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Organizational Behavior
Term Report
12/31/2013
Table of Contents
Acknowledgement: ......................................................................................................................... 2
Background: .................................................................................................................................... 3
Vision: ............................................................................................................................................. 4
Mission:........................................................................................................................................... 4
Values: ............................................................................................................................................ 4
New Corporate Identity-Managing Change .................................................................................... 5
Organizational Structure: ................................................................................................................ 6
Decision-Making hierarchy ............................................................................................................ 7
Goal Setting: ................................................................................................................................... 7
Responsibility Center: ..................................................................................................................... 9
Code of Corporate Governance: ..................................................................................................... 9
Quality Management Techniques: ................................................................................................ 10
Diversity:....................................................................................................................................... 10
Recruitment & Improving Job Performance ................................................................................. 10
Motivation & Performance Appraisals ......................................................................................... 13
Feedback ....................................................................................................................................... 15
ICI and its Employees ................................................................................................................... 16
Conclusion .................................................................................................................................... 17
Glimpses: ...................................................................................................................................... 18
References: .................................................................................................................................... 19
Business Cards .............................................................................................................................. 19
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Acknowledgement:
We owe a debt of gratitude to Mr. Noman Jaffri first, for providing us with the necessary
contacts that made our meeting and consequently this project possible. We are then immensely
obliged to Mr. Omar Khan for sharing his valuable knowledge enabling us to see how things
work in an organization.
It is also our duty to record our thankfulness to Ms. Sonia, HR trainee at ICI Pakistan who had
been very helpful in providing every detail.
Finally, we take this opportunity to acknowledge the encouragement given to us by our
instructor, Sir Jalal Ahmad Khan, due to which we successfully visited a well-known
organization like ICI Pakistan and explored it.
With warm regards
Team IBA
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Background:
The history of Imperial Chemicals Industries Pakistan Limited dates back to 1944 where it
started its operations near Khewra Salt mines because of abundance of raw material by the name
of Khewra Soda Ask Company. Later in 1952, ICI was set up as a public limited company. The
company is currently involved in a wide range of operations because of its diverse product
portfolio. It deals with different industries such as Textile, Glass, Pharmaceuticals, Agriculture,
Livestock, Construction, Automobiles, Chemicals, etc.
ICI Pakistan currently has four major businesses.
1. Polyester
2. Soda Ash
3. Life Sciences
4. Chemicals (Specialty chemicals and General Chemicals)
ICI usually deals in B2B sales. However, the life sciences business deals with medicine, seeds,
etc and thus sales are done from B2C in it. ICI Pakistan worked under the ownership of
AkzoNobel Group until December 2012. The AkzoNobel Group divested all its shares from all
ICI businesses except for the Paint Business in Pakistan. The remaining four businesses are
owned by Younas Brother Group, also known as the Lucky Group. Therefore, being owned
locally has had affected the company because initially the data for research purposes was
collected by Gallup. Now, however, ICI is not a part of AkzoNobel Group and thus cannot
benefit from the surveys and reports conducted by Gallup since the costs are extremely high.
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Vision:
"As the partner of choice, we aspire to build our local and international footprint through
sustainable growth and by creating value for all our stakeholders."
Mission:
"To be the partner of first choice for customers and suppliers, ensuring sustained leadership
position in the markets where we compete, delivering long-term business value through a high
performance culture, innovation, ethics and responsible care."
Values:
"Our values are what define us. They give us standards to measure ourselves by and in our
dealings with customers, suppliers, our own people and the wider world. We have embarked
upon a journey of aspiration and now, more than before, it is integral that we retain our DNA
through adherence to our value system."
1. Customer Centricity:
The company is dedicated to serve its employees and thus strives to reach them and help them in
every possible way. In case of Seeds business, the company has a toll-free number through
which farmers can receive guidance from dedicated agriculturists.
2. Integrity and Responsibility:
ICI has always remained the epitome of integrity and responsibility and has received ICAP
financial reporting award, FBR taxpayer excellence award, MAP Corporate Excellence Award
and numerous other awards which depicts the company's commitment to transparency.
3. Innovation:
ICI is using an Oxo-biodegradable technology and has thus saved 31 trees by using up to 7500
bags made up of this material used for every day mailing.
4. Passion for People:
The company largely focuses on its employees and uses a people centric approach in
maintaining a good work environment and developing a culture where people enjoy working.
