CHAPTER NO.1: INTRODUCTION 1.1 Mot iv e fo r Sel ec ti ng T op ic Pri vat iza ti on has been per cei ved by various res earchers to be a mea ns of reduc ing the role of the government from di rect provis ion o f services and encourage pr ivate sector part ici pati on and competi tion. Much o f the mainst ream writ ing on privat ization has been concerned with the effects of regulati on and pricing regimes on the utilities by their respective governments and although an interest in efficiency and effe ctiveness has been cent ral to this appr oach, l it tl e detailed att enti on has been given to public employe es and their attitudes towards pri vati zation, which may l i e behind any developments in efficiency and improvements in service delivery. A study o f public empl oyees’ at titudes br oadens the s cope of inves tigation o f privati zation. Almost all developing coun tri es including Paki sta n have launched amb itious privatization programs with view to improve efficiency of the state-owned enterprises, convert the enterprises from state based economy to market based economy. Despite the extent of privatization worldwide, little attention has yet been paid in policy and the academic literature to its impact on labor (Oestmann, 1996). The focus of most studies is efficiency and profitability of the privatized business and, to lesser extent, the quality ofthe services it delivers (Hodge, 1996). A universal concern in this process the effect privatization has on labor. Majorresearchers, politicians and observers fear that privatization will cause major job losses bec ause the new owne rs/ manage rs wil l reduce the wor kforce for imp roveme nt ofefficiency. On another side before divesting government cuts the work force to prepare for privatization. The opponents of privatization in developing countries are labor unions and enterprise work force, like labor unions of WAPDA and PTCL in Pakistan. They are most vocal and organized opponents and trying to delay or block the reform. 1
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Privatization has been perceived by various researchers to be a means of
reducing the role o f the government from direct provision o f services and encourage
private sector participation and competition. Much o f the mainstream writing on
privatization has been concerned with the effects of regulation and pricing regimes on
the utilities by their respective governments and although an interest in efficiency and
effectiveness has been central to this approach, l it tle detailed attention has been
given to public employees and their attitudes towards privatization, which may l ie
behind any developments in efficiency and improvements in service delivery. A study
o f public employees’ attitudes broadens the scope of investigation o f privatization.
Almost all developing countries including Pakistan have launched ambitious
privatization programs with view to improve efficiency of the state-owned enterprises,
convert the enterprises from state based economy to market based economy. Despite theextent of privatization worldwide, little attention has yet been paid in policy and the
academic literature to its impact on labor (Oestmann, 1996). The focus of most studies is
efficiency and profitability of the privatized business and, to lesser extent, the quality of
the services it delivers (Hodge, 1996).
A universal concern in this process the effect privatization has on labor. Major
researchers, politicians and observers fear that privatization will cause major job losses
because the new owners/managers will reduce the workforce for improvement of
efficiency. On another side before divesting government cuts the work force to prepare
for privatization. The opponents of privatization in developing countries are labor unions
and enterprise work force, like labor unions of WAPDA and PTCL in Pakistan. They are
most vocal and organized opponents and trying to delay or block the reform.
by a careful consideration of the consequences of such a drastic action. (Christopher, M.,
Payne. Ballantyne, D.(1991).
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". (Coyles,S.
Gokey,T. (2005).
2.3.1 Morale in the workplace
Workplace events play a large part in changing employee morale, such as heavy
layoffs, the cancellation of overtime, cancelling 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 bytheir 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. (Coyles,S. Gokey,T. (2005).
2.3.2 How Privatization 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
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. (Wang, Foxall,G., (2005).
Kalyan Chakravarti in the article, "Privatization and Outsourcing: An Indian
Perspective", explains the economic situation of India since Independence (post-1947)
and in the aftermath of the economic liberalization (post-1991). Against this backdrop,
the author analyses the performance of the Indian Public Sector Undertakings (PSUs). 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 privatization and also discusses the
social implications of these drastic measures. Kalyan Chakravarti. (1997).
