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    National College of Business Administration & Economics: (Ncbae)

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    usman faisal
    This document discusses the merger between Mobilink and Warid mobile networks in Pakistan. It provides an overview of both companies and summarizes the 3-phase merger process. It then examines the impact on employees, sources of resistance to the change, and the role of management communication and employee involvement. Employees with lower levels of education showed more resistance due to less trust in management, a lack of information sharing during the change, and not being involved in planning the merger. Those with higher education were more accepting of the organizational change.

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    National College of Business Administration & Economics: (Ncbae)

    Uploaded by

    usman faisal
    264 views12 pages
    This document discusses the merger between Mobilink and Warid mobile networks in Pakistan. It provides an overview of both companies and summarizes the 3-phase merger process. It then examines the impact on employees, sources of resistance to the change, and the role of management communication and employee involvement. Employees with lower levels of education showed more resistance due to less trust in management, a lack of information sharing during the change, and not being involved in planning the merger. Those with higher education were more accepting of the organizational change.

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    Final Project

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    This document discusses the merger between Mobilink and Warid mobile networks in Pakistan. It provides an overview of both companies and summarizes the 3-phase merger process. It then examines the impact on employees, sources of resistance to the change, and the role of management communication and employee involvement. Employees with lower levels of education showed more resistance due to less trust in management, a lack of information sharing during the change, and not being involved in planning the merger. Those with higher education were more accepting of the organizational change.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    264 views12 pages

    National College of Business Administration & Economics: (Ncbae)

    Uploaded by

    usman faisal
    This document discusses the merger between Mobilink and Warid mobile networks in Pakistan. It provides an overview of both companies and summarizes the 3-phase merger process. It then examines the impact on employees, sources of resistance to the change, and the role of management communication and employee involvement. Employees with lower levels of education showed more resistance due to less trust in management, a lack of information sharing during the change, and not being involved in planning the merger. Those with higher education were more accepting of the organizational change.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    National College of Business Administration & Economics

    (NCBAE)

    Change Management Final Project

    SUBMITTED TO: • SIR BASIT AFZAL

    SUBMITTED BY: • MUHAMMAD USMAN (ID: 2183105)


    • ABBAS RAFI
    • TABINDA YOUSAF
    • TAIFOOR KHAN

    BILAWAL FEROZE
    Project on:
    Mobilink & Warid Merger
    -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.

    2|Page
    TABLE OF CONTENTS

    1. Introduction

    2. Mobilink / Warid Overview

    3. Change in Mobilink (Mobilink - Warid Merger)

    4. Impact on Employees

    5. What & How It Happened?

    6. Resistance by the employees:

    7. Employees Trust in Management

    8. Management Communication Strategy / Exchanging Information

    9. Employee Involvement in Change Process

    3|Page
    INTRODUCTION:
    The widespread acceptance of the notion of global economy has transformed the way
    the organizations are expected to be managed and sustain their competitiveness. This changing
    scenario is compelling the business organizations to find new horizons through collaborations,
    mergers and acquisitions. These types of organizational restructuring gaining popularity due to
    its potential of enhanced expertise, availability of adequate funds, larger market share etc.
    Although, different modes of restructuring are considered as inevitable elements of
    contemporary organizational development, however, the issue of organizational change and
    how employees perceive and react to this change has gained considerable attention.

    The Greek philosopher, Heraclitus has well said that change is the only constant thing in the life
    and this is evident as the change is being implemented in various organizations due to the
    prompt development all over the world. Change can either result from internal or external
    factors and could result in a complicated response from the employees, which can either be a
    support or resistance to change (Karamjeet et.al., 2012). Primarily, resistance to change is

    4|Page
    conceptualized as an emotional response by the employees who are actually or thought to be
    affected by that change. Employee resistance to change has appeared as one of the common
    dilemma faced by the executives and managers in organizations.

    In order to cope with dynamic business environment, Pakistani organizations are also
    undertaking multiple initiatives and some of them include mergers and acquisitions. Although, a
    number of initiatives have been undertaken in various sectors, however, this research has its
    setting in Telecommunication sector. Notably, the telecommunication sector of Pakistan is
    growing at faster speed and referred as core component of service sector within national
    economy (Economic Survey of Pakistan, 2015-16). The telecommunication sector is expanding
    its service offerings and revisiting their organizational structure through adopting new methods
    and new strategies. This report is aimed at analyzing organizational change phenomenon from
    employee’s perspective and primarily focusing on examining the extent to which employee’s
    academic qualification might determine employee’s resistance/acceptance to change.

