Maintain change in human resources management of Tetra Pak Company

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY -DOAN QUYNH HOA MAINTAIN CHANGE IN HUMAN RESOURCES MANAGEMENT OF TETRA PAK COMPANY MAJOR: BUSINESS ADMINISTRATION EXECUTIVE MASTER OF BUSINESS ADMINISTRATION CODE: 8340101 DISSERTATION OF MASTER OF BUSINESS ADMINISTRATION Moderator: Prof., Dr Nguyen Dong Phong Ho Chi Minh City, 2019 DECLARATION It is to declare that this is my own original work and has not been presented for a degree in any other universities Signature ………………… Date ………………………… ACKNOWLEDGEMENTS First of all, I would like to express my big thanks to my beloved co-workers at Tetra Pak for spending your valued time in participating in my survey and interviews and for giving me your feedbacks and ideas of my study My sincere thanks also go to management team of Tetra Pak, who does their best to grant a professional and world class working environment, especially their granting progressive learning opportunities to their co-workers Above all, my big thanks to Prof Dr Nguyen Dong Phuong and Dr Tu Van Binh, who supported me with guidance and sharing their expertised inputs to make this study successfully Last but not least, I want to send my heartfelt thanks to classmates of EMBA4 and my loved ones in family, who stand by me during whole course and support me during busy time of preparing dissertation Once again, my big thanks to all of you! TABLE OF CONTENT Sub-cover Declaration Acknowledgement Table of content Abbreviation List of tables List of figures Abstract Forewords Chapter I Introduction …………………………………………………………… 1.1 Chapter introduction………………………………………………………1 1.2 Background of the study………………………………………………… 1.3 Methodology………………………………………………………………6 1.4 Research questions……………………………………………………… 1.5 General objective………………………………………………………….7 1.6 Tetra Pak………………………………………………………………… 1.7 Problem statement……………………………………………………… 10 Chapter II Literature review…………………………………………………………16 2.1 Chapter introduction…………………………………………………… 16 2.2 Theoretical framework………………………………………………… 16 2.2.1 Change……………………………………………………………………16 2.2.2 Change management…………………………………………………… 17 2.2.3 Transformational leadership…………………………………………… 19 2.2.4 John Kotter change model……………………………………………… 21 2.2.5 ADKAR model………………………………………………………… 24 2.2.6 Transition of Human Resource Management……………………………25 2.2.7 How to make change repeatedly and reliably in people management… 27 Chapter III Research methodology………………………………………………….29 3.1 Chapter introduction…………………………………………………… 29 3.2 Research design………………………………………………………… 29 3.3 Population……………………………………………………………… 29 3.4 Data collection……………………………………………………………29 3.5 Data analysis………………………………………………………………30 Chapter IV Result and finding…………………………………………………………32 4.1 Chapter introduction…………………………………………………… 32 4.2 Respond rate…………………………………………………………… 32 4.3 Demographic characteristics…………………………………………… 32 4.4 Employees’ perceptions on change in human resource management… 36 4.5 Part A: Change understanding………………………………………… 38 4.6 Part B: Expectations…………………………………………………… 57 4.7 Part C: Leading change………………………………………………… 60 4.8 Part D: Transition period…………………………………………………62 4.9 Solutions and recommendations for maintain change in HRM …………68 Chapter V Research summary discussion and conclusion……………………………71 5.1 Chapter introduction…………………………………………………… 71 5.2 Research objective achieved………………………………………………71 5.2.1 HRM change………………………………………………………………71 5.2.2 Reasons for change……………………………………………………… 71 5.2.3 Success factors for change……………………………………………… 72 5.2.4 Expectations of staff and managers……………………………………….73 5.2.5 Leadership during change in people management……………………… 74 5.2.6 Challenges during transition………………………………………………75 5.2.7 Effectiveness of change in people management………………………… 76 Chapter VI Recommendation…………………………………………………………77 6.1 Chapter introduction…………………………………………………… 