The article explains that privatization 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 privatization.
2.4.2 Implementation Of Employee Privatization
Sumati Reddy of the ICFAI University, Hyderabad, India outlines ways in which
employers can implement a well-considered privatization program. If privatization is
inevitable, organizations must pay due attention to the rationale for privatization,
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 privatization plan. In conclusion,
it points to a few indicators to assess the effectiveness of a privatization program.
who had lost jobs on account of privatization, as well as the recruiters. The effectiveness
of these parties is analyzed vis-à-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 Kivimäki and Jane E Ferrie. (2000) 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 privatization, during privatization, and when
privatization had slowed down. The privatization 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: privatization results in changes in work, socialrelationships, and health-related behaviors 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 privatization as compared with sickness
absence during a minor privatization; privatization 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
privatization and employee health as it studied a natural experiment, which is rarely
feasible.
Jonathan Kelley. (2002) explains that the significance of privatization depends on
its long-term impact on workers. It presents a model to study the probability of re-
employment among workers shed by privatization firms as compared with those
departing from stable or growing firms. This model can also be used to examine the
impact of privatization on the duration of jobless spells, continuity or change in
occupation, on earnings, and on job satisfaction among workers who obtain employment.
The model combines three factors: re-employment by age, gender, and education.
Carl Van Horn and Laurie M Harrington of Rutgers Group of Companies. (2005)
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-
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."
(Brockner et al., 1987).
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.
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's study indicates organizations can
proactively affect surviving employees' attitudes during periods of privatization. The next
section describes some steps that can be taken to minimize the negative effects of
privatization. (Brockner et al., 1987)
2.5.4 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).
Privatization 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 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 privatization.
2.5.5 Communicate
During privatization, 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" areguided by a policy in which they are to avoid talking about rumors with employees.
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. (Fisher, 1988).
Ensure that communications cover the following topics:
2.5.6 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 privatization 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.
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 internationalist perspectives. (Litwin,
Stringer, Tagiuri, 1980)
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 organizationalclimate, 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
Positive work outcomes- 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 isaccountable. As a result, some managers only have limited amounts of time to talk to
employees about day-to-day activities. Conversations regarding an employee’s 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 company’s work environment to that of other companies. Many
surveys offer a national normative database that can be used to facilitate comparisons
company success by their motivation and enhanced performance. It is believed that an
engaged employee always acts positively in the interest of the company and takes
unconcealed pride in the success and prosperity of his employer.
Does Engagement Really Make a Difference?
According to the former GE Chairman and CEO, Jack Welch, a company’s health
is determined through it’s energized workforce who not only realize the mission of the
organization and have an understanding of how to achieve it, help the organization win inthe long run. Engaged employees care about the future of the company and are willing to
study entitled, The War for talent, reported that a shortage of skilled employees was an
emerging trend and it was more so due to the fact that the organizations fail in their
attempts to create a workforce that is not only cognitively vigilant but also emotionally
connected to the organization.
Research has proven that wholly engaged employees tend to be more self-
motivated, reliable, and have higher levels of organizational loyalty. They are capable of
delivering sustained affecting the key results areas such as employee turnover, sales,
innovation and customer satisfaction, engaged employees in customer facing roles are
more likely to treat customer is ways that positively influence customer satisfaction and
are more than twice as likely to be company advocates. They share information with
colleagues and pass on ideas that speak up for the organization. Engaged employees are
much more likely to feel secure and stable in their position and are in fact the
ambassadors for the company, singing its praises to everyone, and taking the best foot
forward to deliver and over-deliver for customers and the colleagues alike.
privatization is occurring is very busy and emotionally taxing. (Salant,P., Dillman
D.A.,1994)
Unfortunately, there is a tendency for managers to focus on those that are leavingrather 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 privatization on those that remain. One of the most telling comments is often
put forth by employees a year or two after privatization, 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:
Proactive management activities are always required when privatization 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 privatization 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. Privatization 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 andcommitment levels.
