Impact of Downsizing in HBL

INSTITUTE OF BUSINESS AND TECHNOLOGY Impact of Downsizing in HBL
Prepared By Madiha Munawwar Mirza BM-25070 Course Code : MKT-606
MBA (Human Resource Management)
FACULTY OF MANAGEMENT AND SOCIAL SCIENCES FALL - 2010
Impact of Downsizing in HBL
INSTITUTE OF BUSINESS AND TECHNOLOGY

ABSTRACT SUBMITTED BY: DISCIPLINE: TITLE OF PROJECT REPORT: MONTH OF SUBMISSION: Madiha Munawwar Mirza MBA (HRM) Impact of Downsizing in HBL November, 2010
NAME OF PROJECT SUPERVISOR: Dr. Noor Ahmed Memon
ABSTRACT
Organizational downsizing, or simply downsizing, is a feature of many organizations in the industrialized world. As a goal-oriented restructuring strategy, downsizing endeavors to increase an organizations overall performance. However, the consequences of downsizing have proven to be persistently negative. Indeed, organizations embarking upon downsizing have largely failed to accomplish their stated and desired objectives. Moreover, the execution of downsizing is not confined to economic and organizational consequences, but profoundly affects the entire workforce. The first of two, aims to review the relevant body of literature and attempts to clarify many of the mysteries and misconceptions associated with downsizing paying particular attention to aspects concerned with definitions and meaning, scope and implementation strategies.
Institute of Business and Technology
ACKNOWLEDGEMENT
First of all I would like to thank my ALLAH Almighty Who gave me the courage, health, and energy to accomplish my Project in due time and without Whose help this study which required untiring efforts would have not been possible to complete within the time limits. All respect for his Holy Prophet Hazrat Muhammad (P.B.U.H) who enabled us to recognize our creator. Motivation, encouragement, guidance, corrections, advices, and overall support are the key elements required from the supervisor to write and complete a Project of a good standard and a quality within deadlines. It is a matter of utmost pleasure for me to extend my gratitude and give due credit to my supervisor DR. NOOR whose support has always been there in need of time and who provided me with all these key elements to complete my dissertation within the time frame. Moreover, he has been supporting me enthusiastically throughout my work to make my Project ready in due time. My thanks is also due to my examiner Dr. NOOR whose valuable comments and suggestions made colossal contribution in improving my dissertation. Last but not least, I extend my thanks to my entire family for moral support and prays for my health and successful completion of my dissertation within time limits.
TABLE OF CONTENTS
ABSTRACT ACKNOWLEDGEMENT TABLE OF CONTENTS 1. INTRODUCTION 2 3 4 1
1.1 Introduction..................................................................................................1 1.2 Purpose of Study.........................................................................................1 1.3 Research Objectives...................................................................................1 1.4 Research Methodology...............................................................................2
2. LITERATURE REVIEW
2.1 Downsizing ................................................................................................3 2.2 Employee Downsizing.................................................................................3 2.3 Morale..........................................................................................................5 2.4 Conceptual Approach To Employee Downsizing........................................8 2.5 Downsizing and Employee Attitude...........................................................12 2.6 Effects On Employee Downsizing Rate....................................................18 2.7 Downsizing -- The Long Term Effects.......................................................23
3. HABIB BANK LIMITED
42
3.1 Introduction................................................................................................42 3.2 Vision.........................................................................................................48 3.3 Mission.......................................................................................................48 3.4 Values........................................................................................................48 3.5 Products Offered by HBL..........................................................................48
4. DOWN-SIZING
56
4.1 Golden Handshake Scheme.....................................................................56 4.2 Conflict Management................................................................................56

4.3 Dispute Resolution Process......................................................................58
5. RESEARCH FINDINGS
75
5.1 The Questionnaires...................................................................................75 5.2 Findings.....................................................................................................83
6. CONCLUSION AND RECOMMENDATIONS
84
6.1 Conclusion.................................................................................................84 6.2 Recommendations.....................................................................................84
BIBLIOGRAPHY APPENDIX
87 88
1. INTRODUCTION
1.1 Introduction The research objectives is to identify main problems concerning with most employee concerns with downsizing in HBL because their services with certain expectations, and, for any number of reasons, those expectations were not met. Higher management can help in this scenario controlling misconceptions and troubles. so this is total concern of my thesis that how and when downsizing and top management can impart their role in HBL concerning the favor and fear of employees. 1.2 Purpose of Study The Purpose of the present research is:
"To gain a better understanding of the role of employee loyalty & satisfaction in maximizing profitability in HBL Limited ".
Our Purpose is employees satisfaction and job security provides from two to three times as much profit as the traditional banking environment where the fear of downsizing is present. 1.3 Research Objectives Downsizing and its impact on workforce of employees of HBL generally represent all those issues which influence Downsizing adoption in Pakistani banking sector . The study would focus only on the Employees Satisfaction & Downsizing Environment. The research objective covers the following: What are the major reasons and requirements for implementing downsizing?
How can employee's role are applied on organization? How employee's efficiency can be affected by the downsizing?
1.4 Research Methodology In order to conduct the research work a number of research methods are used which includes intensive web search, interviews, and visits at HBL. The Total concern of research methodologies will based on how and when downsizing and top management can impart their role in HBL concerning the favor and fear of employees. For this purpose the following research methodologies are followed: Primary data o Questionnaires, Interviews Secondary data o Libraries, Articles, Research material, Internet, Financial Magazines
2. LITERATURE REVIEW
2.1 Downsizing Organizational downsizing, or simply downsizing, is a feature of many organizations in the industrialized world. As a goal-oriented restructuring strategy, downsizing endeavors to increase an organizations overall performance. However, the consequences of downsizing have proven to be persistently negative. Indeed, organizations embarking upon downsizing have largely failed to accomplish their stated and desired objectives. Moreover, the execution of downsizing is not confined to economic and organizational consequences, but profoundly affects the entire workforce. The first of two, aims to review the relevant body of literature and attempts to clarify many of the mysteries and misconceptions associated with downsizing paying particular attention to aspects concerned with definitions and meaning, scope and implementation strategies.
2.2 Employee Downsizing

Employee downsizing is a nightmare feared by most of the employees working in the corporate world. A downsizing strategy reduces the scale (size) and scope of a business to improve its financial performance. In management parlance, the term downsizing refers to pruning (including layoffs and retrenchments) of the size of workforce for a variety of reasons: Obsolescence of skills consequent upon up gradation of technology, Shift in the organizational requirements; Outsourcing; Modernizing, Restructuring or even reducing the activities of industrial units Employees, nowadays, will have to reconcile with the ugly realities of the corporate world and they may have to be prepared for alternative employment as the axe may fall on anyone at any time. Due to the globalization of business,
organizations are able to develop a number of approaches by which to employ human resources, technology, and capital to implement innovative projects in different parts of the world. They are able to derive maximum advantage due to these possibilities. While the larger goals appear justifiable and in the interest of most stakeholders, they lead to frequent changes at the organizational, functional, and individual levels. At the organizational level, such changes can lead to closure of businesses, off-shoring, merging with another organization, outsourcing, restructuring, etc. At the functional level, it can imply changes in the availability of resources, changes in the scope of activities, etc. As a sequel to these developments, employees can be redeployed, transferred, rendered redundant, or let go within a very short span, without adequate preparation for these changes. Such changes take their toll in terms of organizational productivity, nature of employer-employee relationships and the associated social costs. People who contribute to the organizational goals are the organization's assets. These assets are turned into liabilities due to reasons mentioned earlier. The challenge is to what is morale manage employee exit without disrupting the organization's functioning. Those individuals who lose jobs are the hardest hit. For the affected employee, the emotional trauma of losing a job is very difficult to cope with. Aside from the financial implications of a job loss, they have to reconcile with the loss of self-esteem, self-confidence, and a breach of trust between the employer and the employee. Along with the individual, his/her family also gets deeply affected with the involuntary job loss of a family member. The pain is not limited to the individual alone but affects a number of others. The effect is also felt by other employees who remain in the organization as they suffer from the guilt and are also faced with the fear of job insecurity. The fundamental reason to resize the organization is to improve organizational performance and to reduce costs of operation. While these changes are expected to fetch significant gains for the companies in the long run, an analysis of corporate experiences of downsizing shows that such measures
are not always implemented with careful consideration of all the implications. Downsizing also brings, in its wake, a number of associated hidden costs, which companies tend to overlook in pursuit of short-term gains. The flip side of downsizing is that the organizations lose expertise, skills, knowledge, experience and valuable relationships, which walk out of the door every time somebody leaves. A number of alternative approaches can be implemented to achieve the over-riding goal of enhancing business performance. At the same time, it is true that downsizing in many cases is an inevitable option. However, downsizing should be considered not as the first but the last option. If the axe has to fall, it should be preceded by a careful consideration of the consequences of such a drastic action.
2.3 Morale
Morale, also known as esprit de corps, is an intangible term used for the capacity of people to maintain belief in an institution or a goal, or even in oneself and others. According to Alexander H. Leighton, "morale is the capacity of a group of people to pull together persistently and consistently in pursuit of a common purpose".
Morale in the workplace
Workplace events play a large part in changing employee morale, such as heavy layoffs, the cancellation of overtime, canceling benefits programs, and the lack of union representation. Other events can also influence workplace morale, such as sick building syndrome, low wages, and employees being mistreated.
Factors influencing morale within the workplace include:
Job security. Management style. Staff feeling that their contribution is valued by their employer. Realistic opportunities for merit-based promotion.
The perceived social or economic value of the work being done by the organization as a whole. The perceived status of the work being done by the organization as a whole. Team composition. The work culture.
How Down-Sizing Affects Employees Morale
Every year companies spend millions in recruitment due to employee turnover. Turnover and its associated costs are a burden that used to be just the cost of doing business. But more and more companies are investing time and effort in making better hiring decisions and doing more to keep the employees they do hire. Employee retention is now a buzz word in todays business world. Over two-thirds (70%) of HR managers state that employee retention is a primary business concern. HR managers currently find employee retention a business challenge, long-term demographic changes, such as the retiring Baby Boomer population have the potential to aggravate this issue. All companies, regardless of size, are struggling with how to keep employees from leaving for more money or better opportunities. Studies consistently show that even though employees may say they are leaving for more money, when those same employees are asked several months later why they really left, the money factor is about 5th or 6th on the list. The first few reasons include lack of recognition, disagreement with the culture or direction of the company, poor treatment by their boss, lack of excitement about their growth prospects, and poor relationships with coworkers. How much? When you add the costs of finding an employee, training the new employee, lost productivity and filling in for the employee who leaves, the cost can easily equal 150% of the base salary of the person who left. So, if you are paying someone $50,000, the cost to replace that
person will be approximately $75,000. This money comes out of your hardearned profits. This is one of the key reasons that companies are focusing so much effort on keeping their current employees. Some of the steps taken by companies to retain their work force are: Ensure you offer competitive compensation. Ensure you offer basic health care benefits at reasonable rates. Consider adding lifestyle benefits that are cost effective (read easy on the cash flow). Find out what employees want from their career and do what you can to provide for their needs. Be as flexible as possible about how the work gets done. Be as flexible as possible as to when and where the work gets done. Can it be OK for an employee to take a few hours off to attend to a family or personal matter if they can accomplish the job at their home in the evening? Take a real and genuine interest in peoples career aspirations and personal lives. Recognize positive contributions to the company. Communicate company progress, financial news, major customer or sales activities on a regular basis. Follow up on your commitments to provide information or answers. Have regular (bi-weekly or monthly) meetings with all employees where they can ask you questions about your plans, company progress, new developments to look for, etc. Be accessible to them so you can learn their needs. If you can respond to their needs before they become real issues, they wont begin looking for greener grass. Ask former employees why they resigned. Even if they left six months ago, they still have a valid perspective.
Routinely ask employees what you can do to make the company a better place to work. Set boundaries if necessary as to what items are not negotiable; such as ownership in the company or 50% per year salary increases.
2.4 Conceptual Approach To Employee Downsizing

