CHANGE MANAGEMENT

Submitted To: Maam Saira Qamar Submitted By: Irtiza Noor Mehreen Aslam Hira Daud Date of Submission: 27th,May 2009

 The genius of the future lies not in technology but in our ability to manage it (Anonymous)

Change management provides a framework for managing the people side of these changes. The most recent research points to a combination of organizational change management tools and individual change management models for effective change to take place. Change management is very important for managers. Current scenario As the pace of technological change has quickened, and as global competition has shortened product life cycles, firms have had to rethink their technology investment strategies in order to remain competitive. thats why Currently Murree Brewery has introduced the newest and advance technology in their processes With the whole plant producing products of glass bottles, cans and PET bottles, the machinery is such that it requires minimum human interaction. They currently employ 430 full-time employees in the different departments of the organization, which includes semi-skilled and unskilled labor. Industry analysis: The beverage industry in Pakistan, currently having a size of little over 120 million cases per annum with an annual growth of around 10-15 per cent, has the potential to double its size in the next 35 years, if the government's taxation policies towards this industry are corrected. Beverage industry has in the past provided to the government that it works

with better growths if we follow the supply side of economics by bringing down the rates of taxation being able to reduce or maintain the retail price at such a level which in return will make the volume of sales of this industry grow fast which ultimately will make the revenue of the government to grow as well. On the point of what exactly this industry needs from the government to make this industry grow and double its size in the next 3-5 years is just one thing: Abolish central excise duty, which will reduce the total impact of tax and bring down the ratio of 36 per cent of the retail price to around 20 per cent, and at the same time will solve the matter of double taxation, and in return instead of increasing the price, we will adjust our price structure to such a level which will be affordable for the consumers and at the same time use the savings for new marketing strategies and push this industry to grow at least over 30 per cent per annum which in turn will compensate and increase the government revenue. Companys Background: Consequent to the British annexation of the Punjab in 1849 from Sikh rule, and more so after 1857 when the British Crown formally extended its sovereignty over India, a structured administration commenced in the Punjab. To meet the beer requirements of British personnel (mainly army), the Murree Brewery was established in 1860 and incorporated a year later at Ghora Galli, located in the Pir Punjal range of the Western Himalayas at an elevation of

6000 above sea level, near the resort town of Murree.Between 1885 & 1890 the Company established Breweries in Quetta & acquired an interest in the Oticumand (South India) & Norailiya (Ceylon) breweries. A distillery was also established in the above period in Rawalpindi next to the Brewery.The Murree Brewery at Ghora Galli was therefore among the first modern beer breweries established in Asia. Murree Beer proved to be very popular among the British troopers who were largely barracked in the Galis of these hills. The Rawalpindi brewery is blessed with deep aquifers of good water. A railway siding was extended to the premises in the 19th century, which is now derelict. The registered office of the company is also situated here Under the present prohibition law, only non-Muslims and foreigners are permitted to consume alcohol. Notwithstanding the consequent reduction in demand, the Company decided as policy to concentrate on product excellence. It was decided to modernize the plants.In 1997-1998 and 1998-1999, Murree Brewery was judged among the top 25 performing public companies by the Karachi Stock Exchange. The Murree Brewery produces a wide variety of Beers, Liquors and nonalcoholic products. Our Premium products include Murrees Millennium Beer, Murrees Classic Beer, Lite Export Pils, Eight and Twelve years old Single Malt Whiskies, Vintage with a blend of a Scotch Grain Whisky, Silver Top Gin, Bolskaya Vodka and Doctors Brandy. Murree glass is division of Murree brewery co ltd is dedicated to the

manufacture of quality glass container since 1975. We are pioneer in lightweight quality controlled glass bottles. A good glass container is made in the feeder where exact electronic temperature controls are vital.Murre Brewery produces wide range of quality products like juices, squashes, tomato ketchup, vinegars, malt extract. Juices are produced in different flavors like mango, orange, apple, lychee, barley, and pineapple. Research methodology: To detect any possible flaw in the murree brewerys operations rises because of technological intervention, we conducted an elaborate interview of both, the workers i-e managers and employees. we took interview of major Sabih-ur-Rehman and collected the accurate and relevant data regarding the current problem i.e. employees are continuously resisting to accept the technological advancement. Through this interview we came to know about the specific factors, which are causing this problem. The preliminary as well as the extensive interview that we did enabled us to have an understanding of the organizations structure, operations, communication etc. through the historical, structural, functional, attitudinal, and relational data that was collected. We also conducted a survey by filling up questionnaires from managers as well as employees of murree brewery. Problem statement: After the technological intervention, murree brewery had to face a lot of hurdles from the employees, as they were not smart enough to absorb the

