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Organization Development in Public Sector: The Case of Pakistan Post

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 2011 AHRD Americas Conference p. 3573

Running head: OD IN PUBLIC SECTOR

Organization Development in Public Sector: The Case of Pakistan Post

Athar Mansoor

Ministry of Postal Services, Government of Pakistan

Nadir N. Budhwani

Grant MacEwan University, Canada

Abdur Rahman Malik

Lahore University of Management Sciences, Pakistan

 2011 AHRD Americas Conference p. 3574

Abstract

Human resource development (HRD) in Pakistan’s public sector has not received much

attention of HRD scholars and practitioners. Pakistan’s public sector is viewed as a

system which is not open to change and innovation. Also, the government of Pakistan

allocates a small amount of budget for HRD activities (Aftab, 2007). This paper focuses

on HRD’s efforts in bringing about changes in Pakistan Post, one of the oldest and

biggest public sector organizations in Pakistan.

Keywords: organization development, Pakistan post, public sector.

 2011 AHRD Americas Conference p. 3575

Organization Development in Public Sector: The Case of Pakistan Post

With the advent of information technology revolution and modern management

techniques, public sector organizations in Pakistan faced a daunting challenge of staying

ahead of their competitors in the corporate sector. Lack of knowledge of new technology and

contemporary management practices have been the major obstacles in implementing

organization development (OD) efforts in Pakistan’s public sector. The decade of 1990s saw

a growth in the private courier companies in Pakistan. As private companies were more

responsive to the modern day changes, they started to capture market share from Pakistan

Post.

As the second millennium approached its closing years, the upper management of

Pakistan Post felt a dire need to computerize its operations and change the attitude of its

employees by adopting a comprehensive HRD strategy. This paper is an attempt to address

how OD efforts in Pakistan Post were implemented to bring about system-wide changes in a

public sector organization.

Purpose

This paper has several purposes. First, it aims to highlight the OD efforts in the public

sector of Pakistan. The paper focuses on OD efforts that took place in the Pakistan Post.

Second, the paper addresses consequences of the OD process in the Pakistan Post.

Third, the paper discusses how factors such as leadership, competition, and technology can

trigger the OD process in a public sector organization. Fourth, the paper provides an

opportunity to the international HRD community to understand and explore OD in

developing parts of the world.

Significance

Personal experiences of authors suggest that organizations in Pakistan, especially the

ones in public sector, are not receptive to change. In this regard, the case of Pakistan Post
 2011 AHRD Americas Conference p. 3576

shows how the commitment of the leadership can make possible a long-term change in a

public sector organization.

Also, not much research has been done on OD within the context of Pakistan’s public

sector. This paper aims to contribute to the limited research that is available on Pakistan’s

public sector. Through this paper, the authors plan to share OD experiences of Pakistan Post

with the rest of the public sector organizations in Pakistan.

Background of Pakistan

Pakistan, a developing South Asian country, became an independent sovereign state

in 1947, after the division of India which was ruled by the British. Figure 1 shows the map of

the country with all the bordering countries.

The United Nations Development Program report (2007) shows Pakistan’s Human

Development Index at 136 out of a total of 177 countries. The government spending on

educational sector is about 3% of GDP. Consequently, the literacy rate of the country is

around 50% and thus, there is an acute shortage of trained human resources.

Figure 1: Map of Pakistan (Source: USAID Pakistan 2008)

 2011 AHRD Americas Conference p. 3577

The Pakistani culture is defined as “an amalgam of religion, Indian origins, British

colonialism and American influences” (Khilji, 2002; p 238). It is characterized by a high

power distance, “the degree of inequality among people which the population of a country

considers normal”, low individualism “the degree to which people in a country have learned

to act as individuals rather that as members of cohesive groups”, and high uncertainty

avoidance “the degree to which people in a country prefer structured over unstructured

situations” (Islam, 2004).

High power distance has contributed to a culture where the existence of taller and

centralized organizations is normal and decision making is concentrated at higher levels,

which collectively result in sycophancy (Islam, 2004). Low individualism is evident in

instances where responsibility for extended family is considered legitimate and where there

exists an intermixing of personal and professional aspects of one’s life. This leads to a

phenomenon called sifarish (meaning unfair recommendation in Urdu) culture. High

uncertainty avoidance contributes to a culture where rules are appreciation of rules which

then adds to resistance to change (Islam, 2004).