Gallup Survey result shows a score of 4.35/5 on employee engagement.
5. Delivering Enduring Value:
ICI served its corporate social responsibility by providing clean drinking water to monsoon rain
affected areas and also set up medical camps to help relieve the people from waterborne diseases.
Vision is the philosophy that leads every individual within the organization in order to achieve
certain goals. It unanimously leads them from one single point. It basically gives a direction to
walk. ICI has a vision statement that broadly defines the purpose of its existence and like
numerous other companies, focuses on sustainable growth. Mission just aids the vision further by
narrowing it down. In terms of individuals, the mission is further broken down into individual
goals based on their competencies and through appraisals. However, in practicality, the vision
does not necessarily guides every decision. There are broad sets of guidelines with the do's and
the don'ts and certain goals to achieve like which industries the company wants to operate in or
in which businesses the company should work in.
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Although, when the company starts venturing into a new avenue, it always selects those
businesses or industries which have some kind of synergy with what they are currently doing.
The core competencies of ICI are first taken into account when it expands into new industries. In
such kind of decision, the vision, mission and values are considered.
Values of an organization basically provide the key areas on which everyone should focus on
and to judge its self on the basis of its values. The values also guide the behavior in an
organization and the values of ICI direct every employee to align its values with the company's.
The values encompass almost all aspects of organizational behavior.
New Corporate Identity-Managing Change
Imperial Chemical Industries launched a new corporate identity in the year 2013. The change in
the corporate identity is not limited to a new vision but also new values and new brand identity.
ICI has changed its logo which previously consisted of a roundel and wave. The roundel used to
limit the areas of growth. It implies working by remaining in one's own domain and not trying to
explore new horizons or working beyond the conventional boundaries. On the other hand, the
new logo does not limit the areas of growth. It symbolizes that sky is the limit and there are
endless opportunities that can be exploited.
"Our new logo, the blue pearl, reflects our vision and a refreshed set of values and key
strategic priorities that better define how we do things at ICI Pakistan and how we envision our
future. It symbolizes the dawning of new ideas, treading of new grounds, strengthening of
innovation and our renewed focus on value creation for all our stakeholders while maintaining
our commitment to sustainability."
- Asif Jooma, CEO ICI Pakistan Limited.
Thus, after the acquisition of ICI by Younas Brother Group, the company has created a new
brand identity to 'cultivate growth' and continue its "Journey of Aspiration". However, the
company will not waver from its path of commitment and zest. This change of ownership
brought a change in the organizational behavior. With AkzoNobel ruling the hierarchy, the
company had a large number of resources than it had after becoming a part of the Younas
Brothers. Hence, it was called the Royal Organization as an example in the section, ICI and
its employees will reveal this fact to you. Afterwards, the employees and members of the
organization all adapted to the fact of limited resources. They now try to achieve the maximum
output out of minimal or available resources.
This major change wasnt difficult for employees to adapt in because the organizational culture
remained the same. The ICIs code of conduct had not been changed and they followed the same
standard of operating procedures as established before, because essentially it was ICI, and this
old brand name and image was to be maintained.
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Organizational Structure:
ICI has a hybrid organizational structure which is more hierarchical than flat. Basically, there is
board of directors consisting of executive and non executive members. The company has one
corporate CEO who serves as the CEO for all businesses operating under the name of ICI
Pakistan. If we compare it with the organizational structure of Engro, we see that in Engro there
are different Business Units with separate CEOs who are completely responsible for the
operations and profitability of the respective business unit. The organizational structure is
leveled and the authority is delegated through several levels. The company employs a
cooperative style of leadership.
ICI Organizational Hierarchy
CEO (Chief
Executive
Officer)
COO (Chieve
Operating
Officer)
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DHM (Director
Human Resource
Management)
DF( Director
Finance)
DS (Director
Sales)
VP Supply Chain
VP HR
VP Finance
VP Sales
Manager Supply
Chain
Manager HR
Manager Finance
Manager Sales
Supply Chain
Executive
HR Executive
Finance
Executive
Sales Executive
Decision-Making hierarchy
The Executive Management Team (EMT) of ICI consists of the business heads of all four
businesses namely; Polyester, Soda Ash, Chemicals and life sciences. All these business heads
along with the Corporate HR, Corporate Technical, Corporate Legal and CFO report to the CEO.