Reflective Restructuring
According to Theo Blackwell of The Work Foundation, in 1980s and 1990s many companies resorted to downsizing their human resources in order to cope with economic pressures. But what most of these companies do not realize is that downsizing does not always lead to savings in reality or increase in the market worth of the company. On the contrary, the downsizing companies may be branded anti-people. It usually leads to repetitive downsizing and results in the loss of employee morale and loyalty and thereby affects overall productivity levels. However, they can adopt alternative approaches to cope with economic uncertainties. Wayne Cascio had proposed a new strategy termed as "reflective restructuring", which enables companies to offer a range of smarter options to employees. The article explains the significance of this new concept and provides examples of companies in the US and UK which have adopted the strategy. It also explains that while companies in the US are at a greater liberty to downsize, the UK business environment is not amenable to such measures. He outlines the causes that resulted in surplus manpower among PSUs. However, after India opened up its economy, most PSUs were compelled to streamline their operations to increase their efficiency. One of the major steps taken to achieve this goal was to shed the excess staff on their payrolls through the "golden handshake," by floating Voluntary Retirement Schemes (VRS) and Compulsory Retirement Scheme (CRS). The other major step was to outsource non-core activities and focus on their core competencies. The article provides a snapshot of the Indian experience of
downsizing and also discusses the social implications of these drastic measures. Barbara L Davison explains, in "The Difference Between Rightsizing and Wrong sizing", the differences among the terms used in conjunction with downsizing, i.e., rightsizing, resizing, upsizing, side sizing, and wrong sizing. The author clarifies that rightsizing need not imply reduction of personnel. In certain cases, it can also mean increase in the numbers. The article explains the need for tying rightsizing efforts with the overall strategy, identifying critical growth areas as well as those needing consolidation, analyzing the effects of rightsizing on all functional areas, evaluating the financial implications, and ensuring that each department and employee adds measurable value. The author illustrates how to carry out a rightsizing exercise with the help of a process example, which describes the most important steps. In this connection, it cites the examples of a few companies, such as Ernst & Young, Cisco, Agilent Technologies, and Schwab, which have implemented rightsizing. The article also illustrates a few alternatives to downsizing and highlights new workforce concepts, i.e., "Just-in-time" workforce and the "Portfolio" workforce, to cope with fluctuations in business cycles. Rick Maurer of Maurer & Associates emphasizes the need for organizations to act swiftly to cope with changing business conditions and on their requirement of human resources. Business leaders need to continuously assess the mix of skills required as well as the number of employees required for the present and the future. In addition, they should engage in a process of benchmarking with companies in the same industry. The article explains that downsizing may prove to be a risky strategy that may not always bring about much improvement in terms of the productivity or revenues to the organizations. Hence, to cope with changing requirements of staff, companies should consider a number of different alternatives to downsizing.
Implementation of Employee Down Sizing
Sumati Reddy of the ICFAI University, Hyderabad, India outlines ways in which employers can implement a well-considered downsizing program. If downsizing is inevitable, organizations must pay due attention to the rationale for downsizing, involvement of employees in designing the program, formulation of a fair and equitable policy, Equal Employment Opportunity (EEO) guidelines, legal counsel, etc. The article also suggests the use of objective data to formulate the downsizing plan. In conclusion, it points to a few indicators to assess the effectiveness of a downsizing program. Carlton Becker of ORC enumerates a number of lessons from the collective experience of layoffs by companies across the globe. These lessons largely pertain to the need to remain lean and mean in a fastchanging global business environment, rightsizing the right way, considering scientific alternatives to downsizing, paying attention to the after-effects of downsizing, and being aware of the legal implications of downsizing. The author points out those mass layoffs should be viewed as a change process to be implemented by adopting a systems approach. It explains the strategic role of HR executives during the whole process, especially during the initial stages of rightsizing. It further explains the step-by-step guidelines that HR executives can adopt in the downsizing process. The article shares the experiences of a few companies such as MacMillan Bloedel, Canada, DaimlerChrysler AG's US unit Motorola, Hallmark Cards, and Lucent Technologies.
Coping with Downsizing
Neela Radhika of the ICFAI University, Hyderabad, India, describes a new phenomenon observed in the aftermath of downsizing - Pink Slip Parties. It describes how Pink Slip Parties came into practice and the reason for using
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the term `Pink Slip'. The article elucidates the special features of these parties with respect to attendees, the kind of music played during these parties, the color of wristbands or badges, message boards, and activities. Pink Slip Parties offer a number of benefits to both job seekers, who had lost jobs on account of downsizing, as well as the recruiters. The effectiveness of these parties are analyzed vis--vis the nature of support gained by laid-off workers in restarting their careers. The article also points to new developments in this area, such as Layoff Lounges. Mika Kivimki, Jussi Vahtera, Jaana Pentti, and Jane E Ferrie reports the results of a study conducted to investigate the effect of the psychosocial work environment on employee health. This study was conducted among 1,110 municipal staff in Raisio, Finland, between 1990 and 1995. It encompasses the period prior to downsizing, during downsizing, and when downsizing had slowed down. The downsizing exercise was a reactive one, conducted through retirement and hiring freezes, and letting go the temporary employees. Some of the significant findings of the study are: downsizing results in changes in work, social relationships, and health-related behaviours that lead to increase in certificated sickness due to increases in physical demands, job insecurity, and reduction in job control; sickness absence increases twofold in a major downsizing as compared with sickness absence during a minor downsizing; downsizing was associated with negative changes in work, impaired support from spouse, increased prevalence of smoking, and sickness absence. It has been found that this study was unique in the area of employee downsizing and employee health as it studied a natural experiment, which is rarely feasible. Jonathan Kelley explains that the significance of downsizing depends on its long-term impact on workers. It presents a model to study the probability of re-employment among workers shed by downsizing firms as compared with those departing from stable or growing firms. This model can also be used to examine the impact of downsizing on the duration of jobless spells, continuity or change in occupation, on earnings, and on job
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satisfaction among workers who obtain employment. The model combines three factors: re-employment by age, gender, and education. Some of the significant findings of the study are: downsizing is not a disaster for most of the workers; 75% of the downsized employees find jobs, and most of them do so quickly; workless spells between jobs are short or non-existent; and the most serious grounds for concern relate to groups of vulnerable workers, such as older workers and women. Carl Van Horn, William M Rodgers III, Neil Ridley, and Laurie M Harrington of Rutgers, offers glimpses of the consequences of involuntary job loss for workers and their employers. It describes the evident patterns of worker dislocation: it affects both blue-collar and white-collar employees, workers of all races, ages, education levels, occupations and industries; and it happens at very short notice (usually one week or less, and many do not receive any advance warning). The report describes the impact of job loss on individuals and their families, the most significant being emotional distress and financial hardship. It delineates the differences in approaches by small and large firms. Large firms offer more assistance and better severance pay as compared with smaller firms. It also provides guidelines for employers, employees and policymakers to deal with the consequences of job dislocation. The experience of downsizing employees during the last few years points to the need for employees to be prepared for a job loss at any point of time in their career. This report also includes examples of effective practices of a few companies to bring succour to the displaced workers.
2.5 Downsizing and Employee Attitude In today's competitive market, many companies have found that staying in business means downsizing. However, this everyday event in the business world is a unique (hopefully) event for you and your employees. It is important to remember that this event affects not only the "downsized," but also those who remain.
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Importance & Necessity
Downsizing has become a common occurrence in today's business world. Because of this, and many other factors, many employers and employees no longer believe in the concept of lifetime employment. As a result, employers often underestimate the need to provide support to employees, both those who are being released and the 'survivors.' Many employers feel that the only support they can provide is expensive outplacement services. The decision to downsize is made for strategic and financial reasons. The expectation is that the expense reduction will lead to a positive impact on the bottom line and will ultimately be reflected in improved profitability and productivity. However, many organizations neglect to factor in the psychological impact of downsizing on those who remain. In fact, if downsizing is handled improperly, the problems it was designed to correct may be intensified due to the impact on the loyalty and attitudes of the survivors.
Effects on Work Effort
In an attempt to determine the impact of downsizing, the effects of job insecurity and economic need to work on employee attitudes was examined by Brockner and his colleagues in 1992. In this study, Brockner decided to use work effort as a measure of job attitudes. The study found that high job insecurity coupled with high need to work, resulted in increased work effort following a layoff. High job insecurity, coupled with low need to work resulted in no change in the level of work effort. This seems to indicate that when there are high levels of job insecurity, as would be expected during downsizing; employees with a high need to work will increase their work effort, while those with a low need to
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work will have no change in work effort. While this result is interesting, of more interest was the finding that variables moderated this observed relationship. Specifically, Brockner found that the remaining employees' perception of the fairness of the lay-off process and their attachment to the lay-off victims colored their views. This issue of fairness has been found to be related to a number of other work-related variables and has its roots in theories of organizational justice.
The Justice Theory
Theories of organizational justice propose that people attend to the processes used to determine outcomes as well as to the end result in determining "fairness." For example, as Brockner's study reported, the remaining employees considered the way in which their co-workers were treated during the downsizing process as well as the outcome (i.e., losing their jobs). From this perspective, layoff survivors can be expected to exhibit the most negative reactions when they identify with the layoff victims, and feel the victims have not been well compensated. "When survivors perceived that those laid off had been dismissed with little or no compensation, they reacted more negatively (from an organizational perspective) to the extent that they felt some prior sense of psychological kinship with the laid-off parties." What Brockner's study would indicate is that employees are affected by more than just the fact of layoffs. They are affected by how the layoffs are managed and by what is done for the individuals in those positions. Brockner found that negative attitudinal changes were reflected in survivors' reduced work performance and lowered commitment to the organization. Conversely, the study showed that employee commitment can actually increase during a layoff process when the company shows some commitment to displaced workers.
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The post-layoff setting provides organizations with a rather unique...situation in which to express their commitment to employees; that is, if organizations show commitment to their dismissed workers (through caretaking activities of providing severance pay and outplacement counseling,)even as they are in the process of becoming uncommitted to them by laying them off--the more committed to the organization are survivors apt to be" (Brockner et al., 1987). Brockner's study indicates organizations can proactively affect surviving employees' attitudes during periods of downsizing. The next section describes some steps that can be taken to minimize the negative effects of downsizing.
Strategies for Maintaining Positive Employee Attitudes
According to survey results from a study on employee loyalty conducted by Industry Week, there are eight factors affecting employee loyalty. They are, in descending order: equity, security, good management, integrity, empowerment, good communications, benefits and personal support (McKenna, 1991). Downsizing is a stressful time for employees, and is a time in which they will question each of the eight factors mentioned in the above quote by McKenna. By communicating with employees, making them feel part of the organization, and working to restore loyalty, it is possible to avoid some of the most dangerous pitfalls of downsizing.
Communicate
During downsizing, the losses due to decreased employee loyalty, morale and lost productivity are compounded by the complexity of the layoff process. For example, the rumor mill that develops, or intensifies, during the preliminary planning stages results in employees spending significant amounts of time gossiping and worrying about what may happen. Unfortunately, many managers in the position of being "in the know" are guided by a policy in which they are to avoid talking about rumors with employees.
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While this policy may seem appropriate, the associated costs, in terms of lost productivity and employee loyalty, may be significant. Communication will help to curb the worry and re-direct employee energies to the job at hand (Fisher, 1988). "If you don't know something, or you do know but SEC rules or other legal constraints have momentarily sealed your lips, come out and say that. Silence is the worst policy" (Fisher, 1988). The most preferred method of communication is personal appearances from upper management; however, any communication at all will be helpful. Ensure that communications cover the following topics: Talk about the fact that changes are coming; employees already know, but it will increase their trust level if they hear it from you; explain the purpose of the downsizing; explain the need for growth and profitability (which can be perceived as legitimate reasons when presented in an appropriate manner); if possible, explain future plans including detailed plans for restructuring, upgraded technology, or some processes to increase efficiency; communicate, whenever possible, that though employee downsizing is necessary, each employee who is let go will receive appropriate severance pay and (if you intend to offer it) job placement assistance; emphasize that laid-off employees will be treated with respect and dignity; this is important for managing and maintaining remaining employees' moral and company commitment. Most importantly, listen carefully to employee concerns and adequately address each concern to whatever degree possible. This must be done with sincerity and no sense of condescension, such as "calming the mob." In addition, justification for the layoffs is extremely important, especially if times are good and the downsizing is a part of strategic growth
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and profitability. Employees need to understand that you sincerely need to make these cuts and it is not a whim or a mistake.
Make Valuable Employees Part of a Progressive Organization
To stay or not to stay? That is the question some remaining employees ask in the aftermath of their company's downsizing process particularly those who have other employment opportunities outside the company. When these employees see some top managers leave voluntarily, they may question the long-term prospects for the company and consider an immediate job change. This is something to watch out for, as the people who leave under these circumstances are generally those with valuable skills and training. A former West Coast bank manager who left when he saw his manager leave made this comment for an article in Fortune: "If you let people get the idea that the company is not just cutting back but is sinking into mediocrity, morale really goes to hell" (Fisher, 1988). This quotation highlights the importance of managing perceptions with "positive press" and communication from upper management. Discuss the downsizing as a step towards a more efficient and profitable business with an attractive future.
Rebuild Loyalty
Long after downsizing is completed; continue communicating with employees to re-build security and trust. Do not allow management to assume remaining employees are merely grateful to still have jobs. Employees need to feel they are valued, that they have a place in the company, and that management believes that they are an important part of the success of the organization. To emphasize this point, talk about where the company is headed, and describe any plans for growth and prosperity.
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2.6 Effects On Employee Downsizing Rate