Proactive long-term approaches should also be applied by any central agencies
charged with "helping" privatization 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
in. The formal definition of the idea champion is a 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 Privatization
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 Privatization
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 relationships with an idea
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. Once the culture is understood, it should be addressed asthoroughly 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
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 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 institution’s commitment.
Most leaders contemplating change know that people matter. It is all too tempting,however, to dwell on the plans and processes, which don’t talk back and don’t respond
emotionally, rather than face up to the more difficult and more critical human issues. But
mastering the “soft” side of change management needn’t be a mystery. (R.E. Cacioppo,
J.T. (1997).
2.10 Privatization in HBL & 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
Arbitration is used in HBL because arbitration awards are generally easier to enforce than
court judgments.
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.
2.10.2 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
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 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 HBL’s 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 disputeresolution 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 privatization,
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
2.10.3 Privatization Impact On Dispute Resolution Processes Of HBL
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 management’s 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 theextent 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
2.10.4 Disputes In Communication of Lower & Upper Management of 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 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 organization’s
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
company’s 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.
2.10.5 Mis-Communication & Privatization Enforcement Of HBL
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 themanagement 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 target’s 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
2.10.10Lack of 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
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.
2.10.11No Proper 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 disputeresolution options available to the organization’s employees and because of this further
problem arises in the dispute resolution system. There was no fair and impartial
investigation of disputes.
2.10.12Recommendations and Suggestions For Improving And Refining The
Dispute Resolution Process At HBL
It is time that the organizations such as HBL realize that conflict cannot be
resolved by firing the coach or trading a player. Conflict is inevitable. If it is handled
well, it can lead to constructive dialogue, needed change and ultimately resolution. If it is
handled poorly or left unresolved, it can disrupt relationships, affect on the job
performance and lead to costly and time-consuming litigation. A dispute resolution
or workplace disputes are usually a precursor to a claim that is actionable. Addressing
those conflicts will make happy employees and decrease the actionable disputes. This
does not mean that the employer becomes a therapist. However, it does require an
employer to address employee morale and personal complaints that maybe disrupting not
only to the complaining employee’s work performance, but that of the co-employee
The Identification Of The Natural Emergence Of A Person Who Handles All
Conflicts
Organizations are fortunate because usually an employee emerges who has the skills
and talents to handle disputes. This person is liked by the employees and the employees
confide in this person, because the person listens, keeps all complaints confidential, is fair
minded and knows who to approach to resolve complaints. This person becomes an
ombudsman. The person is trusted by both management and non-management and is not
necessarily a human resource professional.
Organizations do not have to spend time and monetary resources to locate or
develop the person who will become the champion of resolving conflicts and becomes a
natural emergence. Through this natural emergence of the person who handles disputes in
a small organization, this person must insure confidentiality, be a good listener, fair minded, and know who to approach or who should handle a dispute in order to get the
dispute resolved. And the management at HBL should take keen interest and identify who
this person is and how he can affect the conflicts and the environment and how to with
tackle him.
Look To External Sources When Needed-Assures Neutrality
Organizations sometimes try their best to resolve disputes internally, but some
employees see the internal methods as an employer dominated system with no chance of
a fair resolution. HBL should embrace external features. And they should recognize that
proceeding to binding arbitration is costly. As a result that before any formal claim is
filed; they must offer the employee the use of external mediation, by an independent
mediator. HBL’s management must offer a list of mediators and the employee chooses
This chapter focuses on the research design and methodology procedures used in
this study. The chapter begins with a discussion of the quantitative and qualitative
research design and methodology; this is followed by a full description of the mixed
methodologies (triangulation) approach used in this study. Data analysis by means of uni-variate, bivariate and multivariate analysis used for the treatment of data in this
study is discussed in detail. Included are details of the population selected for the study,
a description of respondents, sampling procedures, the variables investigated,
quantitative and qualitative instrumentation used, data collection methods and the
treatment and analyses of data.
