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The organization that we will discuss in this report is Pakistan Telecom Communication Limited (PTCL) which has undergone major changes in the recent past. The Government announced PTCL to be privatized. In year 2005 Govt. had decided to sell 70% shares to private organization named ETISALAT UAE. After privatizing PTCL the new management was introduced this changes its vision, mission statements and objectives and goals and structure as well.
PTCL is the largest telecommunication organization in all over the Pakistan. PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan's economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic.
To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'.
To achieve our vision by having
An organizational environment that fosters professionalism, motivation and quality
An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
"Quality" and "Time" conscious customer service
Sustained growth in earnings and profitability
Nature of business:
PTCL provides telecommunication services and broadband internet provider.
Mr. Walid Irshaid appointed as a new Chief Executive Officer of PTCL.
This report is prepared to discuss main issues relating to develop and maintain the strategic change management of PTCL.
Change Management Issues:
Before we start discussing the issues let us know the definition and types of change management. We can define change management as it is a structured approach to shifting/transitioning individuals, teams, and organization from current state to required state. It is and organizational
process aimed at empowering employees to accept and embrace changes in their current business environment. Hiatt, J & M, creasy (2003).
Types of change:
Basically there are two types of change which are following:
Reactive change occurs when one takes action in response to perceived problems, threats or opportunity nowadays the behaviours of people are changing so PTCL is providing value added services to its customers like broadband internet services, utility bill payments, and airline ticket bookings and etc, to maintain these services PTCL need experts and employees to operate these activities.
Planned change occurs when carefully actions taken by management to anticipate future difficulties, threats, opportunities and etc. as it is a planned change that company expends its structure by increasing executive vice presidents for customer and services, general managers and regional managers to ensure that good services are provided by lower level management to satisfy customers to meet the level of competition in industry.
Task No. 02(a)
Key factors that need for Strategic change for PTCL:
There are two kind of strategic change factors for PTCL which are following.
Internal factors are related with inside the organization that can force to happen it includes following:
Mergers & acquisitions.
Financial position of the organization.
Change in strategic position.
In this report we will discuss only three main factors for PTCL.
Mergers & acquisition:
As it is mentioned that PTCL was acquired by a private organization named ETISALAT UAE. Whole new management was introduced in PTCL. This was the one of the main change occurred in PTCL. Some of the reasons behind acquisition were to increase the competition; there was less span of control within the organization, and because of dissatisfaction of customers from the services provided by the PTCL.
When the whole new management was introduces after the merger and acquisition so the new management started restructuring in the organization. They expend the organizational structure of the organization to increase the performance to satisfy the customers and to get competitive edge in the industry. They divided the responsibilities of S.E.V.P and E.V.P and Regional managers by increasing the number of them.
Because nowadays the technology is changing rapidly it is getting advance day by day to PTCL also changes its technology by introducing fiber optical lines which is much better and faster than copper lines which they were using before.
External factors are related with the outside of the organization. These are the factors on which organization don't have any control. In external factors include PESTLE
Taxation and regulation.
Because of economical changes and growth the life style of people in Pakistan is changing and standards are increasing. Now the customers have a lot of other alternatives.
Due to advancement and innovation in technology in Pakistan the organizations are bound to change their existing technology to be competitive in industry. PTCL just change its network from copper line to fiber optical network.
Task No. 02(b)
Managing resistance to change:
Managing Resistance to Change
by Susan Lee
It is normal to experience resistance whenever there is change. Understanding that there will beresistance to change will help you anticipate resistance, identify its sources and reasons, and modify your efforts to manage the issues of change to ensure the success of your change efforts.
Resistance is actually healthy. Try not to react against it defensively. It is good for you because it makes you check your assumptions and it forces you to clarify what you are doing. You must always probe the objections to find the real reason for resistance. Many times, it comes down to personal fear.
As the leader, you must take the time to understand resistance and you may have to come at it from several different angles before it is conquered. You must understand what your employees are feeling, as well as thinking.
Ways to reduce resistance to change:
Involve interested parties in the planning of change by asking them for suggestions and incorporating their ideas.
