hbl - acquisition privatization - managing employee resista

8/13/2019 HBL - Acquisition Privatization - Managing Employee Resista

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Strategic Human ResourceDevelopment

A Case Study of HBL


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Presented By: Group B

Kausar Saeed

Muneeba Haroon

Atif Salman

Farrukh Bashir

Yasser Durrani


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Introduction

The Global Economy and Organizational Change

Change Management around the World

o Examples

Change Resistance in Bureaucratic Organizations inJordan

Change Management in Indian Banks


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A Case of HBLAcquisition and Privatization:

Managing Employee Resistance


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Case Study Objective

To identify the challenges faced by HBLs 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 management

o To find out what types of resistances were faced by HBLs

management during the change management process

o To find out how HBLs management responded to

employees' resistance and the effectiveness of applied

strategies


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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.


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HBL Story 2/2

HBL goes beyond border.

1990s- Increase in competition

Mid 90s -Governments effort to restructure thefinancial sector

Restructuring at HBL.

Acquisition by AKFED on December 29, 2004.


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HBL Privatization

The process started in the late 90s under theleadership of Mr. Shaukat Tareen.

AKFED formally took over and initiated newpolicies in the year 2004.

The new management since acquisition have had toface many new challenges some that they hadaccounted for and some that they hadnt.


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Required Role of the NewHR Mangement

Strategy formulation

Develop a workable change managementplan

Measure synergies

Design the right staffing model

Align total rewards

Strategy execution


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Managing the Human Resource-Key Concerns

The possibility of taking theeasy way out

Reengineering the BusinessProcess

Orient the organization to thepractices of a technologyoriented organization

Connect With and DevelopEmployees

Encourage EmployeeParticipation / Ownership

Reward Real Performers

Facilitation and support

Improve performanceefficiency of HR

Reorient employees toservice oriented culture

Bring about a culture ofchange


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Key Drivers of Change

Increasedcompetition

locally &internationally

Total lack ofcustomerservice

Rapid

changes inthe bankingpolicies &procedures


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During Nationalized Period

Bureaucratic approach

Power culture Short term goals

Reactive approach Post Privatization

Long term resultsorientated approach

External and Internalcustomer satisfaction

Pro active marketresponse

Customer focus

Strategic TransitionDynamics


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Employee Resistance &Management Strategies 1/ 2

1. Employee Dialogs,Negotiations andAgreement

Resistance: RebelliousUnions

Strategy: Taming the CBA

Resistance: Overstaffing

Strategy: Successful VSSs& Layoffs

2. Explaining the Rationale ofChange; Detours &Setbacks Promoting

Education andCommunication

Resistance: Low Morale &Go Slow

Strategy: EmployeeEngagement & Investmenton Trainings and Skillenhancement


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Employee Resistance &Management Strategies 2/2

3. Enhancing a Culture ofTrust

Resistance: Lack of Trust

Strategy: Conscious effortto establish parity,meritocracy and equity

4. Establishing GoodCorporate Governance

Resistance: Resistance tonew governance approach

Strategy: Establishing newCareer Standards

Strategy: FunctionalSupport and BusinessPartnering


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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


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Learning from the experience andthe Positive Outcomes 1/4

1. Changes in the Organizational Hierarchy, Appraisal Systemand Branch Network

Change in functional titles


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Learning from the experience and thePositive Outcomes 2/4

Change in designations


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Results

Loss making organizations turned profitable

Leaner Organization

Induction of New Blood

Innovative Products

Professionalism and Accountability

Higher Service Standard and Profits


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Learning from the experience and thePositive Outcomes 3/4

Branch rationalization statistics


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Learning from the experience andthe Positive Outcomes 4/4

2. Revitalization of Branches

3. Moving Ahead Together

4. Current Scenario of HBL


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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


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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


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Thank You


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Q & A

hbl - acquisition privatization - managing employee resista

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