Upload
asad-ali
View
346
Download
2
Tags:
Embed Size (px)
DESCRIPTION
HBL Acquisition Privatization Managing Employee Resistance STRATEGIC HUMAN RESOURCE MANAGEMENT
Citation preview
Strategic Human Resource Development
A Case Study of HBL
Presented By: Group B
Kausar Saeed
Muneeba Haroon
Atif Salman
Farrukh Bashir
Yasser Durrani
Introduction
The Global Economy and Organizational Change
Change Management around the Worldo Examples
Change Resistance in Bureaucratic Organizations in Jordan
Change Management in Indian Banks
A Case of HBLAcquisition and Privatization:
Managing Employee Resistance
Case Study Objective
To identify the challenges faced by HBL’s management while managing the change and the resistance put up by the middle level management o To analyze the process of change adopted at HBL from the
perspective of that of middle level managemento To find out what types of resistances were faced by HBL’s
management during the change management processo To find out how HBL’s management responded to
employees' resistance and the effectiveness of applied strategies
HBL Story 1/2
The journey from India to Pakistan
HBL 1950s – 1960s. o Employee Oriented.
HBL and Nationalization o Culture of Bureaucracy. o HBL looses the service oriented culture.
HBL Story 2/2
HBL goes beyond border.
1990’s- Increase in competition
Mid 90’s -Governments effort to restructure the financial sector Restructuring at HBL.
Acquisition by AKFED on December 29, 2004.
HBL Privatization
The process started in the late 90s under the leadership of Mr. Shaukat Tareen.
AKFED formally took over and initiated new policies in the year 2004.
The new management since acquisition have had to face many new challenges – some that they had accounted for and some that they hadn’t.
Required Role of the New HR Mangement
Strategy formulation
Develop a workable change management plan
Measure synergies
Design the right staffing model
Align total rewards
Strategy execution
Managing the Human Resource- Key Concerns
The possibility of taking the
easy way out
Reengineering the Business
Process
Orient the organization to the
practices of a technology
oriented organization
Connect With and Develop
Employees
Encourage Employee
Participation / Ownership
Reward Real Performers
Facilitation and support
Improve performance
efficiency of HR
Reorient employees to
service oriented culture
Bring about a culture of
change
Key Drivers of Change
Increased competition
locally & international
ly
Total lack of
customer service
Rapid changes in
the banking
policies & procedure
s
During Nationalized Period
Bureaucratic approach
Power culture Short term goals Reactive approach
Post Privatization
Long term results orientated approach
External and Internal customer satisfaction
Pro active market response
Customer focus
Strategic Transition Dynamics
Employee Resistance & Management Strategies 1/ 2
1. Employee Dialogs, Negotiations and Agreement
Resistance: Rebellious Unions
Strategy: Taming the CBA
Resistance: Overstaffing
Strategy: Successful VSS’s & Layoffs
2. Explaining the Rationale of Change; Detours & Setbacks – Promoting Education and Communication
Resistance: Low Morale & ‘Go Slow’
Strategy: Employee Engagement & Investment on Trainings and Skill enhancement
Employee Resistance & Management Strategies 2/2
3. Enhancing a Culture of Trust
Resistance: Lack of Trust
Strategy: Conscious effort to establish parity, meritocracy and equity
4. Establishing Good Corporate Governance
Resistance: Resistance to new governance approach
Strategy: Establishing new Career Standards
Strategy: Functional Support and Business Partnering
Breaking Conventional Structures
Introducing organization restricting Functional Segregation
Line Management Support Services
De-layering of organization Flatter organization Greater span of control with specialization
Doing away with historical power oriented titles
Introducing a new paradigm of performance appraisal
Linking pay with performance
Lack of tolerance of non-performers
Learning from the experience and the Positive Outcomes 1/4
1. Changes in the Organizational Hierarchy, Appraisal System and Branch Network
Change in functional titles
Learning from the experience and the Positive Outcomes 2/4
Change in designations
Results
Loss making organizations turned profitable
Leaner Organization
Induction of New Blood
Innovative Products
Professionalism and Accountability
Higher Service Standard and Profits
Learning from the experience and the Positive Outcomes 3/4
Branch rationalization statistics
Learning from the experience and the Positive Outcomes 4/4
2.Revitalization of Branches
3.Moving Ahead Together
4.Current Scenario of HBL
Conclusion
Proper and thorough communication required before implementation
of change was absent
Main concerns of the employees were:
o Did not trust the new management
o Job insecurity increased after privatization
o Living a habitual public sector professional life
o Difficulty in adapting to the new work environment
o Even after 5 years of privatization middle management does not
have positive perception
Recommendations
Formation of interdependent teams having a mix of both top and middle level
management employees
Preparation of a Career Development Plan
Introduction of a tailored evaluation program
o Senior employees to be judged not only on the basis of their productivity
but also on the basis of their level of improvement within the period of
evaluation
The T& D should be focused on the needed and required competencies of the
future
Thank You
Q & A