ORGANIZATION DEVELOPMENT & CHANGE MANAGEMENT OVEX TECHNOLOGIES

Group No. : 02

Group Members:
Maria Atiq Ayesha Manzoor 08-0140 07- 0382

Qurat-ul-Ain Ahmed 07-0384 Maida Masood Khadijah Sohail Hajra Zaheer Zunaira Tauqeer Section: BBA-A Date of Submission: 11th November, 2010 Submitted To: Mr. Raffat Iqbal 08-0275 08-0279 08-0313 08-0472

Organizational Development ACKNOWLEDGEMENTS

OVEXTECH

Firstly, we thank Almighty God without whose grace and blessings we are incapable of doing anything. Secondly, we are grateful to our course instructor, Mr Raffat Iqbal, for his constant guidance and support. With his teaching methods we were able to do our project effectively. Next, we are really thankful to Mr. Muhammad Umair who is the Selection and Recruitment Executive Human Capital Management at OVEX TECH in Lahore, Pakistan. The information he provided and the time he gave to us helped us in carrying along our project. He was very cooperative and supported us a great deal due to which we could complete our project on time.

Organizational Development EXECUTIVE SUMMARY

OVEXTECH

This report is about Ovex Tech (PVT) Limited, Pakistan. It is a BPO and IT solutions Provider Company -one stop software solutions for business needs- and is one of the best business solution providers in Pakistan. This report begins with an introduction of the company. The second part of report focuses on the standard five stages approach in organizational development, which are anticipating need for change, developing the practitioner-client relationship, the diagnostic phase, action plans, strategies and techniques and self renewal, monitor and stabilize. The report then discusses Ovexs Human Resource Departments hierarchy and tasks done by each department. It then highlights the focus of our project on two of the stages: the anticipated need for change in its recruitment and employee hiring processes as well as devising strategies that would bring the employees towards goal accomplishments. The report basically discusses the structural and behavioral change through which organization under went recently. However no technological need for change is anticipated yet because Ovex uses state-of-the-art technology and uses one of the best systems like CISCO. Finally Ovexs strategies are evaluated against the standard OD practices and recommendations are given in case of discrepancy.

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CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. COMPANY PROFILE ............................................................................................................................... 6 MISSION STATEMENT ........................................................................................................................... 6 SLOGAN ............................................................................................................................................. 6 PRODUCTS AND SERVICES .................................................................................................................... 7 MAJOR DEPARTMENTS OF OVEX: ......................................................................................................... 9 ORGANIZATIONAL STRUCTURE OF OVEX ............................................................................................ 10 STANDARD MODEL OF ORGANIZATION DEVELOPMENT PROCESS .................................................... 11 THE HR DEPARTMENT OF OVEX TECH ................................................................................................ 15

8.1 THE SELECTION AND RECRUITMENT DEPARTMENT ............................................................................. 15 8.2 THE EMPLOYEE RELATION DEPARTMENT ............................................................................................. 16 8.3 THE COMPENSATION AND BENFITS DEPARTMENT .............................................................................. 16 9. 10. 11. 12. STANDARD O.D PRACTICES ................................................................................................................. 17 NEED FOR CHANGE ANTICIPATED BY OVEX TECH LAHORE ............................................................ 18 PROBLEM WITH THE CONVENTIONAL HIRING PROCEDURE........................................................... 18 TWO STAGES OF THE OD PROCESS MODEL .................................................................................... 18

12.1 ANTICIPATE NEED FOR CHANGING HIRING CRITERIA .................................................................... 18 12.1.1 FEATURES OF THE CHANGED HIRING STRATEGY ......................................................................... 19 12.1.2 ANTICIPATED FURTHER IMPROVEMENTS FROM BEHAVIORAL POINT OF VIEW ......................... 19 13. ACTION PLANS, STRATEGIES & TECHNIQUES.............................................................................. 20

The NHT program:............................................................................................................................... 20 The WACTEO concept ......................................................................................................................... 20 People before paper concept: ............................................................................................................ 20 Other areas on which OVEX is focusing .................................................................................................. 21 14. STRENGTHS & DEFICIENCIES OF OVEX TECH .................................................................................. 22

