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Organizational PerformanceK electrics

06-Apr-14Qualitative Research MethodsEDP Code: 011401054

Course Supervisor: Dr. Feroz

Submitted By:Mehwish Aqeel - 8403

Mazher Uddin Akhter - 7164Ayaz Ahmed Faroqui - 6097

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Dedication

This report is dedicated to our instructor Dr. Feroz, whose guidance makes us able to perform this task and increase our tacit knowledge related to this course.

Thank you Sir

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ContentS. no. Topics Page number

01 Abstract 4

02 Introduction 4

03 Organizational flexibility 5

04 Types of flexibility 5-6

05 Organizational performance 7-8

06 Problem domain 9

07 Research question 10

08 Research variables 10

09 Organizational performance in K-Electrics 11-12

10 Conclusion and Recommendation 13

11 References 14

12 Appendix – 1 15

13 Appendix – 2 (with coding) 16-25

14 Appendix – 3 26

15 Appendix – 4 27

16 Appendix – 5 28

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Abstract

Performance is a real concern to all organizations. It's the level at which organization is put in a specific industry different measures are utilized to measure it. Organizational performance relies on upon continually enhancing the execution, performance and flexibility of hierarchical boundaries by creating and keeping up the human potential that serves as the spine of the organization. For the evidence of this theory this research is executed and extracted the results from the organizational performance of K-Electrics via in depth interview. Result shows that in for organizational performance gaps need to be filled with the joint efforts of employer and employee. “Time” and “Cost” are considered as most important elements in organizational performance. Therefore it is suggested that for organizational performance integration, financial management, innovation, utilization and allocation of resource, process re-engineering, competent workforce, employer branding, motivational techniques, training and development are need to be focused.

Key Words: Organizational flexibility, Organizational performance, Re-engineering, Gap, Employer branding.

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High

Low

Variety

Low High

Speed

Structural Strategic

Steady-state Operational

Introduction

Since flexibility is an important issue in any company so the purpose of this project is to identify and highlight the factors, causes, issues and results related to organizational performance. The evidence is taken via literatures of past researches and its application is taken from K-Electrics.

Organizational Flexibility

In recent decades, due to the increased speed of change in market environments, higher competition, and narrower profit margins, the concept of flexibility has emerged. Flexibility become an important source of competitive advantage to organizations, building high-performing organizations can be achieved by adopting a mixed strategy of efficiency and flexibility (Adler et al, 1999). There are number of diverse views given by several researchers and practitioners (Evans, 1991; Stigler, 1939; Lawrence & Dyer, 1981; Cyert and March, 1963; & Eppink, 1978) about flexibility. These views have their own backgrounds, which might base on a particular case study or an incidental happening during the life-cycle of any business process. Organizational flexibility is directly related to the ‘organizational change’ or ‘management of change’, as more flexibility in any organization leads to less resistance to the change. In 1995, Ittner and Kogutstated that the value of flexibility lies in increasing an organization's ability to respond to changing and uncertain environments. Designing an organization that does not shield itself from this uncertainty requires fundamental organizational changes with no buffers to shield the fragile system from uncertainty. Flexible capabilities are required to permit rapid responses to unpredictable production contingencies and demand changes. Lewin (1947), stated that a successful change includes three aspects: unfreezing the present level, moving to a new level and freezing group life on the new level. Since any of these levels determined by a force field, permanency implies that the new force field is made relatively secure against change. Term 'unfreezing' precedes a shift towards greater adaptability and term 'freezing' is a return towards a more rigid system, in terms of flexibility. Furthermore, Sofer (1972), confirmed Lewin's ideas by stating that, if an organization is to increase the extent to which it makes innovations, or its capacity to react to environmental changes, it needs also increase its scope for flexibility.

Types of Organizational Flexibility

In 1971, Ansoff and Branenburg and then Volberda (1992 & 1998), distinguished four types of flexibility, which are steady-state, operational, structural and strategic flexibility in terms of variety and speed of dynamic capabilities. For these types of flexibility except 'steady-state', Ansoff (1965), made a distinction between internal and external flexibility. Furthermore, Volberda (1998), explained the above mentioned types of flexibility, and thrown light on Ansoff's distinction. He stated that an internal flexibility is defined as management's capability to adapt to the demands of the environment and an external flexibility is defined as management's capability to influence the environment so that the firm becomes less vulnerable to environmental changes.

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Figure 1 – Types of flexibility and their relation with variety and speed of dynamic capabilities (Volberda, 1998).

Steady-state Flexibility

Steady-state flexibility consists of static procedures to optimize the firm's performance when the levels of throughput and the nature of throughput remain relatively stable overtime. It is considered as a firm's efficiency rather than flexibility, as it hardly affects organization's performance in terms of flexibility. It is usually attained from organization's economies of scale, reduction in overheads and employee's skills.

Operational Flexibility

Operational flexibility consists of routine capabilities that are based on present structure or goals of an organization. It relates to the volume and mix of activities, rather than the kinds of activities undertaken within the firm. Internal operational flexibility consists of the variation of production volume, building up of inventories and use of crash teams. While the external operational flexibility consists of the use of temporary labor, multi-sourcing and reserving of capacity with suppliers. Operational flexibility provides rapid response to organizational change.

