University of ManagementUniversity of Management & & TechnologyTechnology

Final ProjectFinal ProjectCourse:Course:

CHANGE MANAGEMENTCHANGE MANAGEMENT

Instructor:Instructor:

Mr. Aamir Aleem RanaMr. Aamir Aleem Rana

Project:Project: To Analyze the StructuralTo Analyze the Structural Change in PELChange in PEL

Group:Group: # 03# 03

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

Group Members: Group Members:

Aabiya AhmadAabiya Ahmad ID # 074132-141ID # 074132-141Sanaa HameedSanaa Hameed ID # 060234-008ID # 060234-008Toufique AhmadToufique Ahmad ID # 060234-026ID # 060234-026Umer Javed DuraniUmer Javed Durani ID # 063832-086ID # 063832-086Irfan BhattiIrfan Bhatti ID # 063832-053ID # 063832-053

Program:Program:MBA-PMBA-P

Submission Date:Submission Date:

02, June, 200802, 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

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conducting many training seminars for employees. 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 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:

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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Evolution

PELCurrent Path 2

Adaptation

Revolution

Transformation Realignment

Incremental

Big Bang

End Result

Nature

Reconstruction

PELInitial Path 1

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.

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:

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PM OD T & D R & S

HR Department

The objective of the step by step intervention was to completely

transform the PEL’s employee’s behaviour and to make them effective for

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

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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.

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.

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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.

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:

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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

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:

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TIME:

Significant organizational changes often begin slowly, are incrementally

implemented 4 (Stuart M. Klein, 1996). In 2005 PEL executives realized

that there is a need of a Human Resource department 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

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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

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

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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

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

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ATTITUDE

INFLUENCE

Low Medium High

Favor

Neutral

Against

1

2

3

4

5

6

Stake Holder Analysis for Power & Influence

- 23 -

POWER

Low Medium High

High

Medium

Low

INFLUENCE

1

2

3

4

5

6

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

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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Low

High

From1956-1990

Reconstruction

PEL without HR department HR Intervention

in 2005

PEL’s Current Position in 2008

Time

Performance

Resistance for HR department

Transformation & Acceptance of HR

PEL’s Future Desire PositionIn 2015

Slow Acceptance of HR department

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

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Symbols

OLDSlogan: Lets make things betterNo car parking reservation for MDCasual / formal dressing

Stories

OLDSeth Culture imageLifetime EmploymentStories of Segal familyReference based hiring

Routines & RitualsOLD3 Bounces per yearNo performance ManagementBoard MeetingsNo training & Development

Control SystemsOLDSupervision on productionISO certificationInformal feedback

Power StructureOLDMD & Depts. HeadsSupervisors

Organization StructureOLDRoles & responsibilities were not clearFunctional / operational 2 SBU’sSeparate Blocks No HR Department

ParadigmOLDStatic/Stable Lifetime EmploymentNo learning Culture No ProfessionalismProduction oriented

Figure B

NEW CULTURAL WEB FOR PEL

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Symbols

NEWSlogan: We change your lifeParking Reservation with executive names and car numberOffice interiors/ color schemes Professional suited

Stories

NEWProfessional imageDeveloped systemProper recruitingActivities are chanallized

Routines & RitualsNewPerformance Based Online Performance AppraisalTraining & Development

Control Systems

NEWIS & IT Improved ISO certified Improved SupervisionOpen result of performance management & Software installationOnline Performance appraisal

Power Structure

NEWProper Reporting Lines Chain of commandJob descriptions are revised Reporting line changing Decentralized HR portal

Organization StructureNEW Hierarchies3 SBU’s HR DepartmentRedefining job responsibilities

Paradigm

NEWNo lifetime employmentPerformance ManagementDynamic / Growth Knowledge sharingContinuous learningProfessionalismCustomer Focus

Figure C

Transition Stage of PEL

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Mobilize Move Sustain

Shock-HR Dept

Denial-changing structures

AwarenessIncompetence-

handling of System

Acceptance-realizing the value of HR dept

Testing-start implementing system (P.A)

Search for meaning-learn from new system

Integration-making it part of their activities

Organizational Path

Ind

ivid

ual

Pat

h

Time (Years)2005 2006 2007 2008