technological advancement because of many reasons. They were unable to operate the new machinery. This resulted in the de motivation amongst employee, as they perceived change to be a hindrance for them in future. They took that change in a negative way and resisted to accept it. Because of this problem the technological intervention had not gave positive results which is effecting the over all productivity of the organization. Thus employees felt demotivated. The current bureaucratic structure of murree brewery is also one of the reasons of poor results because employees dont feel them as a part of organization and that causes lack of loyalty towards organization. Hence, communication gaps have been seen within organization. Employees and organizations have reciprocal obligation and mutual commitments. An employment relationship has three dimensions; formal psychological and social. in order to make employees the core part of accepting and practically applying the change, the organization should fulfill all these dimensions and obligations so that employees feel themselves as apart of change employees often misunderstand or,worse,ignore the implications of change for their individual commitments to the company.murree brewery is currently facing the problem because of employee resistance that is because of communication gap as they have bureaucratic structure which leads to large differences between what company expect from their employees and on other hand what employees are expecting from the company. This gap should must be bridged otherwise the employees resist to any decision as they are doing in murree brewery. Because of misperception and lack of

communication employees take change as a negative factor for their survival in future. They think that the upcoming change will lead to firing process o old employees and hiring of new blood. This is just a communication gap otherwise employees are the assets of any company. (by Paul strebel) Successful change requires commitment, co-ordination and competency. One way to think about this challenge is in terms of three interrelated factors mentioned above which are required for revitalization.cordiantion or team work is especially important if an organization is to discover and act on technological change, quality and product development oppourtunities.the production and sale of innovation, high quality and low cost product, proper implementation of change depends on close coordination among marketing, product design and manufacturing department and most importantly the best coordination among employees with the organizational decisions and strategies. High level of commitments essential for the effort, initiative and cooperation that coordinated action demands for change implementation. New competencies such as knowledge of the business as a whole, analytical skills and interpersonal skills are necessary if people are to identify and solve problems as a team. if any of these elements are missing, the change process will break down. Similarly training programs may target competence, but rarely do they change a companys patterns of cordiantion.successful change efforts focus on the work itself, not on abstractions like participation or culture. The starting point of any effective change effort is a clearly defined business problem. At this point

senior managers must make an effort to adopt the team behavior, attitudes and skills that they have demanded of others in earlier phases of change. (by Michael Beer, Russell A.Eisentat and Bert Spector) This article reinforces the notion that change does not come from top. To help people change the way they do their jobs. You must change the way you communicate with them. But communication must focus not on executive pronouncements, but on listening to what frontline employees have to say. In case of introduction of new technology - like few days back new software was introduced to the stores department at Philips Since the software (Orien) was new, the employees were given a lecture and practical study of this software. They were also showed audiovisual to understand how to use the software. The articles recommend soliciting frontline supervisors view on how to implement change and incorporating those suggestions into your change, as must possible. The more input supervisor has on change tactics, the more likely your organizations change process succeed. ( by T.J Larkin and Sardar Larkin) Training is defined as a planned learning experience designed to bring about permanent change in an individual's knowledge, attitudes, or skills (Campbell, Dunnette, Lawler, & Weick, 1970). Training and motivation are interlinked. If employees are not motivated towards a certain training program then the training program wont be effective and it would be waste of organizational resources and nothing in the organization would change because

of the de-motivated behavior of employees or resistance to change. Training and management development activities are currently receiving increased attention in the industrial and academic communities. This emphasis is illustrated by recent figures, which report that organizations spend upwards of $30 billion dollars annually for training pro- grams involving 15 billion work hours (Huber, 1985). In academic circles, the importance of training and development is reflected by the fact that the Annual Review of Psychology has de- voted two chapters in the last five years to the topic of personnel training (see Goldstein, 1980; Wexley, 1984). Currently, the majority of applied work and academic research has focused on the appropriateness of various instructional methods, needs assessment, and evaluation methodology. Although the "bottom line" for most training programs is effectiveness, little attention has been devoted to studying why training programs are effective for some individuals and ineffective for others. Training effectiveness usually is deter- mined by assessing some combination of the criteria presented in Kirkpatrick's (1967) hierarchical model of training outcomes. This hierarchy is composed of four levels of training outcomes: (a) trainees' reactions to the program content and training process (reaction); (b) knowledge or skill acquisition (learning); (c) behavior change (behavior); and (d) improvements in tangible individual or organizational outcomes such as turnover, accidents, or productivity (results). Each training outcome affects the next level in the hierarchy. Trainees' satisfaction with the pro- gram is believed to have an important influence

