ICI Pakistan

ICI Pakistan Limited

Brief of the Company:

Introduction:

ICI has consistently developed new and innovative areas of

businesses, since its formation in December 1926, by the

merger of four of the largest chemical companies in the

UK. ICI today is a collection of world class businesses,

many of them leaders in their sectors. They are strongly

led, technologically sophisticated with healthy and

sustainable long-term growth prospects.

ICI’s paints brands are some of the most successful in the

world. It’s starches and adhesives find their way into

everything from foods to building materials, and from

sports shoes to medical electronics. Its lubricants make

vehicle transmission and fridges run smoothly, and the vital

ingredients in many personal and household care products

come from ICI.

ICI brings together a family of businesses with an

impressive record of innovation and an ability to meet the

changing needs of an increasingly global marketplace. The

Company has a range of over 50,000 products, more than

38,000 employees and over 200 manufacturing facilities in

55 countries worldwide.

ICI Pakistan Limited is a 75.81% owned subsidiary of ICI

Plc, UK. It was set up as a public limited company in

Pakistan in 1952. ICI’s presence in this part of the world,

however, predates the formation of the public limited

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company and indeed, Pakistan itself. The Khewra Soda Ash

Company, a predecessor of ICI Pakistan Limited, set up a

soda ash manufacturing facility in Khewra in 1944 with a

capacity of 18,000 tones per annum. This facility was sited

next to the salt range as rock salt and limestone; two key

raw materials for manufacturing soda ash were available

here in abundance.

ICI Businesses:

Today, ICI Pakistan’s five businesses,

Polyester

Soda Ash

Paints

Chemicals

Life Sciences

These include, Polyester Staple Fibers, POY Chips, Light

and Dense Soda Ash, Sodium Bicarbonate, Paints

Decorative, Refinish, Industrial & Projects and for

manufacturers of vehicles, Specialty Chemicals,

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http://www.ici.com.pk/files/life_sciences.html

http://www.ici.com.pk/files/chemicals.html

http://www.dulux.com.pk/

http://www.ici.com.pk/files/soda_ash.html

http://www.ici.com.pk/files/polyester.html


Polyurethane, and Adhesives and arranges manufacture on

a toll basis of Pharmaceutical and Animal

The turnover of ICI Pakistan Limited in 2001 was Rs. 12.8

billion and gross assets employed amounted to Rs. 14.98

billion. It is one of the

Largest quoted companies on the Karachi, Lahore and

Islamabad Stock Exchanges with a paid up share capital of

Rs. 1.39 billion. The company has over 1,300 permanent

employees and about the same number of people provides

services through contractual arrangements.

ICI Pakistan has a proud history of sustained investments

in the Pakistan economy in basic manufacture and as a

good corporate citizen, the company continues with its

policy to serve the community it operates in.

The general state of economy:

Pakistan economic condition is not stable now days. In fact all

the big authorities are trying to maintain it but failed to do it.

Foreign companies are hesitating to make investment in

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Pakistan .The economic condition of our country is not good

due to the heavy debt. We are holding a burden of 35 billion

dollars of IMF. That’s why our economic condition is not so

well. The outgoing fiscal year 2002-2003 has been the most

difficult and challenging year for Pakistan’s economy. The

year witnessed the full impact of the economic sanctions on

domestic economy as well as the continuation of deepening

global economic recession with consequential impact on

Pakistan’s external sector. These two factors not only

precipitated a balance of payments crisis but also damaged

the gains achieved in the preceding year, and most

importantly, interrupted the pace of implementation of

structural reforms and stabilization measures.

The imposition of economic sanctions and the suspension of

new bilateral and multilateral disbursement. Yet another

notable positive development has been the decline in inflation

to 6.1 percent during the July-August 2002-2003 as against

8.9 percent of the comparable period of last year.

The economic condition of Industry:

A chemical and paint industry can be a major force in the

development of a country. Through innovation and responsible

applications of its energies and skills it can make a positive

contribution to the industrialization, development and quality

of the life of the people itself. Government is not much

involved. Government is not giving much incentive to this

industry. The total share of paint industry is almost covered

by private sector. There are some big names like Berger, ICI

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etc., which are fulfilling the needs of the customers in the

market.

The condition of the company in the industry:

The ICI group is one of the world’s largest producers in the

specialist products and paints. ICI Pakistan, a leader in

industrial chemical and paints, manufacturing and sells

diversified ranges of products. ICI Pakistan limited

predecessors have been operating in the country well before

independence. Its first manufacturing plant for soda ash in

Khewra was established over fifty-two years ago .ICI, Pakistan

has for the first time in its history want to global

distinctions .ICI Pakistan for the year 1999, was awarded ICI

Pakistan chairman’s SHE Leader ship Award which is the

apex award in the company for performance in safety, health

and environment (SHE) management. It also wins the ICI

chief executive’s Leadership Award for SHE improvement for

1999.

Products:

Product types, varieties and brands

Kid zone is offering following products

Really cool

Dream world

Under water

Action adventure

Cricket crazy

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Space

Introduction of Kid Zone:

The launch of Dulux Kid zone in September 2002 was directed

to further consolidate the ICI dulux brand in Image as a

market leader and to an emotional bond with the consumer.

