HBL Acquisition Privatization Managing Employee Resistance STRATEGIC HUMAN RESOURCE MANAGEMENT

1. Strategic Human Resource
Development
A Case Study of HBL

2. Presented By: Group B
Kausar Saeed
Muneeba Haroon
Atif Salman
Farrukh Bashir
Yasser Durrani

3. Introduction
 The Global Economy and Organizational Change
 Change Management around the World
o Examples
 Change Resistance in Bureaucratic Organizations in
Jordan
 Change Management in Indian Banks

4. A Case of HBL
Acquisition and Privatization:
Managing Employee Resistance

5. 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 management
o To find out what types of resistances were faced by HBL’s
management during the change management process
o To find out how HBL’s management responded to
employees' resistance and the effectiveness of applied
strategies

6. 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.

7. 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.

8. 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.

9. 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

10. Managing the Human ResourceKey Concerns






Reward Real Performers

Facilitation and support

Improve performance
efficiency of HR
Orient the organization to the
practices of a technology
oriented organization

Reorient employees to
service oriented culture
Connect With and Develop
Employees

Bring about a culture of
change
The possibility of taking the
easy way out
Reengineering the Business
Process
Encourage Employee
Participation / Ownership

11. Key Drivers of Change
Increased
competition
locally &
internationally
Rapid
changes in
the banking
policies &
procedures
Total lack of
customer
service

12. Strategic Transition
Dynamics
During Nationalized Period




Bureaucratic approach
Power culture
Short term goals
Post Privatization
Reactive approach




Long term results
orientated approach
External and Internal
customer satisfaction
Pro active market
response
Customer focus

13. 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

14. 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

15. 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

16. 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

17. Learning from the experience and the
Positive Outcomes 2/4
Change in designations

18. Results
 Loss making organizations turned profitable
 Leaner Organization
 Induction of New Blood
 Innovative Products
 Professionalism and Accountability
 Higher Service Standard and Profits

19. Learning from the experience and the
Positive Outcomes 3/4
Branch rationalization statistics

20. Learning from the experience and
the Positive Outcomes 4/4
2. Revitalization of Branches
3. Moving Ahead Together
4. Current Scenario of HBL

21. 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

22. 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

23. Thank You

24. Q&A