77 6.2 Leadership……………………………………………………………… 77 6.3 Employee engagement and communication…………………………… 82 6.4 Project management……………………………………………………….83 6.5 Make change repeated and reliable, a fundament of sustainability………83 Reference………………………………………………………………… Annex…………………………………………………………………… Questionnaire…………………………………………………………… Letter to respondent…………………………………………………… ABBREVIATION HRM - Human resources management HRMS – Human resources management system HRBP – Human resources business partner WCM – World class manufacturing CM – Change management ESS – Employee self-service MNC – Multinational companies GM – General Manager LM – Line manager BOM – Board of management HRCS – Human resources core services Definitions - WCM: In https://www.managementstudyguide.com stated: World class manufacturing is a collection of concepts, which set standard for production and manufacturing for another organization to follow Japanese manufacturing is credited with pioneer in concept of world-class manufacturing World class manufacturing was introduced in the automobile, electronic and steel industry For further information, please find in below link: World Class Manufacturing - Meaning and its Principles - Buddy: In Tetra Pak a buddy has a key role in on boarding the new employee They make the new hire feel welcome, they connect them with new colleagues and they are mainly the one point of contact to understand how things are done here It is someone based in the same location as the new hire and can introduce them to the site and facilities Most importantly, it is someone who lives the Tetra Pak values and culture LIST OF TABLE No Name of table Page Table A: Summary of SWOT analysis pertaining HRSC in Tetra Pak…………… 12 Table 3.0: Sample size………………………………………………………………29 Table 3.1: The summary of data collection and analysis………………………… 31 Table 4.0: Respond rate…………………………………………………………… 32 Table 4.1: Breakdown of awareness of employees about functions and responsibilities of HR Department………………………………………………… 38 Table 4.2: Breakdown satisfaction of employees about recent change in HRM systems in company…………………………………………………………………40 Table 4.3: Success evaluation of HRM strategy execution at department level…….41 Table 4.4: Understanding reasons for HRM change……………………………… 43 Table 4.5: Clear reasons communication……………………………………………45 10 Table 4.6: Success factors for change……………………………………………….46 11 Table 4.7: Change success factors done in company……………………………… 49 12 Table 4.8: Satisfaction rate about change management skills of superior ………….51 13 Table 4.9: Critical HR functions for organizational change……………………… 53 14 Table 4.10: People management skills of superior…………………………………55 15 Table 4.11: Expectations to change management in people management………… 57 16 Table 4.12: Employee’s satisfaction during change…………………………………59 17 Table 4.13: Critical activities from top management required during leading change……………………………………………………………………………… 60 18 Table 4.14: Awareness and knowledge about change execution…………… … 62 19 Table 4.15: Feeling of employees during transition period………………… ….63 20 Table 4.16: Success factors for transition period…………………………… ….65 21 Table 4.17: Effectiveness of change in HRM……………………………… … 67 84 still rely on the administrative model and expected that HR department will handle their HR jobs Throughout the research, the author recommends that in order to anchor change in daily business and company culture the communication need to be spread out before change, during change to ensure the awareness of team members Communication might be from top management to teams, from global managers to local teams, from local managers to key players, departments’ managers to their subordinates or even from team members to team members Change management skills are required and need to be trained to change management team to handle change in a proper manner Succession planning is