Structural Flexibility

Structural flexibility consists of managerial capabilities for adapting the organization structure, and its decision and communication process, to suit changing conditions in an evolutionary way (Krijnen, 1979). Internal structural flexibility consists of creating multifunctional teams, changing managerial roles and alterations in control systems. On the other hand, the external structural flexibility consists of purchasing of components from suppliers with a short delivery time or just-in-time (JIT), purchasing of subassemblies from suppliers and developing of sub-components together with suppliers.

Strategic Flexibility

Strategic flexibility consists of managerial capabilities related to the goals of the organization or the environment (Acker &Mascarenhas, 1984). It is a most radical type of flexibility and much more qualitative in nature. It involves changes in the nature of organizational activities. Internal strategic flexibility consists of dismantling of organization's current strategy, applying new technologies and fundamentally renewing the products. The external strategic flexibility consists of creating new product-market combinations, using market power to deter entry and control competitors, and engaging in political activities to counteract trade regulation.

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Organizational performance

Organizational performance is the ultimate dependent variable of interest for researchers concerned with just about any area of management. This broad construct is essential in allowing researchers and managers to evaluate firms over time and compare them to rivals. In short, organizational performance is the most important criterion in evaluating organizations, their actions, and environments.

The evidence is in: Flexibility is good business

Flexible human capital practices reduce or eliminate costs associated with: absenteeism, turnover, stress-related illness, burnout, health insurance, facilities, labor, investments to attract new customers and retain old ones, and recruiting costs such as stock options, employment advertising, salary differentials and hiring bonuses. (Burud,2004)

Lower Costs

Flexibility to eliminate costs linked with turnover, health care, overhead, labor, quality, and legal fees.

Turnover

Turnover is three times higher in Employees experiencing conflict rather than who are not experiencing conflict. (Johnson 1995). The firms experienced major turnover-related savings after they adopted flexible human capital cultures and practices.

Health care costs

Health insurance is the biggest component of labor costs. Health costs can minimize by flexible human capital strategies.

Stress and Depression

Sadness and anxiety increment wellbeing expenses; adaptable human capital societies diminish stress depressed representatives' social insurance bills are 70% higher than those of other representatives. Workers reporting high stretch have 46% higher medicinal services cost.

Labor costs

Flexible human capital strategies decrease labor costs for the output and help to increase profitability.

Quality

There are several costs related with poor quality, with displeased customers and injuries to status.

Employee Attitude

Employee attitude can be defined in the workplace as how the employee presents themselves.

Mistakes

Staffs who believe work was causing problems in their personal lives were much more likely to make mistakes than those who had few job related personal problems.

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Enhanced Organizational Performance

Flexible human capital practices give to a work force that is more expert, sure, and passionate and free of disturbances. Capable and attentive employees who are on flexible schedules are more dedicated to the organization’s goals and to supply greater value to customers, who in turn, are more tending to be satisfied and faithful.

Flexible Culture Increases Financial Performance

Flexibility and working time flexibility increased firm financial performance and productivity.

Flexible Human Capital Culture Leads to Financial Performance

Human capital, organizational performance, development and nurture of employees within a supportive strong culture lead towards better financial performance.

Employee Involvement Leads to Higher ROS, ROA, ROI, & ROE

Companies establish organizations with great use of employee involvement programs, high performance knowledge development, information sharing, organization and team level pay for performance, and empowerment practices performed meaningfully better than organizations with low employee involvement.

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Problem Domain

Organizations typically face challenge of flexibility, which includes the outlining of the proper authoritative conditions important to viably abuse the flexibility. As respects to this analysis it influenced performance of organization which directly related with poor proceed of employees.

Since we have highlighted the importance of organizational performance in generalized context, (Richard,2011) identify the measurements of organizational performance and how it is operationalised by using organizational performance as dependent variable. Result show that organizational performance is important to scholar across the entire domain management research, different domain scholars have different aspects about the measurement for organizational performance but all scholars are united on its importance. It is suggested that future research should be called that analyze an effective triangulation using multiple measures that applies longitudinal data and allows alternative methodological formulation that align research circumstances with organizational performance measures.

Also, (Lund, 1996) Identify the flexible company innovation, work organization and human resource management by using data of 1990 firms of Danish private business sector. Organizational learning, innovation and flexibility are used as variables. Research draws several results at aggregate levels:

Large and medium sized firms are more flexible than small firms and manufacturing firms are more flexible as compare to non-manufacturing firms

Increased in demands on recruits regarding both vocational and social qualification observed by the firms with increasing degrees of flexibility

Labor qualification demand are based on the differences between degrees of flexibility of the firms

Firms’ position at the flexibility ranges are strongly co-related in different competitive circumstances.

It is suggested that dynamic analysis is the topic of future papers as DISKO project focuses on the changes and direction of changes in innovation, technology, organizational structure, performance and interplay among those factors.

Last but not the least (Waal, 2006) identifies characteristics of high performance organization (HPO) by using organizational structure, organizational culture and behavior of organizational members as variables. Results shows that the HPO can’t be taken on the face value of the organization, it should be taken as how management put their input in a focused and disciplined manner to start working and on the transition to HPO. It is suggested that there is a need of validating characteristics that found in this study that helps organization to start improving with assurance these elements in their structure, strategy, processes and people, it is also suggested that the link between HPO characteristics and organizational performance should be validated in additional research.

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Research Question

How to assess the impact of flexibility on organizational performance?

