Assignment

Strategic Change Management In Pakistan Organization.

Submitted by :: Usman Naseer

Submitted to :: Sir sajjad ul Aziz

Roll no. 01
Class :: BBA
Semester 7th
 1. Organizational Develoment and Planned change
OD Organizational Development :
Organizational Development is a deliberately planned organization wide intervention to increase
an effectiveness or efficiency.
O.D. is a comprehensive strategy for organization improvement. O.D. is a long range effort to
improve an organization’s problem solving and renewal processes, particularly through a more
effective and collaborative management culture.
O.D. as a change strategy which is:
a) Planned.

b) Organization-wide.

c) Managed from the top to increase organization effectiveness and health through planned
interventions in the organization’s processes, using behavioural science knowledge.

Objectives of Organizational Development:

(a) Improvement in the performance of the organization.

(b) Improvement in the ability of the organization to adapt to its environment, and

(c) Improvement in inter-personal and inter-group behaviour to secure team work.

Lawrence and Lorsch have provided the following steps in organizational development:-
1. Problem identification—Diagnosis:
O.D. program starts with the identification of the problem in the organization. Correct diagnosis
of the problem will provide its causes and determine the future action needed.

2. Planning Strategy for Change:

O.D. consultant attempts to transform diagnosis of the problem into a proper action plan involv-
ing the overall goals for change, determination of basic approach for attaining these goals and the
sequence of detailed scheme for implementing the approach.

3. Implementing the Change:

O.D. consultants play an important role in implementing change.
4. Evaluation:
0. D. is a long-term process. So there is a great need for careful monitoring to get process feed-
back whether the O.D. programme is going on well after its implementation or not. This will
help in making suitable modifications, if necessary. For evaluation of O.D. programme, the use
of critic sessions, appraisal of change efforts and comparison of pre- and post-training behav-
ioural patterns are quite effective.

Change :

Change is an inevitable part of life. Change is also an important part of a business life; it allows a
business to adapt to its environment and to improve its market position. Change signifies the
willingness of the affected parties to embrace and function in a newly established order and their
commitment to effect and implement the changes.

The generic definition of change as defined by Hughes (2006) is "any alteration in the status
quo." Changes within an organization may take place for many reasons. It is sometimes done in
order to introduce a new more efficient way of working or producing a product. It is sometimes
done to re-organise the organizations work force. Organizations will evolve and change within
the course of their lives. Change management is referred to as the process of which change is ex-
ecuted and developed within the organization. Change is something that affects all business and
therefore all business managers must prepare their personnel and processes for change.

2. Models and Theories of Change Management

Changes in the business environment are happening all the time and organizations must change
the way they operate to compete effectively in their market. In order to change organizations
must adopt change theories and approaches however with so many different approaches available
an organization must choose an approach that best suits its needs.

1. Lewin's Change Model

2. Action research model
3. positive model

4. General model of change

Kurt Lewin's Change Model
Kurt Lewin developed a change model involving three
steps: unfreezing, changing and refreezing. The model represents a very simple and practical
model for understanding the change process. For Lewin, the process of change entails creating
the perception that a change is needed, then moving toward the new, desired level of behavior
and finally, solidifying that new behavior as the norm. The model is still widely used and serves
as the basis for many modern change models.

Unfreezing

Changing

Refreezing

1.Unfreezing
This step usually involves reducing those forces maintaining the organizations behavior at its
present level. Unfreezing is sometimes accomplished through a process of “psychological dis-
confirmation” by introducing information that shows discrepancies between behavior desired by
organization members and those behaviors currently exhibited, members can motivated to en-
gagein change activities.

2. Moving.
This step shifts the behavior of the organization, department, or individual to a new level. It in-
volves intervening in the system to develop new behaviors, values, and attitudes through changes
in organizational structures and processes.