Organizational Climate
Litwin and Stringer define organizational climate as 'a set of measurable properties of the work environment, perceived directly or indirectly by people who live and work in this environment and assumed to influence their motivation and behaviour'. Traditionally, organizational climate alms to capture a snapshot of an organization at one point in time. Organizational climate research has had a long and active history, with much of its foundation drawn from psychology. Because of space constraints and the availability of excellent articles which review the extensive history of the organizational climate literature, we will only briefly review the organizational climate literature here. Organizational climate is largely based on Lewinian field theory, which is a result of Lewin's work on experimentally-created social climates This work was advanced by several early key studies including Litwin and Stringer and Tagiuri and Litwin. Litwi n and Stringer investigated how organizational climate affects individual motivation. They also suggested that organizational climate was comprised of nine dimensions: structure, responsibility, reward, risk, warmth, support, standards, conflict, and identity. Taguiri and Litwin's book was comprised of a series of essays that treated climate in ways ranging from a subjective interpretation of organizational characteristics to an objective set of organizational characteristics. Other early studies were aimed at identifying the dimensions comprising organizational climate After the 1960s and early 1970s, the focus of the organizational climate field became more clearly defined. More recently, organizational climate researchers have begun to consider how organizational climates develop. Three schools of thought have developed: the subjectivist, objectivist, and interactionalist perspectives.
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Probably the most troubling issue that the organizational climate literature continues to face is defining the appropriate dimensions that comprise organizational climate. Organizational climate is a fairly general term which refers to a class of dimensions which can be critiqued for being too diverse . In addition, the multidimensional nature of organizational climate makes it more difficult to define sharp borders. Organizational climate scholars have responded by making empirical and theoretical arguments to distinguish organizational climate from various other const ructs, such as structure and individual satisfaction. While these and other efforts have been helpful, some fuzziness around the borders and differentiation of the organizational climate construct still remains. Research on organizational climate has continued more recently, including Joyce and Slocum's study of person and organizational fit, Joyce and Slocum's investigation of the extent to which organization members agree about their organizational climate, Glick's discussion of the difficulties of measuring organizational climate, Denison's investigation of the relationship between organizational climate and performance, and Koyes and DeCotis's work on measuring organizational climate. Even more recently, Denison has investigated the difference between organizational culture and organizational climate, and Griffin and Mathieu have looked at how perceptions of organizational climate vary with the hierarchical level in an organization. Anderson and West contributed to the literature by exploring the link between organizational climate and innovation.
Measuring Organizational Climate
At its most basic level, organizational climate refers to employee perceptions of their work environment. Generally, these perceptions are descriptively based rather than value based. For example, the phrase, "I have more work to do than I can possibly finish" is a description of a persons workload, while the phrase "I like my job" is a positive evaluation of ones job.
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Thus, organizational climate is more than simply a summary of employee likes and dislikes. The assessment of organizational climate typically occurs via an offthe-shelf or customized survey containing questions about he work environment. Although administration procedures used when conducting a survey can vary, ideally employees are asked to report to a designated work site at a scheduled time to complete the survey, and employee participation is voluntary.
Selecting a Survey
Once a decision is made to conduct an organizational survey, it can be difficult to identify the "right" survey to use. Although not a comprehensive list, the following factors may be helpful in reducing the number of survey choices: Determine the scope of information included in the survey. As might be imagined, there are a large number of organizational climate areas that exist. Recent research has identified more than 460 different types of work environment characteristics that have been measured. Many of these characteristics can be classified into the following major areas: job, role, leader, organization and work group. In many companies there are particular areas where employee feedback would be useful. For example, a company concerned about the impact of recent managerial downsizing may want to ensure that leadership/supervisory components are included in the survey. Make sure the number of climate areas included is kept to a manageable level. Not only will including too many areas on the survey increase the time and effort needed to administer the survey, but it also can make the interpretation process more difficult. On a related issue, many users of organizational surveys find it useful to add a few customized items to the survey. Although adding items does not always add to the scientific value of a survey, it can go a long way in generating support from the companys management team.
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It can be extremely helpful to choose a survey that offers some flexibility in its administration capabilities. For example, some companies may require the ability to administer the assessment using a paper-and-pencil format, while others may prefer an intranet format. Factors such as employee demographics can be important, also. Some companies may require both an English and Spanish version of the survey to accommodate all of their employees. Finally, identify some general pieces of information you would like to see in a report once the survey responses have been analyzed. For example, some companies may have an interest in only reviewing the average levels of item responses within the company, while others may want to see how the company scored compared to other companies throughout the nation. In addition, some companies may want to have results broken down department-by-department or item-by-item while others may want one set of analyses based on the entire set of employee responses. In any event, the publisher/director of an organizational survey should assist a company in selecting an instrument that will meet their specific reporting needs.
Benefits
Companies that conduct organizational climate surveys may experience one or more of the following benefits:
Employee involvement
By administering an organizational survey, employees are given an opportunity to be involved in the company at a different level than is typically defined in their job descriptions. Research has shown that employees who are more involved in the company also may be more satisfied with their job, miss fewer days of work, stay with a company longer, and perform better on the job.
Positive work outcomes
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In the last 30 years, a significant amount of evidence has been accumulated documenting the importance of the work environment in relation to organizational performance. In general, research has shown that factors in the work environment are related to outcomes such as employee motivation, job satisfaction, intentions to quit, job performance and even organizational productivity. In addition, an emerging area of research has indicated that organizational climate can influence customer perceptions of the quality of goods or services delivered by a company.
Communication forum
In many companies it can be very difficult to communicate with the majority of employees. Recent trends such as organizational restructuring and/or merging of companies has resulted in "flat" organizational responsibility charts, which increases the number of employees for which each manager is accountable. As a result, some managers only have limited amounts of time to talk to employees about day-to-day activities. Conversations regarding an employees work environment can fall to the wayside, and in some instances, never take place. Organizational surveys that occur on a scheduled basis (e.g., annually, biannually, etc.) can be a more efficient way for managers to gather important information.
Industry comparisons
Organizations often look to other companies when determining organizational policies and procedures. It is quite common for companies to "explore the market" or conduct benchmark studies when considering issues such as new product development, salary or employee benefit policies, marketing strategies, etc. A common question is "How do we compare to others?" One advantage of conducting an organizational survey is that it can provide an opportunity to compare the companys work environment to that of other companies. Many surveys offer a national normative database that can be used to facilitate comparisons across a variety of conditions and industries.
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Proactive management
Administering organizational climate surveys allows managers to be much more proactive in managing their employees and work environments. When used on a scheduled basis, organizational surveys can help pinpoint problem areas within the work environment before they grow into a crisis needing immediate attention. Problems that require a reactive posture interrupt the normal workflow, and typically cause delays in providing products or services to customers. Tips For Creating An Effective Organizational Climate For Minimum Employee Down Sizing
1. Listen to the entire organization with ease. 2. Collect perceptions in real-time. 3. Reduce organizational bias. 4. Validate the questions and thus improve the results. 5. Facilitate candid and open feedback from employees who respond
anonymously.
6. Identifying areas of inefficiency or performance gaps. 7. Identify root causes for poor productivity (such as poor communication or
poor process efficiency).
8. Reduce transition time during changes in the organization (such as