Each business has a Business Management Team (BMT). The BMT consists of Heads of the
Department who have different functions like Human Resource, Finance, Supply Chain and
Manufacturing.
Chief Executive
Officer
Executive Management
Team
(DHM) Director
Human Resource
Management
DF ( Director
Finance)
DS (Director Sales)
Goal Setting:
The process of goal setting starts with the Job Description. The Job Description clearly depicts
what is expected from an employee. After the job description there are KSOs or Key Strategic
objectives for different department heads. Every year, the appraisal process is divided into three
parts.
Objective Setting
Midyear Appraisal
Year end Appraisal
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a. Objective setting: Objectives generally include short term and long term goals. Short term
goals mainly include day to day operations and development of SOPs or automation of a certain
process. Then there are strategic long term goals that need to be set. For example a five year
strategy and beyond. There are elements of the strategy that may be achieved by next year and
some elements might take 6 to 7 years depending on the market and sociopolitical conditions and
the response of the customer but they are still made part of the strategy. For example there are
certain goals like the company wants to venture in Sui gas and it's there in the paper but whether
the company practically does that is not certain until the company reaches a certain point.
However, all the goals are set by keeping in mind the potential of the company. Company sets
SMART Objectives.
Company uses a Top-down approach in setting the objectives. For instance, Faisal Akhter, the
General Manager of Chemical business gets the business objectives approved by the Corporate
CEO, the objectives are cascaded within the rest of the executive team. They are broad guideline
regarding revenue targets, engagement scores etc. Similarly each department head has a set of
goals to be achieved and the other team members need to have a clear idea of the goals for each
department. For example in HR department Omar Khan, HR manager and his team members
Sonia and others have their goals aligned with the goals of the business head. In case, the
company is venturing in to a new project, the HR department needs to recruit employees for the
initiative. The finance department tells about the financial numbers as to how the company is
going to finance the new initiative. The supply chain is responsible for the procurement of raw
material and then production and sales team complete the cycle. In this way there is complete
alignment within the organization.
b. Midyear Appraisal: A proper midyear review is conducted with the employees. The
appraisal forms are filled online after the review and if any employee logs into the system that
there was not a proper review session, the supervisor is answerable to the HR manager, the
department head. There needs to be a very valid reason for such a thing.
c. End of the Year Appraisal: Similarly, yearend appraisals are used to monitor the
performance of employees. If an employee does not perform up to required standards, then there
is a Performance Improvement Plan (PIP) in which employees are asked improve their
performance and reach the level that is expected from them. The employees need to be examined
on all the competencies and if a supervisor fails to evaluate his subordinates on the basis of all
the competencies, then the process needs to be conducted again.
In case of new recruits, there is a six month probation period. During this period, the employee is
evaluated on monthly basis, not only by the department head, but also by the other department
heads like finance, sales HR, etc and eventually by the Corporate HR. It is extremely important
because in case if the new recruit does not undergo the appraisal process, he/she will not be
employed permanently and thus the management is highly involved in such matters.
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Responsibility Center:
Cost Center
Research and
development
Marketing
Customer
Services
Revenue Centre
Sales
Investment
Centre
Chemicals
Life sciences
Soda Ash
Polyester
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Personality Traits
Qualification
Age Structure
Confident
Mature
Hard working
Solution Seekers
Can handle pressure
Interactive
Undergraduates
in
Electrical, Mechanical,
or Chemical Engineering
or
Masters degree from a
reputed University
Experience
seminars within and outside the country. Last year, the team from ICI Chemicals went to
Thailand on a Conference. Such foreign workshops are an opportunity for employees to enhance
their learning, socialize with their workplace colleagues and build better working relationships.
As the companys production units are spread out in different places, any workers working in
Soda Ash unit located in Khewra are virtually connected with their business heads for job
assignments and instructions. Off-the-job training trips provide a chance to these employees and
their heads to meet personally ad know each others better for efficient working and
communication of tasks in the future. The diagram below shows the Recruitment & Selection
Process in ICI.
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Fawad I Khawaja
Business Development Manager-General Chemicals Business
"Baptized with fire, I remember my early years with ICI Pakistan as a proving ground for high
performers. The mentorship process facilitates the younger lot to be inspired from the vision of
the leaders and draw from the experiences of the seniors. Coming to work every morning, thanks
to the enabling environment I feel energized to stretch my capabilities and venture into new
frontiers. The care and the human element thriving in ICI make it so easy to find a family away
from your home. With such a diverse array of businesses; learning never stops, stagnation never
sets in, and performance is rewarded through dynamic career opportunities. It is more than a
place to work; it is a place where you GROW!"
