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

1.1

Chapter introduction………………………………………………………1

1.2

Background of the study…………………………………………………..1

1.3

Methodology………………………………………………………………6

1.4

Research questions………………………………………………………...6

1.5

General objective………………………………………………………….7

1.6

Tetra Pak…………………………………………………………………..8

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……………………………………………………………………..

1

Questionnaire……………………………………………………………..

2

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

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

1

Table A: Summary of SWOT analysis pertaining HRSC in Tetra Pak……………..12

2

Table 3.0: Sample size………………………………………………………………29

3

Table 3.1: The summary of data collection and analysis…………………………...31

4

Table 4.0: Respond rate……………………………………………………………..32

5

Table 4.1: Breakdown of awareness of employees about functions and
responsibilities of HR Department…………………………………………………..38

6

Table 4.2: Breakdown satisfaction of employees about recent change in HRM
systems in company…………………………………………………………………40

7

Table 4.3: Success evaluation of HRM strategy execution at department level…….41

8

Table 4.4: Understanding reasons for HRM change………………………………...43

9

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


LIST OF FIGURE
No.

Name of figure

Page

1

Figure 1.1: HR Model version 2.0 applicable in Tetra Pak…………………………10

2

Figure 1.2: Global workforce study 2016 – Willis Tower Watson…………………14

3

Figure 1.3: Strategy till 2020 in Tetra Pak…………………………………………..14

4

Figure 2.1: 8 steps of leading change……………………………………………….21

5

Figure 2.2: Administrative HR vs strategic HR…………………………………….26

6

Figure 2.3: Time spending for administrative tasks and strategic tasks of a HR
leader………………………………………………………………………………...27

7

Figure 4.1: Gender of respondents…………………………………………………..33

8

Figure 4.2: Age of respondents……………………………………………………...33

9

Figure 4.3: Education background of respondents………………………………….34

10

Figure 4.4: Positions of respondents………………………………………………...34

11

Figure 4.5: Service years in the current positions of respondents…………………..35

12

Figure 4.6: Service time in Tetra Pak……………………………………………….35

13

Figure 4.7: Awareness of employees about HR department functions……………..39

14

Figure 4.8: Satisfaction about change in HRM system in Tetra Pak………………..40

15

Figure 4.9: Success evaluation of HRM Strategy execution at department level…..42

16

Figure 4.10: Understanding for HRM change ……………………………………...44

17

Figure 4.11: Clear Vision communication…………………………………………..45

18

Figure 4.12: Success factors for change……………………………………………..47

19

Figure 4.13: Change success factor done in company………………………………50

20

Figure 4.14: Satisfaction rate about change management skill of superior…………52

21

Figure 4.15: Critical HR functions for organizational change……………………...54

22

Figure 4.16: People management skills of superior…………………………………56

23

Figure 4.17: Expectations to change management in people management ………...58

24

Figure 4.18: Employee’s satisfaction during change………………………………..59

25

Figure 4.19: Critical activities from top management required during leading
change………………………………………………………………………………..61

26

Figure 4.20: Awareness and knowledge about change execution…………………...62

27

Figure 4.21: Feeling of employees during transition period………………………...64

28

Figure 4.22: Success factors for transition period…………………………………...66

29

Figure 4.23: Effectiveness of change in HRM………………………………………67

30

Figure 6.1: 6 leadership Elements with Supporting Behaviours…………………..79


ABSTRACT
Purpose: This study aims at investigation the understanding from middle level
management team of Tetra Pak about change and change management in people
management function. Besides, it also seeks for the managerial implications for BOM.
Theories: Transition of HRM, Change management, John Kotter Model, ADKAR
model, how to make change stick
Design: The author uses the survey method by questionnaires collecting via email or
directly, individual interview and group interview to 25 employees at middle
management level of Tetra Pak JSC. To get primary data to investigate the
understanding about change and change management in recent change in people
management at company and from that will determine the solutions to have a repeated
and reliable organisational change.
The data will be allocated into the different category respondents:
1. Gender of respondent
2. Age of respondent
3. Education background of respondent

4. Position level of respondent
5. Service year in company of respondent
6. Service year in current position of respondent
and analysis will be performed based on the qualitative technique.
Via questions and answers, the author seeks for understanding in depth of context of
change and change management from points of view of employees. The questions are
drafted as below:
1. What did employees understand about change and change management in their
departments and within organisation?
2. What and how were employees experiences with change and change
management in their departments and within organisation?