All over the higher sale, together with improved product the

margins driven by the appreciation of the rupee against the

US dollar and lower raw material prices, resulted in the

Business delivering and operating profit of rupees 297 .2

million which was higher than last year.

Dulux kid zone is a water-based emulsion with six individual

themes and special paint effects such as glow in the dark,

shimmer and florescent paints etc. For children‘s rooms

This launch was directed to further consolidate the ICI dulux

brand image as a market leader and to create an emotional

bond with the consumer, over and above the superior

Functional aspect of the dulux product range. An attractive an

innovative plastic bucket was introduced, which comes with a

double locking lid that has a unique “tear-off strip”. The

bucket not only offers better shelf appeal but also provides

long lasting rust prove packing . The business also launched

on site vendor manages inventory initiatives to further

improve working capital management.

The industrial segment delivered another year of robust

growth on the back of continued strength in car manufacture,

benefiting from the availability of lower cost financing to the

leasing industry.

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The profitability of the refinish segment, on the other hand,

suffered due to low customer traffic at car workshops, the

imposition of excise duty on imported finished paint and

intense competition, which constraint the Business ‘s ability to

increase prices

Really cool:

Create a stylish and bright look with really cool theme.

Dream world:

Create an enchanted room with dream world theme.

Dream world gives us a fabulous color of range

Fairy tale lime

Dreamy blue

Glitter paint

Princess pink

Daisy chain yellow

Luscious lilac

Under water:

Create a world under the sea with under water theme

Under water give us an interesting range of color as

Dolphin blue

Tropical water

Scuba blue

Sea bed yellow

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Exotic bay

Shimmer paint blue

Action Adventure:

Create fast moving excitement with our action adventure

theme.

Action adventure has following range of color

Sports car red

Camouflage Khaki

Water ski blue

Race track ray

Dynamite yellow

Commando green

Fluorescent paint green (optional)

Cricket crazy:

Create the thrill and passion of cricket with five colors to

choose from

It gives a fabulous range of colors

Willow Brown

Umpire Black

Pitch green

White Glow

Cricket Ball red

Space

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Create the wonder pf the galaxies beyond with space theme.

There are four colors and two themed stencils to choose from.

SWOT Analysis:

SWOT is short form of strengths, weaknesses, opportunities

and threats.

Strengths:

ICI is leading manufacturer of paints and industrial

chemical all over the world and in Pakistan as well.

The product of ICI are know best quality product in

paint industry.

The services ICI offers are the best quality like free

colors advisory service

In Pakistan the customer of ICI product show a

very healthy ratio in spite of high prices

The staff is highly trained.

ICI is also available on internet customers can find

out what they want, while sitting on their offices or

homes

ICI made this segment specially for Kids and they

position it as a fun loving product

Product Wise:

Kid zone is offering a number of themed paints

stickers, stencils and effects for use in kid’s rooms.

There are also innovative special effects paints

A good quality paints.

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And free of lead and mercury.

Available in a beautiful and attractive bucket

Customer service is also available by ICI Company

and they charge 2000 per room.

Kid zone paints are available in a beautiful bucket,

which is attractive as well as useful after the use.

We can use it for many purposes.

The paints of kid zone are very soft

The paints of kid zone are washable

The dealer’s chosen are one of the best dealers

available and people trust on them.

They have strong distribution channel in major

areas of Pakistan. Islamabad, Lahore and Karachi

are the main areas of distribution called as north

south and center.

Weaknesses:

The prices of the ICI products are too much higher

than its competitors.

This thing may not go in its favor and customer

may switch over to another brand.

The image of the brands of ICI is considered as the

very high class and it may be considered as a

barrier to convince of the customer from middle

class.

They are not promoting their kid zone segment

through electronic media

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Mostly people are unaware of this product due to

its promotional weaknesses

Product Wise:

A Prices a little bit high

Availability is limited

Limited Themes

Opportunities:

ICI has got a lot of resources and skills to expand

their target market.

They are planning to introduce new brands in the

market in the coming years with improved quality

ICI can grow rapidly in the area of wood paints

because at present a very small number of

manufacturers are working on this area.

Threats

The competitors of ICI are increasing day by

day. Although ICI captures a main portion of

market share but its main competitors like

Berger, Silver Sand and Masters Paints are

offering a competitive environment in the

market.

Government polices can be one of the hurdles in

achieving the high market share and high

growth rate

The political instability is always danger in the

growth and productivity of the company like ICI



The economic crisis in our country may also

affect the performance of the company.

Uncontrollable environment

Social and cultural factors;

Population is positively affecting ICI as it is

creating more and more customers for ICI

products. It will increase the sales of brands and

products resulting in more revenues

Education level is increasing day by day which is a

positive sign for more sales of ICI and creating

more and more customers with right sense to buy

the products

Through the change in the ideas, more women are

getting into the working field which is a good sign

of ICI because females can make their own choices

to decorate their places from millions of shades,

which ICI is offering.

