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