An interesting aspect of the organizational culture of government organizations which

differentiates the former from private sector organizations are the deep roots of government

organizations in British colonialism which resulted in tall structures, strict adherence to

hierarchy, and a high power distance and uncertainty avoidance. Islam (2004) suggested that

a distinct feature found in government organizations is their “tall structures constituted by

many levels of hierarchy”. The presence of sycophancy, sifarish, and corruption in

government organizations is another reason for their unique culture where less importance

might be given to employee training needs analysis as selection of employees for training is

influenced largely by the sifarish culture (Islam, 2004). Hence, it can be argued that

differences between government organizations and various private organizations are largely
 2011 AHRD Americas Conference p. 3578

due to the differences in their respective organizational cultures, and these differences are

embedded in the historical grounds. Though the process of cultural convergence is taking

place, it is much faster in the private sector and much slower in government organizations.

This study explores the role of OD in a public sector organization in Pakistan and how OD

efforts were used to promote HRD.

Method

In this study, data were collected in various different ways. In-person and phone

interviews were conducted observations were recorded. Published annual reports of Pakistan

Post were reviewed which was followed by a survey conducted at various levels in the

organization. Besides, authors reviewed relevant literature. The various methods used to

collect data ensured triangulation and helped in establishing reliability. While interviewees

represented the senior management of Pakistan Post, survey participants were at various

levels in the organization.

The time period covered in the study, as evident through data, is from June 1998 to

June 2007. The following research questions guided the data collection process.

1. What is your understanding of OD efforts within the context of Pakistan’s public

sector?

2. Why do you think OD efforts were needed in Pakistan Post?

3. Who were the key individuals influencing the OD efforts in Pakistan Post?

4. What were some driving factors for OD efforts in Pakistan Post?

5. What were some factors that hindered OD efforts in Pakistan Post?

6. As a result of implementing OD efforts, what are the key challenges for Pakistan

Post?

7. How can the future OD efforts in Pakistan Post be improved?

 2011 AHRD Americas Conference p. 3579

To collect data, visits were made to the office of the Chairman of Pakistan Postal

Services Management Board and the Postal Staff College (PSC). The PSC is responsible for

providing training to higher and mid-level officers of Pakistan Post. The PSC, by providing

opportunities for training and development, strengthens the concept of learning organization

in the Pakistan Post. During visits, observations were also made by one of the authors.

Given the high context culture of Pakistan’s public sector, the data collection process

required that authors had good networking connections in the Pakistan Post. One of the

authors was well aware of the functioning of the Pakistan Post and had links with the top

echelons of the organization which helped in obtaining data.

Sampling

A total of four interviews were conducted. The interviewees comprised four senior

level officers. On average, an interview took around 30 minutes. Also, a questionnaire was

distributed to 18 entry level employees. Average time taken to fill a questionnaire was around

fifteen minutes. Besides, observations were recorded. A thematic analysis was done for

interviews. Data from questionnaires and observations were also analyzed for themes and

triangulation helped in maintaining reliability.

The data collected from the three sources was consistent as almost all participants at

various levels confirmed the steps taken for OD. The steps for OD were also mentioned in the

published sources.

Limitations

There were a number of limitations in this study. They are:

1. Not all senior management level employees were willing to be interviewed mainly

because of bureaucracy related reasons.

2. Of those who were willing to be interviewed, not all could be interviewed because of

their limited availability.

 2011 AHRD Americas Conference p. 3580

3. The authors could not obtain all relevant organizational records as the management

was reluctant in sharing them for the fear of unintended consequences.

4. A written consent from interviewees could not be obtained because they did not feel

comfortable in signing any document related to the research study.

5. Convenience sampling was used for interviews and surveys because it was evident

that only those who were part of the network of the authors were willing to participate

in the study.

6. Entry level employees who responded to questionnaire did not feel comfortable in

sharing their insight pertaining to OD efforts. Perhaps, this could be attributed to a

high power distance in the organization.