Organizational Culture:

It is a system of shared meaning within an organization that

determines, in large degree how employees act.

Types of cultures:

1. Strong cultures



Strong cultures are those cultures in which the key values

are deeply held and widely shared. These types of cultures

have a greater influence on employees than do weak

cultures

2. Weak Cultures

In weak cultures the values and beliefs are not deeply shared

and they don’t t have a much influence on there employees.

The organizational performance is not high in these types of

organizations.

Strong culture of ICI Dulux:

ICI Dulux has very strong culture, because the employees

they’re held their values deeply and widely shares that value

with others. ICI have a strong back ground .It is a company

which is working in Pakistan since 1952, it has its own

identity and specific culture. It’s culture is very strong, its

employees are trained in a way that they can cooperate with

each other and share their values and knowledge.

Dimensions of organizational cultures

Organization cultures have seven dimensions

Outcome orientation

People orientation

Team orientation

Aggressiveness

Stability

Innovation and risk taking

Attention to detail



Dimensions of ICI Dulux culture:

It’s a degree to which the faculty is expected to exhibit

precision, analysis and attention to details.

ICI Dulux is the one of the biggest name in paint industry of

Pakistan.

ICI name is a symbol of reliability and quality. So when ever

the top managers of ICI have to take the decisions then they

prefer to know all its details. They want to know how that

specific decision will affect the organization. When ever they

finalize new project they first planned that who is going to

handle it, how much capital is required, how many labors are

sufficient and in which time frame it should be completed. All

these activities increase their efficiency and productivity.

Organization Structure:

In organization structure jobs are divided among the

employees. In it people worked in-groups and coordinate with

each other.

Dulux organizational structure

ICI is also an organization, which has large number of

employees. Here jobs tasks are also divided grouped and

coordinated. For example ICI Dulux has marketing

department, finance department, RND department etc .

Chain of command



It is the continuous line of authority that extends from upper

organization levels to the lowest levels and clarifies who

reports to whom.

In ICI chain of command start from broad of directors

Chairman

Chief Executive

Director

Non -executive director

After Board of directors there are sub committees

Audit sub committee

Senior Remuneration sub committee

After sub committees Chief Financial Officer, company

secretary and then Executive Management team comes.

Authority

The rights inherent in a managerial position to tell

people what to do and to expect them to do it.

In ICI every segment have it own head ,and he has the

authority to assign different duties to different employees.

Responsibility

The obligation to perform any assigned duties

In ICI Dulux everyone is expected to perform his duties well

on matters, whether he is any student or any resource

person .Everyone is responsible for his own deeds

Unity of command



A person should report to only one manger

In ICI there is no concept of unity of command. There are

many people in authority. A chairman never handle the minor

matters of the institute, he only deals the major issues.

Span of control

Number of employees that a manger can efficiently and

effectively manage

Span of control is very efficiently practiced in ICI dulux. It is

important to determine the span of control because its affect

the performance of an organization. In ICI dulux span of

control is varies from manager to manager .

Formalization

Degree to which jobs within the organization are

standardized

In ICI Dulux jobs are properly standardized every one knows

what is his responsibility and what he has to do. In ICI the

jobs are highly formalized employees doing job has a

minimum amount of discretion over what is to be done ,when

is to be done and how he is going to do it .ICI has a high

formalization there are explicit job description , numerous

rules and clearly defined procedures covering work

process .Where formalization is low job behavior are relatively

unstructured and employees have great deal of freedom to do

work in their proper way.



ICI Is Organic organization

Organic organization is the organization which has highly

adaptive and flexible structure and employees are highly

trained and empowered to handle diverse job activities.

ICI Dulux is organic organization it likes to change and adopt

new strategies .ICI is the company which wants change ,their

employees are always trying to do something good and

different .It is an organic organization from every aspect

Strategy and structure

Structure and strategy of an organization should be related to

each other. Structure of an organization should facilitate the

strategy of an organization.

Strategy and structure of ICI Dulux

ICI Dulux has different department in which jobs are assign

to different people

Basically strategy focuses on three things

Innovation

Cost minimization

Imitation

Innovation

Need the flexibility and the free flow of information of

the organic structure

As ICI Dulux is the organic organization so It also wants

innovation and changes .



Like ICI Dulux has introduced Kids Zone for children, so in

this way ICI is the first company in Pakistan which done

something unique for children .So this segment become

Competitive advantage for ICI Dulux because no other

company have such a segment .

Cost Minimization

Each and every firm wants to minimize it cost because that

this is t one of the effective way to increase the profit. ICI

also tries to reduce its cost ,its also not want to decrease

quality of its product.

Decentralization

The degree to which decisions are made by lower level

employees.

ICI Dulux has a trend of decentralization in which the lowest

level is providing more input or making decisions .In order to

make the Institute more flexible and responsive there’s been

distinct trend towards decentralization which has been deeply

appreciated.

Motivation

“The willingness to exert high levels of effort to reach

organizational goals, conditioned by the effort’s ability

to satisfy some individual need”

Motivation is very necessary element in the organization. So

its too necessary element in the organization. So its too

important for any organization, how to motivate its employees

to get maximum output from them.