3. What and how did employees understand about change and change
management in people management?
4. What did employees understand about their roles in change and change
management in general and in human resource management particularly?
5. What did employees understand about roles of managers, management board in
change and change management, both in general aspect and in human resource
management?
6. What and how did employees do to contribute to change and change
management?
7. What are the most success factors for an organisation initiative change and
manage change successfully, especially in people management?
Findings: Based on the findings the author will define:
1. How employees perceive change and conduct changes in daily human resource
management. The searching for perceptions of employees about change and
change management will mainly focus on:
-

Change in HRM

-

Reasons for change

-

Success factors for change

-

Expectations of staff and managers during change and change management

-

Leadership during change and change management

-

Challenges during change

2. From the point of views of employees about change and change management
the author define the insights about employees’ believes about change that
echoes inside the organisation and consider those echoes as initiatives for a
successful, repeated and reliable change in human resource management,
which certainly consist of the followings:
-

Leadership

-

Employee engagement and communication

-

Project management

-

How to make change repeated and reliable – A fundament for sustainability


And the results of research will be proposals for key management indicators, key
performance indicators and key activities indicators, on the other words, managerial
implications.


FOREWORDS
Working for nearly 20 years in human resources management help the author to gain a
variety of experience in working with people. And fortunately, the author has chance
to work with different types of enterprises from state-owned company to local private
limited liability, from non-governmental organisation to international global business
players. This means, an opportunity for the author to approach with many types of
human resource management system with various HR strategies such as ethnocentric,
polycentric and geocentric strategy. In the last 20 years, the employment relationship
has tendency transforming from employer has to ensure a lifetime - job for employee
into competent based employee, means employee has to self-ensure his own
competence to ensure his career path.

In the era of globalization, business organisations do not confine themselves in on area
or in one country, they always want to expand their business to far regions. This is
synonymous with challenging they are facing, the increment in change, both in
technology and also business environment. Doing foresee such challenge, almost
international companies prepare themselves ready to those changes. Change in
technology causes change in the way we communication as well as the way of
business administration. And of course, changes should start from people, the “core of
this wave”. And the question is how to manage a Human Resources Management
System in a sustainable way and ready for any changes of digital era?
The above-mentioned questions are the initiative for this dissertation and to see how
people in Tetra Pak understand about change and change management recently in their
departments and the function of people management throughout the organisation.
With the count on the fundamental research and also research results the author can
propose a practical managerial implication to improve partially the services quality of
human resource management in the organisation.
Ho Chi Minh city, 15th November 2018
Doan Quynh Hoa


1

CHAPTER I: INTRODUCTION
1.1 Chapter introduction
This study helps researcher understand how employees perceive change and conduct
changes in daily human resource management. From the point of views of employees
about change and change management the author might define the insights about
employee’s believes about change that echoes inside the organisation and might
consider those echoes as initiatives for a successful and repeated change in human
resource management.
In this context, reference was made to employees within the Tetra Pak. Employees

were invited to express their viewpoints of change and change management and how
these had impacted upon their work environment and their lives within the Tetra Pak.
The study uses qualitative methodology, also seek for the collective voices of
employees into the central discussion of change and change management. The data
collection process was done via informal and formal interview primarily knew
employees’ viewpoints and understanding of change and change management
processes and practices within company.
The informal and formal interviews irradiated employees’ opinions, issues related to
the work environment and people management of Tetra Pak.
During the survey, the following themes emerged from the data: an understanding of
change and change management; expectations of employee about change and change
management; leading change; transition period.
The correspondence of participants will help the researcher have insights to define
experience of employee about change, their understanding about change and
leadership during change, their expectation during change, their feeling and
expectation during transition period, their expectations in term of change and change
in people management in company…
1.2 Background of the study
Change management and leading change nowadays seems to be the crucial required
skills for leaders and middle level managers. But unfortunately, many companies