STRENGTHS ............................................................................................................................................. 22 WEAKNESSES........................................................................................................................................... 22 ANALYSIS ..................................................................................................................................................... 23 4

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RECOMMENDATIONS ................................................................................................................................. 23 APPENDIX .................................................................................................................................................... 24

Organizational Development
1. COMPANY PROFILE

OVEXTECH

OVEX Technology is a subsidiary of En Pointe Technologies. It is a Business Process Outsourcing (BPO) Provider in Pakistan (parent company in US) and has operations in many other countries around the globe. It is dedicated to projects commissioned by premier BPO. Its clientele ranges from Fortune 500 to dynamic medium-sized businesses which are located primarily in the United States. Currently the company has over 850 employees with major operations in Pakistan. In Pakistan, it is one of the leading BPO and IT service providers. BPO includes contact centers, IT outsourcing, accounting outsourcing, data management, medical billing and transcription. IT solutions include infrastructure solutions, data centre solutions, and software solutions. Ovex Pakistan adheres to strict international standards in their service, quality and reliability; it remains open 24/7 because the company understands the emerging technological needs of any organization, whether it is global or local. Today, Ovex stands as the largest third party off shore and second largest exporter of IT services in Pakistan. The company adheres strictly to ethical codes of conduct.

1. MISSION STATEMENT
To become one of the regions leading company in providing business process and IT solutions

2. SLOGAN
THINK.INNOVATE.GROW

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OVEXTECH

3. PRODUCTS AND SERVICES

There is a diverse range of products and services which Ovex provides to its customers. However, a broad category is as follows:

Contact Centers: Ovex has extensive experience in hosting and managing both domestic and international outsourced Contact Centers. Ovex is delivering its services to a number of clients from various business verticals.

Accounting Outsourcing: Ovex provides accounting outsourcing which includes a full range of services including the core processes, management information systems and compliance.

IT Outsourcing: IT outsourcing is to cater with technology needs in an entirely hassle free manner. Ovex provides a single point of desk to the companies for their customers, the remote desktop management allows the customers to maintain and protect their companys IT infrastructure, and there are other services like Blackberry support functions which provides a comprehensive support to users and systems.

HR Outsourcing:

The benefits of outsourcing include the advantages of reduced costs and increased efficiency, as well as the ability to predict business results and support strategic planning.
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Data Management:

OVEXTECH

The Data Management solutions allow customers to enhance data quality for effective mining, enable increased tracking and reporting capabilities and improve data integrity and oversight for their business. Medical Billing and Coding: Ovexs state of the art Revenue Cycle Management Solutions are designed to meet all present standards of insurance and patient billing needs. Flexibility of the service offerings allow customers to personalize them based on the needs of their specialty and size of their business from individual and small practices to large group of physicians. Content Development: The content development services include website content development, marketing content development, and contents for virtual marketing, E-learning, and multimedia content development. Infrastructure Solutions: Ovex offers a comprehensive infrastructure solution that makes optimized information sharing and utilization possible. Data Centre Solutions: Ovex fully integrates Power, Cooling, Rack, Management, Security and Services.
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Software Solutions:

OVEXTECH

Ovex Technologies offers a myriad of software solutions to help increase productivity and boost operational efficiency.

4. MAJOR DEPARTMENTS OF OVEX:

MARKETING

FINANCE

OPERATONS

HUMAN RESOURCE

ACCOUNTING

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OVEXTECH

5. ORGANIZATIONAL STRUCTURE OF OVEX

CEO Faisal Khan

CFO Asad Abbas

Head of Contact Centres Usman Naeem

Head of Information Technology Shiraz Mahmud

Head of Business Development Maaz Zahid

Head of Facilities Zubair Tanwir

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OVEXTECH

6. STANDARD MODEL OF ORGANIZATION DEVELOPMENT PROCESS

Organization development is a continuing process of long term organizational improvement consisting of a series of stages. In an OD program, the emphasis is placed on a combination of individual, team, and organizational relationships.

