Leading the Change Process

HRM 558
Shah M Saad Husain
CHRO & Head Corporate Planning
HASCOL Petroleum Ltd

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 Shah M Saad Husain
BEngg, MS Engg, MBA, FICS, FIMM, PE

 41 years management experience with multinational, private

sector and government companies in engineering, petroleum,
energy and mineral sectors.

 In leadership positions heading HR, Operations, Projects,

Engineering, Marketing, Corporate Planning, Business
Development, External Affairs, CSR , HSE and Procurement.

 With HASCOL Petroleum, British Petroleum, BHP Billiton,

Toyota Indus Motor, Pak-Arab Refinery, PIDC, Habib Group.

 33 years experience as visiting faculty at IBA, CBM, PIQC,

PIM, NIPA, LUMS teaching HR and Marketing subjects and
Management Development Programs for corporate sector.

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 Course Contents
1. Introduction to the Course
2. HR in the 21st Century
3. Strategic HR for Organizational Change
4. Introduction to Organizational Development
5. The Process of Organizational Development
6. Restructuring Organizations – Case Study
7. Employee Involvement and Work Design
8. Human Resource Management Interventions
9. Comprehensive Case Study – homework, solution deliberated in class
10. Students’ Project Presentations
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 Course Objectives

To introduce a range of different approaches to Organizational Change

concepts and practices. This module does not aim to give you a recipe for
Change. It aims to introduce you to a wide range of different ideas about
Organizational Change and ways of thinking about organizations and
bringing sustainable, useful change. Overall, the aim is to enable you to
examine approaches to Change critically, to question easy answers and to
make a better-informed, professional choice about whether, why or how
an Organization might Change.

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 Course Requirements

• Readings from selected Texts, Journals, Handouts

• Theory, Concepts discussed in Class
• Student Projects and Reports
• Real Life Cases
• Examinations
• Presentations and Class Evaluations
• Class Participation, Quizzes, Home Assignments

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 Instructions for Students

• Bring Course File to each class.

• Study Reading Materials before class.
• Participate actively in class.
• Write notes in class as slides are discussed. Add more notes at home.
• Keep track of Course Calendar, Class Timings, Grades, etc., on the
e-group and with CR.
• Maintain contact with CR and SSH
• Discipline is key. Adhere to IBA Rules, Attendance, Punctuality
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 Grading
• Midterm = 30
• Final = 30
• Project Report = 20
• Presentation = 10
• Assignments, Quizzes = 5
• All Quizzes are open book

For an overall A grade in the course:

• A in Final
• A in Project Report and Presentation

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 Text Book and Other Course Material

Prescribed text book:

Organizational Development and Change, 9th Edition by
Cummings and Worley.
Additional articles, handouts and other reading materials will be
provided during the course. Students are required to do their own
literature search also while preparing for the sessions, doing
assignments and cases.

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1. HR in the 21st Century

2. Strategic HR for Organizational Change

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 HRM and the 21st Century
• Due to Internet technologies, organizations are undergoing a complete
transformation. The 21st Century organization must adapt itself to
management via the web.
• Intellectual capital will be critical to success. Advantage of bringing new
technologies to the market will be shorter. Technologies will let competitors
match them almost immediately.
• In such times, it will be critical to attract and retain the best Thinkers.
• Retaining and attracting the top talent will require more than just paychecks.
It will require a culture of empowering people, and a reward system that
rewards the best as if they were the owners of the company.
• Intellectual capital will be called on from around the globe. A global
corporation might be based in the US but does its software programming in
Sri Lanka, engineering in Germany, its manufacturing in China, and is linked
via the Internet to allow employees to interact and work in real time.
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 HRM and the 21 st Century Corporation
20th Century Corporation 21st Century Corporation
Predicated itself on stability Predicated itself on constant change

Organized around rigid hierarchies Organized around networks and teams

Built on self-sufficiency Built on shifting partnerships and alliances

Organizational chart defined as a shrinking Organizational chart more likely to be a flat web,
pyramid leading to the CEO intricately woven that links partners, employees,
external contractors, suppliers, and customers in
various collaborations
Constructed on bricks and mortar Constructed on knowledge and technological
advantages
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 • Employer/Organizational Objectives
Human • Organizational Structure
• Job Identification, Analysis & Design
Resource • Job Specification (Before Joining)
•

