1.

Generale information of the case study (such as history, actors/protagoniste Etc)

The case study focuses on Pak Elektron Ltd. (PEL), a prominent manufacturer of
electrical power equipment and home appliances in Pakistan. Established in 1956 with
technical collaboration from AEG of Germany, PEL has been a key player in the power
distribution products market, including transformers, switchgears, motors, and energy
meters. The company's acquisition by the Saigol Group of Companies in 1978, with Mr.
Naseem Saigol as CEO, marked a significant transition in its leadership.

PEL's commitment to advancing the engineering sector in Pakistan is evident

through its introduction of quality electrical equipment, home appliances, and training
programs for engineers, workers, and technicians. The company's expansion into the
home appliances market in 1981 reflected a strategic diversification approach within the
Saigol Group.

Key actors in the case study include Mr. Saigol (Director Operations), Mr. Alyan
(General Manager), Lt. Col (Retd.) Taha Azhar (Sr. Manager Admn.), and various
department heads involved in the transformation of PEL's HR system. The case study
highlights the challenges faced by these individuals in addressing HR issues, managing
organizational change, and implementing a digital HR system aligned with international
practices.

The narrative underscores the pivotal role of the HR department, led by a HR

Manager (later referred to as Head HR), in overseeing white-collar employee affairs, while
the IR&A department managed blue-collar employees. The case study outlines the
establishment of specialized HR sub-teams under dedicated team leaders to drive the
digital transformation of HR processes at PEL.

Overall, the case study provides a comprehensive overview of PEL's history, key
stakeholders, and the strategic initiatives undertaken to modernize its HR system in
response to evolving organizational needs and industry dynamics.

2. description of information if given about the industry

The case study of Pak Elektron Ltd (PEL) provides insights into the electrical
power equipment and home appliances industry in Pakistan. PEL, as a leading
manufacturer in this sector, has a rich history dating back to 1956 when it was established
with technical collaboration from AEG of Germany. Over the years, PEL has been at the
forefront of producing power distribution products such as transformers, switchgears,
electric motors, and energy meters.

The industry landscape in which PEL operates is characterized by a focus on

engineering excellence, quality electrical equipment, and home appliances. PEL's
contribution to the advancement of the engineering sector in Pakistan is evident through
its apprenticeship schemes, training programs, and the production of skilled engineers,
workers, and technicians.

Furthermore, the case study highlights PEL's strategic diversification into the
home appliances market in 1981, a move that aligned with the Saigol Group's long-term
strategy. This diversification allowed PEL to expand its product offerings and cater to a
broader consumer base.

The industry context in which PEL operates is dynamic, with technological

advancements driving changes in product development, manufacturing processes, and
customer preferences. As a key player in the electrical power equipment and home
appliances sector, PEL faces competition, regulatory challenges, and the need to adapt to
emerging market trends to maintain its market position and sustain growth.

Overall, the case study provides a glimpse into the industry environment in which
PEL operates, showcasing the company's historical significance, product portfolio, and
strategic initiatives to stay competitive in the evolving marketplace.

3. description of strengths and weakness of the business

Strengths

 Established Brand: PEL is a renowned and established brand in Pakistan, known for
its quality electrical power equipment and home appliances.

 Diversified Product Portfolio: With a range of products including transformers,

switchgears, electric motors, refrigerators, air conditioners, and more, PEL has a
diversified product portfolio catering to different market segments.

 Industry Expertise: PEL has a long history of expertise in the engineering sector,
contributing to the advancement of the industry in Pakistan.

 Market Share: The company has achieved a high market share in both the Appliances
and Power divisions, indicating strong competitiveness.

 International Certifications: PEL's equipment is approved and certified by reputable

international bodies, enhancing its credibility and enabling exports to developed
countries.

Weaknesses:

 Legacy Systems: The case study suggests that PEL was following traditional
administrative management styles and manual HR systems, indicating a potential
weakness in adapting to modern practices.
  Organizational Structure: The transition from a functional to a divisional structure
may have posed challenges in terms of organizational alignment and efficiency.

 HR System Challenges: The need for a digital HR system highlights potential

weaknesses in the existing HR processes, indicating a gap in leveraging technology
for HR management.

 Complacency: The reluctance or hesitation towards embracing disruptive changes

like a digital HR system may indicate a level of complacency within the
organization.

 Market Competition: In a dynamic industry landscape, competition from local and

international players could pose a threat to PEL's market position and growth
prospects.

Addressing these weaknesses through strategic initiatives, such as implementing a

digital HR system, restructuring organizational processes, and enhancing innovation and
agility, can help PEL capitalize on its strengths and navigate challenges effectively in the
competitive marketplace.

4. Main issue/problem/decision/ evaluation the case study is built on

The main issue/problem/decision that the case study of Pak Elektron Ltd (PEL) is
built on revolves around the implementation of a digital HR system and the challenges
associated with organizational change and employee resistance. The key points of focus
include:

 Digital Transformation: The central theme of the case study is the need for PEL to
transition from traditional administrative and manual HR systems to a centrally
monitored and controlled intelligent digital HR system. This shift is essential for
optimizing human capital management and enhancing organizational performance in
the technology-driven era.

