The Effect of Privatization on the Performance of Employees A case study on Karachi Electric Supply Company
DOI:
https://doi.org/10.22555/ijelcs.v6i2.633Keywords:
Karachi electric supply company, variables identified, new business strategies, integrated business centersAbstract
Karachi Electric Supply Company (K.E.S.C.) is one of the most recently privatized companies in Pakistan. Since its privatization in 2005, it has been in the phase of bringing about many changes; re-branding and revitalizing with the introduction of new concepts such as integrated business centers (IBCs), which are one window solution for customers. K.E.S.C. has come up with new business strategies and a customer-oriented outlook with greater emphasis on employee performance.
The objective of this research was to investigate the effects of privatization on the employee performance of Karachi Electric Supply Company (K.E.S.C) and find out the changes in the overall employee performance. For this purpose, research was conducted from the employees of K.E.S.C. The variables identified through the literature review were commitment, organizational change, communication, training and development, financial benefits, and job security. The research aimed at finding out what changes have been taken place in these factors after privatization and what were the impacts of those changes on the overall performance of the employees.
In order to investigate the variables, a detailed study was carried out. Both; employees and the employers’ perspectives regarding the performance changes were investigated. For this purpose, employees belonging to the middle-level management of K.E.S.C. working at IBC’s since the pre-privatization era was chosen, as the major change was implemented in these units of K.E.S.C. primarily.
Apart from surveys, 3 interviews of management working at integrated business units of K.E.S.C. were also conducted as they have direct interaction with the employees and played important role in managing and implementing change.
The results of the study revealed that change in the employees’ performance was viewed by employees as positive and significant and supplement this point with extensive training and development programs, new performance management system, organizational restructuring, amplified remuneration package, enhanced communication, and betterment of the working environment.
Keeping in view the perspective of the management and the employees on the change after privatization, the research study concludes that though K.E.S.C’s management carried out the change program in a proper and organized manner, by considering several critical factors for its successful implementation, there were still a few gaps observed with respect to job security and communication that in the end lead to employees’ dissatisfaction and reservations with the change process. These gaps are highlighted in the recommendations and this study believes that if K.E.S.C’s management includes them in their future plans, then it can bring more productivity and efficiency in the performance of the employees.
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