Research Variables (with sub variables) Importance of performance – Point of agreement, Focus on measurable results, Decision making Features of performance – Clear time frame and structure, Role of Employer Procedures of performance – Evaluating criteria, Benchmark Sustainability - Dissemination and communication Long term oriented - Maintain and nurture an innovative culture Financial performance – Earnings, Investments Cause of poor performance – Incompetent employees, Lack of commitment of employee in working

environment, High turnover, Dissatisfaction, Lack of employee participation Significance of flexibility in performance – Adaptability, Efficiency and Effectiveness Barriers in performance – Inability to articulate changes, Rigidness of system, Cultural issues Understanding of cost - Time and resources Hurdles of cost – Working conditions Gaps - between have or have not Issues in performance - Keeping focus on measurable results Role of employee - Employee empowerment, objectives must be crystal clear (mission, vision, goals) Time span - Measurement is concerned with results delivered now, instead of tomorrow; present

success should build further success Evaluation of performance - What, When Where

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Organizational performance in K-Electrics

As we have discussed importance of organizational performance in details therefore in context of K-electrics its constituents is based on many important elements. Firstly organizational performance is depending on integration of communication in an organizational system i.e. from sending any message to getting back with feedback with minimum chances of error. This whole process is done via collaboration of every member in a system for better outcome.

Secondly for good performance organization needs to take new step to run along with the changes of world – it is for their survival. For every initiative cost is incurred, therefore financials issues are the important concerns for the manager. Therefore if any area is suffered with bad financial it affects badly affects the whole organization and its performance.

Thirdly innovation plays an important role in performance; either in technology, system or in basic routine functions. Only those organizations perform well who change with the CHANGE as it is said; “Change with the change or you would be change by the change (Anon.) Obviously this change is not that much simple, anything we want to improve will costs. Also there are rigidity in system (esp. in old ones) where underperforming employees finds for themselves a comfort zone.

Fourthly good performance needs efficient utilization and allocation of resource which plays an important role. It starts from service quality to best service delivery. It only happened when you manage your cost in resource allocation and invest that saved amount in better providing to your customers. For getting this advantage you clogged the traditional cost consuming processes and starts process Re-engineering. It will help your company to shift the old paradigm.

Fifth good workforce is very critical to have. For goof HR you need to be focused from their selection till their lay off. Therefore take all possible action for taking right people on board and reducing the incompetent one. Here enthusiasm factor are very essential it avoids the theft incident within organization or may be some another harms. Therefore for their good performance keep them in decision making and by delegation it will change their mind set.

For keeping good people on board it is the responsibility of the employer to brand himself in front of his employees so that they gets attracts towards him by his positive role and good supervision. It will maintain the better relationship with employees and in the end employer will gain confidence and loyalty of his people. Therefore the span of control must be strong overall organizational hierarchy with systematic implementation. Employer must celebrate achievements with his employees after annual performing cycle; take self look at his own goal achievements, business objective achievements, leadership objective achievements, safety objective achievements and so forth. This will build the close relationship between employer and employee for better understanding.

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Sixthly for better performance motivational factors plays an important role. Every employee is varying in need of different motivational reward either intrinsic or extrinsic. So it is the duty of that particular team leader to know his subordinates need better than anyone. That supervisor periodically measures performance of his team, reward for good performance and encourage them to perform better every time. And those who are not performing initially give them leverage, that is, period to re-perform and set probation period and if they won’t perform at that specific point and allocated time expel them.

For motivational factor of organizational performance it is essential to set goals with standards because there are barriers and obstacles always there for underperformance like speculation, overwhelmed, within team competitions, riots, work force load etc. Consequently avoiding these issues provides the employees training and development by reassessment and continuous monitoring. On behalf of achieving this auditing must be good, with proper evaluation mechanisms and with comprehensive development plan. This will build workforce self-motivated.

Seventhly to overcome these kinds of issues need to understand it and it will incur Time. Therefore another important area in maintaining good performance is time and most of the occasion’s time worth equal to cost of monetary expenses.

Another part of performance determinant is keep focus key elements of your value system like whatever you are promising to your employees are delivered or not? You must concern with their health and safety issues in effective and efficient manners, must understand the cultural issues, norms and beliefs. For that proper monitoring and controlling for separate work division is essential. This supervision is must be held by certain management staff. That management staff would most likely to set SMART goal, by setting benchmark with fix parameters. The objectives must be crystal clear so that there would be no confusion in understanding objectives. By doing so, team will became the platform of the competent and high performer team of optimistic employees.

Last but not the least by focusing the above factors, good performance will fill all the gaps between company and customers like their demand or services quality issues and it would be easy to resolve. That is why these factors are essential for organizational performance.