crucial to ensure there always is successors for any change in people as during change either internal transfer required or turn over might involve, as change may be required by changing people Depends on the result and if first steps of change achieved, celebrate short term win and think about applying new approaches as people will be convinced that new approaches work and step by step link those results with company’s culture Collaboration of HR team is at top As in a fast pace working environment like Tetra Pak, team work is required to deal with transition progress Each members of HR team can use their expertise advantage to deliver correct and right message related to change in people management and meet increasing demanding from internal and external customers Enhancing leadership skills is important but empowering employees is also critical, especially during change This facilitating factor requires a flat organization, more decisive from management team The top management should focus on leadership skills and empower managerial responsibilities for change to their subordinates REFERENCE Carol Anderson (2017) Steps to move from administrative to strategic HR Magazine published by Cornerstone Collins Cobuild (2019) Change management definition Collins English Dictionary HarperCollins Publishers De Jager, P (2001) Resistance to change: A new view of an old problem The Futurist, 53(3) Dr Linda Ackermann Anderson (2018) Reasons why Organizational change fails Beyond the change management Human Resource Management in US: The Growth in Important of the International Perspective The Journal of Management Review Vol 16 Idea (2016) Human Resource Transformation Journal of The Economist Jeff Hiatt (2016) ADKAR, the model for change in business, government and our community John Kotter (1996) Organizational change Leading Change (19) John Kotter (2012) The change problem and its solutions Leading Change (1617) John Kotter (2012) Management versus leadership Leading Change (28-29) Kotter International (2019) The step process for leading change Randal S Schuler and Susan E Jackson (2005) A Quarter Century Review of Robert Hall (2019) Change Management and Modern Business www.marval.co.uk Tetra Pak Global HR Department (2016) People Process Internal Document Tetra Pak Global Communication Department (2017) Global Business Strategy Internal Document Willis Tower Watson (2017) Report on 2016 Global Workforce Study ANNEX Questionnaire Author quoted: The following questionnaire was designed to answer the below mentioned research questions RESEARCH QUESTIONS What did employees understand about change and change management in people management in their departments and within organisation? What and how were employees experiences with change and change management in people management in their departments and within organisation? What did employees understand about their roles in change and change management in general and in human resource management particularly? What did employees understand about roles of managers, management board in change and change management, both in general aspect and in human resource management? What and how did employees to contribute to change and change management? What are the most success factors for an organisation initiative change and manage change successfully, especially in people management? 