UNIVERSITY OF CENTRAL PUNJAB

Course Title: Introduction to Human Resource Management Course

Code: BAHR3303
Assignment No. 4
Course Instructor: Dr. Muhammad Shahid Mehmood
Section: A1 Program: BS(BA) Date: 03/01/2024
Submission Date: 10/01/2024 Maximum Marks: 10
Program Objective: 1, 3 Course Objective: 2, 4 Course Learning Objective: 2, 4
TO BE FILLED IN BY THE STUDENT
Student Name: Registration No: Sr. No:
Amna tahir L1f21bsba0001
Syed abdul sami L1f21bsba0011
L1f21bsba00
Muhamad kaif
L1f21bsba0024
Taha ishtiaq L1f21bsba0025
Javeria umar L1f21bsba0050
Zainab mumtaz

Topic & Detail:

Read the case study (Merger of Mobilink with Warid-Consequences for Employees, Profits for
Telecom Giants) and answer the following questions.

Questions:
Q1: Was it a right decision to lay-off around 50% of the workforce?
Q2: What steps a company should take to tackle the technological and global forces which
dictate extreme measures to the company?
Q3: What is the role of HR department at the time of mergers?
Q4: What should be an excellent severance policy and the manner in which it is communicated
to the employees?

Page 1 of 1 Assignment 4
 Executive Summary

The 2015 merger of VimpelCom's subsidiaries, Mobilink and Warid, under the banner of "Jazz,"
was undertaken with the strategic goal of enhancing telecommunications services, expanding
coverage, and introducing new products. However, the ambitious restructuring resulted in a
substantial reduction in the workforce, with Mobilink and Warid experiencing layoffs of 55%
and 35%, respectively, alongside the closure of numerous customer service centers. This
corporate decision raised concerns about the societal impact, particularly regarding
unemployment and the sudden disruption of family income. The implementation of a voluntary
separation scheme (VSS) attempted to ease the transition for terminated employees, offering
severance benefits, yet elicited mixed responses, underscoring dissatisfaction and a perceived
lack of fairness in the process.
The communication gap became evident as employees reported a lack of clarity regarding their
job security until late 2016, highlighting an organizational failure in effectively communicating
the evolving circumstances. This uncertainty generated anxiety among the workforce,
compounded by ambiguous messages from the HR department, which admitted a lack of
foresight about the impending changes. The majority of employees opted for the VSS, despite
expressing dissatisfaction with its fairness, emphasizing the need for more transparent and
employee-friendly practices during corporate transitions.
As of March 2017, approximately six months after the layoffs, the aftermath reveals a diverse
range of outcomes for terminated employees. While some remained unemployed, others ventured
into entrepreneurship or found new opportunities in the private sector. The negative sentiment
expressed by ex-employees underscores the societal cost incurred during the merger, prompting
reflection on the need for a more balanced approach that considers not only the financial gains
but also the social ramifications of such strategic corporate decisions. The case reveals a critical
juncture for organizations to reassess their human resource management strategies, emphasizing
the importance of clear communication, fair transition practices, and a holistic approach to
mitigating the broader impact of mergers on the workforce and society at large.
Q1: Was it a right decision to lay-off around 50% of the workforce?

It was the right decision that new company downsized the workforce because of the merger. the
layoffs were conducted through a combination of voluntary separation schemes, percentage-
based workforce reduction, and termination of franchisees. The reasons behind the layoffs
include addressing redundancy, cost-cutting, and strategic adjustments in response to the
merger's goals.
To minimize the negative effect they introduced polices and strategies like The companies
introduced VSS, offering employees one gross salary x 1.5 x the number of years with Mobilink
or Warid. Additional benefits included free medical insurance for one year and any provident
fund. It is also said that The use of "Voluntary Separation Scheme" is noted as a softer term
compared to retrenching or laying off, potentially used to manage the company's public image
and reputation. This also showed their concern towards their employees.
The aims of the merger are touted to be upgrading services including higher quality national
voice and data coverage for high definition audios and videos for entertainment, faster
downloads, and an availability of much broader portfolio of products and services including 3G
and 4G services for customers, expanding to the rural areas and revamping online banking. So
cutting cost was an important factor for the expansion of portfolio . The statement from the CEO
showed how they cared about personnel and aimed to face of long-term corporate strategy and
fierce competition.
So in conclusion The post-merger workforce downsizing was strategic, driven by cost-cutting
and aligning with expansion goals. The Voluntary Separation Scheme, accompanied by
additional benefits, aimed to mitigate the impact on employees and manage public perception.
Balancing long-term strategy and personnel concerns is crucial for the merger's success amid
fierce competition.

Q2: What steps a company should take to tackle the technological and global
forces which dictate extreme measures to the company?