 Employee Resistance: The case study highlights the resistance to change faced by
employees at PEL regarding the adoption of the new digital HR system. Employee
attitudes, behaviors, and preferences for the manual system over the digital system
pose a significant challenge to the successful implementation of the new HR practices.

 Management Decision: The Director of Operations, Mr. Saigol, is tasked with making
crucial decisions regarding the future of the digital HR system at PEL. He must
evaluate the effectiveness of the new system, address employee-related issues, and
determine whether to persist with the digital transformation or consider alternative
approaches.
 Organizational Transformation: The case study delves into the complexities of
managing a company-wide organizational transformation, including concerns about
the timing, feasibility, and impact of the disruptive change on PEL's operations,
culture, and performance.

 Evaluation and Solution: The HR consultant's evaluation report sheds light on the
reasons behind employee resistance, training transfer issues, and the overall
challenges faced in implementing the digital HR system. The Director of Operations
must consider the consultant's findings and recommendations to devise a strategy for
improving the implementation process and resolving employee-related issues
effectively.

Overall, the case study is structured around the central dilemma of embracing
digital innovation in HR practices, managing organizational change, addressing employee
resistance, and making informed decisions to drive sustainable competitive advantage
and performance excellence at Pak Elektron Ltd.

5. Provision of alternatives to the main issue/problem/decision/Evaluation at hand

In addressing the main issue of implementing a digital HR system and overcoming

employee resistance at Pak Elektron Ltd (PEL), several alternatives can be considered:

Enhanced Communication and Training:

 Increase communication efforts to educate employees about the benefits and

functionalities of the new digital HR system.

 Provide comprehensive training sessions to ensure employees are proficient in using

the system effectively.

Pilot Implementation:

 Conduct a pilot implementation of the digital HR system in a specific department or

division to gather feedback and address any issues before full-scale deployment.

Employee Involvement:

 Involve employees in the design and customization of the digital HR system to address
their needs and preferences, fostering a sense of ownership and engagement.

Change Management Strategies:

 Implement change management strategies such as creating a sense of urgency,

building a guiding coalition, and communicating the vision to facilitate a smoother
transition to the new system.
Hybrid Approach:

 Consider a phased approach where certain aspects of the digital HR system are
gradually introduced alongside existing manual processes to ease the transition and
minimize disruption.

Feedback Mechanisms:

 Establish feedback mechanisms, such as suggestion boxes or regular surveys, to gather

input from employees on their experiences with the new system and address any
concerns promptly.

Continuous Improvement:

 Commit to continuous improvement by monitoring the performance and user

satisfaction with the digital HR system, identifying areas for enhancement, and
implementing iterative updates based on feedback.

Employee Support Programs:

 Introduce employee support programs, such as dedicated help desks or user guides, to
assist employees in navigating the new system and addressing any technical or
operational challenges they may encounter.

By exploring these alternatives and tailoring them to the specific needs and challenges
faced by PEL, the organization can enhance the implementation of the digital HR system,
mitigate employee resistance, and drive successful adoption of modern HR practices for
improved organizational performance.

6. best alternative based on our opinions

In my opinion, the best alternative for Pak Elektron Ltd (PEL) to address the challenges
of implementing a digital HR system and overcoming employee resistance is to adopt a
Hybrid Approach. This approach involves gradually introducing aspects of the new digital
HR system alongside existing manual processes to facilitate a smoother transition and
minimize disruption within the organization.

By implementing the digital HR system in phases, starting with a pilot implementation

in a specific department or division, PEL can:

 Allow employees to familiarize themselves with the new system gradually.

 Identify and address any issues or concerns early on before full-scale deployment.

 Provide targeted training and support to employees as they transition to the new
system.
  Demonstrate the benefits and effectiveness of the digital HR system through tangible
results and feedback from the pilot phase.

The Hybrid Approach combines the advantages of digital innovation with the familiarity
of existing processes, easing the change management process and promoting acceptance
among employees. It allows for a more controlled and iterative implementation, enabling
PEL to adapt to feedback, make necessary adjustments, and ensure a successful transition
to the new digital HR system while minimizing resistance and maximizing user adoption.

7. Why is best alternative

The Hybrid Approach is considered the best alternative for Pak Elektron Ltd (PEL) to
address the challenges of implementing a digital HR system and overcoming employee
resistance for several reasons:

 Gradual Transition: By introducing the new digital HR system in phases alongside

existing manual processes, employees can adapt to the changes gradually. This
gradual transition helps reduce resistance and allows employees to become familiar
with the new system at their own pace.

 Risk Mitigation: A phased approach allows PEL to identify and address any issues or
challenges early on during the pilot phase. This proactive risk mitigation strategy
minimizes disruptions to operations and ensures a smoother transition to the new
system.

 Training and Support: The Hybrid Approach enables targeted training and support
for employees as they transition to the digital HR system. This personalized
approach helps employees build confidence in using the new system and enhances
their overall experience.