While authors tried to be objective during the study, they also acknowledge that their

being part of the Pakistani culture in itself could be a source of bias. Also, the networking

relationships that one of the authors had with employees of Pakistan Post could be another

source of bias in the study. In this regard, the authors tried to be proactive and collected data

in various ways which has already been discussed in the previous section.

Theoretical Framework

A review of literature suggests that OD related challenges in public sector are

different from those found in private sector (O’Brien, 2002). Few studies were could be

found in which change was studied in the postal sector. Handrich and Heitzler (2008)

explored postal sector reforms in Ukraine in which they argued for implementing policies

that would pave way for privatising postal services. Baptiste (2004) studied change

management of as part of the corporatisation of Trinidad and Tobago Post Office. To him, the

process of corporatisation is similar to that of privatization. He discussed the development of

change model which was similar to Lewin’s change model of unfreeze, change, and refreeze.

Baptiste (2004) stated that planners did not use a specific change model, instead a model
 2011 AHRD Americas Conference p. 3581

emerged during the change process which, based on his suggestions, should be used as a

guide in the change process. He also highlighted that a significant aspect of the change

process was the active involvement of employees who led the change and focused more on

efficiency and customer satisfaction than on political or ideological goals. Also, Baptiste

mentioned how the presence of external change consultants did not contribute to any

resistance mainly because consultants from one of the countries did not seem to be a matter

of public concern. Besides, he asked if the change model that emerged in this process should

be used in future by researchers and administrator. The model used in this study is similar to

the one discussed by Baptiste (2004).

O’Brien’s (2002) work focuses on a ‘bottom-up’ approach to change in the public

sector. Also, there is a belief that the traditional model of public sector is not successful at

adopting changes that occur on a regular basis (McNamara, 1995). However, it is also

important to recognize that public sector leaders should adopt changes that are suitable to

systems, process, and people in the public sector environment (O’Brien, 2002).

While there are many approaches to implementing OD interventions, Dunphy and

Stace (1995) argue that there is no single approach to OD that can meet needs and objectives

of all situations. Beer, Eisenstat, and Spector (1990) suggest that change should occur more

as a result of employees’ jobs than management’s views of employees’ values.

Pfeffer (1994) argues that top-down approaches to implementing OD are not

successful in the long-term. Such an approach to change does not incorporate factors related

to structure and attitudes. Ferlie et. al (1996) also suggest that in public sector organizations

shift from maintenance management to management of change is a result of a focus on the

humanistic aspect of OD. While the perspectives of Ferlie et. al (1996) and Pfeffer (1994) are

valid, the reality might be different in public sector organizations in developing countries.

This might be because transformation in public sector organizations involves waves of

 2011 AHRD Americas Conference p. 3582

change and with change comes transition (Bunker, Wakefield, Jaehnigen, & Stefl, 2006).

Bunker et. al (2006) also highlighted distinguished between change and transition. To them,

anything different or new is change, however, the psychological and emotional reactions

people show in response to change can be referred to as transition. Leaders and employees

might be able to embrace change, however, they struggle to deal with transition. In this

regard, Bunker et. al (2006) state that managing change and transition simultaneously is a

higher-order challenge for leaders in public sector organizations. Moreover, if leaders are

unable to pay attention to employees’ emotions during change and transition the former end

up leading insecure, sceptical, and fearful employees. Thus, in order to lead successfully

during change and transition, leaders should lead authentically by moving from managing

structures of change to relating to employees emotions and experiences.

Besides, authenticity and trust are two characteristics that have been underscored by

Bunker et. al (2006). It is authenticity which enables leaders to implement change with

honesty and integrity, which then result in generating trust from employees. Bunker et. al

(2006) then link change to learning, which according to them should be tied to an element of

surprise and this element should be experienced by employees or they may not learn.

This working paper outlines HRD in Pakistan Post, a public sector organization, by

highlighting how local knowledge and global support can be used in implementing OD

efforts using a top-down approach. The major objective is to contribute to the limited HRD

literature available on Pakistan Post.

Pakistan Post

Pakistan Post, a government organization, is one of the oldest and largest public

sector organizations of the country with a network of more than 13,000 post offices and an

employee base of more than 49,000. It now works as Ministry of Postal Services,

Government of Pakistan. Figure 2 shows the organization chart of Pakistan Post in 2008
 2011 AHRD Americas Conference p. 3583

when it was working as an attached department of the Ministry of Communications,

Government of Pakistan.