88 QUESTIONNAIRE PART A: CHANGE UNDERSTANDING Question 1: How you understand about functions and responsibilities of Human Resource department in company? Please mark in the appropriate box Right Don’t know Wrong HR Department manages people by policies ☐ ☐ ☐ HR Department is responsible for proactively deploying Global HR strategy through direction for employee to implement their tasks to reach company's strategy ☐ ☐ ☐ HR Department is responsible for solving problems related to people through expertise of its staff ☐ ☐ ☐ Respective line manager is the person in charge of solving problems related to people with expertise support from HR Department ☐ ☐ ☐ HRM is the person in charge of managing all function of HR Department ☐ ☐ ☐ HRM is the strategic partner of other cross function department and support, advise other departments all aspects related to people and acts as coordinator to ensure service quality of other functions of HR Department provided to other departments ☐ ☐ ☐ HR Department in charge of internal matters ☐ ☐ ☐ HR Department in charge of both internal and external matters ☐ ☐ ☐ HR Department focuses on short term requirements such as cost reducing or improving product quality of company ☐ ☐ ☐ HR Department focuses on long term strategies such as investment effectiveness or sustainability of company's knowledge ☐ ☐ ☐ HR Department is the change follower ☐ ☐ ☐ HR Department is the change initiator and facilitator ☐ ☐ ☐ HR Department controls employees strictly ☐ ☐ ☐ HR Department control employees by giving them freedom to execute their jobs with responsibility ☐ ☐ ☐ Question 2: Are you satisfied with recent change in HRM system of company? ☐ Yes ☐ No Question 3: Is deployment HRM strategy in your departments executed successfully? ☐ Strong agree ☐ Agree ☐ Neither agree nor disagree ☐ Dis agree ☐ Strongly disagree Question 4: Do you understand reasons for change in HRM? Please kindly give at least reasons by ticking in appropriate box (from is not important to is the most important) Cost cutting ☐ ☐ ☐ ☐ ☐ Increasing Operational Efficiency/Standardization ☐ ☐ ☐ ☐ ☐ Better knowledge & processes management Shared Services of HRM ☐ ☐ ☐ ☐ ☐ Enhancing people management skills of middle level manager ☐ ☐ ☐ ☐ ☐ Increasing Brand Awareness and company ☐ ☐ ☐ ☐ ☐ Improvement of the quality of product and service ☐ ☐ ☐ ☐ ☐ Creating "buy in" of employees into organizational change in 4.0 industry ☐ ☐ ☐ ☐ ☐ Requirement on improvement of the quality of service ☐ ☐ ☐ ☐ ☐ Globalization ☐ ☐ ☐ ☐ ☐ Standardizing competence profile for all positions as of global standard ☐ ☐ ☐ ☐ ☐ Cost cutting ☐ ☐ ☐ ☐ ☐ Increasing Operational Efficiency/Standardization ☐ ☐ ☐ ☐ ☐ competitive advantage of Question 5: Are the above mentioned reasons communicated to you clearly? ☐ Extremely clearly ☐ Very clearly ☐ A little bit clearly ☐ Not so clearly ☐ Absolutely unclearly Question 6: Which factors you think leading success change in company? Please kindly give at least reasons by ticking in appropriate box (from is not important to is the most important) Integrating changing plan (short term, middle term and long term plans) ☐ ☐ ☐ ☐ ☐ Clear vision and communicated transparently ☐ ☐ ☐ ☐ ☐ Strong commitment from top management ☐ ☐ ☐ ☐ ☐ Effective leadership skills from top management ☐ ☐ ☐ ☐ ☐ Change management skills from middle level management ☐ ☐ ☐ ☐ ☐ Transparent and sufficient communication ☐ ☐ ☐ ☐ ☐ Management from executive officers ☐ ☐ ☐ ☐ ☐ Buy in motivation from employees ☐ ☐ ☐ ☐ ☐ Project management skills ☐ ☐ ☐ ☐ ☐ Creating urgency of change ☐ ☐ ☐ ☐ ☐ Strong coalition to lead change ☐ ☐ ☐ ☐ ☐ Leading factor is company's culture: Understanding company's culture before leading change ☐ ☐ ☐ ☐ ☐ Clear action plan and communicated specifically to respective parties and ☐ ☐ ☐ ☐ ☐ Clearly mentioning the roles of HR department with training middle level managers about change management skills and other functions of HR department ☐ ☐ ☐ ☐ ☐ effectively Question 7: Which factors you think being done in company during change? Please tick in appropriate box (from is less frequency to is the highest frequency) Integrating changing plan (short term, middle term and long term plans) ☐ ☐ ☐ ☐ ☐ Clear vision and communicated transparently ☐ ☐ ☐ ☐ ☐ Strong commitment from top management ☐ ☐ ☐ ☐ ☐ Effective leadership skills from top management ☐ ☐ ☐ ☐ ☐ Change management skills from middle level management ☐ ☐ ☐ ☐ ☐ Transparent and sufficient communication ☐ ☐ ☐ ☐ ☐ Management from executive officers ☐ ☐ ☐ ☐ ☐ Buy in motivation from employees ☐ ☐ ☐ ☐ ☐ Project management skills ☐ ☐ ☐ ☐ ☐ Creating urgency of change ☐ ☐ ☐ ☐ ☐ Strong coalition to lead change ☐ ☐ ☐ ☐ ☐ Leading factor is company's culture: Understanding company's culture before leading change ☐ ☐ ☐ ☐ ☐ Clear action plan and communicated effectively and specifically to respective parties ☐ ☐ ☐ ☐ ☐ Clearly mentioning the roles of HR department with training middle level managers about change management skills and other functions of HR department ☐ ☐ ☐ ☐ ☐ Question 8: Are you satisfied with change management skills that your superiors done in your departments/company? Please tick in appropriate box (from is not satisfied to is extremely satisfied) Inspiring subordinate ☐ ☐ ☐ ☐ ☐ Taking actions with vision of company ☐ ☐ ☐ ☐ ☐ Strong and peremptory ☐ ☐ ☐ ☐ ☐ Decisive ☐ ☐ ☐ ☐ ☐ Durable ☐ ☐ ☐ ☐ ☐ Empowering subordinate ☐ ☐ ☐ ☐ ☐ Understanding and sympathy to subordinate and durable ☐ ☐ ☐ ☐ ☐ Humorous ☐ ☐ ☐ ☐ ☐ Open minded ☐ ☐ ☐ ☐ ☐ Question 9: Which functions of HR department is critical for organizational change? Please kindly give at least reasons by ticking in appropriate box (from is not important to is the most important) Organizational design and manning plan ☐ ☐ ☐ ☐ ☐ Talent acquisition inside and outside the organization ☐ ☐ ☐ ☐ ☐ Detailed induction for new hires ☐ ☐ ☐ ☐ ☐ Build up competence profile and skills for each position equivalent to the standards of industry and globe ☐ ☐ ☐ ☐ ☐ Enhance professional and soft skills training by e-learning ☐ ☐ ☐ ☐ ☐ Training effectiveness evaluation ☐ ☐ ☐ ☐ ☐ Performance evaluation ☐ ☐ ☐ ☐ ☐ Succession planning ☐ ☐ ☐ ☐ ☐ Employee engagement survey and appropriate action plan to improve engagement rate ☐ ☐ ☐ ☐ ☐ Question 10: Which of the following knowledge related to people management skills of your superiors for change management in the company? Please kindly give at least reasons by ticking in appropriate box (from is not important to is the most important) Organizational design and manning plan ☐ ☐ ☐ ☐ ☐ Talent acquisition inside and outside the organization ☐ ☐ ☐ ☐ ☐ Detailed induction for new hires ☐ ☐ ☐ ☐ ☐ Build up competence profile and skills for each position equivalent to the standards of industry and globe ☐ ☐ ☐ ☐ ☐ Training effectiveness evaluation ☐ ☐ ☐ ☐ ☐ Performance evaluation ☐ ☐ ☐ ☐ ☐ Succession planning ☐ ☐ ☐ ☐ ☐ Organizational design and manning plan ☐ ☐ ☐ ☐ ☐ Talent acquisition inside and outside the organization ☐ ☐ ☐ ☐ ☐ PART B: EXPECTATION Question 11: Please consider the following conclusions and expectations from your side to change management in people management in company by ticking to the most suitable box with your opinions Strongly Agree Agree Neutral Disagree Absolutely disagree I expected the change procedure implemented faster and more effectively ☐ ☐ ☐ ☐ ☐ I expected the communication about the impacts of change more transparently ☐ ☐ ☐ ☐ ☐ I expected deploy culture of excellent operation so that we can provide better product and service ☐ ☐ ☐ ☐ ☐ I expected employees understand and be aware of change management so that they can adapt better with change in company ☐ ☐ ☐ ☐ ☐ I expected to participate in change procedure from initial steps ☐ ☐ ☐ ☐ ☐ I expected my superiors aware of my strength by coaching and training to develop myself ☐ ☐ ☐ ☐ ☐ Question 12: Are you satisfied with your roles during change in company? ☐ Strongly agree ☐ Agree ☐ Neither agree nor disagree ☐ Disagree ☐ Strongly disagree PART C: LEADING CHANGE Question 13: Please consider the following conclusions and comments to management board during leading change related to change in people management by ticking to the most suitable box with your opinions Strongly Agree Agree Neutral Disagree Absolutely disagree Management board urged change executed