    5|Page
    Mobilink Overview

    6|Page
    Warid Overview

    7|Page
    SITUATIONAL ANALYSIS

    Change in Mobilink (Mobilink - Warid Merger):


    Mobilink, a number one brand in telecom sector acquired Warid in recent times. This merger
    was carried out in 3 phases, following is the brief view of this merger:

    Phase 1

    • Mobilink acquired 100% shares of Warid.


    • Dhabi Group got 15% shares of Mobilink.
    • There was no cash transaction involved, just the shares were swapped
    • Till this phase was completed, both companies continued to work separately
    as they were.
    • During phase 1, planning and strategy for the merged company were devised.
    All parties were involved to lay down a plan on how to merge the companies.

    8|Page
    Phase 2

    • In phase two, after the completion of phase 1, Warid and Mobilink were
    merged into one company.
    • This took another six months to close and required regulatory approvals.
    • After this, there was one company as an outcome.
    • At this point, shifting of offices, consolidation of franchisees, retailers, and
    various organizational functions and employees were occurred.
    • This single merged company was to carry the name of Mobilink or adopt any
    new brand name.
    • This single company was to have single support operations, single sales and
    distribution network, one single PR agency and so on.

    Phase 3

    • After a lock-in period of 4 years, Dhabi Group could sell its 15% stakes at fair
    market value.
    • VimpelCom had first rights to these 15% shares, however, they could
    offer Dhabi Group to sell these shares to anyone else.

    9|Page
    Governance:

    • The Board of the merged company was composed of 7 directors of


    which 6 were nominated by VimpelCom; while Dhabi Group had a
    chance to appoint 1 director.
    • Resolutions of the Board, in general, was to be decided by majority
    vote, except for certain limited reserved matters.
    • Jeffrey Hedberg was to be the CEO of merged company.
    • Andrew Kemp was to be the CFO of merged company.

    ❖ Impact on Employees:

    It was clear that certain, but unknown, number of employees from both companies were to be
    removed from the merged company. Management said that employees, franchises, retailers
    and all other resources will be retained on need, performance, and skill-set basis.

    ❖ What & How It Happened?

    Any change in the structure of an organization often proves to be a bad omen for related
    entities, but corporate philosophies usually don’t have clauses that compensate for the affected
    of any significant change that may impact them in the long run. Mobilink-Warid merger has
    proved that any structural changes at top level impact the employees at a lower level and many
    other workers and entities that are indirectly related.

    Jazz has closed almost 300 Warid franchises as they were useless. Nearly 60 individuals were
    affiliated with one franchise and as a result of shut-down thousands became unemployed.

    10 | P a g e
    ❖ Resistance by the employees:

    The level of educational qualification demonstrates a vigorous part in developing employee’s


    attitude towards organizational change. It can also influence employees learning and can play a
    part towards the factors of resistance/acceptance to change.

    Resistance faced by this merger was majorly because of the following matters:

    • Employees Trust in Management.


    • Management Communication Strategy/ Information Exchange.
    • Involvement in Change Process.

    ❖ Employees Trust in Management:

    Employees trust in management plays a vital role in the process of change. If the employees
    cannot trust the management than organizational change process cannot be successfully
    implemented. Mostly Mobilink employees who had lower level of educational qualification
    (matriculation or intermediate) have shown resistance to change. And vice versa the employees
    with higher level of education (bachelor‘s and master‘s degree) had an acceptance attitude
    towards the organizational change.

    ❖ Management Communication Strategy / Exchanging Information:

    Communication /information exchange among employees and management has a distinct


    position in every workplace. In this scenario, lack of information exchange was one of the major
    reasons why employees resisted to this change as they were informed late and had no other
    option but to face this change. Majority of the employees with low level of educational
    qualification eventually showed resistance towards organizational change. On the other hand,

    11 | P a g e
    the employees with higher level of educational qualification have shown eagerness towards
    acceptance to organizational change.

    ❖ Employee Involvement in Change Process:

    Employee involvement has vigorous part in the process of organizational change. Employees
    that are not being considered to be the part of change process can resist towards change.
    Employees working in Warid were not involved in planning this merger which ultimately
    resulted in resistance by most of the employees as they had this fear of losing their jobs by the
    takeover of new management (which the actually did). The level of education has importance
    pertinent to employees’ attitude towards change. The study findings identify that majority of
    the employees with low level of educational qualification ultimately showed resistance towards
    this organizational change.

    -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.

    12 | P a g e

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