reorganization, relocation, a change in ownership, new products/services, or rapid growth).
9. Inform leaders with the information needed to make the best decisions. 10. Give employees an organized voice to assist leaders in taking actions. 11. Gain a fresh perspective of the organization. 12. Facilitate, track and execute informed action steps in one system.
2.7 Downsizing -- The Long Term Effects Originally written about downsizing within the public sector, the points in this article are no less applicable to any organization that is forced to
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undergo downsizing. Interestingly enough, almost all surveys and research examining the long term effects of downsizing indicate that companies that downsized ended up disappointed in the results. Layoffs may serve a short term need, but create huge longer term issues. Few government departments or branches have escaped the necessity of downsizing. The last three or four years have brought almost constant cuts in staffing, and some departments have been "hit" several times. For many downsizing has become an annual process. When managers are faced with downsizing, they tend to focus on the immediate and practical needs that emerge at the time when staff are being let go. After all, employees need to be selected and notified, one of the most difficult tasks for any manager. Jobs responsibilities need to be shuffled, and generally the period where downsizing is occurring is very busy and emotionally taxing. Unfortunately, there is a tendency for managers to focus on those that are leaving rather than those that remain. This also holds true for central training and consulting agencies who are asked to support the laid off employees with career development help, counseling, and other supports. There is no question that laid off employees deserve and need these kinds of supports and services. Unfortunately, there is a tendency to forget that after the laid-off workers are gone, the "survivors" must soldier on, and the manager must deal with the long-term effects on the remaining organization. We are now seeing the effects of downsizing on those that remain. One of the most telling comments is often put forth by employees a year or two after downsizing, and it goes like this: "Sometimes I think that the ones who were laid off are the lucky ones". They usually go on to describe a workplace where employees feel: It is easy to understand these effects when they occur close to the time when down-sizing occurs, and remaining staff "grieve" the loss of friends and colleagues. But, these effects are now being seen as long as one or two years AFTER the downsizing period. There are indeed long term effects of downsizing that need to be addressed. Understanding The Organizational Down
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cycle. To counter-act the long term effects of downsizing, managers need to understand how organizations slip into "down cycles". An organizational down cycle can be characterized as a long-term process where the organization becomes progressively more depressed, insular, protective and confused. The important thing to note is that this process occurs slowly, sometimes imperceptibly, and that if the process is allowed to continue unchecked, it gets worse. The down cycling organization loses its positive momentum and enthusiasm. A vicious circle is formed. It snowballs. Bad feelings and depression become the norm rather than occasional, until, in extreme cases, the organization becomes unable to move effectively, and the work climate can become intolerable for everyone. Because the process tends to be gradual, managers tend to assume that the problems that occur early in the down cycling will solve themselves without attention. It is easy to assume that staff will "get over" the effects of downsizing over time. This may be the fatal mistake, because if the process is left unmanaged, there is a good chance that staff will become more demoralized.
1. Proactive management activities are always required when downsizing occurs. Managers must realize that they "can pay now or pay later", and that delaying actions designed to revitalize the organization will result in a huge cost down the road. Managers should consider that the period immediately after downsizing is critical. Action or inaction during this period will determine whether the organization moves into a depressed down cycle, or makes the commitment to move forward. Downsizing time should also be a time when the organization's mandate and vision are revisited. It should be a time when the manager dedicates him/herself to the long-term health of the organization by clarifying, supporting and building trust. Above all, this is the time where the manager's prime responsibility is to communicate, both with staff, and with executives. One focus of communication should be clarifying mandate, vision, priorities and
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commitment levels.
2. Proactive long-term approaches should also be applied by any central agencies charged with "helping" downsizing organizations. Support should be offered to those that are displaced, but, in the long term, help offered to "survivors" will be much more important in determining organizational health. As a manager, ask, or demand that these services be made available by central agencies, or procure them from private vendors, if the central agency won't do the job.
3. If you are in the unfortunate position of managing an organization that is "down cycling", you need to be aware of two things. First, it will get worse if neglected. Second, interventions to turn the cycle around must be considered as long-term projects. One shot consulting or training isn't going to do much, and it may be damaging. Remember that your organization may have been moving downward for a year or two, and that it is going to take a substantial period of time to reverse the process. Positive change will require a consistent effort on your part, and may require consulting help over a period as long as a year. Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational. The result? Less conflict incidents and less severe conflicts.
Model of Planned Organizational Downsizing
Change can be managed. By observing external trends, patterns and needs, managers use planned change to help the organization to adapt to external problems and opportunities. When organizations are caught flat footed, failing to anticipate or respond to new needs, management is at fault. Four events make up the change sequence:
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Internal and external forces for change exist Organization managers monitor these forces and become aware of a need for change; and The perceived need triggers the initiation for change, which Is then implemented.
How each of these activities is handled depends upon the organization and managers styles.
Forces for Downsizing
Forces for organizational change exist both in the external environment and within the organization.
Environmental Forces
External forces originate in all environmental sectors, including customers, competitors, technology, economic forces, and the international arena.
Internal Forces
Internal forces for change arise from internal activities and decisions. If top managers select a goal of rapid company growth, internal actions will have to be changed to meet that growth.
Steps for Effective Organizational Change
The four steps for organizational change process are as follows: Assess the need for Downsizing Initiate Downsizing Implement Downsizing Evaluate the Downsizing
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Evaluate the Downsizing Compare pre change performance with post change performance
Assess the need Recognize that there is a problem Identify the source of the problem
Initiate Downsizing Decide what organizations ideal future state would be Implement Downsizing Introduce the change
Assessing the need for the Downsizing
The external and internal forces translate into a perceived need for change within the organization. Managers sense a need for change when there is a performance gapa disparity between existing and desired performance levels. The performance gap may occur because current procedures are not up to standard or because a new idea or technology could improve current performance. Managers in every company must be alert to problems and opportunities, because the perceived need for change is what sets the stage for subsequent action that creates a new product or technology. Big problems are easy to spot. Sensitive monitoring systems are needed to detect gradual
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changes that can fool managers into thinking their company is doing changes slowly, because managers may fail to trigger an organizational response.
Initiating Downsizing
After the need for change is perceived, the next part of the change process is initiating change, a truly critical aspect of change management. This is where the ideas are developed.
Search
Search is the process of learning about current developments inside or outside the organization that can be used to meet the perceived need for change. Search typically uncovers existing knowledge that can be applied or adopted within the organization. Managers talk to friends and colleagues, read professional reports, or hire consultants to learn about ideas used elsewhere.
Creativity
Creativity is the development of novel solutions to the perceived problems. Creative individuals develop idea that can be adopted by the organization. Each of us has the capacity to be creative. Creative people are often known for originality, open-mindedness, curiosity, a focused approach to problem solving, persistence, a relaxed and playful attitude, and receptive to new ideas. Creativity can be designed into organizations. Companies or departments within companies can be organized to be creative and initiate changes.
Idea Champions and New-Venture Teams
If creative conditions are successful, new ideas will be generated that must be carried forward for acceptance and implementation. This is where idea champions come in. The formal definition of the idea champion is a
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person who sees the need for and champions productive change within the organization. Personal energy and effort are required to successfully promote a new idea. Often a new idea is rejected by the management. Champions are passionately committed to a new product or idea despite rejection by others.
Implementing Downsizing
Creative culture, idea champions and new-venture teams are ways to facilitate the initiation of new ideas. The other step to be managed in the change process is implementation. A new, idea will not benefit the organization until it is in place and being fully utilized. One frustration for managers is that employees often seem to resist change for no apparent reason. To effectively manage the implementation process, managers should be aware of the reason for employee resistance and be prepared to use. Techniques for obtaining employee cooperation are:
Resistance to Downsizing
Idea
champion
often
discover
that
other
employees
are
unenthusiastic about their new idea. Members of a new-venture group may be surprised when managers in the regular organization do not support or approve their innovations. Several reasons for employee resistance are:
Self-Interest
Employees typically resist a change they believe will take away something of value. A proposed change in job design, structure, or technology may lead to a perceived loss of power, prestige, pay, or many company benefits. The fear of personal loss is perhaps the biggest obstacle to organizational change.
Lack Of Understanding And Trust
Employees often do not understand the intended purpose of a change or distrust the intentions behind it. If the previous working
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relationships with an idea champion have been negative, resistance may occur.
Uncertainty
Uncertainty is the lack of information about future events. It represents a fear of the unknown. Uncertainty is especially threatening for employees who have a low tolerance for a change and fear the novel and unusual.
Different Assessment And Goals
Another reason for resistance to change is that people who will be affected by innovation may asses the situation differently from an idea champion or new-venture group. Managers in different departments pursue different goals and an innovation may detract from performance and goal achievement for some departments. The reasons for resistance are legitimate in the eyes of employees affected by the changes. The best procedure for managers is not to ignore resistance but to diagnose the reasons and design strategies to gain acceptance by users. The strategies for overcoming resistance to change typically involve two approaches: the analysis of resistance through the force field technique and the use of selective implementation tactics to overcome resistance.
Force Field Analysis
Its the process of determining which forces drive and which resist a proposed change. To implement a change, management should analyze the change forces. By selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation. As restraining forces are reduced or removed, behavior will shift to incorporate the desired changes.
Implementation Tactics
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The other approach to managing implementation is to adopt specific tactics to overcome employee resistance. The following five tactics have proven successful:
Communication and Education.
Communication and education are used when solid information about the change is needed by users and others who may resist implementation. Education is especially important when the change involves new technical knowledge or users are unfamiliar with the idea.
Participation.
Participation involves users and potential resisters in designing the change. This approach is time consuming, but it pays off because users understand and become committed to the change.
Negotiation.
Negotiation is more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change.
Coercion.
Coercion means that managers use formal power to force employees to change. Resisters are told to accept the change or lose rewards or even their jobs. Coercion is necessary in crisis situation when a rapid response is urgent.
Top Management Support.
The visible support of top management also helps overcome resistance to change. Top management support symbolizes to all employees that the change is important for the organization.
Evaluating the Downsizing
The last step in the change process is to evaluate how successful the change effort has been in improving organizational performance. Using measures such as changes in market share, profits, or the ability of manages
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to meet their goals, managers compare how well an organization is performing after the change with how well it was performing before. Managers also can use benchmarking, comparing their performance on specific dimensions with the performance of high-performing organizations to decide how successful the change effort has been.
Types of Planned Downsizing
Now that we have explored how the initiation and implementation of change can be carried out, let us look at the different types of change that take place in organizations. The types of organization changes are strategy, technology, products, structure, and culture/ people. Organizations may innovate in one or more areas, depending on internal and external forces or change. In the rapidly changing toy industry, a manufacturer has to introduce new products frequently. In a mature, competitive industry, production technology changes are adopted to improve efficiency.
Structure
Technolog y
Strategy
Culture/ People
Products
In the diagram, the arrows connecting the types of change show that a change in one part may affect other parts of the organization: a new product
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may require changes in technology, and a new technology may require new people skills or a new structure.
Technological Downsizing
A technology Downsizing is related to the organizations production processhow the organization does its work. Technology changes are designed to make the production of a product or service more efficient. How can managers encourage technology downsizing? The general rule is that technology change is bottom up. The bottomup approach means that ideas initiated at lower organization levels and channeled upward for approval. Lower level technical experts act as idea championsthey invent and champion technological changes. Employees at lower levels understand the technology and have the expertise needed to propose changes.
Managers can facilitate the bottom-up approach by designing creative departments. A loose, flexible, decentralized structure provides employees with the freedom and opportunity to initiate continuous improvements. A rigid, centralized, standardized structure stifles technology innovation. Anything managers do to involve the grass roots of the organizationthe people who are experts in their parts of the production processwill increase technology change.
New-Product Downsizing
A product downsizing is a change in the organizations product or service output. New-product innovations have major implications for an organization, because they often are an outcome of a new strategy and may define a new market. The introduction of a new product is difficult, because it not only involves a new technology but also must meet customers needs. Companies that develop new products usually have the following characteristics:
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People in marketing have a good understanding of customer needs Technical specialists are aware of recent technological developments and make effective use of new technology Members from key departmentsresearch, manufacturing, marketing cooperate in the development of new product. These findings mean that the ideas for new products typically originate at the lower levels of the organization just as they do for technology changes. One approach to new product innovation is called the horizontal linkage model. In this model people from research, manufacturing and marketing departments meet frequently in teams and task forces to share ideas and solve problems. Research people inform marketing of new technical developments to learn whether they will be good to customers. Marketing people pass customer complaints to research to use in the design of new products. Manufacturing informs other departments whether a product idea can be manufactured within costs limits. This teamwork required for the horizontal linkage model is a major component of using rapid innovation to beat the competition with speed.
Structural Downsizing
A structural downsizing is a change in the way in which the organization is designed and managed. Structural changes involve the hierarchy of authority, goals, structural characteristics, administrative procedures, and management systems. Almost any change in how the organization is managed falls under the category of structural change. Successful structural change is accomplished through a top-down approach, which is distinct from technology change (bottom up) and new products (horizontal). Structural change is top down because the expertise for administrative improvements originates at the middle and upper levels of the organization. The champions for structural change are middle and top managers. Lower-level technical specialists have little interest or expertise in administrative procedures.
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If organization structure causes negative consequences for lowerlevel employees, complaints and dissatisfaction alert managers to a problem. Employee dissatisfaction is an internal force for change. The need for change is perceived by higher managers, who then take the initiative to propose and implement it. The top-down process does not mean that coercion is the best implementation tactic. Implementation tactics include education, participation, and negotiation with employees. Top-down change means that initiation of the idea occurs at upper levels and is implemented downward. It does not mean that lower-level employees are not educated about the change or allowed to participate in it.
Culture/People Downsizing
A culture/people downsizing refers to a change in employees values, norms, attitudes, beliefs, and behavior. Changes in culture and people pertain to how employees think; these are changes are in mindset rather than technology, structure, or products. People change pertains to just a few employees, such as when a handful of middle managers is sent to a training course to improve their leadership skills. Training is the most frequently used tool for changing the organizations mindset. A company may offer training programs to large blocks of employees on subjects such as teamwork, listening skills, quality circles, and participative management. Top 10 list of guiding principles for downsizing management, some of steps that the company can take: 1. Address the human side systematically 2. Start at the top 3. Involve every layer 4. Make the formal case 5. Create ownership 6. Communicate the message
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7. Assess the cultural landscape 8. Address culture explicitly 9. Prepare for the unexpected 10. Speak to the individual
1. Address the human side systematically.