As the above views reflect, ICI Pakistan Ltd is a place where employees are expected to give
their best and feel valued. The ViewPoint Engagement Survey conducted by Gallup in 2011
revealed that the employee participation rate at ICI is 97%, and engagement score is 4.14 out of
5 points. This shows that ICI believes in employee engagement and creating an environment
where employees feel motivated to work in the best interests of their organization. Furthermore,
this employee motivation has also earned this company 3rd rank in the category of the Best Place
to Work Award by Engage consulting in Pakistan.
Monetary Exchange: As part of every job, basic salary is required to be paid at the end of
month as in Pakistan to fulfill the basic employee needs. Other than the basic pay, ICI uses two
programs to financially reward its employees. Meeting the sales target for the Chemicals
Business in the year 2013 is an example. These rewards are appraised to the employees after a
thorough analysis of the performance of workforce. This system is divided into three categorical
approaches. Employees are rewarded at three different levels as shown in the diagram below. ICI
Bonus Program and Annual Incentive Program is part of this approach.
Shortterm
goals
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Strategic
Elements
Long
term
goals
ICI Bonus Program: This program is aimed to reward bonuses to the employees
working at middle level and lower level of management hierarchy who achieve the
targets set by their respective department within the assigned time span.
Annual Incentive Program: This program provides financial rewards above salary the
workers at higher level of management when key strategic plans and long term goals are
achieved. As for ICI, such a plan was to change its logo to get the new corporate identity
for the organization that believes in Cultivating Growth encouraging unwavering
commitment to future growth and investment following the acquisition of ICI Pakistan by
Younas Brothers Group.
Non-Monetary Rewards: A worker at ICI contributed to the growth in the annual profits by
sharing a very innovative idea. The HR department decided to pay him a financial incentive
package. The worker rejected that offer and asked for a shield to be presented to him near all his
colleagues to earn recognition and appreciation by the Chief Executive of the company.
This incident was narrated to us by the HR Manager who believed that many individuals yearn
for appreciation and recognition when their basic needs are fulfilled. This example is typical to
the Maslows hierarchy of needs-when the physiological and safety needs are met, humans look
for self esteem and social needs. To fulfill this natural human drive, employees at ICI are
motivated through several techniques.
Innovation Awards: This category was introduced to encourage innovation and new
ideas by the member of the ICIs workforce. The Head of Departments nominate
individuals from their respective departments who have been proactive and productive.
This suggestion list goes to the Executive Management Team (EMT), which selects the
most deserving individual for each department who is presented a shield with a handsome
amount of cheque.
Star Awards: This category is an initiative of ICI Chemicals Business that is expected to
begin soon. Star Awards will honor the best employee of the year for this particular
business with a shield and a financial benefit as well.
An email from the CEO makes the day: An email by the Chief Executive as a token
of appreciation is a moment of pride for an employee at ICI. This method is often used
along with other mentioned techniques to motivate the employees.
Star of the month : This is awarded to an employee who works hard throughout the
month as compared to other employees.
Internal Movement: One of the appraisal tools at ICI is the opportunity to move within the
organization. Employees who perform up to the mark in one of the business units of the
company are sent to other business units with equal or better level of benefits-salary and
position. This makes it easier for the company to retain its experienced employees who are aware
of the organizational culture. In return, employees are exposed to a new industry and circle of
stakeholders that adds to their knowledge and skills as well as their contacts and social ties. An
employee finds such internal movement useful to his/her personal growth by examining at the
better chances of promotability in the other business unit. This keeps up the morale of the worker
by working in the same organization with better exposure.
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The performance appraisal system of ICI is an essential tool to motivate the members of this
organization. This is an online system that gives each employee a username id and password to
track his/her payroll, any monetary reward for the year, with the remarks of the respective
supervisor. The evaluation is accessed through these employee databases followed by rewards to
these employees accordingly. Employees and managers get almost same type of pays and
allowances. However, the non-managers or non-gazzeted employees get additional benefits i.e.
twice a year uniform allowance, wedding allowance for daughters, burial charges, death
compensation, interest free advances/loans.