• Job Description (After Joining)

Management • Tasks, Activities, Responsibilities, Accountabilities
• Power (Financial/Administrative)
•

• Reporting Structure
• Manpower Planning, Recruitment, Induction
• Training & Development

Employee Objectives JOB Employer Objectives

Work (Scope & Depth) Growth in
Growth in Services
• Goods & Services
• Family & Self
• Customer Satisfaction
• Profession Employee – Employer
EMPLOYEE EMPLOYER • Revenue Generation
• Career Relationship
• Profits
• Security
• Return on Equity
• Social Status Performance Compensation &
Management (ROE)
Rewards
• Expansion of Business
• Corporate Reputation

• Performance Evaluation • Salary

• Increments • Benefits
• Bonus • Facilities and Perks
• Incentives • Allowances
• Career Development • Professional, Career, Societal
• Ultimate Potential Recognition
• Internal + External (Mkt) Equity

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Management Systems that produce Profits through People share the
following dimensions:
1. People drive the Change
2. Correct Hiring of the most appropriate human capital
3. Self-managed teams and decentralization
4. Compensation contingent on Performance
5. Extensive Training, Development and Professional grooming
6. Reduced differences in status. Respect for competence and
performance
7. Sharing of information, effective communication systems
8. Employee Care and Satisfaction
9. Trust

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Roles of HR Professionals Today
“The greatness of an Organization is due to the Greatness of its People.” -Eiji Toyoda

• Strategic Partners: work with multiple stakeholders to achieve

business plans.
• Innovators: create an environment that supports continuous
learning and improvement.
• Collaborators: create win-win situations with internal and
external stakeholders.
• Organizational Change Facilitators: anticipate the need for
change, think, conceptualize, articulate, execute, energize people
and organization to bring change.
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HRM and Corporate Strategic Goals
Human Resource Management is essential to advance a firm’s strategic
goals.
Corporate
Strategy Linking Corporate Strategic
Goals with HRM
Goals
Corporate
Strategy

HR Strategy
HR Tactics

HR Plans
HR Policies,
Systems,
EOPs HR
Practices
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 HR’s Strategic Role

Successful firms continuously change and align their HR

Strategies and tactics with:
1. Environmental Opportunities and Threats
2. Business Strategies
3. Organizational Unique Characteristics
4. Organization’s Competence

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 Selecting HR Strategies to Increase
Firm’s Performances
• HR Strategy’s effect on a firm’s performance depends on how well
it ‘fits’ with other factors
• Fit refers to the consistency and compatibility between HR
strategies and other important aspects of the organization

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 Fit with Organization Strategies

• Corporate Strategy is referred to as the mix of businesses a

corporation decides to hold and the flow of resources among those
businesses. e.g., HASCOL Petroleum Ltd.
• Business Unit Strategies are those that are formulated and
implemented by a firm that is relatively autonomous, even if it is
part of a larger corporation. e.g. HTL

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 Fit with the Environment
• HR strategies should help the organization better exploit
environmental opportunities or cope with the unique environmental
forces that affect it
• The relevant environment can be measured in terms of four dimensions:
1. Degree of Uncertainty: how much accurate information is available
to make appropriate business decisions
2. Volatility: how often does the environment change
3. Magnitude of Change: how drastic the changes are
4. Complexity: how many different elements in the environment affect
the firm either individually or together
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HR Strategies for Firms with Different Environmental Characteristics

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 Fit with Organizational Characteristics
1. The production process for converting inputs into outputs
• Routine production process benefits from HR strategies that
emphasize control. Example: Specific job description and job specific
trainings
• Firms with non-routine production processes such as advertising
firms, custom printers, and biotechnology companies, benefit from
flexible HR strategies that support organizational adaptability,
quick response to change and creative decision making. Example:
broad job classes, loose work planning and generic training

