CHANGE INITIATIVES AT ARL Asif Saeed Manager HR

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CHANGE INITIATIVES AT ARL Asif Saeed Manager (HR & A) Attock Refinery Limited

CHANGE INITIATIVES AT ARL Asif Saeed Manager (HR & A) Attock Refinery Limited

1. Introduction and Background of ARL 2. Organizational Change – General View S E

1. Introduction and Background of ARL 2. Organizational Change – General View S E S S I O N T R A I L E R 3. Why Change At ARL? 4. Our Philosophy 5. Stepping Stone- Psychological Contract 6. Beginning of Journey – Assessment 7. Development of Frameworks & Strategy for Organizational Change 8. Change Impact Analysis 9. Conclusion

INTRODUCTION AND BACKGROUND OF ARL 1

INTRODUCTION AND BACKGROUND OF ARL 1

A T T O C K G R O U P P R O

A T T O C K G R O U P P R O F I L E Attock Group of Companies, a fully integrated group covering all segments of oil and gas industry from exploration to production, and refining to marketing of a wide range of petroleum products in Pakistan. ARL is strategically located up-country in the north of Pakistan and caters to the petroleum products requirements in its region of location and beyond. • ATTOCK REFINERY LIMITED • NATIONAL REFINERY LIMITED • PAKISTAN OILFIELDS LIMITED • ATTOCK PETROLEUM LIMITED • ATTOCK CEMENT PAKISTAN LIMITED • ATTOCK GEN LIMITED • ATTOCK HOSPITAL (PVT. ) LIMITED • ATTOCK INFORMATION TECHNOLOGIES SERVICES (PVT. ) LIMITED

A T T O C K R E F I N E R Y

A T T O C K R E F I N E R Y L I M I T E D History • Since its commissioning in 1922, ARL has passed through various stages of transformation and stood the test of time through war and peace. • From batch distillation stills of 2, 500 barrels per day (BPD), today it has grown into a modern state-of-the-art refinery with a capacity of 43, 000 BPD. • It was subsequently converted into a Public Limited Company in June 1979 and is listed on the three Stock Exchanges of the country. • The company is also registered with the Central Depositary Company of Pakistan (CDC).

VISION 2020 A T T O C K R E F I N E

VISION 2020 A T T O C K R E F I N E R Y L I M I T E D To be a world class and leading organisation continuously providing high quality and environment friendly energy resources MISSION 2010 To be a model diversified energy resources and petrochemical organisation exceeding expectations of all stakeholders. We will achieve this by utilising best blend of state-of-the-art technologies, high performing people, excellent business processes and synergetic organisational culture

Our success will not be a matter of chance, but of commitment to the

Our success will not be a matter of chance, but of commitment to the following enduring beliefs and values that are engrained in the way we think and take actions to pursue a climate of excellence: A T T O C K R E F I N E R Y L I M I T E D Integrity & Ethics Integrity, honesty, high ethical, legal and safety standards are cornerstones of our business practices Quality We pursue quality as a way of life. It is an attitude that affects everything we do for relentless pursuit of excellence Social Responsibility We believe in respect for the community and preserving the environment for our future generations and keeping National interests paramount in all our actions. Learning & Innovation We embrace lifelong learning and innovation as an essential catalyst for our future success. We believe in continuous improvement and to seize opportunities inherent in change to shape the future Teamwork We believe that competent and satisfied people are the company’s heart, muscle and soul. We savour flashes of genius in organisation’s life by reinforcing attitude of teamwork and knowledge sharing based on mutual respect, trust and openness Empowerment We flourish under an ecosystem of shared understanding founded on the concept of empowerment, accountability and open communication in all directions

ORGANIZATIONAL CHANGE 2

ORGANIZATIONAL CHANGE 2

Individual Change Approaches Teams Organization • From a current state to a desired future

Individual Change Approaches Teams Organization • From a current state to a desired future state • Includes Both – organizational change management processes – Individual change management models

WHY CHANGE AT ARL? 3

WHY CHANGE AT ARL? 3

 • Being a winning organization over the years, we have pursuit of excellence

• Being a winning organization over the years, we have pursuit of excellence to make the organization more apt to face the emerging business, social, and environmental challenges in domestic as well as global arena. • ARL foresee challenges due to Deregulation Policy of Govt in 2002. • New refineries were to be commissioned in Pakistan during last decade. • Growth of Manufacturing sector in Middle East • ARL management vowed to transform its corporate culture from comfort zone to performance based organization. ?

OUR PHILOSOPHY 4

OUR PHILOSOPHY 4

 • Our philosophy is to own change as a way of life. •

• Our philosophy is to own change as a way of life. • Continuous improvement and to seize opportunities inherent to change the shape of future was the bottom-line of this process.