on learning, the content of the training program must be mastered to some degree for improvements in on-the-job behavior, and behavior change is important for positive changes in results such as quality or quantity of production. A number of training evaluation studies have provided indirect support for the hierarchical model (e.g., Fromkin, Brandt, King, Sherwood, & Fisher, 1975; Latham, Wexley, & Purcell, 1975) by demonstrating that satisfaction with training, learning, and behavior change occurs jointly. The strongest evidence in support of the hierarchy is provided by Clement (1978). Using path analysis, he found that trainee reactions had a causal impact on learning and learning had a significant influence on behavior change. Positive reactions of trainees, learning, behavior change, and improvements in job-related out- comes are expected from well-designed and administered training programs. However, the attitudes, interests, values, and expectations of trainees may attenuate or enhance the effective- ness of training. Determining the specific individual characteristics that influence the effective- ness of training is important if we are to under- stand how to increase the likelihood that behavior change and performance improvement will result from participation in training programs. Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne Study results (Terpstra, 1979). Five major approaches that have led to our understanding of motivation are Maslow's need-hierarchy theory, Herzberg's two- factor theory, Vroom's expectancy theory, Adams' equity

theory, and Skinner's reinforcement theory. Maslow argued that lower level needs had to be satisfied before the next higher level need would motivate employees A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy. Managers should also recognize that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker. Herzberg's work categorized motivation into two factors: motivators and hygienes (Herzberg, Mausner, & Snyderman, 1959). Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security, produce job dissatisfaction. Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods, which include job enlargement, job enrichment and empowerment. Skinner's theory simply states those employees' behaviors that lead to positive outcomes will be repeated and behaviors that lead to negative outcomes will not be repeated (Skinner, 1953). Managers should positively reinforce employee behaviors that lead to positive outcomes. Managers should negatively reinforce employee behavior that leads to negative outcomes. Vrooms (1964) notions concerning effort-performance and performance-outcome perceptions as causes of behavior have particular relevance in training situations

From these studies it is very evident that to survive any organizational issue overcoming communication gaps, accepting and implementing technological change, training and motivation is the key to success. So to evident. Recommendation The main cause of technological change experienced at murree brewery is the need to evolve with time. Being one of the leaders in the beverage industry it is important that the employees are motivated to the organization because actions speak louder than words. So if the company has a loyal workforce only then the technological change will be effective the department leaders and organizational heads have to train its employee along with the change program initiated is completed and successfully implemented. This process begins with need assessment, designing the process, implementing it and evaluating the results. Murree brewery needs to address following areas in order to be successful. it has to create transformational value rather than just implementing new technology It has to build up a capability for ongoing change so that murree Brewery is able to predict future business needs and how IT can help shape new business models and deliver the desired benefits It should create a climate of open communication Murree brewery needs to focus on transformational leadership. Technological implementation programmes regularly fail mainly due to poor management and implementation of business change rather than an inability

address issues of employee dissatisfaction and de-motivation towards change at murree brewery these were the major areas of focus. Through the history of murree brewery and its current standing its success is pretty to install new technology. This is because integrated IT almost always changes the work people do and cuts across existing organizational boundaries. As a result, established work patterns, processes and traditional routines are up for scrutiny. Disturbance at this level always requires sensitive leadership and careful stakeholder management. Communication is the lifeblood of successful large scale IT change programmers. Effective communication targets peoples hearts as well as their minds by defining how they too can play a part in the future. The entire structure of the company should be decentralized. The most important recommendation is employees be involved in the process of technological change. Planning and executing a strategic plan for technological innovation can best be carried out with the involvement of those required to work with the new system and make it work. Through their expertise and that of their union, the promise and the challenges of technological change can best be met. And the challenges of technological change can best be met. Let us bring to a close to our finishing to our prestigious research project, in which we are very enthusiastic to cover all reward management areas of theory as well as practical work followed by productive and innovative recommendations with respect to our findings. In our project, we came to

analyze how to relate literature implications to expediency, this comparison helps us to under stand trends of both sides and make us able to think over them in a way to generate those strategic points which would best overcome our corresponding companys

reward management limitations. Our analysis gives a fair picture, which guided us towards acknowledged recommendations. We have experienced to immense analytical skills, to give recommendations to the whole scenario.