Any significant transformation creates people issues. New leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and employees will be uncertain and resistant. Dealing with these issues on a reactive, case-by-case basis puts speed, morale, and results at risk. A formal approach for managing change beginning with the leadership team and then engaging key stakeholders and leaders should be developed early, and adapted often as change moves through the organization. This demands as much data collection and analysis, planning, and implementation discipline as does a redesign of strategy, systems, or processes. The change-management approach should be fully integrated into program design and decision making, both informing and enabling strategic direction. It should be based on a realistic assessment of the organizations history, readiness, and capacity to change.
2. Start at the top.
Because change is inherently unsettling for people at all levels of an organization, when it is on the horizon, all eyes will turn to the CEO and the leadership team for strength, support, and direction (govt. in case of PTCL). The leaders themselves must embrace the new approaches first, both to challenge and to motivate the rest of the institution. They must speak with one voice and model the desired behaviors. The executive team also needs to understand that, although its public face may be one of unity, it, too, is composed of individuals who are going through stressful times and need to be supported. Executive teams that work well together are best positioned for success. They are aligned and committed to the direction of change,
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understand the culture and behaviors the changes intend to introduce, and can model those changes themselves.
3. Involve every layer.
As transformation programs progress from defining strategy and setting targets to design and implementation, they affect different levels of the organization. Change efforts must include plans for identifying leaders throughout the company and pushing responsibility for design and implementation down, so that change cascades through the organization. At each layer of the organization, the leaders who are identified and trained must be aligned to the companys vision, equipped to execute their specific mission, and motivated to make change happen.
4. Make the formal case.
Individuals are inherently rational and will question to what extent change is needed, whether the company is headed in the right direction, and whether they want to commit personally to making change happen. They will look to the leadership for answers. The articulation of a formal case for change and the creation of a written vision statement are invaluable opportunities to create or compel leadership-team alignment. Three steps should be followed in developing the case: First, confront reality and articulate a convincing need for change. Second, demonstrate faith that the company has a viable future and the leadership to get there. Finally, provide a road map to guide behavior and decision making. Leaders must then customize this message for various internal audiences, describing the pending change in terms that matter to the individuals.
5. Create ownership.
Leaders of large change programs must over perform during the transformation and be the zealots who create a critical mass among the work force in favor of change. This requires more than mere buy-in or passive agreement that the direction of change is acceptable. It demands ownership
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by leaders willing to accept responsibility for making change happen in all of the areas they influence or control. Ownership is often best created by involving people in identifying problems and crafting solutions. It is reinforced by incentives and rewards. These can be tangible (for example, financial compensation) or psychological (for example, camaraderie and a sense of shared destiny).
6. Communicate the message.
Too often, change leaders make the mistake of believing that others understand the issues, feel the need to change, and see the new direction as clearly as they do. The best change programs reinforce core messages through regular, timely advice that is both inspirational and practicable. Communications flow in from the bottom and out from the top, and are targeted to provide employees the right information at the right time and to solicit their input and feedback. Often this will require over communication through multiple, redundant channels.
7. Assess the cultural landscape.
Successful change programs pick up speed and intensity as they cascade down, making it critically important that leaders understand and account for culture and behaviors at each level of the organization. Companies often make the mistake of assessing culture either too late or not at all. Thorough cultural diagnostics can assess organizational readiness to change, bring major problems to the surface, identify conflicts, and define factors that can recognize and influence sources of leadership and resistance. These diagnostics identify the core values, beliefs, behaviors, and perceptions that must be taken into account for successful change to occur. They serve as the common baseline for designing essential change elements, such as the new corporate vision, and building the infrastructure and programs needed to drive change.
8. Address culture explicitly.
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Once the culture is understood, it should be addressed as thoroughly as any other area in a change program. Leaders should be explicit about the culture and underlying behaviors that will best support the new way of doing business, and find opportunities to model and reward those behaviors. This requires developing a baseline, defining an explicit end-state or desired culture, and devising detailed plans to make the transition. Company culture is an amalgam of shared history, explicit values and beliefs, and common attitudes and behaviors. Change programs can involve creating a culture (in new companies or those built through multiple acquisitions), combining cultures (in mergers or acquisitions of large companies), or reinforcing cultures (in, say, long-established consumer goods or manufacturing companies).
9. Prepare for the unexpected.
No change program goes completely according to plan. People react in unexpected ways; areas of anticipated resistance fall away; and the external environment shifts. Effectively managing change requires continual reassessment of its impact and the organizations willingness and ability to adopt the next wave of transformation. Fed by real data from the field and supported by information and solid decision-making processes, change leaders can then make the adjustments necessary to maintain momentum and drive results.
10. Speak to the individual.
Change is both an institutional journey and a very personal one. People spend many hours each week at work; many think of their colleagues as a second family. Individuals (or teams of individuals) need to know how their work will change, what is expected of them during and after the change program, how they will be measured, and what success or failure will mean for them and those around them. Team leaders should be as honest and explicit as possible. People will react to what they see and hear around them, and need to be involved in the change process. Highly visible rewards, such
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as promotion, recognition, and bonuses, should be provided as dramatic reinforcement for embracing change. Sanction or removal of people standing in the way of change will reinforce the institutions commitment. Most leaders contemplating change know that people matter. It is all too tempting, however, to dwell on the plans and processes, which dont talk back and dont respond emotionally, rather than face up to the more difficult and more critical human issues. But mastering the soft side of change management neednt be a mystery.
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3. HABIB BANK LIMITED
3.1 Introduction In any organization work force is considered the life blood. It down the road, assumes various denominations, designations, attributes, powers, meanings, strengths, weaknesses, psychological advantages against other such small groups and some times produce animosity, cruelty, harshness, indifference for other recessives subgroups. The oft quoted feature usually appears in a large groups, institutions and organizations working for a collective goal and targets. It is widely observed that groups running various businesses at a time lack such transformation and variety of organization psychological attribute. This is because in each individual working wing of the group, a team spirit and sense of belonging among those wing members appears. The two sister wings of a group may or may not conceive each other as rival but they enjoy a sense of belonging among co workers in the same wing. For instance a large group (ATLUS GROUP) running insurance firm, bank, car manufacturing plant, trades company with different names but under one flag seldom, experience tension inside the workers of any single subgroup or wing. They might develop a sense of advantage, depravity, professional rivalry against other subgroup of the same entity. For instance insurance sales executive team might feel inferior to car sales team but among each individual team the strong sense of belonging binds each other closely. As far as a large organization is concerned where whole work force fall under same category with no water tight demarcation, a different environment appears. For instance a very strong administrative control of few executives yields the power circle, Then come supervisors that report directly to administration, then comes the working group under different designations and denominations
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In this case the think tank, planners and human resource staff work independently keeping humane feelings for the junior cadre. In such an organization, for instance a bank(HABIB BANK), sale force , marketing force, consumer support executives , non clerical , clerical , officer cadre , and then executives members constitute a team , a staff, a representative body and assume a physical shape of the respective organization . At this point of time any or all member reflects the behavior, temperament and stature of that organization. The behavior of sales representative is enough to work out the complete hierarchical framework of the bank and same goes for any other institution. Blue collar jobs are not the only jobs being lost. During the last few years, thousands of executives, managers and professionals have been laid off from their jobs as companies streamlines, restructured, and downsized. About 85% of fortune hundreds companies have downsized their white-collar workforce in recent years. The trend of downsizing, sometimes called rightsizing, reduction in force, and restructuring will probably continue to impact managers and organizations for a period of time.
Background
Downsizing is taking place in the public sector, private sector, nonprofit businesses, health-care, education and government in the whole world. Business realities are making themselves felt throughout the corporate world. Decreasing margins, global competition and customer expectations are forcing the domestic banks and companies to look for ways to increase productivity. Many think that downsizing in the domestic banking industry is the panacea for all economic ills. Downsizing in the domestic banking industry is a legitimate tool, but not necessarily the best choice for every circumstance and economic ill. Governments may mediate the conflicting forces that prompt
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organizations to downsize, but they abort the fundamental dynamics at their peril. The severe competition, economic dependency and scarcity of financial resources force the domestic banking industries, companies and the governments to opt for the policy of downsizing. Many famous and big multinationals like AT&T, The Bank of America, Kimberly-Clark, RJR Nabisco, Xerox, IBM, US Air, Ford Motors, Procter & Gamble, Colgate-Palmolive and PIA, WAPDA, Pakistan Railways, Banks and DFIs of the country are ready to initiate a new round of downsizing. The ultimate results of downsizing, rightsizing, restructuring or reengineering differ from country to country and from organization to organization. Some developing countries like Pakistan are adopting this policy of downsizing because of the pressure of the international monetary agencies. According to some economists, downsizing is a positive and purposive strategy. It is a set of organizational activities undertaken on the part of the management of an organization, and is designed to improve organizational efficiency, productivity, and/or competitiveness. It is evident that in Pakistan, downsizing is part of the overall economic program that embraces deregulation and liberalization of the economy, with a view to achieving higher growth rates through improved efficiency and better services. It is also true that in Pakistan, downsizing is integrated to the overall policy of privatization. The banking system of Pakistan consists of a central bank, 4 nationalized banks, 2 denationalized banks and 15 newly established private banks. They have been playing an important role in the economic growth of Pakistan. The expected policy of downsizing will damage the high standards of efficacy, professional expertise, and rapidity of execution and overall credibility of the government. There has been a ban on jobs in the federal and provincial government departments from the early 1990s. This irrational policy
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may spoil the social fabric, economic prosperity and financial stability of the general intelligentsia and banks alike. In our country, the downsizing exercise was instigated in the public banks and DFIs in 1997.The golden handshake scheme was offered to all the permanent employees' at all hierarchical levels. The main philosophy behind downsizing was to save Rs20 to 30 million annually. The IMF, the World Bank and the State Bank offered to bear part of the downsizing expenses. As of June 1998, a total of 22,642 banks/DFIs employees availed of the golden handshake and the payment that was made to them was Rs29.1 billion. Every country of the world is adopting policy of downsizing according to its socio-economic needs and compulsions. Hasty and imported policy of downsizing programmes can leave countries/companies with an atmosphere of mistrust and insecurity. Downsizing is not the only solution for any radical change in the banking sector of the country. In spite of downsizing of local banks and DFIs, the recovery of stuck-up advances in full, strict enforcement of credit, financial and administrative discipline, reduction of cost of financial intermediation, payment of positive average real rates of returns to depositors, removal of corrupt bankers and computerization to be taken. According to ILO (1998), nearly 68 per cent of all downsizing, restructuring, and reengineering efforts are not very successful all over the world. In many cases, companies that downsized and restructured to become more profitable and efficient have not achieved either. Instead they have experienced tremendous fallout, especially in the areas of decreasing employee productivity and morale, and increasing levels of absenteeism, cynicism, and turnover. The people of Pakistan are very emotional about their jobs and organisations. They work hard for the betterment of their departments. Therefore, the sudden downsizing would be a bolt for them. The major economic conditions of Pakistan are not stable. There are huge internal and external debts, regional disparity, massive unemployment, low mark-up
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structure, and deteriorating law and order situation, which is negating all the efforts of the government for the quick economic revival and poverty alleviation. Unemployment is increasing, price hiking is a bitter reality, inflation is on the move and industrial productivity is decreasing day by day. In this bleak situation, the policy of downsizing in the domestic banking industry may add fuel to the miseries of general masses and employees.
History
The Habib Bank Group is a leader in Pakistan's services industry. An extensive network of 1450 domestic branches the largest in Pakistan and 25 international branches has enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving client relationships that form the backbone of the Bank's operations. Today, HBL plays a central role in Pakistan's financial and economic development. It has come a long way from its modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees. On 25th of August 1941, Habib Bank inaugurated its operations with the banks first branch in Bombay. Impressed by its initial performance, Quid-e-Azam Mohammed Ali Jinnah asked the Bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in the Quids city in 1943 and became a symbol of pride and progress for the people of Pakistan. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers Habib Bank has been a pioneer in providing innovative banking services. These have included the installation of the first mainframe computer in Pakistan followed by the first ATM and more recently, internet banking facilities in all its 1424 domestic branches.It was HBL that introduced products such as Credit Cards, ATMs, Travelers Cheque, etc., to the Pakistani market.
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The Bank's towering presence in Pakistan's financial and commercial life has remained unchanged over the decades. The strength of its brand and image is symbolized by its prominent Head Office building that has dominated Karachi's skyline for 35 years. Bank continues to build on its track record and in its quest for excellence it strives to meet the needs of both its customers and its employees. Habib Bank aims to ensure customer satisfaction by providing high quality banking services. This is made possible by the professionalism of its employees all of whom are provided with the requisite training and opportunities to enable them to realize their full potential. The Government of Pakistan privatized HBL in 2004 through which AGHA KHAN FUND FOR ECONOMIC DEVELOPMENT (AKFED) acquired 51% of the Bank's shareholding and management control. With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East. Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers. Economic activities both for the Govt. & affectees. In less than three weeks that fell between August 22 to September 13 a total of 6,495 executives and officers were retired by the Habib Bank Limited and United Bank Limited. The downsizing exercise initiated by HBL on the 22nd of last month and followed the UBL on the 13th of the current has now spread to National Bank of Pakistan which has offered voluntary retirement scheme to all its workers.
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Departments of HBL
There are few departments on which general or day to day banking of HBL composes. There details are as under: 1. Deposit department 2. Clearing Departments 3. Inland Remittance Department Bills Departments 4. Advances Departments 5. Cash department CD Department 6. Foreign Exchange Department
3.2 Vision Enabling people to advance with confidence and success. 3.3 Mission To make HBL Investor (s) prosper, our staff excel and to create value for our stakeholders. 3.4 Values Our values are based upon the fundamental principles that define our culture and are brought to life in our attitude and behavior. It is our values that make us unique and stem from five basic principles. 3.5 Products Offered by HBL
Tele-printer service
Introduced in 1952, this system helped the Bank to improve its services.
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Rupee Travelers Cheques
It was introduced in 1957. Here the customers are provided the facility of encashment of their travelers cheques through any branch of the Bank.
Small Factory Owner Scheme
In 1959 the Bank offered loans to small scale producers under the small factory owner scheme in order to boost the economy of Pakistan.
Foreign Tele Printer Service
It was introduced in 1961. The idea behind this scheme was to provide quick and prompt Banking services to customers in foreign countries.
Gift Cheques Schemes
It was launched in 1962. Under this scheme, the Bank provided customers with pre-printed cheques of various denominations which could be used to send gifts to their loved one on various occasions.
School Banking
This scheme was introduced in 1962 to provide Banking services to children in a number of schools though out the country.
Drive in Banking
HBL established Drive in branches in 1962 at various major cities of the country where the customers could avail Banking services without getting down from their vehicles.
Mobile Banking
It was introduced in 1962. The feature of this scheme is to provide Banking services to the customers residing in the rural areas.
Night safe Scheme
In 1962 the Bank offered facility to their customers to deposit their valuables at night in specified branches of the Bank.
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Computer accounts
In 1962 the Bank introduced computer accounts through which most of the accounts in head office were computerized
Computer Prize Bond
It was introduced in 1966. It is a scheme through which prize could be declared for prize bond scheme.
Credit card scheme
It was introduced in 1966 through which customers could get certain sum of money from specified branches. Many business organizations accepted payments through valid credit cards.
Infant Saving Scheme
In 1968 the Bank offered infants to open saving accounts operated by their parents/ guardians.
Courtesy Card
It was launched in 1968 through which the customer could be introduced to other branches in the country.
Deposit growth certificate
This scheme was introduced in 1975 with increase rate of interest.