2

failed with changes such as failures in changes of digital transition, business
processes, customer relation management, restructuring, reengineering etc… Many
researchers have investigated the reasons why changes dead. And the most probably
reasons are:
-

At the first stage, the change might be designed not fit with the company’s
strategy, business complexity and business pressure.

-

Change message is not conveyed in a transparent and effective way and that
causes shortage of in depth understanding from the employee side. This
makes employees feel angry, worry or even very bad.

-

The change implementation is spontaneous without proper tools and
operating models.

-

The key players of change fail to manage the resistors and impact of change
on those peoples who are most affected by change.

-

Too much focus on long term wins but forget to acknowledge small and
rapid wins

And according to Dr. Linda Ackerman Anderson there are 5 common reasons cause
failure of organisational change:
-

Poor planning sets up organisational change for failure

-

Inadequate support from leadership

-

Lack of resource

-

Priority focus on systems vs people

-

Inadequate change leadership skills

The booming economies have created business opportunities but also facing
challenge for organizations “change or die”. This change phenomenon urges
companies and organizations change. The above-mentioned failure reasons have
clearly proved that said easier than done. We can see one common reason of change
failure is losing focus of the leaders, they focus too much on the theories or systems
and processes but did not convey a messages of change/change initiatives to their
teams why organizations should change, what they should attempt to achieve and how


3

they should execute change. This is really not an easy task to do.
In nowadays unstable business environment, the need for change and implementing
change successfully turns into a competitive advantage. The development and change

in technology in last two decades are proven track record for this philosophy. Because
change is the perfection of existing product, of quality, of service, of process, of
systems. Other than technology, working environment is also defined by other factors
that closely impact and influence companies such as economics, politics, sociology.
Such factors show a significant role in change management, as they will define why
to change, what to change and how to change.
Throughout her career path of nearly 20 years in human resource management, the
researcher has had chance to participate in many changes from large scale change to
small scale change such as organizational wide change (restructuring, leadership
change, adding on new policies, introducing new technology), transformational
change (organizational strategy), personal change (inter-department change, hiring,
lay off or dismissal), unplanned change (change that cannot be predicted like flood,
strike or uprising) or even remedial change to correct poor performance of an
employee, department or even of business. Different types of change need different
action plan, preparation. And most of all, preparation is the key of successful
achievements in change.
The reality in work life of researcher showed that change never eases and change
implementation is hard to get right. Because change automatically impacted people,
so it is very important to get people involved in whole change process. Hence a
transparent communication, commitment and ownership of leadership are the most
important factors to get the beginning aspiration of people. Once organizations get the
aspiration from their people then the change flow will be done step by step in
different change models. Some companies can choose ADKAR model (Awareness,
Desire, Knowledge, Ability, Reinforcement), some may choose Johns Kotter model,
which includes 8 steps:
1.

Create sense of urgency

2.

Building a guiding team

3.

Form strategic and vision initiatives


4

4.

Enlist volunteer

5.

Empower action by remove barriers

6.

Generate short term win

7.

Sustain acceleration

8.