3Refreezing
Lewin called the final stage of his change model freezing, but many refer to it as refreezing to
symbolize the act of reinforcing, stabilizing and solidifying the new state after the change. The
changes made to organizational processes, goals, structure, offerings or people are accepted and
refrozen as the new norm or status quo. Lewin found the refreezing step to be especially im-
portant to ensure that people do not revert back to their old ways of thinking or doing prior to the
implementation of the change. Efforts must be made to guarantee the change is not lost; rather, it
needs to be cemented into the organization's culture and maintained as the acceptable way of
thinking or doing. Positive rewards and acknowledgment of individualized efforts are often used
to reinforce the new state because it is believed that positively reinforced behavior will likely be
repeated.
Some argue that the refreezing step is outdated in contemporary business due to the continuous
need for change. They find it unnecessary to spend time freezing a new state when chances are it
will need to be reevaluated and possibly changed again in the immediate future. However - as I
previously mentioned - without the refreezing step, there is a high chance that people will revert
back to the old way of doing things. Taking one step forward and two steps back can be a com-
mon theme when organizations overlook the refreezing step in anticipation of future change.
#(There are various advantages to using this model of change. First of all, it is a very easy and
simple model to follow, with each stage clearly what must be done. Secondly, there is strong fo-
cus on preparing for the change, rather than on the change itself, it is good, when there is re-
sistance to the change by some staff .)#*
#*(This model is considered to be a better adaptation of Lewin’s change model, as it provides
more details at each stage. This means that managers can avoid the common mistakes made in
change (Sutton 2014). However, disadvantages to this model, it takes a great deal of time to
complete it, because none of the stages can be skipped (Cartlidge 2015). Nevertheless, I would
still recommend this model to managers. Because I don’t think it taking a long time to complete
is really a disadvantage. Change takes time; it will take a long time for all staff to accept it.
Therefore, the change process should not be rushed. Ford in the USA used this model, when they
were experiencing a very serious decline, and it significantly helped the company to create a
shared vision amongst staff and change their mindset and behaviour helped to turn the company
around (Geyer, 2011). )#*
The three theories of planned change in organizations described above—Lewin's change model,
the action research model, and contemporary adaptations to the action research model—suggest
a general framework for planned change, as shown in Fig. 10. The framework describes the four
basic activities that practitioners and organization members jointly carry out in organization de-
velopment. The arrows connecting the different activities in the model show the typical sequence
of events, from entering and contracting, to diagnosing, to planning and implementing change, to
evaluating and institutionalizing change. The lines connecting the activities emphasize that or-
ganizational change is not a straightforward, linear process but involves considerable overlap and
feedback among the activities.

Entering and Contracting: The first set of activities in planned change concerns entering and
contracting. Those events help managers decide whether they want to engage further in a
planned change program and to commit resources to such a process. Entering an organization
involves gathering initial data to understand the problems facing the organization or the positive
opportunities for inquiry. Once this information is collected, the problems or opportunities are
discussed with managers and other organization members to develop a contract or agreement to
engage in planned change. The contract spells out future change activities, the resources that will
be committed to the process, and how OD practitioners and organization members will be in-
volved. In many cases, organizations do not get beyond this early stage of planned change be-
cause disagreements about the need for change surface, resource constraints are encountered, or
other methods for change appear more feasible. When OD is used in nontraditional and interna-
tional settings, the entering and contracting process must be sensitive to the context in which the
change is taking place.
Diagnosing:

In this stage of planned change, the client system is carefully studied. Diagnoses can .focus on
understanding organizational problems, including their causes and consequences, or on identify-
ing the organization's positive attributes. The diagnostic process is one of the most important ac-
tivities in OD. It includes choosing an appropriate model for understanding the organization and
gathering, analyzing, and feeding back information to managers and organization members about
the problems or opportunities that exist. Diagnostic models for analyzing problems explore three
levels of activities. Organization issues represent the most complex level of analysis and involve
the total system. Group-level issues are associated with department and group effectiveness. In-
dividual-level issues involve the way jobs are designed. Gathering, analyzing, and feeding back
data are the central change activities in diagnosis. Describes how data can be gathered through
interviews, observations, survey instruments, or such archival sources as meeting minutes and
organization charts. It also explains how data can be reviewed and analyzed. Organization mem-
bers, often in collaboration with an OD practitioner, jointly discuss the data and their implica-
tions for change.

Planning and Implementing Change:

In this stage, organization members and practitioners jointly plan and implement OD interven-
tions. They design interventions to achieve the organization's vision or goals and make action
plans to implement them. There are several criteria for designing interventions, including the or-
ganization's readiness for change, its current change capability, its culture and power distribu-
tions, and the change agent's skills and abilities. Depending on the outcomes of diagnosis, there
are four major types of interventions in OD: 1. Human process interventions at the individual,
group, and total system levels. 2. Interventions that modify an organization's structure and tech-
nology. 3. Human resource interventions that seek to improve member performance and well-
ness. 4. Strategic interventions that involve managing the organization's relationship to its exter-
nal environment and the internal structure and process necessary to support a business strategy.
Implementing interventions is concerned with managing the change process. It includes motivat-
ing change, creating a desired future vision of the organization, developing political support,
managing the transition toward the vision, and sustaining momentum for change.