According to the PSC website (PSC, 2008), HRD in Pakistan Post is addressed by the

PSC, Islamabad; the Postal and Telegraph School, Lahore; and various training centers

located in Islamabad, Karachi, Lahore, Nowshehra, and Quetta. Pakistan Post is committed to

unleashing the potential of its employees through extensive training in various fields.

The PSC, Islamabad serves as a premier training institute for postal executives. Since

1987, it has been playing a critical role in imparting training in banking, customer service,

finance, labor relations, life insurance, mail routing and delivery, management, and

marketing. Since its inception it has trained 919 postal officials from 57 countries, including

Pakistan. The PSC has recently embarked upon a program of revising the entire curricula of

postal services training centers with a view to improve customer satisfaction.

Periodic training and management courses (see Table 1) are conducted at the PSC,

Islamabad for executive level employees who are referred to as officers. Non-executive level

employees, who are referred to as officials, undergo training programs at the postal training

centers in their respective regions/provinces.

Key functions of the PSC, Islamabad are:

• Assess training needs

• Design and deliver training programs

• Train postal officials of and provide consulting services to developing countries

• Review syllabi of training courses for the regional training centers

• Conduct research on issues indicated by the Pakistan Post headquarters and regional

offices

• Organize workshops, seminars, and conferences

 2011 AHRD Americas Conference p. 3584

Figure 2: Organization Chart of Pakistan Post in 2008

Chairman,
Pakistan Postal
Services

Additional Additional Additional Deputy Director Deputy Director

Director General, Director General, Director General, General, General, Finance
Operations Administration Financial Development
Services

Postmaster Deputy Director Deputy Director

General, Punjab General, General, Agency
Administration Functions

Postmaster Director, Human Director Banking

General, Sind Resources

Postmaster Assistant Assistant Deputy

General, North Director, Human Director General,
West Frontier Resources Agency
Province Functions

Postmaster Director,
General, Administration
Baluchistan

Postmaster Assistant Deputy

General, Azad Director General,
Jammu Kashmir Discipline &
& Islamabad Establishment

Table 1
Courses offered at the Postal Staff College, Islamabad, Pakistan
Applications of information technology Postal investigations
Corporate management Postal life insurance: New avenues and
dimensions
Customer care Postal management and international postal
services
Financial management Postal marketing
Instructor training Postal statistics
International accounting Quality of mail service
Labor management relations Social and family welfare of employees
Mail routing and delivery Special financial services

In future, the PSC, Islamabad plans to offer courses on other areas such as financial

management, human resource management, organization development, total quality

 2011 AHRD Americas Conference p. 3585

management, communication skills, and computer applications. The focus of the

aforementioned courses will remain on the employees at the middle and upper management

levels.

Analysis and Discussion

Analysis of findings revealed that the change management model followed by the

leadership of Pakistan Post was reflective of the works of Lewin (1951), Ottaway (1979),

Mintzberg (1983), and Kotter (1996). The model is has similarities to the one used by

Baptiste (2004) in his study of change in Trinidad and Tobago’s postal services. Analysis of

findings suggests a framework for change (see Table 2).

Findings revealed that until 1998 Pakistan Post was not equipped with modern

technology to run its affairs. The total number of employees was 48,295 and they were spread

across 12,854 post offices in the country. The core business of Pakistan Post—the

transmission of mail and material, was adversely affected as customers lost trust in the

organization. Also, customers relied on private courier companies for sending their important

articles domestically as well as internationally. The organization was functioning as an

attached department of the Ministry of Communications and its progress was not a priority of

the government as the ministry had other so called important departments such as the

National Highway Authority, Ports and Shipping, and Motorway Police. Lack of financial

and managerial resources also added to the list of problems in the way of advancement of