3.2 Overview Of Research Methodology
To satisfy the information needs of any study or research project, an appropriate
methodology has to be selected and suitable tools for data collection (and analysis) has
to be chosen (Mouton, 2001). Primarily there are two distinct approaches that inform
the gathering of data in any research project, namely the qualitative approach and the
quantitative approach. Qualitative and quantitative methodologies in the social sciences
are governed by specific paradigms.
3.2.1 Qualitative Approach
The qualitative approach is grounded in the interpretive social sciences
paradigm. Qualitative forms of investigation tend to be based on recognition of the
importance of the subjective, experiential `life world' of human beings. Such reflection
is the province of phenomenology reports (Babbie, 1995; Blanche & Durrheim, 1999).
Gilbert (1993) notes that qualitative methodologies provide avenues that can lead to the
discovery of these deeper levels of meaning. Easterby Smith et al. (1991) describe the
task of the qualitative methodologist as to capture what people say and do as a product
of how they interpret the complexity of their world, and to understand events from the
viewpoints of the participants. In the domain of privatization specifically, Jennings
(2001) notes that the qualitative methodology gathers information as text based units,
which represent the social reality, context and attributes of the phenomenon under study.
The methodology is inductive in nature.
3.2.2 Quantitative Approach
A quantitative research approach is grounded in the positivist social sciences
paradigm, which primarily reflects the scientific method of the natural sciences
(Creswell, 1994; Jennings, 2001). This paradigm adopts a deductive approach to the
research process. In the privatization context it thus commences with theories,
hypotheses or research questions about a particular privatization phenomenon, gathers
data from the real world setting and then analyses the data statistically to support or reject the hypotheses (Veal, 1997; Blanche & Durrheim, 1999; Welman & Kruger,
2001). Researchers who adopt a more deductive approach use theory to guide the
design of the study and the interpretation of the results (Neuman, 1994). The overall
objective is to test or verify a theory, rather than to develop one. Thus the theory offers a
conceptual framework for the entire study, serving also as an organising model for the
research questions or hypotheses and for the entire data collection procedure (Veal,
1. To study everyday use and context of privatization and role of bank in its broad
rather than narrow definition, covering the whole of the life space. This sought to
overcome the limitations of previous research that focuses rather exclusively on
the home, or work, or clubs only, and generally neglects crossovers, (except when
work comes in to the home in the case of tele-work). It is also sought to explore
how the computer and some other technologies cross over between domains, and
the supposed convergence of television, computer and telecommunications
technologies.
2. A ‘person centered’ approach to HBL, rather than an ‘artifact centered’ approach.
With so many concerns and aspects being developed, rather than follow the
uptake of a specific selected behavior, which may fail, or succeed, this studylooks at what is actually appropriated or engaged with by the respondents in
different circumstances during a period of intense grooming change of banks.
3. A socio-economical approach to appropriation, based on three levels. Rather than
being artifact or system centered, the study recognizes the socio-cultural nature of
innovation in the ‘information society’. It seeks to understand: The biographies
and appropriation of things or artifacts themselves.
a) The biography and appropriation and reinvention of proposed uses,
programmers and visions that accompany artifacts. In an age of
multiple competing service providers, the class of service is another
key level of analysis. Reinvention of services and changes in attitude
often occurs ahead of technical innovation, but nevertheless can be
seen as part of the innovation process.
b) A third level is that of issues on the macro scale, but affect individuals
and communities – issues such as privacy, reliance on banking
services, the effect on the news media, on national identity, the idea of
progress through technology etc. This includes “tales of banking
This research design builds on research done into use of technology and media in
the home in the various other spaces using a qualitative research method. This discussion
of the methodology attempts to present some of the specific tools and experiences used to
inform the design of the research and the development of an interpretation.