Evaluating and Institutionalizing Change:

The final stage in planned change involves evaluating the effects of the intervention and manag-
ing the institutionalization of successful change programs. Feedback to organization members
about the intervention's results provides information about whether the changes should be con-
tinued, modified, or suspended. Institutionalizing successful changes involves reinforcing them
through feedback, rewards, and training. It demonstrates how traditional planned change activi-
ties, such as entry and contracting, survey feedback, and change planning, can be combined with
contemporary methods, such as large-group interventions and high levels of participation.
Action research model.
Action research is traditionally aimed both at helping specific organizations implement planned
change and at developing more general knowledge that can be applied to other settings.7 Alt-
hough action research was originally developed to have this dual focus on change and knowledge
generation, it has been adapted to OD efforts in which the major emphasis is on planned change

There are eight main steps.

Problem Identification.
This stage usually begins when an executive in the organization or someone with power and in-
fluence senses that the organization has one or more problems that might be solved with the help
of an OD practitioner.
Consultation with a Behavioral Science Expert.
During the initial contact, the OD practitioner and the client carefully assess each other. The
practitioner has his or her own normative, developmental theory or frame of reference and must
be conscious of those assumptions and values Sharing them with the client from the beginning
establishes an open and collaborative atmosphere.

Data Gathering and Preliminary Diagnosis.

This step is usually completed by the OD practitioner, often in conjunction with organization
members. It involves gathering appropriate information and analyzing it to determine the under-
lying causes of organizational problems. The four basic methods of gathering data are inter-
views, process observation, questionnaires, and organizational performance data (unfortunately,
often overlooked). One approach to diagnosis begins with observation, proceeds to a semistruc-
tured interview, and concludes with a questionnaire to measure precisely the problems identified
by the earlier steps. When gathering diagnostic information, OD practitioners may influence
members from whom they are collecting data. In OD, any action by the OD practitioner can be
viewed as an intervention that will have some effect on the organization.

Feedback to a Key Client or Group.

Because action research is a collaborative activity, the diagnostic data are fed back to the client,
usually in a group or workteam meeting. The feedback step, in which members are given the in-
formation gathered by the OD practitioner, helps them determine the strengths and weaknesses
of the organization or unit under study. The consultant provides the client with all relevant and
useful data. Obviously, the practitioner will protect confidential sources of information and, at
times, may even withhold data. Defining what is relevant and useful involves consideration of
privacy and ethics as well as judgment about whether the group is ready for the information or if
the information would make the client overly defensive.

Joint Diagnosis of the Problem.

At this point, members discuss the feedback and explore with the OD practitioner whether they
want to work on identified problems. A close interrelationship exists among data gathering,
feedback, and diagnosis because the consultant summarizes the basic data from the client mem-
bers and presents the data to them for validation and further diagnosis. An important point to re-
member, as Schein suggests, is that the action research process is very different from the doctor–
patient model, in which the consultant comes in, makes a diagnosis, and prescribes a solution.
Schein notes that the failure to establish a common frame of reference in the client–consultant
relationship may lead to a faulty diagnosis or to a communication gap whereby the client is
sometimes “unwilling to believe the diagnosis or accept the prescription.” He believes that “most
companies have drawers full of reports by consultants, each loaded with diagnoses and recom-
mendations which are either not understood or not accepted by the ‘patient.’ ”

Joint Action Planning.

Next, the OD practitioner and the client members jointly agree on further actions to be taken.
This is the beginning of the moving process (described in Lewin’s change model), as the organi-
zation decides how best to reach a different quasi-stationary equilibrium. At this stage, the spe-
cific action to be taken depends on the culture, technology, and environment of the organization;
the diagnosis of the problem; and the time and expense of the intervention. Action. This stage
involves the actual change from one organizational state to another. It may include installing new
methods and procedures, reorganizing structures and work designs, and reinforcing new behav-
iors. Such actions typically cannot be implemented immediately but require a transition period as
the organization moves from the present to a desired future state.13
Data Gathering After Action.
Because action research is a cyclical process, data must also be gathered after the action has
been taken to measure and determine the effects of the action and to feed the results back to the
organization. This, in turn, may lead to re diagnosis and new action.