Clearly define the need for the change by communicating the strategic decision personally and in written form.
Address the "people needs"of those involved. Disrupt only what needs to be changed. Help people retain friendships, comfortable settings and group norms wherever possible.
Design flexibility into change by phasing it in wherever possible. This will allow people to complete current efforts and assimilate new behaviours along the way. Allow employees to redefine their roles during the course of implementing change.
Be open and honest.
Do not leave openings for people to return to the status quo. If you and your organization are not ready to commit yourselves to the change, don't announce the strategy.
Focus continually on the positive aspects of the change. Be specific where you can.
Deliver training programs that develop basic skills as opposed to processes such as: conducting meetings, communication, teambuilding, self-esteem, and coaching.
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Task NO. 03
There are different models can be use in change management process. Following is the list of those models:
The ADKAR Model.
Kotter's Eight-Step model.
Kubler Rose Five Stage Transition model.
Mckinsey's 7s framework.
Lewin's Change model.
General Process Model (organizational Development).
But in this report we will discuss only two of them. We will evaluate those models first then compare those models with the example of PTCL.
The ADKAR Model :
Hiatt. J defines that ADKAR model highlight that successful change in the organization can be happen when every employee in the organization can be able to change successfully. This model focuses on five procedures and outcomes which are necessary for any change in individual successfully.
Awareness of the need for the change
Desire to support and participate in the change
Knowledge of how to change
Ability to implement the change
Reinforcement to maintain the change
Above are the five actions and outcomes in ADKAR model all of these actions are sequential means to say that we can only step forward to next action if previous action is completed.
Now we will briefly discuss each of these actions with the example of PTCL.
Awareness of the need for change:
In the first step we try to understand why the change is necessary. It explains the main reason behind the required change and tells us that why change is required. At this point a planned communication is very important. When we complete this step effectively then the employee will understand that why the change is needed.
Desire to participate in and support change:
After understanding the reason behind the required change in this step employee will be able to support and participate in the change. It can only happen if the employee fully aware that there is the need for change is recognized. Creating a desire can only be achieved by offering incentives and bonuses for employees and create a desire to become a part of the change.
Knowledge of how to change:
In the third step we should provide a full knowledge to employees about change by providing them training, coaching and mentoring. There are two types of knowledge should be addressed one is how to change and the second one is how to perform after implementing the change.
Ability to implement the change:
After above three steps now the employees actually performs and we should support their performance it may take some time and it can be achieve by practicing, coaching and getting feedback.
Reinforcement to maintain the change:
This is the final step of the model and it is very important part as well in which we focus on the maintaining of the change. We should make sure that change is happening and ensuring that the employees are not resisting to the change by getting positive feedback, rewards, and by measuring performance.
Mckinsey's 7s Framework:
Mckinsey's 7s framework highlights the some of the important factors like structure, strategy, system, skills, shared value, staff, style. The first three structures, system and strategy are known as hard S's and other four skills, shared values, staff and styles are known as soft S's. (Burnes, 2002)
Now we will discuss all these factors in brief detail.
Strategy is the long term direction and scope of the organization (Scholes, 2002).
We can define structure in a sense that it shows the internal system and its chain in command of the organization. Structure defines the authority and the responsibilities of employees. It shows that who is working under whom and who will need to report whom. (Richard & jonathen, 2007).
We can define system as it is the set of formal and informal procedures to direct the everyday activities.
Hiatt. J. M, (2006). ADKAR: A Model for Change in Business, Government and Community (1st Ed). USA Library of Congress
Hiatt, J & M, creasy (2003). Change management: the people side of change (1st Ed). USA: Library of Congress
J, Broten & J, Gold (1999). Human Resource management: Theory and Practice (2nd Ed). New Jersey: Lawrence Erlbaum Associates Inc.
Burnes, B. (2002). Managing Change: A Strategic Approach to Organizational Dynamics. london: Prentise Hall .
Richard, L. D., & jonathen, M. (2007). Organizational Theory and Design. Hampshire: British Library.
Scholes, G. J. (2002). Exploring corporate Strategy. harlow: Pearson Education Limited.