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Conclusion & Recommendations

Organizational performance is an ability of delegate execution. Organizational adequacy relies on upon continually enhancing the execution, performance and flexibility of hierarchical boundaries by creating and keeping up the human potential that serves as the spine of the organization. Organizational performance alludes to how well an organization is performing. Great execution is an indicator of victory and advancement of all associations. Today best practices assess hierarchical execution regarding fiscal outcomes, products improvements, client devotion and individual’s execution aides guarantee authoritative objectives are continuously attained. Performance is a real concern to all organization. It's the level at which an association is put in a specific industry different measures are utilized to measure it, going from terrible deals, benefit, playing point and client rating. Performance of an organization in an economy could best be measured regarding time taken to complete and expenses caused in connection to the first arranged undertaking span and monetary plan. Performance alludes to how well one does a bit of work or action and the capacity to realize coveted brings about the palatable way. Great execution of performance is a pointer of triumph and advancement. The point of view of hierarchical execution is recognized as a capacity of association capability to achieve and administer harmony with the earth. Performance measurement ought to be lessened to clear setting of targets. Measurable in amount and additionally time and could be caught in a successful data framework. Good organizational performance fills the gap between have and have not. Therefore it is recommended that for organizational performance integration, financial management, innovation, utilization and allocation of resource, process re-engineering, competent workforce, employer branding, motivational techniques, training and development are need to be focused.

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REFERENCES

Burud, T. (2004). The Impact of Flexibility on Organizational Performance. Davies-Black Publishing.

Lund, G. (1996). The Flexible Company: Innovation, Work Organization and Human Resource Management. Danish Research Unit for Industrial Dynamics (DRUID) , 96 (17), 58.

Richard, D. Y. (2011). Measuring Organizational Performance as a Dependent Variable: Towards Methodological Best Practice. Journal of Management , 35 (3), 46.

Waal. (2006, september 1). The Characteristics of a High Performance Organisation. Maastricht School of Management (MSM) , 255.

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APPENDIX 1 – Interview Questions

Q1. What are the characteristics of organizational performance? In context of:

Importance of performance Features of performance Procedures of performance

Q2. Discuss organizational performance in different dimensions?In context of:

Sustainability Long term oriented Financial performance

Q3. What are the critical issues in organizational performance?In context of:

Cause of poor performance Significance of flexibility in performance Possible barriers in performance

Q4. Do you think, to achieve the organization performance, you need to pay any extra cost in what manner please explain in context of:

Understanding of cost (in terms of time and resources) Hurdles of cost Gaps between have or have not

Q5. What are the initiatives in performance improvement?In context of:

Issues to addressed Role of employee Time span

Q6. Is performance measureable?In context of:

What will be measured? Where will the measurement take place? When will the measurement take place?

- Please give concluding comments about topic.

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APPENDIX 2 – Coded Interview Verbatim Transcript

Verbatim

Note:

Interviewer 1: Ayaz Ahmed Farooqui Interviewer 2: Mehwish Aqeel Interviewer 3: Mazher Uddin Akhter Interviewee: Dr. Qazi Taussef uddin Ahmed

Interviewer 1: Group members Mazher Akhter and MehwishAqeel and me myself Ayaz, as you know that our topic is Organizational flexibility and our main focus on organizational performance so first of all I want to know we want to know that what are the characteristics of organizational performance (OP)?

Interviewee: In the perspective of KE Karachi electric?

Interviewer 1: Definitely!

Interviewee: okay, *aa* K electric is basically a service industry okay *aa* what we do is we generate electricity and we distribute electricity *aamm* K electric as an organization is one of the first vertically integrated company where each unit is integrated into another so that each unit is representative of all function of the company so what happens is *aamm* for us the revenue is the main *aamm*organizational performance determinant *aaa* secondly OP also measured by the kind of the innovativeness or technologies it can involve *aa* kind of diverse workforce it can you know *aaa* employee and use to its maximum capacity so these are the few determinants of OP that we follow.1

Interviewer 1: *Ahan* we want to know further, we want to know that what do you think, what are the importance of performance?

Interviewee: *Aamm* a service industry can only survive if it is profitable, so profitability is majored by the revenue that we draw and for revenue drawing we need good people on board so unless until you’re performing investor like KE is invested by A.Brock group so if we don’t have a probability to go ahead with without investor would not be there our service quality is going to get compromised so *aaa* you understand in a service industry performance is the key element unless *unless* and until you're not performing you won't be able to proceed further or sustain yourself in your current operation either so that is why performance placed the most important role *aaaammm* the *aaa* how do we measure performance well *aaa* first of all profitability for which we have working towards into two paradigms number one is *aaa* maximizing the *aaa* the profitability through the revenue lost at that was that you must have seen a lot of theft detection has taken placed in k electric *aaa* we are also controlling our power losses by changing the technology of wire and the way electricity is distributed *aaa* that is at the level of the service delivery at the level of the organization performance is actually measured by a performance management system which is there for people *aaa* we have objectives setting exercises to a *aaa* annually people are giving their objectives and their performances is measured accordingly and then people are given *aaa* rewards and you know there increments and promotions are based on that as well *aaa* organization because it is distributed in various units at across the *aaa* across Karachi where our core operation is in Karachi especially the urban Karachi so we also look at the performance of each units which are called IBCs integrated business unit *aaa* centers each unit is headed by general manger operation manager again the profitability is maximized or minimized or measured through that and when organization itself looks at its profitability overall and then reports its back to the main investor *aaam* what we do is we definitely look at measurability of our results that’s why when we are deciding on our objectives or we have deciding on our goals we are keeping in mind what is going to be achievable for us what