3 Organizational life cycle

The organizational life cycle is the life cycle of an organization from its creation to its termina-
tion. It also refers to the expected sequence of advancements experienced by an organization. as
opposed to a randomized occurrence of events
 There are 4level/stages in any organization.
 1. Start
 2. Growth
 3. Maturity
 4. Decline
Stages Strategy Implementation

Start Intensive strategic integration is an important element in the

process of improving organizational performance be-
cause it facilitates the continuous alignment of busi-
ness strategies within the ever changing business en-
vironment

Growth Integration & diversifica- While continue intensive strategy the company should
tion also go for integration and diversification like for-
ward, backward and horizontal strategy.

Maturity Integration & diversifica- After integration strategy company applied a diversi-
tion fication strategy like related and un related diversifi-
cation to achieve a maturity level.

Decline Defensive In last only apply a defensive strategy like retrench-

ment, divestiture and liquidation to save the organiza-
tion from death point

Death ------------ End

Types of strategies
 Integration strategy
 Intensive Growth strategy
 Diversification strategy
 Defensive strategy
Integration Strategy
Strategic integration is an important element in the process of improving organizational
performance because it facilitates the continuous alignment of business strategies within the
ever changing business environment.
1. Forward integration
2. Backward integration
3. Horizontal integration
 Forward Integration-gaining ownership or increased control over distributors or retailers
 Backward Integration-seeking ownership or increased control of a firm’s suppliers
 Horizontal Integration-seeking ownership or increased control over competitors
Intensive growth strategy

growth strategy in which a company increases its sales and profits through vertical, horizon-
tal, conglomerate & concentric integration within its industry. Integration can be through ac-
quisition or merger. When one firm takes over another firm, it is called acquisition. But if a
new firm is created by combining (or merging) two existing firms, it is called merging
1. Market penetration
2. Market development
3. Product development
 Market Penetration--seeking increased market share for present products in present
markets
 Market Development-introducing present products in new geographic areas
 Product Development-seeking increased sales by improving or modifying present prod-
ucts
Diversification strategy
Diversification is a corporate strategy to enter into a new market or industry in which the
business doesn't currently operate, while also creating a new product for that new market
1. Related diversification
2. Unrelated diversification
1 Related Diversification occurs when the company adds to or expands its existing line of
production or markets. In these cases, the company starts manufacturing a new product or
penetrates a new market related to its business activity.
 2 Unrelated Diversification is a form of diversification when the business adds new or un-
related product lines and penetrates new markets. For example, if the shoe producer enters
the business of clothing manufacturing.
Defensive strategy
 Joint Venture-two or more sponsoring firms forming a separate organization for cooper-
ative purposes
 Retrenchment-regrouping through cost and asset reduction to reverse declining sales or
profits
 Divestiture-selling a division or part of an organization
 Liquidation-selling all company assets.
On decline stage the defensive strategy plays an important role. This can be fuelled by changes
in consumer preferences, technological advances and alternatives on the market. At this stage,
you will have to decide what strategies to take. If you want to save money, you can:
 reduce your promotional expenditure on the products
 reduce the number of distribution outlets that sell them
 implement price cuts to get the customers to buy the product
 fin another use for the product
 maintain the product and wait for competitors to withdraw from the market first
 harvest the product or service before discontinuing it
Another option is for your business to discontinue the product from your offering. You may
choose to:

 sell the brand to another business

 significantly reduce the price to get rid of all the inventory

On decline

Company use defensive strategy at decline stage. In defensive strategy use Divestiture-selling a
division or part of an organization so that company gain some finance then use Retrenchment the
strategy followed, when a firm decides to eliminate its activities through a considerable reduction
in its business operations, in the perspective of customer groups, customer functions and tech-
nology alternatives, either individually or collectively is called as Retrenchment Strategy.The
firm can either restructure its business operations or discontinue it, so as to revitalize its financial
position.Techno-structural interventions plays an important role with defensive strategy. Techno-
structural interventions focus on improving the organizational effectiveness and human perfor-
mance by focusing on technology and structure. These interventions are rooted in the fields of
engineering, sociology, and psychology, combined with socio-technical systems, job analysis
and design. These types of interventions rely on an improvement based approach; the idea is to
shape the organizational techno-structural elements to get a best fit to the current situation and
future development of the company. The two main focus points of techno-structural intervention
approaches are the improvement of an organization’s technology, for example, task methods and
job design, and structure, for example division of labor and hierarchy.
The following interventions are included in techno-structural interventions:
 organizational structure

 organization systems
 innovation and design thinking

 socio-technical systems

 change management

 job design / enrichment

 competency-based management

 company will then adopt Intensive Growth strategy to move towards renewal and
then diversification strategy.