Pakistan Post.
 2011 AHRD Americas Conference p. 3586

Table 2

OD Framework in Pakistan Post

Phase 1: Change Phase 2: Implementation Phase 3: Adoption
generation
Unfreezing Moving Refreezing
A need for change was Change agents were identified The new ways of operating
recognized. within and outside the were adopted by the
organization. A team of senior employees.
External stakeholders officers at the headquarters in
were convinced of the Islamabad was formed. The
need for change. team comprised officers who
were considered efficient and
had the potential to play a role
in implementing change.
National Organization of Employees at the lowest Efforts were made to ensure
Postal Employees operational level like that the changes introduced
(NOPE) was banned. It Divisional Superintendents and became integral part of the
was considered as the the Chief Postmasters were organizational culture at all
biggest internal empowered to take stern action levels.
resistance towards against inept, corrupt, and
introducing change. inefficient lower level
employees although the former
were not involved in recruiting
entry/lower level staff. The
Removal from Service
Ordinance was promulgated by
the President of Pakistan. The
top leadership of Pakistan Post
made use of this to take stern
action to remove all the
resistance against change.
Procedural, legal, and The efforts geared towards
structural barriers to introducing change were
change were removed effectively communicated to
by getting approval from all parts of the organization
the president for across the country.
establishment of
Pakistan Postal Services
Management Board. The
formation of this board
gave the chairperson the
power needed to
implement change.

Phase 1

Lewin’s model (1951) assumes that any change in a social system occurs in three

phases—unfreezing, moving and refreezing. Senior and Swailes (2010) suggest that almost
 2011 AHRD Americas Conference p. 3587

all change models have an underlying aspect of unfreezing. Based on the Lewin’s model and

preliminary findings, it can be stated that in the unfreezing phase (1999-2002) the awareness

for change was created. The government was convinced that Pakistan Post can play a vital

role in the economic development of the country. Internal stakeholders were also convinced

of the need to bring about a change using modern techniques which would enable Pakistan

Post to run its operations along the lines comparable to those of its competitors.

The top management of Pakistan Post headed by the Director General shared a vision

with employees, “to provide every household in Pakistan with the ability to communicate and

conduct business with each other and the world efficiently and economically.” The National

Organization of Postal Employees (NOPE) was a powerful union and was considered to be

the biggest obstacle. The then Director General was successful in banning NOPE with the

support of the military government. An autonomous and high powered Postal Services

Management Board was established through Pakistan Postal Services Management Board

Ordinance, 2002. This move installed an institutional and legal framework to introduce the

much needed changes in the organization.

Phase 2

It was communicated throughout the organization that the need to run Pakistan Post

using contemporary business practices had become imperative for the survival of the

organization. The government was no more in a position to subsidize the organization and it

had to be sustainable without any external financial support. The officers at different levels in

Pakistan Post were empowered to make tough decision regarding those employees who

created hindrances in the efficient working of the organization. In this regard, a tough posting

policy was implemented by the Director General.

Officers were usually posted away from the district of their domicile so they could not

indulge in any type of favouritism or nepotism. For the first time, it became evident that the
 2011 AHRD Americas Conference p. 3588

organization was run by the federal government because the officers who had not left their

districts of posting during several years of their public service were sent to far flung areas of

the country. A comprehensive plan to upgrade and renovate the General Post Offices across

the country was launched. Besides, General Post Offices (GPOs) located in the major urban

centres were improved. Huge sums of money were spent on automating post offices. HRD

became a top priority and employees at all levels were imparted training in latest

management techniques in areas such as customer service, team work, and time management.

Senior officers were sent to premier training institutes abroad to equip themselves with

entrepreneurial acumen needed to run the organization in a competitive manner.

Recruitment process for new employees was made competitive and written

employment exams were held by centrally controlled postal recruitment and training centres

located in the major cities of the country. Several postmen, especially in the big cities, were

provided with motorcycles for efficient delivery of mail.

State of the art post offices known as Post Malls were constructed in Islamabad, Karachi,

Peshawar and Lahore. Post Malls were equipped with essential computer infrastructure and

managed by courteous staff. The post malls were also the first in introducing the concept of

multi-purpose counters, which meant that each counter offered customers all the services

available in the post office.

To boost the image of the department memoranda of understanding (MOUs) were

signed with companies like DHL and Western Union. DHL was allowed to open its counters

at GPOs as a result of which Pakistan Post received a fixed commission on the articles

booked by DHL. Similarly, Western Union electronic money transfer facility gave the clients

an added facility under which they could receive foreign remittance within minutes. The task

of developing software for various services provided by the organization was contracted out

to a private company known as Norsk Data. Norsk Data, after developing the software, also
 2011 AHRD Americas Conference p. 3589

trained the front and rear desk staff at post offices. The concept of online tracking and tracing

was also introduced. These steps improved the image of Pakistan Post and the trust level of

the public increased.