Motivation is something which is come after the fulfillment of

the basic needs . An organization Can motivates its employees

after when it fulfills their basic needs like , health facilities ,

proper salary according to their work .

Economic Factors

As we are living in a developing country like Pakistan

here per capita income is very low so people cannot

afford products of high prices as paint is some sort of

luxury so most of the people can not afford it.

Due to political and economical instability, the country is

suffering in inflationary condition. This can affect the

sales of the products.

Competitive Factors

There are major competitors of ICI like Berger, and

Master paints, but the company is having edge

through its strong brands and products. At present

ICI is not suffering in any kind of swear

competition from its competitors

The changes by the competitors in Pakistan can

effect ICI if they provide options or colors more

than ICI is offering or better services than ICI

Now the launch of Kid zone is also a positive point

for the ICI because no other company in Pakistan is

offering paints specially for KID.



Legal and political Factors

ICI is adopting the concept of all consumerism since its

establishment in Pakistan and Pakistan and that is the

only reason that it is standing on the top of the market.

They know how to care and capture the customers and

how to retain them.

Every government tries to provide public the best >ICI

is getting benefits from this act, as it is more practice of

consumerism than its competitors.

In case of consumers protection legislation, it will have

no negative effect as ICI is environment friendly

organization and cares about the health of its customers.

Technological Factors

In paint industry, technology has been brought by ICI so

far. This is an extra edge of ICI other that best product

offering. Like kids zone it is a very interesting segment

of ICI for children, no other company have such a

segment.

The global technology can be a major threat for the

company like ICI if any large company brings new

technology than ICI in Pakistan.

Key companies:

Berger paint Pakistan limited

Berger paint Pakistan limited is offering its brand and

products in the paint industry of Pakistan since last 52 years.

The main brand, which is popular in customer in Berger

Robbialac. Its head office is in Karachi, which deals in all kind



of company’s activities. They have divided their business into

four divisions

o Decorative paints

o Industrial paints

o Automobile paints

o Protective paints

Master paint Industries (PVT.LIMITED)

Master Paint Industries (PVT) is now days considered as one

of the leading paint manufacturing companies in Pakistan. It

came into existence in 1975. Its Head office is in Lahore. The

most foremost objective of the company was to introduce

modern paint technology in Pakistan. Soon after its existence,

it acquired a very sound position by attaining good market

share and became one of the leading paint manufacturing

company in Pakistan in terms of quality. Master paint

industries is offering one brand master paints . In this they

are offering two options

o Master super gloss Enamel

o Master super Emulsion

o

Buxly paints Limited

Buxly paints limited develops, manufactures and markets

quality paints, pigments, vanishes and other related products

in Pakistan. During the second quarter of 2000, sales at buxly

paint limited totaled 80.66 million Pakistan rupees.

Future outlook of the company

Overall market realities indicate challenging for our company.

In particular, the strength of the Pakistani rupees against the



US dollar and environment of reducing import tariffs and

currency stability will continue to constraint profitability for

import substitution businesses such as ICI Pakistan. However

with the major expansion in polestar in place. and the success

full completion of Soda Ash product , company is strongly

positioned to face these challenging conditions and to deliver

improved profitability in 2004.

In the paints business, market activity over the near term

remains uncertain given the emerging war threat in the

Middle East.

Additionally, margins are likely to come under pressure in

view of rising titanium, solvent another raw material prices.

However, the Business will continue its strategy of driving

market share and managing its cost base to ensure profitable

growth

Sale volumes and trends:

Despite an uncertain political and economic climate in the

country in 2002, the business established new production and

sales records: production and sales volume at 15,789 K liters

and 15,612 k liters were both 9% higher than 2001

The market share of ICI

The market share of ICI in paints is 50% of the market.



Preference For specific and Benefits

Preference of the customer is quality product. They want best

for their children and mostly people are those who are not

price conscious.

Relationship of company with dealers:

ICI has very strong network of dealership all over the Pakistan

.The number of dealer is about 3000.In the case of Kid zone,

dealers are very happy with this product because they make

good money out of it, as the product is selling like hot cakes

and elite class also buying it happily for their children .The

major reason behind kid zone’s high sales is that they don’t

have nay competitors

Outcome Orientation: -

This is a stage where the organizers usually the

management people focus on the results they are

getting. They concentrate on out comes/results rather

then how they are being achieved.

Each and every organization whether it is non-profit

organization or profit organization always takes care of its

outcome. Every organization aims to get maximum output

through minimum input. ICI also wants to give maximum

output to their customer. ICI wants to achieve all its goals,

which it has made during the start of the year .ICI trains is

workers or employees in a way that they can handle all kind of



worst and uncertain situation and their efficiency can never

affect.

People Orientation: -

This is degree to which management decisions take into

the account the effect on people in the organization

Employees and workers are working in an organization are

very important for that organization. They are the assets of an

organization, so organization should take care of their needs

and wants. As far as ICI is concern it is an international

organization. It is working in Pakistan more than 50 years it

takes all the decisions after considering its affect on the

employees working in it. It gives a lot of facilities to its

employees.