3.4.1 Studying the Process of Adoption and Domestication
Some studies of privatization are aimed at building up the role of bank in a banking system at a particular time in a generally unwavering situation. Others
investigate the process of domestication from the moment a privatization is adopted. The
processes leading up to adoption are generally investigated in hindsight. Diffusion studies
tend to look in hindsight at the diffusion of an innovation though a community, following
one particular technology. Adoption studies, even those concentrating on word-of-mouth
and personal influence, do not look closely at the actual process of interactions in details,
and seldom use qualitative research methods.
In my research wanted to look at natural setting over a period of time, to try and
see what natural encounters there were with privatization, why and how these occurred,
and how people engaged not only with privatization, but with ideas about them too and
wanted to see how people linked innovations into their existing cultural and banking
world, how different privatization types and strategies were interpreted, and how they
were appropriated. I wanted to uncover this process and seek to understand in the context
of the everyday activities, relationships, background and events of the respondent. In
particular, I wanted to see how processes within the social network played a role in the
way people encountered and coped with innovations. I developed a method of research,
many elements of which I was reinforced by observations from number of researchers
from different disciplines. Rogers (Rogers and Shoemaker, 1971) suggests that diffusion
are appropriating the Internet instead facing direct to frontline (Haddon and Hartman,
1997). These include what the phenomenon symbolizes to different people, including
concerns that may make them wary; how they first encounter the Internet, what support
they have and any problems they face; how it is perceived and maybe used in relation to
other technologies and media; and where it can possibly fit into the time structures of
employees and individuals. (Haddon. Hartman, 1997).
3.4.2 Gaining Access
One problem is to gain access to respondents, and the problems of being able to
study them, and gain some familiarity with their world, or share their ‘reality’. Socialscience methodologies propose many different ways in which this can be achieved, and
guidance on the extent to which involvement in a respondent’s life world is necessary to
for particular descriptive or analytic ends. Practical problems include getting people to
speak to the researcher at all, then getting them to be open, co-operative, and sincere in
discussing the aspects of their lives that interest the researcher. More fundamental for
research methodology is the reliance on the personal descriptions of the respondents,
who may either intentionally conceal or mislead the researcher, or unintentionally
mislead them. In studying someone’s life world, it is unlikely that the respondent will be
able to comprehensively and thoroughly describe not only their opinions and thoughts,
but the details of everyday activities and relationships, and the context in which they
conduct them, especially in the space of a relatively short questionnaire.
Participant observation is a method that tries to surmount these obstacles, but at
the expense of huge effort by the researcher, and can only be carried out in a situationwhere the researcher can actually live or work within a small group over an extended
period of time. Since I intended to look at a number of groups, and across the social
network of one particular member, this type of methodology is impossible. What is
more, gaining access to the work place or social clubs may be possible, but living in
private homes is very difficult. Only a few researchers have tried this (for example,
James Lull in order to examine media use (Lull, 1990)). I wanted to study the way
people encountered privatization over a period of months or even years, when in fact
key events may only occur very infrequently, so this did not make much sense. Other
research methods used in privatization studies include asking the participants to keep
diaries. This again is does not get any closer if especially if salient events occur very
infrequently and outside the period of research interaction.
I wanted to questionnaire not only users of privatization for whom the
privatization had a direct personal relevance, but also non-users for whom it did not. I
expected that during the process of research many of the respondents would be likely to
encounter and form opinions on Privatization and have some engagement with the
process of innovation and diffusion, however unwillingly. I had to find a method that
would enable me to gain access to people who did not have any interest in the subject
of research and who would be difficult to contact or engage with though a research
method based on current users. Especially for these people I had to develop a number of
tactics to bring out the discussion of privatization, and to build an understanding of
each person’s life-world and the way that they encountered and engaged with
privatization innovations.
3.5 Initial Concept of Research Method
Instead of selecting a range of established social groups, say a workplace, a
club, a nuclear family, a group of friends, HBL branches, I decided from the outset to use
an Informer approach, taking as my point of entry an individual who would to some
extent participate in the research as a co-researcher, and provide entry into their social
‘world’. Blumer suggest that the researcher “seek participants in the sphere of life whoare who are acute observers and who are well informed”(Blumer, 1969, p.41).