4 Engro company and strategy

Engro company was established in 2003, after which in 2005 Engro decided to diversify their
business more by venturing into the food business by establishing Engro Foods Limited.
Engro also ventured into the power generation business by setting up Engro Energy Limited in
2006, which later on was renamed as "Engro Powergen Limited" in 2008. It was established with
the basic aim to play Engro's part to tackle the energy crisis in the country.
In year 2007, Engro Asahi polymer divested its share in joint venture with Mitsubishi and the
company renamed as Engro Polymer and Chemicals Limited.
In 2010, keeping in view the immense diversification of Engro Chemical Pakistan Limited, it
was decided to rename the company as Engro Corporation as the holding company.
Engro Corporation is a Pakistani public multinational corporation based in Karachi with subsidi-
aries involved in production of fertilizers foods, chemicals, energy and petrochemicals.
It's major subsidiaries include Engro Fertilizers - which is one of the largest fertilizer manufac-
turers of the world, Engro Foods which manufactures, processes and markets dairy products, fro-
zen desserts, faizan steels and fruit drinks including the ice cream brand of OMORÉ. Other ma-
jor subsidiaries include Sindh Engro Coal Mining Company, Engro Powergen Lim-
ited and Engro Polymer & Chemicals Limited
strategic move of engro company:

Engro Corporation follows a business philosophy of diversification which led to its foray in to
Food industry in 2005. Engro Corporation formed Engro Foods Limited incorporating it on
April26, 2005.Engro Foods first investment was to build an Ultra High Temperature (UHT) pro-
cessing plant known as South Plant in Sukkur region in the Sindh Province of Pakistan. South
Plant covers an area of 23 acres and has raw milk reception capability of 300,000 liters per day
and UHT milk capacity of 200,000 liters per day. In December 2007, Engro Foods launched a
second plant known as North Plant in Sahiwal region of Punjab Province of Pakistan. This plant
covers an area of 33 acres of land; it mainly produces Omore Ice-cream along with other dairy
products 1 Chart as of 2009, Engro Corp now owns 89% of Engro Foods after Engro Foods IPO
in 2011

Engro Corporation Limited (ECorp) is pleased to announce that it has entered into an agreement
with Friesland Campina Pakistan Holdings B.V., a wholly owned subsidiary of Royal Fries-
landCampina N.V. (FrieslandCampina), for the sale of up to 51 percent of the Company's share-
holding in Engro Foods Limited (EFoods). Under the new structure ECorp will remain a signifi-
cant partner and shareholder.

Friesland Campina is one of the world’s largest dairy companies owned 100% by Zuivel cooper-
atie Friesland Campina with about 19,000 member farmers, with annual revenues of more than
EUR 11billion. Friesland Campina provides millions of customers with dairy products world-
wide through its expansive global footprint with activities in over 32 countries and exports to
over 100 countries. Friesland Campina’s global brands cater to a wide spectrum of consumers
across a number of categories including dairy based beverages, infant nutrition, yoghurt, des-
serts, butter and cheese. Some of its best known brands include Friso, Dutch Lady and Rainbow.

5 Conclusion :

Organizational development is a set of behavioral science techniques designed to plan and im-
plement change in work settings. The major techniques of organizational development attempt to
produce some kind of change in individual employees, work groups, and/or the entire organiza-
tion. If Company move from its maturity level towards decline some serious decision are made
on the basis of strategies that boost company to again move towards renewal or growth. compa-
nies in Pakistan use Joint Venture strategy and techno structural interventions to grow and rise
their business. Currently, Engro's portfolio consists of a varied business portfolio, which include
fertilizers, foods, chemical storage & handling, trading, energy and petrochemicals. Fuelled by
the vision of becoming the premier Pakistani enterprise with a global reach, passionately pursu-
ing value creation for all stakeholders Engro's investments in agriculture, foods, energy and
chemicals are all designed to deploy inclusive business models to pursue an integrated and inclu-
sive growth for all who interact with company businesses.
References ::

https://businessjargons.com/retrenchment-strategy.html

https://sloanreview.mit.edu/collections/planned-change-and-organizational-development/

https://www.knowthis.com/planning-with-the-product-life-cycle/planning-decline-stage/

https://www.bayt.com/en/specialties/q/108460/what-strategy-should-a-manager-adopt-at-
decline-stage-of-a-product/

https://www.engro.com/our-company/

https://en.wikipedia.org/wiki/Diversification_(marketing_strategy)

https://www.mbacrystalball.com/blog/strategy/vertical-horizontal-integration-strategy/

https://ebrary.net/2913/management/action_research_model_organizational_development