Stage 1: Anticipate Need for Change Stage 5: SelfRenewal, Monitor & Stabilize Stage 2: Develop the PractitionerClient Relationship

Stage 4: Action Plans, Strategies & Techniques

Stage 3: The Diagnostic Phase

Figure 1: Organization Developments Five Stages

The primary difference between OD and other behavioral science techniques is the emphasis upon viewing the organization as a total system of interacting and interrelated elements. Organization development is the application of an organizationwide approach to the functional, structural, technical and personal relationships in organizations. OD programs are based upon a systematic analysis of problems and a top management actively committed to the change effort. The purpose of such a program is to increase organizational effectiveness by the application of OD values & techniques.
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OVEXTECH

In this report, a five-stage model of the total organization development process is presented. Each stage is dependent on the preceding one, and successful change is more probable when each of these stages is considered in a logical sequence.

Stage One: Anticipate Need for Change

Before a program of change can be implemented, the organization must anticipate the need for change. The first step is the managers perception that the organization is somehow in a state of disequilibrium or needs improvement. The state of disequilibrium may result from growth or decline or from competitive, technological, legal, or social changes in the external environment. There must be a felt need, because only felt needs convince individuals to adopt new ways. Managers must be sensitive to changes in the competitive environment, to whats going on out there.

Stage Two: Develop the Practitioner-Client Relationship

After an organization recognizes a need for change and an OD practitioner enters the system, a relationship begins to develop between the practitioner and the client system. The client is the person or organization that is being assisted. The development of this relationship is an important determinant of the probable success or failure of an OD program. As with many interpersonal relationships, the exchange of expectations and obligations depends to a great degree upon a good first impression or match between the practitioner and the client system. The practitioner attempts to establish a pattern of open communication, a relationship of trust, and an atmosphere of shared responsibility. Issues dealing with responsibility, rewards, and objectives must be clarified, defined, or worked through at this point. The practitioner must decide when to enter the system and what his or her role should be. For instance, the practitioner may intervene with the sanction and approval of top

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management and either with or without the sanction and support of members in the lower levels of the organization.

Stage three: The Diagnostic Phase

Organizational diagnosis has two major purposes. The first purpose is to practically identify future changes that are needed to help an organization meet its strategic goals. Its second purpose is to identify past or current organizational problems that inhibit the diagnostic framework for conducting such an analysis. To achieve the first purpose, consultants and OD practitioners need to apply analysis method for organizational diagnosis. Need analysis consists of figuring out the type of skills or competencies that employees must possess for the organization to accomplish its goals. Surveys, interviews, training programs and management development can be frequently used for this purpose. The other aspect of organizational diagnosis is identifying past or current problems that inhibit organizational success. Organization problems can be traced from different organizational areas. Organization members, often in collaboration with an OD practitioner, jointly discuss the data and their implications for change.

Stage Four: Action Plans, Strategies & Techniques

The diagnostic phase leads to a series of activities, interventions or programs to resolve the problem and increase organizational effectiveness. The strategies applied for implementing OD can be chosen based on the nature of the problem. Usually, two dominant strategies are widely used either separately or together to implement the OD program. These are the human process approach and the techno structural approach. The human process approach focuses on identifying and correcting problems within interpersonal, group and inter group processes.
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The techno structural approach assumes that organizational problems revolve around issues associated with the match between technology and organizational structure. Common interventions of the techno structural approach involve work restructuring, compensation systems, structural change, and implementing new information technology.

Stage Five: Self-Renewal, Monitor & Stabilize

Organizational renewal is the process of building innovation and adaptation style into an organization. If a company has to survive in a competitive marketplace, it must continuously adapt with the environment. Without renewal, management cannot maintain quality. Through a renewal process, managers can adapt their problem solving style and goals to suit the changing demands of the environment of an organization. Therefore, one aim of OD is to improve an organization's self renewal process so that managers can more quickly adopt a management style that will be appropriate for the new problems they face.