Special five years deposit certificate
This scheme was introduced in 1975 where the major emphasis is on increased rate of interest.
Dollar traveler cheques
Introduced in 1976, the scheme was more helpful and safe for the travelers than carrying foreign currency notes.
Hajj accidental death scheme
Introduced in 1983, according to this insurance scheme, if a Hajji who has submitted his Hajj application through HBL died while he was away for performing Hajj, his family was to be provided a certain sum of money.
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Auto Cash Teller Machine
Auto cash machines are installed in 1988 at various branches which allows customers to withdraw cash round the clock and on all days of the week.
Transport Finance Scheme
In 1989 the Bank in order to decrease unemployment in the country introduced owner, driver taxi finance and scooter loans. According to this scheme they were provided loans on soft terms.
Gold card system
In 1991 HBL introduced the scheme with the features of offering card holders to get up to Rs. 10,000 at a time.
Muhafiz Rupee Traveler Cheque
It was introduced in 1998. A cheques available in denomination of Rs. 10,000, 25,000, 50,000 and 100,000 with the advantage of 100% free purchase and encashment
Distinct Properties of Muhafiz
It can be issued from more than 700 branches all over Pakistan. Muhafiz provides the facility of payment in all branches of HBL. There is no commission and fee charge for purchase of Muhafiz HBL keeps alive the tradition of Serve you better charges nothing for the purchase and sale of Muhafiz.
INNOVATIVE PRODUCTS House Finance
HBL provides the facility of house finance: Financing available for: 1. 2. 3. Purchase of house Home improvement and renovation Self Construction
Some characteristics of House Finance of HBL Are: Lowest marl-Ups leading to affordable monthly installments
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5 years fixed Rates/ one year Floating Rate available. Lowest processing charges Financing tenures ranging from 3 to 20years. Financing limits of up to Rs. 7.5 million (Rs. 3.0 million for Home Improvement/Renovation) Quick Processing
Auto Finance
Habib Bank Auto Finance, a lease product, designed to offer you an economical way for owing the car of your choice. Some characteristics are: Lowest Down Payment Lowest monthly rentals Fixed repayment tenures of 36,48and 60 months. Lowest Processing charges Insurance premium rates as low as 3% World wide personal accidental insurance coverage of up to Rs. 200,000. All locally assembled new cars can be financed through this scheme
HBL Flexi Loan:
HBL had introduced a unique loan system for the middle income serving people in various public sectors. It is basically meant for those in service people who earn more than Rs. 5,000 per month. This loan meets the petty requirements of the salaried class. Since the introduction of this scheme Rs. 6 billion is advanced throughout the country. The maximum limit of this loan is Rs. 3,000,000.
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Life Style
Habib Bank Lifestyle is an economical financing scheme for Household Appliances and consumer Electronics. Salient features of HBL LIFESTYLES: Loans for salaried/ self Employed individuals or business persons Low Mark-ups leading to affordable monthly installments. Financing from Rs.10,000 to Rs.500,000 Fixed tenures of 6,12,18,24 and 36 months Low Processing charges Full credit Life Insurance Free Doorstep Delivery of items Available throughout Pakistan from over 330 designated Habib Bank Branches
HBL Rescue
(Balance Transfer Facility) HBL provides the facility to transfer your personal loan and credit card liabilities, at the lowest rates ever.
For Personal Loans
Maximum loan up to Rs. 1,000,000 Choice of 12,24,36,48 and 60 months for payback Lowest Mark- up Quick processing Full Credit Life insurance Available from over 400 designated branches throughout Pakistan
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For Credit Card Payments
Maximum loan up to Rs.1,000,000 Lowest mark-up-compared to any credit card Choice of 12,24,36,48 and 60 months for payback Quick processing Full Credit Life insurance Available from over 400 designated branches throughout Pakistan
Auto Cash (Debit/ ATM Card)
Habib BANK icard is used for dual purposes-a debit card and an ATM card and provides u the direct access to cash in your account.
Habib Bank icard as your Debit Card
When payment is made at any merchant location using the card , exact purchase amount is deducted from your account. Convenient, secure, quick and easy payment option Nationwide acceptability at various merchant locations displaying ORIX Network logo Free of charge debit card transactions
HBL iCard as your ATM Card
Offer a number of facilities such as cash withdrawal, Funds transfer between accounts, Balance Inquiry, Mini Statement, PIN Change etc. Accepted at all 1LINK and MNET ATMs across the Country.
HBL Easy Access
Online access to banking services at over two hundred branches in Pakistan