Phase 3

The most important challenge was to make the change part of the organizational

culture. For this purpose, every effort was made to hire new employees on merit. Computer

literacy was an important criterion in the selection process. Older employees who were not

ready for the change and had spent more than 25 years with the department were either given

the postings which required minimum usage of computers or the option of voluntary

retirement. It was emphasized that all training programs were linked to the adoption of best

practices in the postal industry, as there were challenges posed to the Pakistan Post by high

usage of e-mail and high cell phones.

The different levels of the organization, with few exceptions, viewed the OD efforts

as a positive step. Those who were not supportive of the OD efforts were of the view that the

policies were made and implemented in an autocratic way by the leadership which did not

actually understand the dynamics of a big public sector enterprise. The critics also did not

approve of the iron hand policy to remove employees from service and the postings of

officials away from home districts.

Findings also revealed that Pakistan Post was running into losses before 1998. After

1999, there was a turn-around and the organization remained profitable until 2009. Until

2008, there were two heads of the organization. Neither of them belonged to the organization

and both were appointed by the then government to improve the performance and

profitability of the organization.

One of the heads remained the chairman of the Postal Services Management Board

for about six years and had direct connections with the then president of the country. He used
 2011 AHRD Americas Conference p. 3590

his power to take steps like formation of a high-powered Pakistan Postal Services

Management Board (PPSMB) to run the affairs of the organization. He also put a ban on

NOPE (National Organization of Postal employees), a union of postal employees. This union

was considered to be the biggest hurdle in reducing the inefficiencies of the organization. He

was powerful enough to remove many incompetent and corrupt senior level officers. There

were also some wrong decisions made by him, mainly because he was too autocratic and used

a top-down approach to introducing change. On the other hand, he was also able to secure

funds from the Ministry of Finance for computerizing various services offered by Pakistan

Post. He also focused on HRD by making efficient use of Postal Recruitment and Training

Centers (PRTCs) and the Postal Staff College. Senior level officers were sent abroad for

training in order to equip them with modern public management techniques. Mandatory

training programs were also imparted to entry level staff at the PRTCs.

The other head remained the chairperson of PPSMB for two years. He was known for

his successful handling of U-Fone, a telcom giant, and Pakistan Television Corporation. He

introduced various types of financial incentives to motivate employees which helped in

enhancing the performance of employees and improved the overall financial position. The

availability of financial resources helped him undertake a country wide campaign of

upgrading and improving the infrastructure at many important post offices. Huge sums were

spent on beautifying and face-lifting of the post offices which seems to have improved the

image of the organization.

As evident from the aforementioned findings, OD efforts in Pakistan Post were

mainly a result of a top-down approach to bringing about change. The top-down approach is

reflective of and supported by the high power distance in the national culture. While the top-

down approach proved effective in some ways, employee participation in change processes

remains a concern. OD, by its nature, is participatory. Thus, lack of active participation on
 2011 AHRD Americas Conference p. 3591

part of employees might pose ethical issues while implementing OD efforts in a public sector

organization. Perhaps, another study on employee motivation might help in addressing how

employee involvement in change processes could be addressed by the leadership.

Implications and Conclusion

This study highlights that more research studies within public sector organizations are

needed to understand how HRD is conceptualized and practiced. It is recommended that more

research be conducted to explore how various leadership styles are related to OD efforts in

public sector organizations. A relationship between power distance and employee

involvement could also be explored. Lastly, it is recommended that OD in developing

countries’ public sector organizations should be addressed in greater detail and analyzed

within the context of national HRD policies. This in itself might enable the HRD community

to gain an understanding of the extent to which national HRD policies influence HRD

practices in public sector organizations.

In conclusion, it can be stated that HRD efforts, including OD efforts, need to be

studied from a broader perspective (Budhwani & McLean, 2005). Public sector in developing

countries can offer challenging opportunities for implementing and studying OD efforts.

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