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7. THE HR DEPARTMENT OF OVEX TECH

The HR department is divided into three sub departments:

HUMAN RESOURCE DEPARTMENT

Selection and Recruitment (SR)

Employee relation (ER)

Compensatio n and benefits (CB)

8.1 THE SELECTION AND RECRUITMENT DEPARTMENT

Their work includes: Screening interviews
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Organizational Development
Orientations Professional development and training of employees Induction of a person till probation is SRs responsibility

OVEXTECH

8.2 THE EMPLOYEE RELATION DEPARTMENT

The work of this department includes: Problems which employee is facing, whether salary related or behavior of coworkers etc. Taking care of employees. Taking corrective action regarding any kind of employee grievances. This department also takes care of the contracts till the employee gets permanent.

8.3 THE COMPENSATION AND BENFITS DEPARTMENT

This department takes care of Salary Employee benefits such as health insurance Compensation in case of permanent employee gets hospitalized or other medical facilities Processing of payroll

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8. STANDARD O.D PRACTICES

OD intervention is a set of planned activities intended to help an organization improve its performance and effectiveness. Effective interventions are designed to fit the needs of the organization, are based on causal knowledge of intended outcomes, and transfer competence to manage change to organizational members. Intervention design involves understanding situational contingencies. Four key organizational factors are: Readiness for change Capability to change Cultural context Capabilities of change agent

Whenever change is implemented within an organization resistance to change occurs naturally, the change also affects the culture and existing norms of organization when Ovex anticipated need for change it took time and efforts to break the conventional procedure, however in Ovex decisions are centralized, top management has the authority to implement its own decisions.

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9. NEED FOR CHANGE ANTICIPATED BY OVEX TECH LAHORE OVEX TECH encountered with the problem of very non-specific hiring procedures and policies and the company used to rely on judgments and conventional procedure of collecting resumes, CVs and conducting interview with the candidate and hire the person they find is appropriate for a particular job or task. 10. PROBLEM WITH THE CONVENTIONAL HIRING PROCEDURE The problem with this procedure was that each interviewer judges the candidate based on his own assumptions, dimensions and evaluated according to his point of view, which could be different from others. For example, saying that a particular candidate is lacking good communication skills is a vague term which needs further elaboration and some standard criteria which could define the dimension of good communication for an OVEX TECH employee. So the evaluation terms such as poor or good communication skills, low or high stress level have no quantitative numbers attached to them, so at times there arises conflict among the interviewers because in OVEX, a candidate is interviewed by at least two or three higher authority members such as HR Manager, Selection and Recruitment executive etc.

11.

TWO STAGES OF THE OD PROCESS MODEL

12.1 ANTICIPATE NEED FOR CHANGING HIRING CRITERIA

OVEX TECH PAKISTAN anticipated need for changing their hiring policies and therefore very recently they came up with a solution of implementing a standardized hiring procedure. It took a month to implement and execute the new changed strategy.
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12.1.1 FEATURES OF THE CHANGED HIRING STRATEGY

Previously only interviews were being conducted for hiring a candidate but now OVEX TECH is conducting Screening tests IQ tests Analytical tests Logical reasoning tests Stress Management tests Body language analysis ,behavioral analysis Competency based recruitment is also being done , and those are further Recategorized

This is a standardized procedure for evaluations; also numerals are assigned from 1 till 5, where 1 means the worst and 5 means The best. These tests are conducted on line, since OVEX has the state-of-the-art technological systems, so 80% of the process is done virtually which was previously being done solely on judgmental basis

12.1.2 ANTICIPATED FURTHER IMPROVEMENTS FROM BEHAVIORAL POINT OF VIEW

Hiring criteria was a point of concern for OVEX. The company also started focusing more on goal setting and their achievement. So for this they have defined three categories of goalsetting: 1. Goals should be in accordance with vision, mission and values
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Organizational Development
2. Time frame to achieve targeted goals 3. Pre-check

OVEXTECH

12.

