
with its all functions in all departments which would definitely increase the
performance level and help the company to grow.

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PERSONAL LEARNING:

This project has helped us learn how to work in a group with so many
diverse people who are strangers. Initially it was very difficult to adjust but
though we are students of Change Management we accepted the change
easily and it did not created any issues for us to adjust within the group. We
have learnt how to deal with people, it has also strengthened our decision
making power. It has also helped us to act patiently.
This project helped us to study the possible intricacy in a cultural and
structural change program. This study has facilitated us to realize how
important the middle management and employees are in any organization and
change program especially. This whole study will help us in our career and
also in any change program at the organization, where we would work.
This project helps us how to work in group dynamics and to get the
best output from diverse ideas of the group members and also work on the
lines in future I am able to design and implement a change program.

ORGANIZATIONAL LEARNING:
This project will help PEL Top management to review the whole change
program JTE.
The Analysis performed in this project will give a clear depiction to the
management how this project can effect PEL’s stakeholders. In this project we
have analyzed the soft side of structural change program at PEL. Our project
will help them to access and analyze the goals and implication association
with a structural change program in PEL and also help them to examining a
new employee development and assessment program. It might help them to
boost up their energy in achieving their goal of change program. As we have
implemented the Change Kaleidoscope in our Project it might help them to
evaluate their structural change program

REFLECTIVE THOUGHTS:

In this project we have learned how to analyze an on going change


program. It was a continuous process of learning for us. It has opened up our

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understanding about change management; it has further motivated us to learn
more about change. Our knowledge was limited but now after taking this
course and analyzing a change program in depth has increased our
knowledge.

As it is a continuously changing environment and every organization


has to change with time, but most of the organizations fail to deliver this
change.
We have only reflected some of the aspects of Change Management, but
even those few aspects have deeply enriched our understanding of how
change happens and what role change agents can and must play if they are
to be successful. We have learned that for a change program to be successful
top management support and commitment is must.

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RECOMMENDATIONS:

• Scope of HR activities should increase (from 600 employees to 6000


employees)
• HR department should take employee feedback regarding the policies,
rules and regulation implemented to them.
• Top Management should monitor the progress of HR department.
• Training & Development Department should emphasis on
communication & presentation skills improvement along with
management skills.
• Training & development at every level in the organization should be
introduced.
• Change process should be made transparent and fair other wise PEL
might face resistance in future.
• They should increase communication with their employees regarding
this change program and bring them on board.
• The incremental approach towards implementation of the change had a
positive approach towards achieving the vision seen by the change
champions.
• Continuously keep employees inform of the new developments with
in the organization.

• Encourage employees to innovate without fear.

CONCLUSION:

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REFERENCES:
1. D E Hussey, HOW TO MANAGE ORGANISATIONAL CHANGE
2. DEATH VALLEY OF CHANGE.

3. MARIA VAKOLA AND LOANNIS NIKALAOU,(2005), “ATTITUDE TOWARDS ORGANIZATIONAL

CHANGE”, JOURNAL OF EMPLOYEE RELATIONS, VOL.27,NO.2,2005,PP160-174

4. Stuart M. Klein, 1996


5. MANAGING DIVERSITY

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APPENDIX:

FIGURE A:
OLD CULTURAL WEB FOR PEL

Symbols
Stories
OLD
OLD Slogan: Lets make
Seth Culture image things better
Lifetime No car parking
Employment reservation for MD
Stories of Segal Casual / formal
family dressing
Reference based
hiring Organization
Structure
OLD
Paradigm Roles &
Routines & Rituals OLD responsibilities were
OLD Static/Stable not clear
3 Bounces per year Lifetime Functional /
No performance Employment operational
Management No learning Culture 2 SBU’s
Board Meetings No Professionalism Separate Blocks
No training & Production oriented No HR Department
Development

Control Systems Power Structure


OLD OLD
Supervision on MD & Depts. Heads
production Supervisors
ISO certification
Informal feedback

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Figure B
NEW CULTURAL WEB FOR PEL

Symbols

NEW
Stories Slogan: We change
your life
NEW Parking Reservation
Professional image with executive
Developed system names and car
Proper recruiting number
Activities are Office interiors/ color
chanallized schemes
Professional suited
Organization
Paradigm
Structure
NEW NEW
Routines & Rituals No lifetime Hierarchies
employment 3 SBU’s
New HR Department
Performance Based Performance
Management Redefining job
Online Performance responsibilities
Appraisal Dynamic / Growth
Training & Knowledge sharing
Development Continuous learning
Professionalism Power Structure
Control Systems
Customer Focus
NEW
NEW Proper Reporting
IS & IT Improved Lines
ISO certified Chain of command
Improved Job descriptions are
Supervision revised
Open result of Reporting line
performance changing
management & Decentralized
Software installation HR portal
Online Performance
appraisal

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Figure C
Transition Stage of PEL
Individual Path

Organizational Path
Mobilize Move Sustain

Integration-making it
part of their activities

Denial-changing
Search for
structures
meaning-learn
from new system
Awareness
Incompetence- Testing-start
handling of implementing
System system (P.A)

Shock-HR Acceptance-realizing
Dept the value of HR dept

2005 2006 2007 2008 Time (Years)

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