 Feedback and Iteration: Implementing the new system in phases allows PEL to
gather feedback from employees during each stage of the rollout. This feedback can
be used to make necessary adjustments, address concerns, and continuously
improve the system based on user input.

 Demonstrated Benefits: Through the pilot implementation, PEL can showcase the
benefits and effectiveness of the digital HR system to employees. Tangible results
and positive feedback from the pilot phase can help build confidence and
acceptance among employees for the full-scale deployment.

 Change Management: The Hybrid Approach aligns with effective change

management principles by balancing innovation with continuity. It acknowledges
the importance of managing organizational change sensitively and incrementally to
ensure successful adoption of new practices.
 Overall, the Hybrid Approach offers a strategic and practical way for PEL to
navigate the complexities of implementing a digital HR system, address employee
resistance, and optimize the transition process effectively while maximizing the benefits
of modern HR practices.

8. How can the best alternative chosen be implemented

Implementing the Hybrid Approach for the adoption of a digital HR system at Pak
Elektron Ltd (PEL) involves a structured and phased process. Here are the steps to
effectively implement this approach:

Planning Phase

 Define the scope and objectives of the pilot implementation.

 Identify the department or division for the initial rollout of the digital HR system.

 Establish key performance indicators (KPIs) to measure the success of the pilot
phase.

Preparation Phase

 Develop a detailed implementation plan outlining the timeline, resources, and

responsibilities.

 Provide training and orientation sessions for employees in the selected department.

 Set up support mechanisms such as help desks or user guides for assistance.

Pilot Implementation:

 Roll out specific modules or functionalities of the digital HR system in the selected
department.

 Monitor the usage and feedback from employees regarding the new system.

 Address any issues or challenges that arise during the pilot phase promptly.

Evaluation and Feedback

 Gather feedback from employees on their experiences with the new system.

 Evaluate the performance of the digital HR system based on predefined KPIs.

 Identify areas for improvement and optimization based on user input and system
performance.
Adjustment and Expansion

 Make necessary adjustments and enhancements to the digital HR system based on

feedback and evaluation results.

 Expand the implementation to additional departments or divisions gradually,

incorporating lessons learned from the pilot phase.

 Provide ongoing training and support to employees as the system is scaled up

across the organization.

Communication and Change Management

 Communicate transparently with employees about the progress of the

implementation and the benefits of the new system.

 Implement change management strategies to address employee concerns, build

engagement, and foster a positive attitude towards the digital HR system.

Continuous Improvement

 Continuously monitor the performance and user satisfaction with the digital HR
system.

 Solicit feedback from employees on an ongoing basis and incorporate suggestions

for further enhancements.

 Iterate on the implementation process to ensure the successful adoption and

integration of the new system within the organization.

By following these steps and maintaining a focus on user engagement, training,

feedback, and continuous improvement, PEL can effectively implement the Hybrid
Approach for transitioning to a digital HR system while minimizing resistance and
maximizing the benefits of the new technology.

9. What is the risk of the implementation

The implementation of a digital HR system at Pak Elektron Ltd (PEL) using the Hybrid
Approach carries certain risks that need to be identified and managed effectively. Some
potential risks include:

Employee Resistance: Resistance to change from employees who are accustomed to

manual processes can hinder the adoption of the new digital HR system. Lack of buy-in
and reluctance to embrace new technology may impact the success of the implementation.
Training Challenges: Ensuring that all employees receive adequate training and support
to use the new system effectively can be challenging. Differences in computer literacy and
technical skills among employees may lead to difficulties in transitioning to the digital
platform.

Data Security Concerns: Moving HR processes and employee data to a digital system
introduces potential risks related to data security and privacy. Unauthorized access, data
breaches, or system vulnerabilities could compromise sensitive information.

Integration Issues: Integrating the new digital HR system with existing software,
databases, and processes within the organization may pose challenges. Compatibility
issues, data migration errors, and system integration complexities could disrupt
operations.

Operational Disruption: Disruptions to daily HR operations and workflows during the

transition phase can impact productivity and efficiency. Downtime, system errors, or
delays in accessing critical HR information may affect employee performance and morale.

Cost Overruns: Unexpected costs related to software customization, training programs,

IT infrastructure upgrades, and ongoing maintenance of the digital HR system can lead to
budget overruns. Poor cost management may strain financial resources allocated for the
implementation.

User Adoption Issues: Low user adoption rates or resistance from key stakeholders
within the organization, such as managers or department heads, may impede the
successful implementation of the digital HR system. Lack of engagement and support from
leadership can hinder acceptance of the new technology.

Change Management Challenges: Inadequate change management strategies,

communication plans, and stakeholder engagement initiatives may result in
misunderstandings, confusion, or resistance among employees. Clear communication and
effective change management are essential to mitigate these risks.

To address these risks, PEL should develop a comprehensive risk management

plan that includes strategies for mitigating, monitoring, and responding to potential
challenges throughout the implementation process. Proactive risk identification,
stakeholder engagement, robust training programs, data security measures, and effective
change management practices are essential for successful adoption of the digital HR
system while minimizing risks and maximizing benefits.