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2. The Firm’s Market Posture
• Firms that experience high sales growth and engage in product
innovation for a wide market segment benefit from HR Strategies
that support growth and entrepreneurial activities. Example: External
recruitment or buying skills, decentralized pay decisions, customized
appraisal
• Firms with low rates of sales growth and limited product
innovation for a narrow market segment benefit from HR
strategies that emphasize efficiency, control, and firm specific
knowledge. Example: Internal recruitment or ‘making skills’. On-the-job
training, and high dependence on superiors

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3. The firm’s overall Managerial Philosophy
• Companies whose top executives are risk-averse and operate
with an autocratic leadership style, and are inwardly focused use
HR strategies that match this outlook. Example: Seniority based pay,
formal hiring and socializing of new employees, selection decisions made by
the HR department and use of top-down communication channels.
• Management characterized by high risk taking, participation,
egalitarianism, and external, proactive environmental orientation
use HR strategies that fits this outlook. Example: include variable pay,
giving supervisors a major role in hiring decisions, up-and-down
communication channels, and multiple inputs for performance appraisals

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4. The firm’s Organizational Structure
• Highly formal organizations that are divided into functional areas
like marketing, finance, production, etc, and concentrate decision
making on top: HR strategies for such organizations include a
control emphasis, centralized pay decisions, explicit job
descriptions, and job-based pay.
• Firms whose structures are less regimented benefit from HR
strategies that include informal hiring and socializing of new
employees, decentralized pay decisions, broad job classes and
individual-based pay.

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5. The firm’s Organizational Culture
• Companies that foster an entrepreneurial climate have loose work
planning, informal hiring and socializing of new employees and
variable pay.
• Firms that discourage entrepreneurship generally prefer a control
emphasis, detailed work planning, formal hiring and socializing of new
employees, and fixed pay.
• Firms with emphasis on moral commitment – the extent to which a
firm tries to foster a long-term emotional attachment between the firm
and the employees have emphasis on preventive vs. remedial
disciplinary action to handle employee mistakes, and explicit ethical
codes to monitor and guide behavior.
• Firms that are low on moral commitment rely on authoritarian
relationship between employee and company.
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• Distinctive Competencies of a firm are its capabilities such as
technology, management systems, reputation, etc., that give it a
Competitive Edge
• HR strategies should enhance a firm’s performance by:
1. helping the company exploit its specific advantages or
strengths while avoiding weaknesses
2. assisting the firm in better utilizing its unique blend of
human resource skills and assets

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HR Strategies to Fit Three Major Types of Business Strategies

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HR Strategies to Fit Two Major Types of Business Strategies

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 Choosing consistent and appropriate HR
tactics to implement HR strategies
• The best-laid HR strategies may fail when specific HR programs
are poorly chosen or implemented
• In addition to fitting with each of the four organizational
characteristics; organizational strategy, environment,
organizational capabilities and characteristics, a firm’s HR
strategies should be mutually consistent
• HR strategies are likely to be successful if they reinforce one
another rather than work at cross-purposes. Example: Working in
teams, but traditional individual based performance appraisals

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Competencies Required of HR Department to Become a Full Strategic Partner

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 PARCO`s Growth and HR Strategy • Projects
• Engineering
• Operations
• Projects • Managerial
• Engineering • Marketing
• Operations • Business Diversification
• Managerial
• Marketing

• Projects
• Engineering

Talent

HR Management Management
• Linking HR & Corporate Goals  Sourcing & Recruitment
• Performance Management
 Performance
Personnel • Training and Development
Management
• Job Evaluation
 Payroll • Rightsizing  Learning & Development

 Benefits • Salary Restructuring  Succession Planning

• Employee Surveys
 Leave  Leadership Development
• HR Processes
 Recruitment • SAP & HR Data Management
 Compensation

 Industrial Relations • Talent Inventory  Work Life Balance

1981 2008 2012 2017

Single Product Multi Product Multi Business
Local National Multinational
ASSIGNMENT 1

Select an organization on which you will write your report, identify

a major organizational problem, do a root cause analysis, and explain
its impact on the organization’s goals, strategy, plans and results.

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