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is going to be specific for us for a year *aam* we have three core functions one is generation one is transmission and one is distribution *distribution* forms the largest function because the core operation area of K electric has been for more than hundred years distribution of electricity generation has become a core area now so *aam* for each unit *aaa* for generation it is very important that they are involving newer technologies they are using steam turbines gas turbines you must have heard of the bio gas turbines which are under way at the moment *aaa* there is also wind mill energy *aaa* project that is there is as well which is on its way so all these things are happening and how why are we why are they doing that because then and the end of the day generation will be able to report by success until unless it has you know has certain areas identified that it has impregnated all the technology available and it is generating *aaa* to the company's maximum capacity of electricity generation that is for generation distribution for that matter is the core function which distributes electricity through wires it takes the electricity and then transmits through it certain systems that is transmission function but distribution forms the largest area what it does it *it it* will ensure that electricity which is going on the wire is not getting lost on the way it is it is getting back the revenue it was generated for there are no thefts *aaa* meters are read well all those things so that actually determines the way business is performing it services in the core areas other functions such as finance and others are *are* secondary to our operations but yet they form the important development of our performance so that’s one thing *aaam* as far as structural *aaa* determinant is concerned *aam* what we do is we have a hierarchical system which sets the level of control *aam**aaa* we have a *aam* management and non-management cadres for example for the non-management cadres we have certain employees system *where* where they are you know given certain technical task and then they are supervised by certain management staff then management work force is divided into six different cadres one is the junior management cadre which is *aaa**aaa* generally *aaa* assistant managers and entry level positions which is trainees then you have deputy managers and managers which are upcoming managers then you have future catalyst of managers which are deputy general managers and general managers and then you have decision makers which are generally deputy directors and directors so what they do is structurally speaking *aaa* as an employer or as a as a company it looks after each person and gives its them their own level of objectives so that they can achieve them accordingly what it helps business to is actually set the certain benchmark for each level of performance so that *aaa* there is no confusion who's going to do what and how the success is going to rewarded so that's one thing *aamm*2

Interviewr 2: Okay sir, Sir our next question is, please discuss the organizational performance in different dimension like sustainability financial problems financial performance and approaches? Long or short term?

Interviewee: Okay *aaa* when *aaa* k electric was taken over privately in 2008 the *the* biggest challenge was sustainability.3

Interviewer 2: okay..

Interviewee: *aaa* the company was overwhelmed by the workforce it has 23000 20000 to 23000 people on board over staffed management staff was very little so what they did was first of all is *aamm* give people voluntary  separation schemes so that they can cut the work people you know work force load second the second challenge organization had was revenue loss because we were supplying electricity but not giving getting revenue so *aaam* what they did was build a lot of confidence of people *aaa* build a lot of confidence of people in *aaamm* helping them understand what company's doing because from of public *serv* public sector company to a private sector company it becomes very difficult people think that when when a private setup has taken over a public setup generally the *the* idea is or *or* the okay so the idea is that you have *aam**aaa* you have a lot of mysteries happening a lot of speculation happening people are wondering what is going to happen is it going to be sold or is it going to be operated is it going to *op* operation is going to reduced increased the revenue or the cost of the revenue or the cost of the services is going to increased or not so what they did was first of all is built con you know confidence of the customer number one you must have seen huge campaigns about the theft huge campaigns about the way work force was reacting to separation schemes they were huge you know the riots in Karachi you must have seen the *aaa* all the settings dharnaas and stuff and all those things.4

Interviewer 1: *hmm* load shedding!

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Interviewee: Load shedding that was one thing load shedding was one thing but for for the separation that was happening people are forced out of the company over staffing was *aaa* being reduced so *aaa* that was the first focus you know build *aaa* cut down the *aaa* load on the train and on the same time being able to run the train on on smooth track number one in the long term yes *aaa* because we are going to be we have been around for 100 years and we want to be around for the next 1000 years as well so com company has a very long living of *aaa* strategy in its mind *aaa* from a basic *aaa* national grid feed national grid station which feed our services now company's getting into the role will it generates so on electricity as well generation is becoming a core mandate initially it was only distribution and transmission so you *you* would hear a lot about news gas new *new* generation plants coming up *aaa* the Qasim power plant 1 & 2 are two examples then there are certain plants also coming in we have technology coming in towards in a wind energy projects so all the *aa* that is in the you know in the futuristic view so that company can you know take itself to the next century what to may run out tomorrow you may not have that much fuel to burn because fuel is expensive gas and petrol is very so that's why so for a long terms strategy we have that in mind then *aaa* future Vegas program is there like you know *aaa* company itself is nurturing a pipe talent pipe line so that it can you know sustain its talent pool and come up with good people who to be on board technically sound professionally sound.5

Interviewer 2: Like innovations and different…

Interviewee: Yes everything *aaa* as far as the finance is performance is concerned *aam* because we have a long standing debts of circular debts that's the deadliest debt we have suffering from of 20 29 years *lll* just in last year we incurred a huge *aaa* profit but that cut canceled in effect because of that debt that we have carry but company incurred the hugest financial profit in last year and the strategy is that once we once we control the loss of revenue will be able to become more profitable because we are like we are in *in* inelastic demand if you know economics we are in inelastic demand of electricity when demand and supply are matching each other consistently rather the demand is coming increasing so that is why financial performance is not going to go down anyhow until unless some other players comes in. 6

Interviewer 2: Okay.

Interviewee: So that's it

Interviewer 3: *aaa* Sir What do you think *aaa* about the what are the critical issues in organizational performance and also highlight the causes of poor performance?