The research design then involved mapping the various other people that these
respondents engaged with (both in relation to specific uses of privatization and more
generally) in different domains of their life sphere. I would then conduct questionnaires
with those they work with, their family, their friends, and ask them to report on their
experiences of traditional and new media and communication technologies. The
Informant, and the others they identified, would not be selected on the basis that they
personally use or buy any particular technology – given the symmetry principle that
non-use is just as interesting as use.
The crucial point is that it is the Informant’s social network and individuals within
it that are being studied, not only the key Informants themselves. Whilst the selection of
the initial informants would obviously have an important influence over research
outcomes, any such shaping by the researcher would then be diffused as the
questionnaires moved out to the networks identified by the Informants. Although such
an approach does not eliminate the bias inherent in selection of respondents this kind of
snowballing method does open up the range of people who filled questionnaire.
The involvement of the Informant was conceived as being important for practical
and theoretical reasons as well - an informant will have to be engaged as a co-researcher
who will provide access for the researcher to their social groups. I did not presume thatthe Informant’s position would be un-problematic, but anticipated that there would be
many difficulties with their relationship to the research, and their role in forming the
opinions of their groups. In fact the informant role as a point of passage between social
groups is very important - however they are unlikely to be unique points of passage in
real life. By questionnaire a number of people who shared similar experiences and knew
each other, or knew a common contact this method would also enable me to compare the
experience and interpretations the respondents had of particular events, shared spaces,
relationships and each other. This would make the study satisfy some of the basic
taken (Gilbert, 1993; Jennings, 2001). To achieve this, the sampling units are randomly
selected. This is the commonest approach to sampling, but it is by no means the only one,
nor is representativeness - in a numerical sense - the only aim of sampling procedures.
3.7.1 Population and sampling frame
Jennings (2001:136) defines population as "all the study subjects (clients, visitors,
hosts, family, friends, employees, managers) or study units (product attractions, product
features, bank behavior) that are the focus of the research project". In this study the target
population consists of Lahore employees living around the 14 main hubs or visiting
points in Lahore. The 14 hubs are Gulberg, Model Town, the Mall, Chouburji, Old &
New Campus, Punjab University, Bank Square, Liberty Market, Lake Road, Anarkali,
Iqbal Town, WAPDA Town, Yateem Khana, Samanabad and Mozang. These are the
destinations to which Employees living in and around these hubs are divided into those
who enacted with branches and their privatization, and branches those who are not
directly involved in privatization.
3.7.2 Sample size
A sample of 200 employees living around the 14 main hubs of Lahore was
selected for the quantitative part of the study. A combination of systematic and
stratified random sampling approaches was used for sample selection.
3.7.3 Sampling technique followed for quantitative research design
According to Central Statistics Pakistan (2003), the 1998 Census revealed thatthe population of the areas in which the 14 hubs are located numbers 31,52,054.
However, the researcher observes that the actual population size could well be far
lower, since there is considerable difficulty attached to conducting population counts in
informal settlements. The population of Lahore is estimated at between 6 million and
6.4 million people. Employee’s linkage with HBL is also enormous due to its branch
network around Lahore city, 0.2 million employees are attached with HBL only in
Lahore.
A study sample of 200 employees was therefore drawn from the resident
employees population of the 14 main hubs listed above. The first step involved
stratified random sampling; accordingly the population of Lahore was first subdivided
into subgroups. Systematic sampling was then applied through the selection of every
third employees at each of the hubs. A decision on the number to sample at each hub or
visiting point was based on the following formula:
(Visiting points) = 14 = k
N = 200 employees
N/k = 200/14=14.29
14.29x14=200
Therefore it was necessary to interview at least 25 employees at each hub or
visiting point, of which 12 employees enacted with privatization and 13 employees
were not dependent on privatization. This was essential in order to obtain truerepresentativeness and to allow for comparisons to be made. Every third employees
were targeted at each hub to arrive at the bank branches.