STEPPING STONE- PSYCHOLOGICAL CONTRACT 5

STEPPING STONE- PSYCHOLOGICAL CONTRACT 5

THINK !! Why employee make expectation? ? ? Why the management cares for them?

THINK !! Why employee make expectation? ? ? Why the management cares for them? ? ?

BEGINNING OF JOURNEY – ASSESSMENT 6

BEGINNING OF JOURNEY – ASSESSMENT 6

CLIMATE SURVEY – 2005 Key Dimensions – Teamwork – Job satisfaction – Trust –

CLIMATE SURVEY – 2005 Key Dimensions – Teamwork – Job satisfaction – Trust – Empowerment – Salary & Benefits – Training & Development – Vision, Mission & Values – Communication – Performance management – Work life balance and – Working conditions 5

CLIMATE SURVEY – 2005 • Methodology: – Development of Survey Questionnaire – Third Party

CLIMATE SURVEY – 2005 • Methodology: – Development of Survey Questionnaire – Third Party Survey – Survey from complete population (management staff) • Findings of Climate Survey – Consolidation through SPSS – Conduct of Mirror Session with all Departments – Consolidation of Departmental Recommendation – Presentation to Top Management • Identification of GAP/ Areas for Improvement 5

DEVELOPMENT OF FRAMEWORKS & STRATEGY FOR ORGANIZATIONAL CHANGE INITIATIVES 7

DEVELOPMENT OF FRAMEWORKS & STRATEGY FOR ORGANIZATIONAL CHANGE INITIATIVES 7

 • Development of Frameworks & Prioritizing the change initiatives a. Coordination /Interpersonal Framework

• Development of Frameworks & Prioritizing the change initiatives a. Coordination /Interpersonal Framework b. Policy Framework c. Monetary Framework d. Logistics / Working Conditions • Formation of Working Groups – Focus Groups -- Enhanced form of team – Values Embedding Team -- V-team – Limits of Authority Rationalization Team – Quality Circles – etc

a) COORDINATION /INTERPERSONAL FRAMEWORK • Promoting open communication • Embedding Core Values • Intra/

a) COORDINATION /INTERPERSONAL FRAMEWORK • Promoting open communication • Embedding Core Values • Intra/ Inter departmental meeting to improve communication • Career planning of staff featuring cross functional rotation • Formal Coaching and Counseling • Forming Help Desks (HR, Finance, IT & etc) • Performance Improvement Program (PIP) • Revamping of Grievance Handling Procedure • Inculcating learning culture – Learning Conferences – Research Publication in Hydrocarbon Asia on HCU Desalter Problem • Skill Devolvement Program – Indigenous development of Automatic distillation apparatus – In house development of Gas Chromatograph interface solution to avoid dependence on outdated hardware

b) POLICY FRAMEWORK • Transformation & communication of HR policies • Strengthening Performance Management

b) POLICY FRAMEWORK • Transformation & communication of HR policies • Strengthening Performance Management System – Revamp of Induction process – Training of appraisers – Effective target setting – Revamp of Appraisal procedures • Succession planning • Career planning and T&D synchronized • Structured rotation plan • Revamp of recruitment process (interviewing & assessment)

c) MONETARY FRAMEWORK • Revision of Employment terms and Conditions – Profit Sharing extended

c) MONETARY FRAMEWORK • Revision of Employment terms and Conditions – Profit Sharing extended to contractual staff (Bonus) – Medical and Insurance coverage to contractual staff – Provision of options: • Conveyance Allowance • Fuel Allowance • Revamping Outsourcing process • Adjustments in compensation practices

d) LOGISTICS / WORKING CONDITIONS • Automization – Upgradation of Plants control system from

d) LOGISTICS / WORKING CONDITIONS • Automization – Upgradation of Plants control system from pneumatic to State-of-the-Art DCS – ERP Applications – etc. • Alignment in Refinery Timing & Holidays • Improvement in Working Condition

CHANGE IMPACT ANALYSIS 8

CHANGE IMPACT ANALYSIS 8

BAROMETER FOR CHANGE INITIATIVES • Key Performance Indicators – – – – Turnover Behavioral

BAROMETER FOR CHANGE INITIATIVES • Key Performance Indicators – – – – Turnover Behavioral Safety Audit Training Hours Maximum Safe Hours Employee Grievances Received Recruitment Lead Team etc. • Informal Surveys • Exit Interviews

REMEMBER e w t u b , s i y d o b o

REMEMBER e w t u b , s i y d o b o n , t c e f r e We are not p. t s e b e h t e b o t g n i v i r t s e r a

THANKS

THANKS