Interviewee: Well *aam* like any other human setup or unlike any other human organization *aaam* K electric is like *aam* suffers from the same human elements *aaa* number one is integrity and honesty things but that has been controlled by good controls and good audit monitoring and evaluation mechanisms *aaam* employee incompetence is used to be in issue but now company has a very comprehensive development plan for all sort of people well there is non-management staff and management staff it is there are huge projects of people development happening where we are training our base line technical staff and we are training our management staff first line staff further management and supervisory skills *aaam* what we are trying to build is work force which is ready to come up with innovations embraced technology and usage to organization excellence last but not the least maintain its own integrity and performance without much without much you know supervision yes supervision will be there but we are trying to be build a work force which is self-motivated performance so that's more important and yeah. 7

Interviewer 3: And how you describe *aaa* significance of flexibility in performance?

Interviewee: Well *aaam*i would just say that *when* when you talk about flexibility what you are talking about is ability of a performance management system cater of all sorts of performance good performers moderate performers and bad performer *aaam* company has started a very comprehensive performance management system which rewards people at five different levels poor performers under performers and *aaa* moderate performers and higher performers and then outstanding performers *aaam* there identification takes

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placed in three different areas number one is operation objectives number two is their leadership tries and number three is the relationship management so this how company look at the performance measurement I cannot use the specific terminologies we use but I can tell you that these are the three core areas where we look at we also look at the health safety and environment consideration of the people because in our operations safety is most important concern because we are playing with power and electricity which is a very unsaved commodity so *aaamm* what we do is *aamm* system looks at under performers adapts how does it adapt what is does is it gives them opportunity to improve either in close supervision or through training or through you know certain performance modification methods it gives them that and them it maximizes the possibility that a perform under performer performs well it also gives opportunities who were performing very well through rewards mechanism so that they sustain their performance at the higher level so good performance manages.8

Interviewer3: What would be the possible barriers in performance & what you are facing in organization?

Interviewee: Mind set is the cure thing one thing & number two is some people like to think or would like to believe & some might be right in their opinion that there is unjust distribution of rewards like I said like any other organization of a world we would have a fearsome level of unjust is happening somewhere but that would not be like something which will go across the board. What happened is that people tend to underperform then they would like to blame on this kind of thinks. What we are doing is we are now building up objective system of evaluation & then helping people see how system works, how they perform & how they achieve them self. So the cure barrier is mind set, communication, relationship with supervisor & delegation relationship that we have here.9

Interviewer3: At time employees don’t accept the changes in organization that would the barrier?

Interviewee: Yes..! So there is a very comprehensive communication mechanism maintain over here we news letter happening, we have our CEO issuing certain administration massages across the board toward the company, recently we had a family gala where all the work force invite for two days to have you know a kind of family engagement with the company management, we have been doing cricket match within the departments so all these mechanism help in building better communication & trust.10

Interviewer1: One more thing we want to know that what you think to achieve the organization performance we need to pay some extra cost? In term of time & resources.

Interviewee: “Well anything we want to improve will cost you” one of the most important the thing that will cost you is “time” & whenever you talk about time is not just time per say how much time you incurring it’s a time & efforts that you need to put in & build the commitment & people you know effective supervision would cost people to commit work ok for example if KE starts new plant until & unless the work force is ready what sees the benefits in it will not be able to put their heart & soul to do it & people to put their heart & soul to it somewhere they has to be their leader & supervisor to tell them the long term & short term benefit to the organization there business operations & individuals them self if the company proceeds in progress. to bit commitment you need to have communication & for communication you need time repeated massages, repeated massages with lots of commitments & you know lots of consistent massaging to people & that will required time that will not over the days. Yes communication cost will be there you may have to organize seminars, you may have to issue some letters, you may have to organize some workshops & training to help people understand what is happening & how it will effect that. As far as the hurdles are concern in a very bad financial situation that we are in as a country yes cost is a concern but at the moment we are not focusing on return on reinvestment companies right now we are in an experimentation mood. Since we want to expend since we want to extend our services what we are trying to do is build up peoples competence to become a better to do thinks better we are improving the working condition if you go to K-electrics IBC’s these days you must be seen most advance work environment, you must seen a lot more congeniality happening between people, more relationship oriented communication taking place so all of thing are here.11

Interviewer1: What you think what are the gaps between in two things?

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Interviewee: I think for a company which has been 95years in a kind of mood you understand till 2008 we were public company so it is like an old woman which was tie to the chair has been ask to run down so there is lots of rigidity as a system, people are in a new system but they would like to stay with the old because their comfort zone lies there are some old workforce ready to do new things some newer workforce were not ready to do new things so those are the human barriers which are here but then like I said a consistent intervention, consistent communication, good reward & performance management, effective & objective reward & performance management will cause the change that’s more important.12

Interviewer2: Sir, our next question is about the initiative in performance improvement like what are the issues to be addressed?