Feedback
On our interview with Mr. Omar, I asked:
Me: How do you provide feedback to your employees?
HR Manager: Its part of my daily workplace routine. When Sonia emails me for assistance in
task at hand, for example, I immediately reply her or I go to her desk and guide her how to do.
By the way she is one of the most valuable employees of our department. Currently she is
working on a few diverse projects which shall enrich her career opportunities very soon.
Sonia is the HR team member. By looking at this scenario, we can easily conclude that theres a
culture of informal and direct feedback incorporated in the organization and it is frequently
given. Moreover, it is an important part of the online appraisal system of ICI, the supervisors and
heads are bound to post their rational remarks on the employee database based on the conduct
and performance on each employee. In case of untimely and poor feedback habits, supervisors
have to give a valid justification before the Business Management Team (BMT).
The employees at ICI are treated without pressure and instead they are most welcome to ask for
any assistance and help from their higher authorities i.e. managers. The employees are guided
and supported by their employers so that the organizational goals are achieved without any
problem. The company understands that an employee needs to be channeled and directed in
order to be more productive and efficient at work. This also motivates the employees, which is in
favor of the company as a whole. The company makes sure that the employees are not left
unanswered in any way in any matter.
Speak up: Speak up is an initiative that distinguishes ICI from other organizations. Keeping
integrity as the top priority, employees are encouraged to report any breach of the Companys
code of conduct by anonymously registering any complaint or concern at speakup@ici.com.pk.
Speak-up system is established for the issues which are apparently difficult for the employees
to discuss with their higher authorities. The cases and complaints are investigated and solved as
soon as possible. It might be difficult for employees to act as whistle-blowers as this might
socially isolate them usually, but Speak up provides an opportunity to blow a whistle without
revealing your identity.
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At ICI, a family like bond is experienced among the employees who work together with
affection, respect and mutual understanding. The people of ICI are very much caring towards
each other and they recognize the importance of such a business environment. Employees
encourage unity and harmony amongst each other. The employers are also very supportive and
accommodating towards their employees and subordinates as well.
This culture does not only prevail in the air-conditioned back offices, but unskilled works
belonging to diverse casts and communities also share such mutual understanding and trust.
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ICI sports team requested the CEO to make a gym for them; the CEO asked about the amount of
funds required to do so and the employees told him that they would need Rs. 1000,000 but the
CEO was so concerned about his employees that he provided them fund of Rs. 2500,000.
Interestingly, he wanted to get the best equipment installed in the gym!
Almost a decade back, ICI was known as the Royal Organization. This particular incident
relates to those days. This shows the gravity and dedication of the CEO and the company
towards the welfare of their employees. Recreational facilities are still part of ICI culture that
binds members of this organization in a closely knit relationship. ICI also arranged a cricket
match for the entire head office Karachi at Moin Khan Stadium. Today, the company has Squash
court, Badminton Court and Table Tennis, and other indoor activities provided for its employees
inside the premises.
When asked about the best thing of the company as compared to other
companies, we got to know that ICI takes care of its people to such an
extent that it is always ready to invest as much as possible for the
betterment of its members.
ICI affirms that the employees are its most valuable assets; they
understand the worth of their people and they value their work as well.
ICI treats its people in the best manner possible to ensure that the
employees are satisfied. The company also makes sure that the
employees are retained in the organization by offering many fringe
benefits and perks to its employees. These perks are also given to
motivate and encourage the employees to work harder and increase their productivity. The
human resources and human capital is most profitable investment of an organization according to
ICI.
Conclusion
After visiting the organization ourselves, we can now conclude that the organizational behavior
is determined by the attitudes and behavior of the personalities who run the organization. The
personality and behavior of Mr. Omar Khan was in itself an indication that members of ICI
emphasize on an amiable work environment and respect mediate interaction among employees.
The interior and design of the premises too has a significant influence. Each employee has his
separate semi secluded cabin where he/she can concentrate on his/her work and interact with
colleagues as well. The clean and tidy workspace is small yet important motivational factor in
making the office environment work friendly.
Things within and beyond our spectrum of vision, both indicate that ICI is one of those
organizations which has attained financial success and a series of awards because of its
exceptional Organizational Behavior.
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Glimpses:
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References:
http://www.ici.com.pk/
http://en.wikipedia.org/wiki/ICI_Pakistan
Business Cards
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