Make change stick

Every change, from wide change to small change will hit its own change curve (which
will be mentioned more detailed in next session) but somehow, the success factors
will be definitely the ownership, commitment, priority of initiative, capability and
resources.
By undertaking MBA course is a tough decision of research while she is gone to her
daily fast pace in FMCG industry and hard to find time for have work-life balance.
The researcher understood that undertaking this course is a change in her life and she
was aware of the time consumption and her life tempo in about 1.5 year. Thanks to
that awareness, she has well prepared for this change with a concrete plan to make
this change happens. Thanks to this course the researcher had chance to systemize her
knowledge in change and change management and read many literatures by many
writers about those topics. Many respected scholars propose a wide range of their
experience, researches and perspective on change in many different ways, in which
change is classified. Some change models focus on the people element of change like
ADKAR model, some theories are developed and offered valuable tools to project
management professionals as a process-driven model.
Though in modern world economic history there are many stories and
recognitions of successful change of global players such as Microsoft Research
Group merge in 2016
In September 2016, Nadella shook things up again with the merging of the
Microsoft Research Group with the Bing, Cortana, and Information Platform
Group teams to create a new AI and Research Group. With about 5,000
engineers and computer scientists, its goal is to innovate in artificial
intelligence across the Microsoft product line. Tinypulse.com
Or the story of Google split up under the Alphabet umbrella in 2000s:


5

Lary Page broke up Google into its constituent parts, making each one its own

company, with all of them owned by a new umbrella corporation called
Alphabet. Page sits atop the structure as CEO of Alphabet, with Google
cofounder Sergei Brin as president and long-time Google exec Eric Schmidt as
chairman. Each of Alphabet’s companies has its own goals and a CEO focused
solely on those goals. Tinypulse.com
Or the entire organisation restricting of British Airways in 1981
To increase profits, Lord King, new chairman decided to restructure the entire
organization by reducing its workforce from 59,000 to 39,000, eliminating
unprofitable routes, and modernizing the fleet. He repaired the airline’s image
by bringing in a new marketing expert. Within 10 years, the airline reported
the highest profits in its industry: $284 million. Tinypulse.com
Despite of those success stories, surely questions pertaining change elements and
how is change managed and executed successfully and sustainably are
challenging to administrators.
Based upon their organizations’ situation, the administration will define the change
strategies and methodologies to ensure change implemented successfully with less
impact on their employees. Because from an employee’s side, any type of change will
be able to impact directly or indirectly on their private lives and/or the nature of their
work lives. The effect can be either change in working condition, their compensation
package, engagement or future motivation. Because of this reason, it is crucial that coworkers are empowered, involve in change and on the top, understand the whole
change process in order to be able to analyze the effectiveness of change. But in fact
of researcher’s survey in Tetra Pak indicated that some employees reacted not proacted before change. This might come from communication and employees are not
aware of their roles in change at organization in generally or in their department in
particularly, even company did not limit them from involving in change and raise
their voices and views pertaining change and change management. On a later stage in
chapter 4 the author will have a specific analysis to help the readers understand in


6

depth about the perceptions of employee about change in organization and also
change in human resources management. On this basis, the insights of employees of
Tetra Pak contributed to this study and help to evaluate the effectiveness in recent
changes in Tetra Pak.
Rising from those arguments stated above, the researcher of this study tried to acquire
a comprehensive study to understand employee’s insights of change and change
management in Tetra Pak.
1.3 Methodology
The literature study for this dissertation started in November 2018 and close by March
2019. The researcher approached such theories of transition of HRM, change
management, leading change, how to make change stick, employee motivation, digital
transition, social responsibility.
The process for data gathering is conducted by interviewing and surveys sent to 25
employees of middle management level of Tetra Pak within above mentioned
timeframe by two steps: 1st one is survey and the 2nd one is group/individual
interviews in an formal interview and informal ways (conversations) to perceive their
insights about current changes in organization. This informal interviewing method
helps the researchers to obtain more open opinions of employees on change and in
some case the conversations came into a meaningful discussion between interviewer
and interviewees. Responding from employees are noted to enrich know-how of
researchers about understanding change and change management of participants.
As above mentioned, survey is also sent to participants with questions presented. The
participants will answer the questions based on their experience and understanding.
1.4 Research questions
Via primary questions the author seeks for understanding in depth of context of
change and change management from points of view of employees. The questions are
drafted as below:


7

1.4.1 What did employees understand about change and change management in
their departments and within organisation?
1.4.2 What and how were employee experiences with change and change
management in their departments and within organisation?
1.4.3 What and how did employees understand about change and change
management in people management?
1.4.4 What did employees understand about their roles in change and change
management in general and in human resource management particularly?
1.4.5 What did employees understand about roles of managers, management
board in change and change management, both in general aspect and in
human resource management?
1.4.6 What and how did employees do to contribute to change and change
management?
1.4.7 What are the most success factors for an organisation initiative change and
manage change successfully, especially in people management?
The secondary questions were designed to understand further about the expectations
about their roles in change and also their recommendations for a successful change.
1. Did employee want to participate in initial step right after change initiative

communicated?
2. What did employee expect to have successful changes included change

in people management?
3. What were success factors to have successful changes included change

in people management?
1.5 General objective
The answers of primary and secondary questions will help the researcher understand
in depth how employees perceive change and conduct changes in daily people/human

resource management.
From the point of views of employees about change and change management the
author might define the insights about employee’s believes about change that echoes
inside the organisation and might consider those echoes as initiatives for a successful


8

change in human resource management. From that points solutions for maintain
change and change management repeatedly and reliably in HRM will be proposed.
With regard from the findings, the study reveals the needful factors for maintain
change frequently and reliably.
1.6 Tetra Pak
Tetra Pak was founded by Ruben Rausing and built on Erik Wallenberg's innovation,
a tetrahedron-shaped plastic-coated paper carton, from which the company name was
derived. In the 1960s and 1970s the development of the Tetra Brik package and the
aseptic packaging technology made possible a cold chain supply, substantially
facilitating distribution and storage. From the beginning of the 1950s to the mid1990s the company was headed by the two sons of Ruben Rausing, Hans and Gad,
who took the company from a family business of six employees, in 1954, to a
multinational corporation.
Tetra Pak is a multinational food packaging and processing company of Swedish
origin with head offices in Lund, Sweden, and Lausanne, Switzerland. The company
offers packaging solutions, filling machines and processing solutions for dairy,
beverages, cheese, ice-cream and prepared food.
In Tetra Pak, the business philosophy reflects by their band promise “PROTECT
WHAT GOOD”. They bring promise to life by committing to protect food, to protect
people and to protect future.
When it comes to food, company working with customers and partners to make food
safe and available everywhere through our innovative and market-leading food
processing, packaging and service solutions.

Not only Tetra Pak’s people but also communities where it operates are also secured
and supported.
Company’s business philosophy is protecting the future of our earth and long-term
success of clients – Source />In Tetra Pak Research and Development is the core competitive advantage of
company. As customers always need faster, better and cheaper development to reduce


9

their operational cost and to increase performance in order to remain competitive.
Company invests in technology and new products in response to customers, consumer
and market dynamics – Source - />In order to remain competitive in the market change and change management are core
competence of company and its people to ensure innovation, development and growth
stably. Human capital in Tetra Pak nowadays is encourage to develop themselves and
develop others to meet higher and higher expectation from customers.
Tetra Pak Binh Duong JSC. founded in 2016, and in October 2017 they organized the
groundbreaking ceremony for liquid foods packaging factory in the Industrial Zone
VSIPIIA, Binh Duong province. This factory is the forth factory of Tetra Pak group in
cluster South Asia – East Asia and Oceania. The factory is a supplementary for
company’s strategy in cluster South Asia – East Asia and Oceania, where the demand
on milk and beverage is getting higher and higher. This factory will help company to
get closer to their customers and shorten their lead time.
Pertaining human management in Tetra Pak, since 2008 company launched new HR
model named HR ONE version 1.0 that switching from administrative human resource
management to strategic human resource management. By 2016, version 2.0 was
deployed, HR work is split into 3 core functions:
-

Organizational service

-

Country service

-

Core service

Below chart explains detailed responsibilities of each core function.