Team Orientation:

Degree to which work is organized around teams rather

than individuals

Now a days team orientation is preferred by almost every

organization because its merge the qualities of many people

at one plate form .In ICI most of the work is done in teams.

Big projects are assigned to different teams. So in ICI almost

70% of the work is done in teams.

Aggressiveness: -

Degree to which employees are aggressive and

competitive rather than cooperative

Employees of ICI are not much aggressive they believe to

work with cooperation. They work in a friendly



environment, they believe on sharing their knowledge and

value .Big decisions ICI are take place on the basis of

betterment of that organization, it not follows other

organizations blindly.

Stability: -

Degree to which organizational decisions and actions

emphasize maintaining the status quo

ICI Dulux have very strong roots in Pakistan paint industry .It

is working in Pakistan for more than 50 years so now it is in

very stable position. Now it can handle uncertain condition

very easily.

Innovation & Risk Taking:

Degree to which employees are encouraged to be

innovative and take risks

ICI is the company who wants to take risk and like

innovation .Its big example is ICI Kids Zone which is

launched by the ICI Dulux in 2002.This is a segment

Specially made for the children .It is the first paint

company in Pakistan which introduces some special

segment for children .This was a very risking taking step

which ICI Dulux stood in 2002 but now Kids Zone become

it competitive advantage

Future outlook of the company

Overall market realities indicate challenging for our company.

In particular, the strength of the Pakistani rupees against the



US dollar and environment of reducing import tariffs and

currency stability will continue to constraint profitability for

import substitution businesses such as ICI Pakistan. However

with the major expansion in polestar in place. and the success

full completion of Soda Ash product , company is strongly

positioned to face these challenging conditions and to deliver

improved profitability in 2004.

In the paints business, market activity over the near term

remains uncertain given the emerging war threat in the

Middle East.

Additionally, margins are likely to come under pressure in

view of rising titanium, solvent another raw material prices.

However, the Business will continue its strategy of driving

market share and managing its cost base to ensure profitable

growth

Change Management

Three Basic Definitions

In thinking about what is meant by “change management,” at

least three basic definitions come to mind:

1. The task of managing change.

2. An area of professional practice.

3. A body of knowledge.



The Task of Managing Change

The first and most obvious definition of “change management”

is that the term refers to the task of managing change. The

obvious is not necessarily unambiguous. Managing change is

itself a term that has at least two meanings.

One meaning of “managing change” refers to the making of

changes in a planned and managed or systematic fashion. The

aim is to more effectively implement new methods and

systems in an ongoing organization. The changes to be

managed lie within and are controlled by the organization.

Perhaps the most familiar instance of this kind of change is

the change or version control aspect of information system

development projects. However, these internal changes might

have been triggered by events originating outside the

organization, in what is usually termed “the environment.”

Hence, the second meaning of managing change, namely, the

response to changes over which the organization exercises

little or no control (e.g., legislation, social and political

upheaval, the actions of competitors, shifting economic tides

and currents, and so on). Researchers and practitioners alike

typically distinguish between a knee-jerk or reactive response

and an anticipative or proactive response.

An Area of Professional Practice

The second definition of change management is "an area of

professional practice."



There are dozens, if not hundreds, of independent consultants

who will quickly and proudly proclaim that they are engaged

in planned change, that they are change agents, that they

manage change for their clients, and that their practices are

change management practices. There are numerous small

consulting firms whose principals would make these same

statements about their firms. And, of course, most of the

major management consulting firms have a change

management practice area.

Some of these change management experts claim to help

clients manage the changes they face – the changes

happening to them. Others claim to help clients make

changes. Still others offer to help by taking on the task of

managing changes that must be made. In almost all cases, the

process of change is treated separately from the specifics of

the situation. It is expertise in this task of managing the

general process of change that is laid claim to by professional

change agents.

A Body of Knowledge

Stemming from the view of change management as an area of

professional practice there arises yet a third definition of

change management: the content or subject matter of change

management. This consists chiefly of the models, methods and

techniques, tools, skills and other forms of knowledge that go

into making up any practice.

The content or subject matter of change management is

drawn from psychology, sociology, business administration,



economics, industrial engineering, systems engineering and

the study of human and organizational behavior. For many

practitioners, these component bodies of knowledge are

linked and integrated by a set of concepts and principles

known as General Systems Theory (GST). It is not clear

whether this area of professional practice should be termed a

profession, a discipline, an art, a set of techniques or a

technology. For now, suffice it to say that there is a large,

reasonably cohesive albeit somewhat eclectic body of

knowledge underlying the practice and on which most

practitioners would agree — even if their application of it does

exhibit a high degree of variance.

To recapitulate, there are at least three basic definitions of

change management:

1. The task of managing change (from a reactive or a

proactive posture)

2. An area of professional practice (with considerable

variation in competency and skill levels among

practitioners)

3. A body of knowledge (consisting of models, methods,

techniques, and other tools)

What's "Organizational Change?"