Interviewee: Well…! When in 2008 a brass to cobber K-electric a probably because I am just a year move to the company but essentially what I know what I heard about the company I can tell you that there was no performance management system there was an annual conduct report ACR system there. What they did they came up with very objective performance management system but people had their mystery about that people had speculation about it they would wonder if it was to benefits certain level of people or it was you know horn certain kind of people or it is the method of you know getting people out of the system or is a kind of a system that would not be able to reflect on the way people are performing. So, what we did is we keep educating the every year we have an annual performing cycle number 1 & each year January people set their performance objective they identify what they unable to do last year & why they were unable to those things so they identify their performance gap areas & then they identify you know improvement plans so one hand we have objective plans for the year we have improvement plans for the year people perform throughout the year they achieve both of them & December they again ask to the reassess them self . So what they do is they reassess them self look at their goal achievements, they look at their business objective achievements, they look at their leadership objective achievements they look at their safety objective achievements & then they again identify certain improvement for the next year & this is how the cycle continuing. As a result of this performance evaluation we people are getting rewards some people would get promoted, some would get only increments, some people would not any kind of benefit at all & then those who do not perform who are not seen as good performer by the management they are ask to leave first they are given 3 months time period to re-perform & given certain task then the reassessed if they could not perform then they again 3 months time & in a 6 month time they do not perform they ask to leave company. Those are the measures until unless you have a caret in stick mechanism in place you will not have good performance happening.13

Interviewer2: Ok basically you are continuously measure the performance & here role of employee is very important as far as role of employer.

Interviewee: Until unless you understand your objective & you do not perform on objectively using the resources that are available to you, you will not be able to achieve your objective & that will become trouble.14

Interviewer2: Ok, & also you are giving your employees a particular time span?

Interviewee: Yeah…! First period of time is one year then after the probation period, if in case you are a bad perform 3 month time then reassessment take place if you do not perform then you again grace of 3 months & you still don’t perform then they say “ASSALAM -O-ALAIKUM” you can move you can find yourself other employment. 15

Interviewer2: So the whole process is in structure?

Interviewee: Yeah…!16

Interviewer3: As we have gone through your interview & all the questions we found the performance is playing very important role in the organization & towards the profitability & revenue. So the next question is that is performance measurable?

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Interviewee: If once you fix the parameters yes it is. For example the person who made this table if I gave him wood & I want to know how skilled he is I tell him make a table out of it I give him a simple plank I will not give him any thing I will give him 4x14ft wooden plank & I will ask him to make it. So if I am not giving him any instruction should I tell him to make it table so I am assessing the ability to think, design, cut, plan, use resources, hummer nail & all. Same way performance when you looking added you look at different paradigm of a person *how * how he uses his mental faculties to achieve an objective ok when you put people on board like for example in Iqra university your performance is measured by your performance in different subjects university has decided that if you perform certain level of English competence in your business English & certain level of business competence in *aaa* you know in your statistics, in your statistics inferences for managers & your IT for managers courses they will decide on a GPA level. So what we decide as university *they* they setup a benchmark that if you perform at  level you do these many question you get these many marks so same way *aa* you have to decide what you want to report in our system *in in* in K-electric *we* we decide on 3 lay areas No. 1 is your business objectives how you achieve your business objectives no. 2 how you achieve your leadership objectives for example for the year you decides to do something new come up with a new method of you know reading meters so that will be rewarded then how you achieve your safety objectives there everybody ask to have a safety objectives that this year what are you doing to do for the safety objectives so you need to have parameters & then you need to have a scale to reward for example what will b called a kind of a rating scale in which you develop that ok if you do this much you will be given A if you do this much you will b given B & this is how you do the standard level setting & this is how function actually.17

Interviewer 3: Sir what do you think where & when will the measure will take place?

Interviewee: I think it should be at fixed it should be it should be continues no.1 & it should be at fixed interval as well what we commonly known as monitoring is continues we keep monitoring our people *aa* when we when we monitor our people we ask supervisors to you know to formative feedback a assessment *or or* or performance management take place into two ways 1 when you are rewarding people or punishing people the other ways when you are telling them that you can do this thing better you can do this different kind of encouragement to do better so that should happen as a continues monitoring & evaluation *when* when monitoring is over evaluation take place you can fix it time of interval you can do it for 3 months time for *new* new people so that you are sure that this person is performing well & then you continues assessment you can have a yearlong plan & after each year you are going to have assessment of the overall year objectives & everything you van have how much this person used time you can set the parameters of time you can set the parameters of resources you can set the parameters of communication & relationship against to all this parameters you can measure performance.18

Interviewer 3: For ending up this session we know that organization performance is very important in the organization how you feel that *aaa* after privatization of K-electric how you feel that this organization performance & flexibility effect the organization very well or gave the boast of this company?

Interviewee: I think *the* the first sign is that after 20 or 21 years for the first time we incurred profit let alone the fact that it could cancel but because of the current debt that we have but at the end of the day it is one of the thing 2nd thing is that *aa* if you ask people around you will see that KESC & K-electric now *can* can stand as two different brands KESC was known for a legacy system, old technology, obsolete *aa* things, theft & all now if you look at K-electric as a brand you will see that there is lots of objectivity, more relationship oriented, more innovativeness, more color fullness all that has happened there is more properness, there is more transparency here you *in* in case of KESC the image was very kind of I would not say corrupt but at least questionable people had question doubts about it that how & what was happening now I think a company has re-branded itself well not only in term of the image but in term of practices as well so that has change about it. 19

Interviewers: Thank u so much sir for your time.

Interviewee: More than welcome & thank you very much for calling in it was wonderful talking to you guys interesting questions & very well focused & very objective.