ACTION PLANS, STRATEGIES & TECHNIQUES

OVEX TECH is striving from better to best to being excellent on a continuous basis, and has recently introduced two concepts: 1. NHT ( New Hire training) 2. WACTEO ( We Are Customer To Each other ) 3. People before paper concept

The NHT program:

In this program internal OD practitioner who is basically part of HR team of OVEX TECH gives the new employee three day training and explains the following things: The organizational culture and get the employee acquainted with the team and top management How to be a socialized person How to develop confidence in social or professional life Punctuality

The WACTEO concept

This concept focuses on the premise that every OVEX employee is customer to each other, which means that employees should treat each other in the same humble manner just like they treat their customers.

People before paper concept:

OVEX Company explains this concept with a simple example. Suppose an employee enters in the OVEX office and says hello to the other person who is busy doing some work on paper and therefore doesnt raise his head up and say hi by not
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even looking at the incoming person. Here comes the concept of people before paper that employees are supposed to greet each other with a proper eye contact. Other wise it is considered that employees are treating each other like an un-noticed piece of paper.

Other areas on which OVEX is focusing

With the help of internal OD practitioners OVEX has recently put more emphasis on: Leadership They lead their employees by co operating with them and listening to their problems they have. Proper coaching They conduct proper coaching and training sessions for the newly hired employees. They also conduct different seminars for the training of the employees. Developing soft skills They teach their employees to deal softly with everyone within the company and outside the company. The candidates are taught to control emotional leakage i-e if someone has a rough day at work, it should not disturb his/her personal life and vice versa. Code of ethics No referral candidates are appointed without due process; no personal phone calls are entertained, strict adherence to ethical standards within in the organization. Integrity, punctuality is one of the basic premises of the organization. Strong conformation towards vision, mission, values and integrity and punctuality Lower communication barrier:
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for complaint but along with solution.

OVEXTECH

In Ovex the communication barrier is too low, even a low grade employee can go to CEO

These are the behavioral dimensions on which the company is emphasizing

13.

STRENGTHS & DEFICIENCIES OF OVEX TECH

STRENGTHS
Large scale of operations Clients include renowned organizations (Fortune 500) and other dynamic mediumsized businesses Leader in BPO and IT service industry International standards in terms of service, quality and reliability Stands as the largest third party off shore and second largest exporter of IT services in Pakistan

WEAKNESSES
Non-specific hiring procedures and policies

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ANALYSIS
Analyzing the changed procedures adapted by Ovex Tech and comparing them with the standards has revealed that although there is a little discrepancy with the standard techniques, however there is always a room for improvement. There are people who do not perform well all of a sudden for the tests and interview at the same time. Some people are competent but they lack communication skills, therefore they would be screened out at the interview while there are other people who are good at communication but are not as good at written skills, so they might be screened at the written test. However, both the candidates might have the potential to change with the passage of time and do great job for the company. OD does not promote rigidness, but the company has worked on both the extremes. Firstly, they were totally away from any proper technique for hiring the candidates but now they are using all strategies such as written tests, interviews, stress management etc. to check the competency of the candidate.

RECOMMENDATIONS
The following recommendations are provided to OVEX TECH on behalf of our report: 1. Adopt a flexible hiring strategy by adopting on the job scenarios in the process of hiring. By using this method, they can test various other skills and hidden capabilities of the candidates instead of seeing only the obvious ones which may not meet expectations. 2. Training of the selected employees can be conducted while on job to improve their communication, interpersonal and various other skills. Most of polishing and learning of skills comes through experience.
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APPENDIX
Questions asked to Muhammad Umair (Selection and Recruitment Executive, OVEXTECH Pakistan) Did you ever anticipate any structural, behavioral or technological change in your organization? What was the change? What problems you faced before introducing a change? What problems you encountered in implementation of change program? What limitations you faced in relation with change program implementation? How you have coped with resistance to change? What improvements you noticed after implementation of changed program? How much time did it take to implement the change? How much cost you incurred in introducing change? Who played the major role for initiating change program? What kind of organization hierarchy you have? Is decision making centralized or decentralized in your organization? Is there a communication gap among your organizations departments? If it is then to what extent?

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REFERENCES
Mr. Muhammad Umair Selection & Recruitment Executive Human Capital Management, OVEX TECH, Lahore http://www.ovextech.com/ www.wikipedia.com

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