Typically, the concept of organizational change is in regard to

organization-wide change, as opposed to smaller changes

such as adding a new person, modifying a program, etc.

Examples of organization-wide change might include a change

in mission, restructuring operations (e.g., restructuring to



self-managed teams, layoffs, etc.), new technologies, mergers,

major collaborations, "rightsizing", new programs such as

Total Quality Management, re-engineering, etc. Some experts

refer to organizational transformation. Often this term

designates a fundamental and radical reorientation in the way

the organization operates.

How Organization-Wide Change Is Best Carried Out?

Successful change must involve top management, including

the board and chief executive. Usually there's a champion who

initially instigates the change by being visionary, persuasive

and consistent. A change agent role is usually responsible to

translate the vision to a realistic plan and carry out the plan.

Change is usually best carried out as a team-wide effort.

Communications about the change should be frequent and

with all organization members. To sustain change, the

structures of the organization itself should be modified,

including strategic plans, policies and procedures. This

change in the structures of the organization typically involves

an unfreezing, change and re-freezing process.

The best approached to address resistances is through

increased and sustained communications and education. For

example, the leader should meet with all managers and staff

to explain reasons for the change, how it generally will be

carried out and where others can go for additional

information. A plan should be developed and communicated.

Plans do change. That's fine, but communicate that the plan

has changed and why. Forums should be held for organization



members to express their ideas for the plan. They should be

able to express their concerns and frustrations as well.

Some General Guidelines to Organization-Wide Change

includes overviews of major methods and movements

associated with organizational change.

General guidelines listed above; there are a few other basic

guidelines to keep in mind.

1. Consider using a consultant. Ensure the consultant is highly

experienced in organization-wide change. Ask to see

references and check the references.

2. Widely communicate the potential need for change.

Communicate what you're doing about it. Communicate what

was done and how it worked out.

3. Get as much feedback as practical from employees,

including what they think are the problems and what should

be done to resolve them. If possible, work with a team of

employees to manage the change.

4. Don't get wrapped up in doing change for the sake of

change. Know why you're making the change. What goal(s) do

you hope to accomplish?

6. Plan the change. How do you plan to reach the goals, what

will you need to reach the goals, how long might it take and

how will you know when you've reached your goals or not?

Focus on the coordination of the departments/programs in



your organization, not on each part by itself. Have someone in

charge of the plan.

7. End up having every employee ultimately reporting to one

person, if possible, and they should know who that person is.

Job descriptions are often complained about, but they are

useful in specifying who reports to whom.

8. Delegate decisions to employees as much as possible. This

includes granting them the authority and responsibility to get

the job done. As much as possible, let them decide how to do

the project.

9. The process won't be an "aha!" It will take longer than you

think.

10. Keep perspective. Keep focused on meeting the needs of

your customer or clients.

11. Take care of yourself first. Organization-wide change can

be highly stressful.

12. Don't seek to control change, but rather to expect it,

understand it and manage it.

13. Include closure in the plan. Acknowledge and celebrate

your accomplishments.

14. Read some resources about organizational change,

including new forms and structures



Content and Process

Organizations are highly specialized systems and there are

many different schemes for grouping and classifying them.

Some are said to be in the retail business, others are in

manufacturing, and still others confine their activities to

distribution. Some are profit-oriented and some are not for

profit. Some are in the public sector and some are in the

private sector. Some are members of the financial services

industry, which encompasses banking, insurance, and

brokerage houses. Others belong to the automobile industry,

where they can be classified as original equipment

manufacturers (OEM) or after-market providers. Some belong

to the health care industry, as providers, as insureds, or as

insurers. Many are regulated, some are not. Some face stiff

competition, some do not. Some are foreign-owned and some

are foreign-based. Some are corporations, some are

partnerships, and some are sole proprietorships. Some are

publicly held and some are privately held. Some have been

around a long time and some are newcomers. Some have been

built up over the years while others have been pieced together

through mergers and acquisitions. No two are exactly alike.

The preceding paragraph points out that the problems found

in organizations, especially the change problems, have both a

content and a process dimension. It is one thing, for instance,

to introduce a new claims processing system in a functionally

organized health insurer. It is quite another to introduce a

similar system in a health insurer that is organized along

product lines and market segments. It is yet a different thing



altogether to introduce a system of equal size and significance

in an educational establishment that relies on a matrix

structure. The languages spoken differ. The values differ. The

cultures differ. And, at a detailed level, the problems differ.

However, the overall processes of change and change

management remain pretty much the same, and it is this

fundamental similarity of the change processes across

organizations, industries, and structures that makes change

management a task, a process, and an area of professional

practice.

The Change Process:

The Change Process as “Unfreezing, Changing and

Refreezing”

The process of change has been characterized as having three

basic stages: unfreezing, changing, and re-freezing. This view

draws heavily on Kurt Lewin’s adoption of the systems

concept of homeostasis or dynamic stability.

Unfreezing

What is useful about this framework is that it gives rise to

thinking about a staged approach to changing things. Looking

before you leap is usually sound practice.