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Code

Priori codes: Performance management High performance organization Organizational structure Organizational Culture Sustainability Financial goals Employer branding Teamwork Competent HR Obstacles Lacunae

Grounded codes – Initial Coding Refer cited number in verbatim

Vertically integration Revenue Innovativeness Technology Maximum capacity1

Profitability Good people Service quality Key element Not performing Proceed and sustainable Paradigms Theft controlling Service delivery Objectives setting exercises Performances is measured Rewards increments and promotions Reports its back Goals we are keeping in mind Hierarchical system Level of control Employees system Technical task Supervised by certain management staff Work force division Deputy general managers and general managers are decision makers No confusion Benchmark2

Challenge3

Overwhelmed Over staffed management Voluntary separation schemes Work force load Revenue loss Confidence of people Speculation Riots4 Talent pool5

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Debt Innovation Inelastic demand Demand is coming increasing6

Human elements integrity and honesty Good audit monitoring Evaluation mechanisms Comprehensive development plan Build workforce Embraced technology Supervision Self-motivated performance7

Ability of a performance management system cater of all sorts of performance Objectives Relationship management Health safety and environment consideration Modification8

Mind set Distribution of rewards Delegation relationship9

Family engagement with the company management10

Anything we want to improve will cost you Time Commitments Consistent massaging Communication cost Hurdles Bad financial situation11

Old system Rigidity as a system Gap Comfort zone Human barriers Intervention Change is important12

Performance management system Speculation Annual performing cycle Self look at their goal achievements Business objective achievements Leadership objective achievements Safety objective achievements Period to re-perform Role of employer Role of employee13

Understand your objective14

Probation period Reassessment take15

Structured system16

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Fix the parameters17

Monitoring is continues Feedback assessment Encouragement to do better18

Profit issues Debt issues New legacy system after rebranding Least questionable people19

Grounded codes – Focused Coding Integration and Collaboration

(Vertically integration, Reports back, structured system, Feedback assessment)

Financials issues(Revenue, Profitability, Profit issues, Bad financial situation, Revenue loss, Debt issues)

Innovation(Innovativeness, Technology, Challenge, New legacy system after rebranding, embraced technology)

Utilization of resource(Maximum capacity, Service quality, Service delivery)

Process Re engineering(Paradigms change, Theft controlling, Voluntary separation schemes, Modification, Change is important)

Employer branding(Good people, Confidence of people, least questionable people, Relationship management, Supervision, Positive role of employer)

Motivational factors(Objectives setting exercises, Performances is measured, Rewards increments and promotions, Encouragement to do better, Distribution of rewards, Family engagement with the company management)

Barriers and Obstacles(Not performing, Speculation, Overwhelmed, Riots, Work force load, Communication cost, Hurdle, Old system, Rigidity as a system, Comfort zone, Human barriers, Intervention, Anything we want to improve will cost you, Time)

Training and development(Technical task, Talent pool, Monitoring is continues, Reassessment, Good audit monitoring, Evaluation mechanisms, Comprehensive development plan, Build workforce, Self-motivated performance, Delegation relationship, Mind set)

Span of control(Level of control, Hierarchical system, Employees system, Deputy General Managers and general managers are decision makers, over staffed management, Performance management system)

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Key elements(Goals we are keeping in mind, Proceed and sustainable, Health safety and environment consideration, Commitments, Consistent massage, Efficiency and Effectiveness)

Monitoring and controlling(Supervised by certain management staff, Work force division)

SMART goal(No confusion, Benchmark, Fix the parameters, Objectives, Understand your objective)

Competent workforce(Team work, Human elements integrity and honesty, Positive role of employee)

Gap(Inelastic demand, Demand is coming increasing)

Achievements(Annual performing cycle, self look at their goal achievements, Business objective achievements, Leadership objective achievements, Safety objective achievements)

Leverages(Period to re-perform, Probation period)

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APPENDIX 3 – Email Confirmation

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APPENDIX 4 – Summary Memo

Review

Organizational flexibility has an important role in organizational performance. Only those organizations perform whose system, management, HR all is flexible and ever ready to adapt changes and cope up with new challenges. Therefore we can say that Organizational flexibility and Organizational performance are directly proportional with each other.

For the evidence of this statement we have review different research papers1 related to our chosen context, visits several sites2, read articles3 and finally draft the questionnaire, based on 6 questions. Our research instrument is qualitative in nature, based on open ended questions with three related heads which provides possible directions so that we could easily stick on one topic.

The company we have chosen is K-electrics (formerly KESE). The reason of choosing this company is due to its Rebranding, because its past performance is not positive and rigidity in system. Therefore we find out importance of organizational flexibility in organizational performance.

Tentative conclusions

The person we asked question (interviewee), Dr. Qazi Tauseef uddin Ahmed Tauseef, is the Deputy General Manager (HR- Learning and organizational development) in K- Electrics (formerly KESC). He shares his sound knowledge and experience in his field which is related to our research requirement. The evidence of the literature is explicitly reflects from his views.

Discuss

As per anticipation of our analysis efficiency and organizational flexibility are the important source of “Organizational performance” here role of HR is very important at every level; other dimensions which are discussed in the report are also the lagging force in this particular area. As per our interviewer flexibility in organizational performance is:

“Performance management system cater of all sorts of performance good performers moderate performers and bad performer, company has started a very comprehensive performance management system which rewards people at different levels, their identification takes placed in different areas number one is operation objectives number two is their leadership tries and number three is the relationship management so this how company look at the performance measurement”

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APPENDIX 5 – Fieldwork Request Letter