BIBLOGRAPHY:
1. Official Website of Murree Brewery http://www.murreebrewery.com ,history of

the company http://www.murreebrewery.com/history.html major products of the company http://www.murreebrewery.com/products.html Human Resource management at Murree brewery, http://www.murreebrewery.com/management.html
2. Wikipedia free Internet encyclopedia, Project Management

http://en.wikipedia.org/wiki/Murree_Brewery, 3. Interview from Special Assistant to Chief Executive of Murree Brewery Major (Retd) Sabih-ur-Rehman Phone:+92-51-5567041-7 Res:051-5792897 Mob:0300-8553342 4. Interview from Marketing Manager of TOPS M.Abdullah Zafar Phone:051-5567041 Fax:051-5565461 Mobile:0300-8506373

ANNEXURE
Findings and analysis Before proceeding further with the change strategy and issues we will first look at the survey results. The entire survey can be summarized as shown below

m otivation training technological

For improved organizational productivity, motivation, training and technology are equally important but their ratio varies

organisational structure m otivation

For boosting productivity organizational structure is vital in relation to employee motivation:

motivation training leadership organisation structure

Effect of training, motivation, leadership and organizational structure varies for productivity

organisation structure technological change

productivity increases by both organization structure and technological change but in different ratios according to employees

leadership training

Technological change is possible by giving proper training and leadership to employees

CEO

Chief Marketing Officer

Chief Technology Officer

Chief Financial Officer

Senior Assistant to CEO

Assistant to CEO

Director

Director

Director

Director

Manager

Manager

Manager

Manager

Supervisor

Supervisor

Supervisor

Murree Brewerys Organizational Structure

Tops Lifters within factory

QUESTIONARE
(To be filled by managers)
Please answer the following questions carefully, because accurate information is essential to the proper drafting and investigation of a technological change at murree brewery: Name: ______________________ Mailing address: __________________ Telephone number: ___________________ Job title: ________________ 1. Briefly explain company background? ____________________________________________________________________ ____________________________________________________________________ __ 2. What is your organizational structure? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 3. Are you satisfied with your current structure? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 4. What effect does the organization structure have on employees productivity? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 5. Are you offering any training and development related programs currently at murree brewery? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 6. How do you perceive change process?

____________________________________________________________________ ____________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ______ 7. Who initiated change in the company? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 8. In which stage of change are you right now? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 9. How the process of change is communicated to the employees? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 10. Is your mode of communication effective of not? ____________________________________________________________________ ____________________________________________________________________ __ 11. What problems did you face before the technological change was initiated? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ __ 12. Why did you feel the need for the technological change in your company? ____________________________________________________________________ ____________________________________________________________________ __ 13. Why do you think employees feel de-motivated?

____________________________________________________________________ ____________________________________________________________________ __ 14. How often you interact with other departments? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 15. What do you think how the technical training program will help in boosting the productivity? ____________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ _____ 16. What is the nature of conflict amongst employees? ____________________________________________________________________ ____________________________________________________________________ __ 17. Since how long communication gaps exist between the employees? ____________________________________________________________________ ____________________________________________________________________ __ 18. What are the strategies that you are planning to implement to overcome the current problems? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 19. What do you think which factors are effecting the change process directly or indirectly? ____________________________________________________________________ ____________________________________________________________________ __ 20. What could be the benefits of change process in the productivity? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 21. Do you think the technological change will be effective in future without the willingness of employee?

____________________________________________________________________ ____________________________________________________________________ __ 22. What measures you is taking to train your employees in order to adopt latest technology? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 23. What measures you will take in order to overcome employees rsistance? ____________________________________________________________________ ____________________________________________________________________ __ 24. Do you think training directly affects the change process? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___ 25. If further chance were given then what would you like to add or remove? ____________________________________________________________________ ____________________________________________________________________ __ 26. What are your expectations from employees in near future?

QUESTIONNAIRE
(To be filled by employees) 1. Are you satisfied with the current technological change process? _________________________________________________________________ _________________________________________________________________ __ 2. Any suggestions to make change more effective? _________________________________________________________________ _________________________________________________________________ __ 3. What do you think why the process of change is slow? _________________________________________________________________ _________________________________________________________________ __

4. Is their any conflict among employees? _________________________________________________________________ _________________________________________________________________ __ 5. Do you think communication gaps exist between you and managers? _________________________________________________________________ _________________________________________________________________ __ 6. Do you think training programs should be given? _________________________________________________________________ _________________________________________________________________ __ 7. Are you satisfied from current organization structure? _________________________________________________________________ _________________________________________________________________ __ 8. What are the factors that resist change process in an organization? _________________________________________________________________ _________________________________________________________________ __