Change

What is not useful about this framework is that it does not

allow for change efforts that begin with the organization in

extremis (i.e., already “unfrozen”), nor does it allow for



organizations faced with the prospect of having to “hang

loose” for extended periods of time (i.e., staying “unfrozen”).

Refreezing

In other words, the beginning and ending point of the

unfreeze-change-refreeze model is stability — which, for some

people and some organizations, is a luxury. For others,

internal stability spells disaster. A tortoise on the move can

overtake even the fastest hare if that hare stands still.



Managed Change TM begins with Identifying the Change.

Assist the organization to articulate the business case for



change in a manner that everyone will understand, fleshing

out the desired outcome of the change project, and

successfully accomplishing the significant events along the

way.

The next two steps in managing change are Planning and

Preparing the Change. Give sponsors, change agents and

target the understanding, skills, and assessment tools they

need to effectively implement change projects on time and

within budget. Focus on partnering with change agents and

change sponsors to impart the knowledge and garner the

support needed for success. LaMarsh and Associates, Inc.

provides change agents with the training and expertise they

need to engineer a successful change, and enables change

sponsors to learn time-efficient techniques to quickly

accomplish project goals. Potential resistance sources are

gathered and assessed in this step.

The work continues with Implementing the Change.

Developing a communication system ensures that each person

involved in the change understands each element from his or

her point of view. The learning system is designed to provide

the right training for the right people at the right time.

Rewards and reinforcements are set up to encourage behavior

toward the desired state and ensure alignment of

performance measurements with the desired state of the

change project.

Sustain the Change means that the close of the change

initiative includes identified metrics, assigned ownership, and



a procedure for monitoring and addressing slippage back to

the 'old' way.

ADKAR model for change management helps employees

understand where they are in the change process. It can

identify gaps in your change management process and to

provide effective coaching for your employees. The ADKAR

model can be used to

diagnose employee resistance to change

help employees transition through the change

process

create a successful action plan for personal and

professional advancement during change

develop a change management plan for your

employees

The ADKAR model has the ability to identify why changes are

not working and help you take the necessary steps to make

the change successful. Break down the change into parts,

understand where the change is failing and address that

impact point.

Below, change happens on two dimensions: the business

dimension (vertical axis) and the people dimension (horizontal

axis). Successful change happens when both dimensions of

change occur simultaneously.

Business dimension of change



The business dimension of change includes the typical project

elements.

Business need or opportunity is identified.

Project is defined (scope and objectives).

Business solution is designed (new processes,

systems and organizational structure).

New processes and systems are developed.

Solution is implemented into the organization.

People dimension of change

Effective management of the people dimension of change

requires managing five key phases that form the basis of the

ADKAR model:

Awareness of the need to change

Desire to participate and support the change

Knowledge of how to change (and what the change

looks like)

Ability to implement the change on a day-to-day

basis

Reinforcement to keep the change in place



Understanding Stage

The Management Improvement Model follows the philosophy

that you can't change what you don't understand. At this

Stage, an understanding of the current process is gained by

doing a thorough analysis. A characterization of the current

situation relative to a proposed improvement is proposed,

goals are set, and some initial planning is done.

Assessment Stage

The Assessment Stage begins by asking questions about the

goals to further describe the proposed change. A review of

similar organizations is done to see if the proposed change

has already been implemented elsewhere, and what lessons



were learned. Planning is completed and modifications to

implement the proposed change are made. Data is collected

on all experiences.

Implementation Stage

The Implementation Stage installs the new process and

monitors the effects relative to the old method. Necessary

training and adjustments are made. Data continues to be

collected on all experiences. If the new process proves to be

an improvement over the old one, a new baseline is

established for further changes. If the new method is

unsuccessful, the old method is reinstalled and this

experience is documented for future efforts

Change management

Here are the rules of change management. Managing

organizational change will be more successful if you apply

these simple principles. Change management entails

thoughtful planning and sensitive implementation, and above

all, consultation with, and involvement of, the people affected

by the changes. If you force change on people normally

problems arise. Change must be realistic, achievable and

measurable. These aspects are especially relevant to

managing personal change. Before starting organizational

change, ask yourself: What do we want to achieve with this

change, why, and how will we know that the change has been

achieved? Who is affected by this change, and how will they

react to it? How much of this change can we achieve



ourselves, and what parts of the change do we need help

with?

Check that people affected by the change agree with, or at

least understand, the need for change, and have a chance to

decide how the change will be managed, and to be involved in

the planning and implementation of the change. Use face-to-

face communications to handle sensitive aspects of

organizational change management. Encourage your

managers to communicate face-to-face with their people too if

they are helping you manage an organizational change. Email

and written notices are extremely weak at conveying and

developing understanding.

If you think that you need to make a change quickly, probe the

reasons - is the urgency real? Will the effects of agreeing a

more sensible time-frame really be more disastrous than

presiding over a disastrous change? Quick change prevents

proper consultation and involvement, which leads to

difficulties that take time to resolve.