3.8 Data Collection Procedure (Fieldwork) In the Study
In order to gather information on employees' perceptions of the socio -cultural
impacts of HBL privatization, 200 employees surveys (constituting the basis of thequantitative component of the study) together with personal interviews and participant
observation (constituting the qualitative component of the study) were carried out in
the Lahore region (14 hubs) over an eight-week period. Two fieldworkers, who knew
the study area very well, were employed on a part-time basis and trained by the
researcher in both approaching the respondents to elicit their participation and
monitoring the completion of questionnaires. The purpose of the training was to make
sure the fieldworkers understood the importance of their role in the research project and
what they could expect in the field. They were taught the skills required for
approaching the respondents and were familiarized with the various sections of the
questionnaire. This training was both relevant and necessary, as it was the
fieldworkers' first experience of such a situation.
The researcher assumed a supervisory role in monitoring the fieldworkers
daily. This helped to ensure that only respondents who were targeted participated. The
survey team, together with the researcher, visited the 14 privatization hubs in Lahore
and identified those respondents to be interviewed. The survey team then distributed
one questionnaire to each of the selected employees. The unstructured personal
interviews were conducted by the researcher.
3.9 Analysis of Data
I delivered questionnaires to 200 people in 4 groups, with two sets of
questionnaires, with each to fill lasting between one day and two days. Computer-aids
were used to assist the management and analysis of the mass of questionnaire
transcripts. The first job was to try and extract from this material quotes corresponding
to all the issues I had raised, and look for new ideas and issues arising directly from the
respondents words. The NUDIST package proved extremely helpful with its powerful
facilities for cross-referencing excerpts. Crucial to this is the elaboration of a set of
reference terms. I developed a rough set of terms in analyzing initial questionnaires
from the first group – and subsequently refined these in the light of a larger number of responses. The aim was to balance on the one hand openness to a wide range of
responses, and on the other the need to group these experiences. This enabled a
simultaneous investigation of the data from the ‘bottom up’, i.e. from the questionnaires
themselves, and from the ‘top down’, engagement based on themes derived from
existing theory and research questions. The categories generated and classified are listed
Background or Personal History: The respondents all have a history of experiences,
of use and adoption of privatization that influence their activities and attitudes the study.
The personal history goes beyond this to broader history of relationships, education, andother activities. This dimension includes reflections on the life course of the individual
or group. It looks at the possibility of personal innovativeness.
Events: There are three types of events that influence the adoption and appropriation of
innovations: life course events, cyclical events, and one off social events or
privatization experiences. These events may be periods of considerable length (such as
particular project at work, or the learning period for a new innovation).
Activities: these describe the spheres of everyday life in which the respondent takes part,
such as work, school, family life, community life, and the activities they engage in
within those spheres. The use and attitude to information, privatization and
communication is examined within the context of these activities. These include work
tasks, domestic tasks, leisure activities, media use etc. Activities will reflect, but not be
actually linked to the stages of the respondents’ life course. Changes in activities are
linked to events.
Network: the personal network describes the relationships of the respondent, with whom
they share spaces, ideas, decisions, experiences etc. The network is not fixed, but
Good salary package enhances the performance of the Privatization
Frequency Percentage (%)
Yes 170 85.0
No 30 15.0
Total 200 100.0
It is depicted from above table that out of 200 respondents 170(85.0%) said that good
salary package enhances the performance of the customer relation officers while
30(15.0%) said no.
Privatization activities can enhance the customer satisfaction and loyalty
Frequency Percentage (%)
Yes 173 86.5
No 27 13.5
Total 200 100.0
Result shows that 173(86.5%) respondents were agreed that customer relation officersactivities can enhance the customer satisfaction and loyalty while 27(13.5%) were not