HBL Fast Transfer
A unique solution for overseas Pakistanis to send money back home in a swift and convenient manner.
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Haryali Agricultural Loans
It entails all kind of agricultural finance facility for the rural market.
HBL E-Bank
It provides services via a dedicated communication link on the internet. The E-Banking services provide anytime, anywhere banking to all 5 million customers. This service, designed to be user friendly, assures secured access and confidentiality.
SWIFT
The bank is a major SWIFT user in 70 domestic branches & 21 overseas countries / locations in the network. SWIFT services are being used for funds transfer, remittances and trade related transactions, resulting in major improvement in payment processing capability for enhanced customer service.
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4. DOWN-SIZING
4.1 Golden Handshake Scheme The scheme offers a unique opportunity to boost long term investment & A similar scheme has also been offered by one of the Development Financial Institutions, the Agriculture Development Bank of Pakistan (ADBP) and is expected to be followed by other DFIs soon. Besides, HBL also offered all 30,000 of its workers and staff a voluntary golden handshake scheme and though the HBL president, Shaukat Tareen expected that 10,000 employees would avail the offer, PAGE has learnt that only 6,500 HBL employees have applied to take advantage of the offer. On the other hand, the president of UBL Zubyr I. Soomro has said that the downsizing in UBL is completed and there would be no more retrenchment, mandatory or voluntary, at UBL. Among reported 11,000 employees of the Habib Bank facing the axe of downsizing, as many as twenty-five sportsmen will lose their job, but the officials insisted the mass-scale retrenchment would not affect their cricket, hockey and football teams. 4.2 Conflict Management
Major Type of Conflict in HBL
Most of the major conflicts in HBL belong to the category of policy driven conflicts. After privatization of HBL, it had a major change in its structure and policies. This change was necessary to overcome key problems associated with the structure of the public owed company such as:
Over Staffing
HBL
before
privatization
had
more than
31000 employees,
management and non- management, they aimed to reduce this number to 27000 employees with the help of its new policies.
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Political Pressure
Before privatization HBL was highly influenced by the governmental policies as it was the largest financial institute under government control. The economic policies of the country were also affecting the banks policies. The problem occurred mainly because of the unstable political situation in Pakistan which was causing the huge fluctuations in governmental policies resulting in the inconsistency of HBLs policies which led to the inefficient results. The motive of privatization was to make HBL as independent as possible.
The Conflict
Drastic transformation from public owned to private company gave origin to resistance from the employees as a sudden change in structure was unacceptable to them as they were used to work with previously defined policies and system. It was hard for the employees to accept the new policies and overall system, they resisted as they felt that new policies were not employee friendly and this clash of interest ultimately resulted in conflicts. Example: HBLs re-entrenchment program was one of the bones of contention between the employees and the management. HBLs aim was to create space for more non operational non clerical, technology savvy staff to generate more effectiveness they aimed to remove the permanent clerical staff and get them on contractual basis. This sudden change generated the feeling of uncertainty and disrespect among the employees and resulted in a huge retaliation. HBL however provided them with compensation, packages and even provided them new jobs in other organizations but despite these efforts to gain the satisfaction of employees failed to gratify employees and there are still few cases in litigation.
Other issue
In 2002: HBL employees perceived that it is their right that their child / children get employed at HBL but HBL followed merit based system and they
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were interested in hiring skilled employees to satisfy the companys as well as stake holders expectations. 4.3 Dispute Resolution Process
Negotiation:
The Senior Vice President of Human Resource Management and Head of disciplinary department, Mr. Amin-ul-Huda Khan undertake the negotiation process. The representatives of the affected department approach Mr. Amin-ulHuda and put forward their point of view that usually is against the management. Mr. Amin uses his experience and expertise to minimize the conflict and to achieve the BATNA (Best Alternative To a Negotiated Agreement). He makes the employees agree to most of his demands if not all he drags the employee to agree on two or three points at least by making employees compromise on most of the issues. His preference remains that management by any means should not compromise and if incase he fails to do this he moves to the next phase that is of mediation.
Mediation:
Despite trying hard, when the negotiation process fails HBL goes for the mediation process, where the role of an effective, neutral mediator comes in who acts as a communication bridge between the management and the employees. Usually the mediator is in HBL is a trusted manager popular amongst both employees and managers HBLs mediation process can be broadly divided into the following three stages: Stage 1: Introduction and establishment of credibility: During the first stage, the mediator plays a passive role. The main task is to gain the trust and acceptance of the conflicting parties, so that they begin to believe that he/she will be capable of assisting them fairly as a person on whom they can rely at all times for this purpose HBL chooses a mediator with the mutual consent of employees and the management. Mediator in HBL is usually an internal, neutral person trusted by both management and employee. He
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leaves most of the talking to the disputing parties, but listens attentively and asks probing questions to pinpoint the causes of the dispute, obstacles to a possible settlement and to identify the issues in order of priority. Once credibility is achieved and sufficient background knowledge gained, the mediator may begin to persuade the parties to resume negotiations, possibly with a fresh perspective. Stage 2: Steering the negotiation process: In the second stage, the mediator intervenes more actively in steering the negotiations. He/she may offer advice to the parties, attempt to establish the actual resistance point of each party and to discover areas in which compromises could be reached. The mediator encourages parties to put forward proposals and counterproposals and (when a solution appears feasible) will begin to urge or even pressurize the participants towards acceptance of a settlement. Stage 3: Movement towards a final settlement: In the final settlement the mediator decides to finish the matter quickly, he/she uses bi-lateral discussions with individuals or groups and during the final stages may actually suggest or draft proposals for consideration. In the event of a final settlement being reached, the mediator assists the parties in the drafting of their agreement, ensuring that both sides are satisfied with the wording, terms and conditions of the agreement.
Arbitration:
When even mediation fails to work for HBL it goes for arbitration. The delay in court cases has always been a source of concern to HBL as this impacts the enforceability of contracts. As most of the conflicts are policy driven HBLs utmost priority is to enforce those policies on employees at any cost and without compromising when all the methods fail to achieve this purpose, HBL goes for arbitration with the consent of employees and make them realize that it was important for the benefit of organization. Arbitration is used in HBL because arbitration awards are generally easier to enforce than court judgments.
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Litigation:
HBL has lawyers who take care of its legal formalities. HBL believes that even if the conflict gets failed to resolve and the employees file a lawsuit against them the management is least bothered about it because it believes that employees don not have enough resources to fight in the court where as HBL pays a fee of about 400000 Rs to their designated lawyers who are expert in dragging the time of the hearing and making employees willingly take the case back. According to Mr. Amin ul Huda they still have cases in litigation and none of them yet got resolved or turned out in the favor of employees.
Problems in Dispute Resolution Process at Habib Bank Ltd:
Having a conflict is not anything uncommon in an organization being a system comprising of many parts and subsystems that are all interlinked and interconnected. In a multinational like Habib Bank ltd, the enormous level of activity giving rise to one or the other major or minor conflicts in forms of either functional or counterproductive cannot be ignored. However, since functional conflicts do not need any treatment with a resolution process they are the destructive ones that actually demand such a process and above all effective management of that very process too. Habib bank is an organization comprising of various branches and networks thus conflict at each level is unpredictable and hard to surface without proper management intervention. But while analyzing their dispute resolution system, various bottlenecks and hindrances were found that actually make initially the application of such a process and then the effective result of it to spread and bring benefit for the organization in the future. There are a variety of problems that were explored while analyzing the dispute resolution process at HBL.
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Failing To Minimize the Overall Level of Conflict
Firstly, the resolution process although aimed at minimizing the overall level of conflict but it was not fulfilling its purpose and was not able to minimize the overall level of conflict giving rise to other more severe conflicts. Therefore, it can be said that the resolution process did not completely satisfy the interests of all the parties and when at one hand it managed to satisfy one stakeholder, left dissatisfactory results for others or the organization itself. Example at the time when organization made a decision to go for downsizing, their major concern was to make redundant lower level staff i.e. drivers, peons etc to hire a better, more skilled personnel at the same rate so that they can offer more to the organization since the lower level staff was being hired at a rate far above the market rate increasing costs for the organization.
Lack Of Pre And Post Dispute Analysis:
HBL lacks a pre and post dispute resolution analysis this means that there is no analysis or interpretation of where the organization wanted to be and where it actually is after implementation of the process of resolution and there were no proper guidelines giving directions to take about the conflict resolution process. Hence, this resulted in failure in having effective resolution process and there was no proper comparison or evaluation of whether the organization has achieved its desired state can be done giving a rather blur picture to both employees and management and leaving them confused about whether implementing such a process is cost and time worthy in the future since they do not know the pros and cons of this system. For example, when HBL decided to downsize and make certain employees quit, they were not completely sure of whether doing so is likely to give them the desired outcomes rather they were just hitting the ball blindfolded and simply hoped to achieve what they want .furthermore, when HBL went towards retrenchment, and successfully but with great difficulty achieved it, managers did not do any proper formal analysis with the top
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executives of what were the difficulties they faced and how to make sure they do not reappear in the future when they take such a crucial action. Also, there was no evaluation of results the conflict appearing from retrenchment brought to them. Moreover, no analysis of how to implement safety measures to avoid facing the same conflict again was done.
Resolution Process Caused Even More Conflicts
Apart from this, the resolution process instead of satisfying all the affected parties at the end brought more dissatisfaction and complaints at its end making managers feel the loss of time HBL have invested while engaging in resolving conflicts when at the end it brought no fruitful results for either the employees or HBL.
Failed To Foster Long Term Relationship
As the process did not manage to satisfy all or most of the parties and caused more conflicts in return, it became a basis for more personal conflicts among individuals which adversely affected the work relationships and the organizations productivity as a result. Therefore, the process did not promise to foster effective long term relationships among colleagues giving rise to feelings of hatred and emotional disparity among employees in the same department or between an employee and manager. Example, in the case of HBLs formal dress code policy, the manager pointed out an individual in front of his junior colleagues making him feel insulted and hating the manager for doing so, causing him to feel demoralized to perform any task given by the manager with eagerness and finding ways to back bite and bad mouth the manager with other employees.
Difficulty in Challenging Management
The dispute resolution at HBL does not assure management that employees can safely and effectively challenge management. This is because such an act is not possible with employees who do not have enough resources or power to raise a voice making them insecure of their own jobs. moreover employees have a great degree of fear in their minds of
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authoritative management situation which does not aim at collaboratively discussing issues and then implementing an offer or demand rather just order employees in shape of surprises or written messages .Therefore, employees do not have a say in their own organization and this fear and lack of understanding with HBLs management leave most of the conflicts un surfaced and unresolved portraying a fake picture of happy and content employees towards management.
Lack of Employee Empowerment
Because employee empowerment was lacking, the employees do not feel the need to contribute towards the organization benefit and just work for the sake of securing their jobs, positions and dignity among others since raising a voice means openly exposing themselves to chances of being dismissed or transferred.
Lack of Effective Communication
Lack of Effective communication is another problem that makes dispute resolution at HBL inappropriate and unsatisfactory. A classic example was seen at two events. Firstly, due to lack of communication in HBL among departments regarding the code of ethics and specifically organizational culture, most managers of HBL Sukkur branch, were being seen to wear shalwar kurta and having tea while sitting on the floor giving rise to an immediate clash of opinion between the directors and those managers. Therefore, no or miscommunication left un-uniformity among the different branches of the same bank. Secondly, on the occasion of employee redundancy due to downsizing, employees got mixed messages of them being departed from their organization in the form of rumors and grapevine. Hence, this resulted in lack of trust in management for the employees who were being affected and also for those who were not making them feel the next to become the culprit of management sudden decisions and surprises. Such distorted
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communication channels lead to employees giving different meanings to the same picture since every organization comprise of diverse mental filters causing more conflicts at personal level between employees .
Inflexibility of Application
Similarly to the problems above, inflexibility of application and allocation of rewards, application and policies was another factor of disturbance in the process. Employees do not know what HBLs management expects of them at certain events and therefore most of the employees only aim to work at moderate performance levels since managements criteria of reward is unpredictable like the management itself. Therefore, people do not want to work hard and get no return rather they find it better to work consistently at a medium pace and not being rewarded which would at least not demoralize them at the end.
Poor Application of Resolution Procedures
Moreover, poor application of resolution procedure, that is in areas only where management feels it is important is another problem. HBLs managers just believe what they see and see what they believe and start resolving and working on it by simply forcing employees to follow what it dictates without welcoming any feedback, opinions or suggestions from employees being the other half that makes up the organization. Example, during the union negotiation sessions, the union
representations are forced to agree on managements choices and issues through a sound mediator whose popular and in good books of all employees and someone who the employees look up to so that management can get the other party convinced at its point on emotional grounds and can satisfy its demands at the cost of leaving its workforce feel dissatisfied and simply being won on emotional rather than professional grounds. HBL Did Not Involve Employees In Policy Implementation And It Amplifies Problems In Dispute Resolution Processes Of HBL
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While resolving conflict HBL did not balance competing interest of both the organization and the employees and the senior managers specifically were not collaborating with the employees to present the best opportunity to meld them in ways that are mutually beneficial for both the system and the employees. They were not willing to contribute their information, expertise and energy in order to give benefit to each other while resolving conflict due to which many problems arises in dispute resolution processes of HBL. The management did not allow employee participants to get involved in the process of implementation of policy and due to which employees did not gain a better understanding that why management were implementing this policy, what was the goal of the organization and what will be the future outcomes after implementing this policy. While resolving conflict management does not allow employees to challenge conventional wisdom and managements mental models by participating in dialogue and employees were not able to convey their view of what really goes on in the workplace and what issues are real and not real. When the dispute resolution process persisted, management did not effectively communicate the result to all employees due to which they were unable to understand the extent or level of reduction in conflict. Moreover, while resolving conflict at HBL, their management did not conduct employee surveys that request written input on the issues being considered in the dispute resolution process and did not give emphasis to employee focus groups that facilitate discussion of the issues being considered and did not invite oral feedback from employees about their perception in the whole dispute resolution process. Policies Were Not Updated And Employees Were Not Well Aware About The New Policies In HBL. The workforce and the nature of work have changed dramatically in HBL over the years, and they continue to change with the increasing speed more specifically in banking sector but HBL did not keep their employees well
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informed about the new policies. The management of HBL did not address the changing need of employees in their policies due to which further conflict arises. The managers and policy administrator did not continually implement, administer and reexamine and change all of an organizations policies by keeping in mind the changing needs of employees with the passage of time and with the ups and downs in the economy but rather than that they just focus on the companys interest and the growth of the organization and did not update policies at the exact time when it was actually needed. The policies did not intend to ensure workplace effectiveness, justice, fairness and peace among the employees at HBL because the management did not update policies when needed. Management At HBL Did Not Balance Forces For Change And The Forces For Stability While Resolving Conflict In the dispute resolution process of HBL management just focuses on forces for change and did not focus on balancing the forces for stability as well. When the management did not focus on balancing both the forces, it takes too much time to resolve conflict because the forces for stability are at one side and they continuously make effort not to adopt changes at HBL whereas HBL wants to achieve its target by mainly focusing on forces for change and they surprise employees while announcing the policy and did not give acceptance time to employees. In resolving conflict, the drive to change did not exceed the targets resistance and did not create a disequilibrium that unfreezes the status quo. While resolving conflict, the resistance which is the action of the targets to maintain the status quo further increases.
Employees Misunderstand the Facts
When management resolves conflict, due to miscommunication in the dispute resolution process employee misunderstand the facts and further resistance arises when employee have incorrect perceptions and misunderstandings about whether a change is good or bad for them. The employees have different information that management has. Because of a
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closed style, poor communication and negligence in the dispute resolution processes, management did not involve employees in the decision process or did not share with them all the information behind a planned change due to which further misunderstanding arises in the dispute resolution system of HBL. And when employees did not have a clear picture about what was going on in the organization they were more likely to assume the worst and resist. When sometimes management shared a little bit information about the change, employees also did not believe what they hear because of a lack of trust in the management of HBL. The Management Of HBL Did Not Conduct An Appropriate Discharge Discussion: They did not conduct such discussion in which the employee is advised of his discharge is the single event most likely to occur in order reduce the cost and for the long term growth for the organization. In the dispute resolution process, the person holding the discussion was not fully trained and the meeting was not be carefully planned often scripted and rehearsed because the senior manager did not fully aware about the facts and reasons behind the conflict. They did not use person to person discussion when advising individuals of a dismissal for downsizing instead they use a hybrid of both phone call and other impersonal communication. While resolving conflict, the senior manager did not directly get to the point and present the bad news and they did not stated the reason for the termination in a few short sentences and did not tell the person that he has been terminated due to which the expectation level of employees further increases. The management cop out and make the discharge seem unjustified in an effort to avoid hard feelings. The management of HBL also did not listen to what the employees has to say and answer their questions honestly and concisely. The management while resolving conflict did not explain initially all severance details about how long the employees will be paid, how insurance will be handled , references, outplacement services and other information of importance the employee being discharged. They did not even explain the
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exit procedures such as when and how the employee should vacate the workplace.
No Job Security for the Employees
In the past, employment at HBL was typically seen as long term relationship between HBL competing in expanding markets and hourly wage workers or salaried managers. But todays employment relationship at HBL is very different. Increased participation of young workers and fresh graduates, the prevalence of part-time or temporary workers, increased risk of permanent job loss, and other similar factors have changed the basic employment contract and introduced continuing uncertainty into the employment relationship for the remaining employees after retrenchment as well due to which problems arises in the dispute resolution system and the main problem is that while minimizing conflict, another issue of job security for the temporary and for the remaining employees arises as well. Management Did Not Provide Proper Confidential Avenues (No Proper Counseling or Discussion Platform) Management of HBL did not ensure that the dismissal discussion itself was private means that it was not conducted behind closed doors but also handled so that employees in general do not know it was taking place. The management did not carefully consider that what information was to be shared with the remaining employees, who have a legitimate interest in what has happened. Employees did not believe that the dispute resolution processes will foster fair resolution of the process and fulfill their rights. Management of HBL Did Not Make a Disciplined, Balanced Discharge Decision: Employees felt that supervisors and managers forgot about their feelings and they thought only about the interest of the organization while resolving conflict. Other managers fail to take needed action because of the potential cost and disruption to the organization. While resolving conflict, delaying appropriate discharge allows bad behavior to spread to others, impacting the broader organization performance. The
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management did not thoughtfully balance the potential pros and cons of dismissing employees while resolving conflict. In the dispute resolution process, the management did not ensure that affected employees have an opportunity to present their case, with help from an employee union representative if requested. Initially the management did not clearly articulate a defensible reason for all dismissals. The management did not provide for a pre decision review by higher levels of management, a peer committee, external lawyers, or other knowledgeable individuals.
No Proper ADR Policy:
There was no formal ADR policy statement at HBL that establishes the rules for resolving disputes, provides due processes, and fosters a full understanding of the dispute resolution options available to the organizations employees and because of this further problem arises in the dispute resolution system. There was no fair and impartial investigation of disputes.
Rationalization Of Human Resource Is Done By HBL. Major conflict at HBL: Overstaffing
Major conflict that arose was of overstaffing. HBL was then very much concerned not to supply too many employees. Overstaffing can create problem in ways that a work of 1 person is done by many people, also resources and other possessions are spent on them, which is a waste, so downsizing was needed at HBL. Overstaffing can become the reason of demotivation, ultimately affecting the core objective of the organization that is maximum profitability as it increases cost. (Example of other government owned institution is PIA)
Feedback Cycle: Different Inputs.
Arbitration: Arbitration did not exist with this particular name at HBL but do work with this unorganized way. The appointment of an independent person to act as an adjudicator (or judge) in a dispute, to decide on the terms of a settlement. Both parties in a conflict have to agree about who the
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arbitrator should be, and that the decision of the arbitrator will be binding on them all. Arbitration differs from mediation and negotiation in that it does not promote the continuation of collective bargaining: the arbitrator listens to and investigates the demands and counter-demands and takes over the role of decision-maker. People or organizations can agree on having either a single arbitrator or a panel of arbitrators whom they respect and whose decision they will accept as final, in order to resolve the conflict. Arbitrator is a legal person and his decision will be followed by both employees and management. CBL Negotiations: If arbitration fails, HBL goes for negotiations: Official negotiations are also done at HBL, when things get out of control or are not solved through arbitration. Depending upon the situation and time, the way the negotiations are to be conducted differs. The skills of negotiations depend and differ widely from one situation to the other. Negotiation process takes one month at HBL. It is at times beneficial in the organizations in order to resolve conflicts.
Types of Conflicts at HBL:
Pay raise issues mostly create conflicts, when bonuses,
rewards are not given at proper time and in proper amount. These kinds of problems also rise because of the inflation KESC employees (around 7000 employees) argued for their
right, but government did not support them. i.e. a difference of interests and rights or "Disputes of right" and "disputes of interest" These all issues occur in transactional activities. Such as in systems, policies, procedures and climates at HBL. Transformational are like major conflict emerges, and cultural values are involved here which creates conflicts.
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Downsizing:
In 1997: 29000 employees were working at HBL they were downsized to 13000; the case is in litigation now. In organization they have complex and heterogeneous structure. In these cases HBL has no issues or problems because a certain amount goes to the companys lawyer every month, and he handles the case. But the people involved or individuals seek difficulties because lawyers fees are expensive and they cant afford these fees for too long.
Re-entrenchment:
In 2007: Conflict because of re-entrenchment occurred that was attempted to be minimized by offering various packages and incentives for the employees. Means people were given incentives and other facilities or other job opportunities and were asked to leave jobs from HBL.
Employees expectations from management:
In 2002: HBL employees perceived that it is their right that their child / children get employed at HBL but HBL followed merit based system and they were interested in hiring skilled employees to satisfy the companys as well as stake holders expectations. And thats the right choice, because if they started hiring on sources HBL will be biased at hiring employees, instead the best way is to hire on merit, who are more capable candidates. MCB and UBL transformed but they overcome their conflicts less than HBL, HBL is growing transformational 10% more than them because they re-entrenched the employees very peacefully gave incentives and bonuses.
Reason for entrenchment:
Drivers salary exceeded Rs.20000. This is wrong because an MBA now a days hardly gets a job of Rs. 10000, and a driver was given Rs.20000, which is a big difference. So it was decided after downsizing that the drivers
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salary will be included in each executives salary, and now its his choice to hire a driver or not, and that drivers salary is around Rs.7000.
Competing Internationally:
One of the reasons for HBL was also that HBL competes internationally that is why it has to hire skillfully appropriate workforce and for that they need to create space to accommodate them. HBL manages conflicts better than other companies.
Outsourcing of Employees:
Employees such as peons, guards, and drivers were outsourced from another company. This is because in order to avoid conflicts in a way that nor there will be a similar staff nor there will be groups, and there will be least probability of conflicts arising.
Managements Role in resolving conflicts:
Management at HBL is involved and is a key role player in surfacing, handling and resolving conflicts at HBL at group, individual and organizational levels. This also gives rise to and also encourages a collaborative stage, where everyone at management level is involved in resolving conflicts and also parties involved are asked for feedbacks and suggestions.
Mediation after negotiation:
Mediation takes place after negotiation, if employees resist accepting new terms and sticking to two or three points. This takes place when employees and groups are not at all ready to accept the decisions of the management and they call for strikes, threats etc.
The Mediator:
Then mediator talks or deals with him on the basis of his talent, personality and skills. Mediator in HBL is a well known and popular among both employees and management and he/ she is the person who knows well the goal of organization that as the competition increases has to be reduced
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by covering extra cost, expenses as it hinders the growth of organization that is the penetrating disease. Mediation drag the employee to agree on further two or three points but still in the employee do not agree on even one point arbitration takes place.
Employees hired at temporary work basis:
At HBL there are no permanent operational employees hired instead they all are hired on a temporary basis contracts.
Role of Work Councils:
Personality conflict chewing pan, talking loud on cell phone, Negative attitude of employees are monitored by these councils. Most of the time employees did this on purpose to give an impression that they are more powerful than the management. These conflicts at HBL have also rise, such as not following the dress coat, negative attitude or any practice against the terms mentioned in the code of conduct. Accountability or check the dress code and other matters at regular intervals is necessary in any organization
Summary
Change is inevitable in organizations. The trend today is toward the learning organization, which embraces continuous learning and change. Managers should think of change as having four elementsthe forces for change, the perceived need for change, the initiation of change, and the implementation of change. Forces for change can originate either within or outside the firm, and managers are responsible for monitoring events that may require a planned organizational response. Techniques for initiating changes include designing the organization for creativity, encouraging change agents, and establishing new-venture teams. The final step is implementation. Force field analysis is one technique for diagnosing restraining forces, which often can be removed. Managers also should draw on the implementation tactics of communication, participation, negotiation, coercion, or top management support.
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Also discussed are specific types of changes. Technology changes are accomplished through a bottom-up approach that utilizes experts close to the technology. Successful new-product introduction requires horizontal linkage among marketing, research and development, manufacturing, and perhaps other departments. Structural changes tend to be initiated in a topdown fashion, because upper managers are the administrative experts and champion these ideas for approval and implementation. Culture/people change pertains to the skills, behaviors, and attitudes of employees. Organizational development is an important approach to changes in peoples mind-set and corporate culture. The OD process entails three steps unfreezing (diagnosis of the problem), the actual change (intervention), and refreezing (reinforcement of new attitudes and behaviors).
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5. RESEARCH FINDINGS
5.1 The Questionnaires The empirical data collected have a lot of problems in analysis, its viability, handing, missing scenarios and its outliners are aspects that relates with its interpretations. My data is mainly constituted on the questionnaires and interviews answers. I selected the most valid data through inferential & descriptive statistics methods.
Q1.Primary Reason for Leaving the Company:
For this question I wont be using any charts to show the answers of employees. Here an open-ended question was formulated to acquire a wider number of answers. The answers were Benefits, Better Job Opportunity, Working Conditions, Job Expectation, Conflict with Other Employees, pay or Reallocation/Move for employee to a set of options. The reason for asking this question was to discover the diverse range of opinions that employees at HBL have. This question was also asked to provide leverage and determine the reasons that employees have.
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Q2. Time Period You Been Thinking About Leaving The Company: 1. One Month or Less 3. More Than 5 Months 2. One To 5 Months
50% 45% 40% 35% 30% 25% 20% 15%
one month or less one month to 5 month more than 5 months
10% 5% 0% one month or less one month to 5 month more than 5 months 10% 40% 50%
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Q3. Satisfied With The Company You Work For: 1. Extremely Dissatisfied 3. Neither Satisfied nor Dissatisfied 5. Extremely Satisfied 2. Very Dissatisfied 4. Very Satisfied
25%
20%
15%
10%
5%
0%
extremely dissatisfied very dis satisfied neither satisfied nor dissatisfied very satisfied extremely satisfied 20% 25% 25% 15% 15%
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Q4. Your Working Experience: 1. Much More Positive than Negative 2. More Positive than Negative 3. More Negative than Positive 4. Much More Negative than Positive
30% 25% 20% 15% 10% 5% 0% much more positive than negative more positive than negative more negative than positive much more negative than positive 20% 30% 30% 20%
Q5. Experiences Are More Negative Than Positive, What Factors Are Responsible. Select All That Apply. 1. My Performance Evaluation and the Outcome 2. My Role, Responsibility and/ or Title 3. Job Training 4. My Boss 5. My Co-Workers 6. My Compensation 7. Change in Compensation Package 8. Company Savings Plan 9. Medical Benefits and Insurance
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10. Vacation Time 11. Other
25%
20%
15%
10%
5%
0%
my performance evaluation and the outcome my role, responsibility and/or title job training my boss my co-w orkers my compensation change in compensation package company savings plan medical benefits and insurance relocation vacation time other 25% 10% 5% 10% 10% 2% 8% 5% 10% 5% 5% 5%
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Q6.Flexibility of the Company With Respect To Your Family Responsibilities? 1. Very Inflexible 3. Neither 5. Very Flexible
25% 20% 15% 10% 5% 0% very inflexible somew hat inflexible neither somew hat flexible very flexible 25% 25% 10% 25% 15%
2. Somewhat Inflexible 4. Somewhat Flexible
Q7.A Clear Path for Career Advancement: 1. Strongly Disagree 3. Neither Agree or Disagree 5. Strongly Agree
30% 25% 20% 15% 10% 5% 0% strongly disagree somew hat disagree neither agree or disagree somew hat agree strongly agree 25% 10% 10% 25% 30%
2. Somewhat Disagree 4. Somewhat Agree
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Q8. Satisfaction With Your Position At This Company: 1. Very Satisfied 3. Not Satisfied nor Dissatisfied 5. Very Satisfied
35% 30% 25% 20% 15% 10% 5% 0%
very satisfied somew hat dissatisfied not satisfied nor dissatisfied somew hat satisfied very dissatisfied 20% 30% 10% 5% 35%
2. Somewhat Dissatisfied 4. Somewhat Satisfied
Q9.Part of Pay Play in Your Decision to Leave the Organization: 1. 20-40% 3. 60-80%
30% 25% 20% 15% 10% 5% 0% 20-40% 40-60% 60-80% 80-100% 20% 25% 30% 25%
2. 40-60% 4. 80-100%
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Q10.Working Conditions Affect You to Leave Your Job: 1. Yes 2. No
70% 60% 50% 40% 30% 20% 10% 0% yes no 65% 35%
Q11.Rate the Morale In Your Company: 1. Low 3. High