For complex changes, refer to the process of project

management, and ensure that you augment this with

consultative communications to agree and gain support for

the reasons for the change. Involving and informing people

also creates opportunities for others to participate in planning

and implementing the changes, which lightens your burden,

spreads the organizational load, and creates a sense of

ownership and familiarity among the people affected.


http://www.businessballs.com/project.htm

http://www.businessballs.com/project.htm


For organizational change that entails new actions, objectives

and processes for a group or team of people, use workshops to

achieve understanding, involvement, plans, measurable aims,

actions and commitment. Encourage your management team

to use workshops with their people too.

Responsibility for managing change

The employee does not have a responsibility to manage

change - the employee's responsibility is no other than to do

their best, which is different for every person and depends on

a wide variety of factors (health, maturity, stability,

experience, personality, motivation, etc). Responsibility for

managing change is with management and executives of the

organization - they must manage the change in a way that

employees can cope with it. The manager has a responsibility

to facilitate and enable change, and all that is implied within

that statement, especially to understand the situation from an

objective standpoint (to 'step back', and be non-judgmental),

and then to help people understand reasons, aims, and ways

of responding positively according to employees' own

situations and capabilities. Increasingly the manager's role is

to interpret, communicate and enable - not to instruct and

impose, which nobody really responds to well.

Change must involve the people - change must not be

imposed upon the people

Be wary of expressions like 'mindset change', and 'changing

people's mindsets' or 'changing attitudes', because this


http://www.businessballs.com/workshops.htm


language often indicates a tendency towards imposed or

enforced change and it implies strongly that the organization

believes that its people currently have the 'wrong' mindset,

which is never, ever, the case. If people are not approaching

their tasks or the organization effectively, then the

organization has the wrong mindset, not the people. Change

such as new structures, policies, targets, acquisitions,

disposals, re-locations, etc., all create new systems and

environments, which need to be explained to people as early

as possible, so that people's involvement in validating and

refining the changes themselves can be obtained.

Whenever an organization imposes new things on people

there will be difficulties. Participation, involvement and open,

early, full communication are the important factors.

Workshops are very useful processes to develop collective

understanding, approaches, policies, methods, systems, ideas,

etc. See the section on workshops on the website.

Staff surveys are a helpful way to repair damage and mistrust

among staff - provided you allow people to complete them

anonymously, and provided you publish and act on the

findings.

Management training, empathy and facilitative capability are

priority areas - managers are crucial to the change process -

they must enable and facilitate, not merely convey and

implement policy from above, which does not work.


http://www.businessballs.com/workshops.htm


You cannot impose change - people and teams need to be

empowered to find their own solutions and responses, with

facilitation and support from managers, and tolerance and

compassion from the leaders and executives. Management

and leadership style and behavior is more important than

clever process and policy. Employees need to be able to trust

the organization.

The leader must agree and work with these ideas, or change

is likely to be very painful, and the best people will be lost in

the process.

Change Management:

It is process of effecting an alteration in one or more areas of

a business in a systematic to adopt it to external and internal

changes.

Whenever a changes in organization takes place it is always

from top to bottom. So change is top to bottom but some times

it could be bottom up. But it only depend on the condition.

We have selected “Human Resource Department” for bringing

the change. Trough over deep observation we come to the

point that the major problem in ICI is regarding motivation.

Followings are the changes which we want to bring.

Proper Rewards should be given:

Current Situation:

So for ICI is not giving any kind of bonuses and proper

rewards to its employees but according to expectancy theory



employees should be given rewards according to their

expectations.

Suggestion:

So we suggest that they should provide sufficient monetary

benefits along with other benefits so that employees can easily

meet their needs.

Job Rotation:

Current situation:

So for there is no system of job rotation prevailing in the ICI.

Every employee has to work on the designation he/she was

appointed on. Due to this the employees have to do same work

and some times they get bored, also it may reduce their

efficiency.

Suggestion:

Our suggestion is that they should rotate the job of the

employees with the passage of time due to which the

employees can gain more skills and in result they will perform

efficiently.

Recruitment:

Current Situation:

Generally when they hire employees they just take interviews

and appoint them without analyzing that which jobs is fit for

that person. They don’t care about his/her skills and interests.

Suggestion:



This is also not a good sign. This may lead to lack of efficiency

and effectiveness and in other ways to the lack of productivity.

So at the recruitment time they should place the employee

according to his/her skills not blindly. For this must follow Job

Fit Theory. In other words they should hire right person at the

right place.

Feed Back:

Current Situation:

In ICI, so for there is no proper method for giving feed back.

Feed back is very much important and it is very important

part of the culture and it will motivate employees a lot. And

this will ends in increase in employee productivity because

they are being involved.

Suggestion:

There should be some suggestion/complaint box provided for

the employees. There should be separate suggestion boxes for

the department head and the CEO as if the department head

don’t listen to their suggestions/complaints they can directly

contact to the CEO.

Bibliography

We have taken information from:

Assistant of Human Resource Manager.

www.ici.com.pk

Annual report of ICI Pakistan limited.

Kid Zone shade card & decorating Guide.

Change Management Sites on Net


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