successfully ☐ ☐ ☐ ☐ ☐ Management people on ☐ ☐ ☐ ☐ ☐ Management board created strategic vision for future ☐ ☐ ☐ ☐ ☐ Management board is confident and optimistic about future after change ☐ ☐ ☐ ☐ ☐ Management board communicated clearly about change reasons ☐ ☐ ☐ ☐ ☐ Global and regional management board supported Tetra Pak Vietnam with change ☐ ☐ ☐ ☐ ☐ board focus PART D: TRANSITION PERIOD Question 14: Are you aware and trained for change execution? ☐ Strongly agree ☐ Agree ☐ Neither agree nor disagree ☐ Disagree ☐ Strongly disagree Question 15: How you feel during transition period of change process in company and in human resource management mechanism particularly? Please tick in the appropriate box, is the lowest and is the highest Motivated ☐ ☐ ☐ ☐ ☐ Engaged to participate ☐ ☐ ☐ ☐ ☐ Committed ☐ ☐ ☐ ☐ ☐ Full energy ☐ ☐ ☐ ☐ ☐ Satisfied with my current job ☐ ☐ ☐ ☐ ☐ Sympathized with company ☐ ☐ ☐ ☐ ☐ Angry ☐ ☐ ☐ ☐ ☐ Stressful ☐ ☐ ☐ ☐ ☐ Scary ☐ ☐ ☐ ☐ ☐ Confident ☐ ☐ ☐ ☐ ☐ Supportive ☐ ☐ ☐ ☐ ☐ Understandable ☐ ☐ ☐ ☐ ☐ Question 16: Please consider the following conclusions giving your opinion about important factors during transition period by ticking to the most suitable box, is the lowest and is the highest Transparent policies and procedures for transition period ☐ ☐ ☐ ☐ ☐ Awareness training about transition period ☐ ☐ ☐ ☐ ☐ Employees are trained skills for change by training courses provided by company or by learning on the fly ☐ ☐ ☐ ☐ ☐ Detailed staffing plan for departments ☐ ☐ ☐ ☐ ☐ Clear execution plan ☐ ☐ ☐ ☐ ☐ Enhancing awareness of company's culture ☐ ☐ ☐ ☐ ☐ Consultant team with in depth knowledge and company's voice to support the resistant during transition period ☐ ☐ ☐ ☐ ☐ Question 17: Can you please evaluate the effectiveness of change in human resource management in company? Please tick in the appropriate box ☐ Extremely effective ☐ Very effective ☐ Neutral ☐ Not really effective ☐ Absolutely not effective Question 18: Do you have any recommendations/suggestions for maintain sustainable and effective change in people management in company? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… PART E: DEMOGRAPHY Please provide your gender ☐ Male ☐ Female Please provide your age ☐ 20-30 ☐ 31-40 ☐ 41-50 ☐ Over 50 Please provide your highest education background ☐ Occupational high school ☐ Diploma ☐ Bachelor/Engineer ☐ Master Please provide your position in company ☐ Director ☐ Department head ☐ Supervisor Please provide your working time of your current position (including in your previous company) ☐ Less than years ☐ From 3-5 years ☐ From to years ☐ More than years Please provide your service year in company ☐ Less than years ☐ From to years ☐ From to 10 years ☐ More than 10 years Letter to respondents Dear beloved colleagues, I am Doan Quynh Hoa, currently I am pursuing EMBA course at Ho Chi Minh City University of Economics After studying time in the university, it is time to prepare my dissertation with the topic “Maintain change in human resources Management of Tetra Pak Company” with the purpose of an in depth understanding about the situation of change in human resource management in our company Based on my research findings, I will recommend the realized solutions to maintain change sustainably and reliably in people management With the above mentioned purpose, I would like to send you hereby the attached questionnaire Appreciate if you can spend your valued time (from 10 to 15 minutes) to answer the questions in the questionnaire Your answers will be anonymous and comply with the confidentiality agreements and will only be used by myself and for the purpose of this dissertation Once again, thank you for your participate in the survey If you have any questions related to my dissertation topic, please feel free to let me know by dropping me an email to the address dqhoabiz@yahoo.com or phone Nr 0917745067 Thanks and best regards,