35% 30% 25% 20% 15% 10% 5% 0%
low very low high very high 35% 20% 25% 20%
2. Very Low 4. Very High
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Q12. This Company Have Done Anything To Encourage You To Stay: 1. Yes 2. No
60% 50% 40% 30% 20% 10% 0% yes no 40% 60%
5.2 Findings The present report indicates that the following features:1. 2. 3. 4. 5. Better job opportunities in outer market & pay are the main reasons for increasing attrition rate. The employees do not feel valued by their employer. The working environment in the company also make them to leave their job. Performance Appraisals are not given at regular intervals so that the Employee feel motivated for its work. The work schedule is very much inflexible & Stressful However an effective retention policy could be followed to make the employees stay in the company starting form recruitment and selection of employees, providing an effective pay packages and compensation, outlining an efficient career development path for employees and most importantly catering to their emotional, mental and family needs. Also practices should be followed to bring the ex-employees back in the company.
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6. CONCLUSION AND RECOMMENDATIONS

6.1 Conclusion Habib Bank Limited (HBL) is considered first commercial bank of Pakistan. HBL has grown its branch network and become the largest private sector bank with over 1450 branches across the country and a customer base exceeding five million relationships. Study was conducted to know the impact of customer relation officer activities on the performance of bank and for this purpose Habib Bank Limited was selected. HBL is very conscious about its employees and very much importance is given by bank to their valuable satisfaction. Bank also follows employee's crisis management because role of employee's crisis management in banking sector is most important and it enhances the business and performance of the bank. Employee's crisis management helps to acquire strong and satisfied workforce and maximizes the business of the bank. Through close relationship with employee, bank obtains more deposits and efficiency. 6.2 Recommendations The majority of research on the response of employees to downsizing has centered on layoff victims; few studies have focused on the people who survived the layoff. But, these tips will assist you with the emotional aspects of coping with the loss of your coworkers. 1) Recognize that your emotions are legitimate and that time passing is necessary for the intensity of your current emotional response to die down. In organizations where managers recognize and acknowledge this emotional component in a downsizing, employees return to productivity much sooner. 2) Recognize that you may need to experience each of the stages of loss described in Kubler-Rosss groundbreaking studies about grief.
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3) Seek access to your supervisor; assuming your supervisor is readily available and perceived by you as concerned about employees, and honest, reliable and competent, your time with your supervisor should help you feel reassured. 4) Attempt to recreate the daily patterns you experienced prior to the layoffs. While much time in an office is invested by employees in talking about the situation after layoffs, the sooner you can recreate your prior patterns, the better for your mental health. 5) Treat yourself with kindness. Now is the time to eat a portion of your favorite comfort food. Got chocolate? Share with coworkers. Bring in a casserole or cookies that coworkers can share. Small gestures mean a lot in the post layoffs workplace. 6) Talk out your feelings with coworkers who are likely experiencing loss just as you are. You can comfort one another. Your significant others outside of your workplace make good sounding boards, too. 7) Pay attention to the needs of the coworkers who were laid off. These are your friends and they are experiencing serious issues with self-worth and loss, too. So many people tie up so much of their identity and self esteem in what they do for a living that a layoff is a major blow to their sense of themselves, their competence and self worth. You do them a kindness, and you will feel better, too, if you continue your weekly lunch date with your laid off coworker. Let your laid off former coworker vent and listen to see how you can lend support. Sometimes, active listening is all they need. 8) You will feel as if you have a proactive mission and purpose when you connect your laid off coworkers to your connections on Face book, Linked In, and the other online social networks. Anything you can do to help them expand their networks and effectively job search will be valued by your friends. 9) Communication is critical following a layoff. But, remember that the middle managers who would generally communicate are also experiencing loss
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and concern about their own jobs. (Often managers are the first to be laid off.) If you are not receiving the communication you need from your manager, seek it out by asking questions and spending time with him or her. Go after what you need; dont wait for communication to flow downwards. 10) Hopefully, your organization has recognized the importance of valuing the remaining employees. But, if the opportunities for reward, recognition and valuing seem slim, volunteer to head up an employee morale committee. The committee can do much to bring fun and motivation back into the workplace following layoffs. Think ice cream socials, popcorn machines, and potluck lunches; the activities dont need to be expensive.
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BIBLIOGRAPHY
Books References: Charles R. Greer, Strategic Human Resource Management: A General Managerial Approach, Second Edition, Person Education, 2004 Barney Olmstead and Susanne Smith (2001): Creating a Flexible Workplace: How to Select and Manage Alternative Work Options Brockner, J., Grover, S., Reed, T., & Dewitt, R.L. (1992). Layoffs, job insecurity, and survivors' work effort: evidence of an inverted-U relationship. The Academy of Management Journal, 35, 413-425.
Articles: www.hbl.com http://en.wikipedia.org/wiki/HabibBank http://www.highbeam.com/doc/1G1-96745487.html
Websites: http://www.docstoc.com/docs/9505193/Habib-Bank-Ltd-Pakistan www.google.com
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APPENDIX
Q1. Primary Reason for Leaving the Company:
Q2. Time Period You Been Thinking About Leaving The Company:
1. One Month or Less 3. More Than 5 Months
2. One To 5 Months
Q3. Satisfied With The Company You Work For:
1. Extremely Dissatisfied 3. Neither Satisfied nor Dissatisfied 5. Extremely Satisfied Q4. Your Working Experience:
2. Very Dissatisfied 4. Very Satisfied
1. Much More Positive than Negative 2. More Positive than Negative 3. More Negative than Positive 4. Much More Negative than Positive
Q5. Experiences Are More Negative Than Positive, What Factors Are Responsible. Select All That Apply: 1. My Performance Evaluation and the Outcome 2. My Role, Responsibility and/ or Title 3. Job Training 4. My Boss 5. My Co-Workers
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6. My Compensation 7. Change in Compensation Package 8. Company Savings Plan 9. Medical Benefits and Insurance 10. Vacation Time 11. Other
Q6. Flexibility of the Company With Respect To Your Family Responsibilities? 1. Very Inflexible 3. Neither 5. Very Flexible 2. Somewhat Inflexible 4. Somewhat Flexible
Q7. A Clear Path for Career Advancement: 1. Strongly Disagree 3. Neither Agree or Disagree 5. Strongly Agree 2. Somewhat Disagree 4. Somewhat Agree
Q8. Satisfaction With Your Position At This Company: 1. Very Satisfied 3. Not Satisfied nor Dissatisfied 5. Very Satisfied 2. Somewhat Dissatisfied 4. Somewhat Satisfied
Q9. Part of Pay Play in Your Decision to Leave the Organization:
1. 20-40% 3. 60-80%
2. 40-60% 4. 80-100%
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Q10. Working Conditions Affect You to Leave Your Job:
1. Yes
2. No
Q11. Rate the Morale In Your Company:
1. Low 3. High
2. Very Low 4. Very High
Q12. This Company Have Done Anything To Encourage You To Stay: 1. Yes 2. No
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Impact of Downsizing in HBL

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INSTITUTE OF BUSINESS AND TECHNOLOGY Impact of Downsizing in HBL

Prepared By Madiha Munawwar Mirza BM-25070 Course Code : MKT-606

MBA (Human Resource Management)

FACULTY OF MANAGEMENT AND SOCIAL SCIENCES FALL - 2010