To effectively navigate technological and global forces, companies should implement a proactive
strategy incorporating the following steps:

i. Continuous Technological Assessment:

Regularly assessing technological trends and investing in cutting-edge technologies ensures
competitiveness and responsiveness to evolving consumer demands.
ii. Global Market Intelligence:
Thorough research on global markets, considering cultural nuances and economic factors,
enables tailored products and services that meet diverse market needs, enhancing the company's
international relevance.
iii. Agile Operations and Adaptability:
Fostering an agile organizational culture and implementing flexible operational frameworks
allow swift adaptation to technological and global market shifts, ensuring resilience in the face of
change.
iv. Strategic Partnerships:
Exploring strategic partnerships enhances technological capabilities and expands market reach,
fostering collaborations that leverage expertise and resources to navigate global challenges.
v. Customer-Centric Approach:
Prioritizing customer satisfaction through technology-driven improvements in service quality
and user experience demonstrates a commitment to meeting specific needs in different global
markets.
vi. Employee Skill Development:
Investing in ongoing training programs and fostering a culture of continuous learning empowers
the workforce to adapt to technological advancements and global challenges.
vii. Ethical and Social Considerations:
Aligning technological strategies with ethical principles and social responsibility builds trust and
credibility on a global scale, enhancing the company's reputation.
viii. Risk Management:
Developing robust risk management strategies anticipates and mitigates challenges from
technological disruptions and global uncertainties, ensuring business continuity and resilience.
ix. Monitoring and Adaptation:
Establishing effective monitoring mechanisms enables companies to stay abreast of
technological shifts and global market trends, allowing for regular reassessment and strategic
adaptation.
x. Cultural Sensitivity and Localization:
Embracing cultural sensitivity and implementing localization strategies in product design and
marketing foster positive global perceptions, enhancing the brand's appeal across diverse
audiences.

By proactively addressing technological and global forces through these steps, companies can
position themselves to thrive in a rapidly evolving business landscape while minimizing potential
disruptions and maximizing opportunities for growth.

Q3: What is the role of HR department at the time of mergers?

Role of HR department at the time of merger

i. Keeping Everyone Informed:
HR communicates the reasons behind the merger, potential job changes, and the future vision,
promoting transparency and understanding.
ii. Cultural Fusion:
HR blends different company cultures, fostering teamwork and creating a unified, positive work
environment.
iii. Talent Management:
HR assesses and retains key talents, ensuring a smooth transition and the development of new
skills when needed.
iv. Future Workforce Planning:
HR looks ahead, ensuring the right people are in the right roles for future challenges and
opportunities.
v. Emotional Support:
Recognizing the emotional impact, HR provides support, counseling, and a platform for
employees to express concerns.
vi. Legal Compliance:
HR ensures the merger aligns with employment laws, protecting both employees and the
organization.
vii. Change Management:
HR develops a clear plan, setting milestones and communicating changes to make the process
understandable and manageable.
viii. Employee Well-being:
HR focuses on celebrating successes, addressing concerns, and creating a positive atmosphere
for a content and engaged workforce.

In short, HR acts as a guide, ensuring everyone is on the same page, feeling supported, and
moving forward positively during a merger.

Q4: What should be an excellent severance policy and the manner in which it
is communicated to the employees?

An excellent severance policy should be comprehensive, fair, and transparent, considering both
the needs of the company and the well-being of employees. The communication of such a policy
is crucial and should follow these principles:

Severance Policy Components

i. Generosity and Fair Compensation:
Ensure a competitive severance package, considering factors like years of service and position.
This includes financial compensation, benefits continuation, and additional support like career
counseling.
ii. Clear Eligibility Criteria:
Define eligibility criteria consistently for all affected employees, promoting transparency and
fairness in the severance process.
iii. Communication Channels:
Utilize diverse communication channels, such as official memos, one-on-one meetings, and
information sessions, for timely and widespread dissemination of severance policy details.
iv. Transparent Process:
Clearly outline the severance process, including steps employees need to take and a defined
timeline for implementation, fostering a smooth transition.
 v. Legal Compliance:
Ensure the severance policy aligns with labor laws and regulations, communicating legal
aspects to prevent misunderstandings and uphold ethical standards.
vi. Emphasis on Support Services:
Provide comprehensive support services, including outplacement assistance and career
counseling, demonstrating a commitment to employees' holistic well-being.
vii. Confidentiality:
Address confidentiality concerns by clearly stating terms within the severance agreement,
protecting sensitive information and maintaining trust.
viii. Flexible Options:
Offer flexible severance options, allowing employees to choose benefits that meet individual
needs and tailoring packages based on roles or seniority levels.
ix. Non-Discriminatory Approach:
Apply the severance policy consistently and without bias, ensuring fairness and confidence
among employees facing transition.
x. Feedback Mechanism:
Establish a feedback mechanism for departing employees, facilitating continuous
improvement of the severance policy based on real-world experiences and concerns.

Communication Strategy
i. Direct and Timely Communication:
Communicate the severance policy directly and promptly to affected employees, transparently
explaining the decision-making process and reasons behind it.
ii. Personalized Meetings:
Conduct one-on-one or small group meetings to explain the severance policy individually,
addressing questions and concerns to ensure understanding.
iii. Written Documentation:
Provide written documentation outlining severance policy details, making resources available
for employees to review independently.
iv. Open Door for Questions:
Establish an open-door policy for employees to ask questions or seek clarification, encouraging
communication to address individual concerns.
v. Compassionate Tone:
Communicate with empathy and sensitivity, acknowledging the impact on employees and
expressing gratitude for their contributions.
vi. Internal Communication Plan:
Develop an internal communication plan to keep employees informed throughout the process,
providing updates on severance policy implementation and additional support services.

By integrating these elements into both the severance policy and communication strategy, a
company can demonstrate a commitment to fairness, transparency, and employee well-being
during challenging times