Вы находитесь на странице: 1из 31

Executive Summary

Human Resource is considered to be the backbone of any company. for making this
report we went to visit two companies which are mention below
CHASE A. MENDOZA

The company has in total 250 employees which include 50 managerial employees. The
annual turnover rate of the company is 8%.
Human Resource Management At Chase A. Mendoza

In our meeting with Chase A. Mendozas management and staff we investigated the key
functions of Human Resource at their company.
Recruitment and Selection
Training
Problems in Training at Chase A. Mendoza
Performance Appraisal
Employee Relationship

Glaxo Smith Kline


GSK is one of the world's leading research-based pharmaceutical and healthcare
companies.

MAJOR ISSUES FACED BY GSK


Employee Retention
HR as a solution to every problem:
Issues with the line managers
Internal Opportunities for development
Good employee-employer relations

Employee engagement
Talent Management
Succession Plans
Above are the issues we have found in our interview. Further we have given recommendation to
solve these issues. In this report first you will find case studies which will help you to understand
the problems in a good way as literature review and you will find the importance and
participation of HRM to make them such huge companies as they are.

Literature review
Human Resource is considered to be the backbone of any company. Throughout the
world a number of companies have changed their fortune just by giving value to their
human assets through the implementation of human resource strategies. We can take the
example of the following companies regarding the use of human resource management
and its effectiveness:

AT&T
AT&T and its legacy companies have been leading the way in telecommunications for
over a century indeed, it would be no exaggeration to say that their innovations have
dramatically changed the world. In 2010 the company had revenue of US$ 124.280
billion. With one new patent added daily, AT&T is clearly big on continual innovation.
And its not just products and new technology that have benefited from this drive: one
key area of focus is internal training and development.
The engine room behind the companys training and development strategies is AT&T
Learning, which was ranked as the No.1 Learning Elite Organisation by Chief Learning
Officer Magazine for delivering exceptional learning and development programs. AT&T
has over a quarter of a million staff across the globe. With a workforce of over 265,000
people spread across the world and working in a complex business, our efforts in this area
have to be a truly collaborative effort on the part of HR and business leaders, explains
Syed Ali Abbas, Executive Director (HR) Asia Pacific, AT&T.
Moulding leaders
Led by a core HR team of subject-matter experts and practitioners, the design of the
learning and development strategy is carried out in consultation with the companys top
leadership. The training is then delivered through a combination of instructor-led
sessions, live webcasts, conference calls, online portals and printed materials.
T University, AT&Ts award-winning corporate university, plays a key role in driving
the business and supporting innovative technologies via training. The university runs the
ongoing flagship leadership development program, Leading with Distinction (LwD). In
addition to the LwD program, many diverse leadership resources are available to
employees. For instance, the Virtual Management Summitsprovide an opportunity for
staff to attend live webcasts where AT&Ts top leaders share their experiences and
strategies.

Reaching out
Communication is is also a priority at AT&T, fitting for a company dealing primarily
with telecommunication services. Naturally, a good flow of communication is expected
within the organisation. HR is closely aligned with the business having close interaction
with and support of business leaders across the board allowing it to be seen by
employees as a trusted source of informal information across functional and geographic
boundaries.
We serve as a sort of organisational glue in terms of helping employees understand the
vision and direction and key priorities of the business, says Abbas. Hence, a lot of
information on the business cascades through HR to keep employees updated.
Apart from face-to-face conversations, the organization boasts a wide range of
infrastructure allowing staff to communicate remotely conference calls, web-based
meetings, webcasts, Telepresence, blogs, chat and even an internal social network called
T-Space.
Promoting from within
AT&T follows a promote from within philosophy, so the vast majority of leadership
roles are filled by people who are already in the company. In fact, I can count on the
fingers of one hand the number of times we have had to hire an external candidate to fill a
leadership role in the 10 years I have been in various HR roles with AT&T in Asia, says
Syed Ali Abbas, Executive Director (HR) Asia Pacific, AT&T.
All jobs, including leadership roles, are advertised internally which helps level the
playing-field for employees who may not have extensive internal networks. The company
also supports lateral job rotations, international assignments, international transfers and
short-term developmental project assignments to help employees in their journey to
becoming leaders.

MAERSK LINER
The first Maersk liner set out on its maiden voyage in 1928, leaving the American East
Coast via the Panama Canal to the Far East and back. The cargo consisted of Ford car
parts and other general cargo. In 2010 the company had revenue of DKK 315.40 billion.
Today, the Danish shipping giant is a market leader, transporting one in five of the
worlds goods.
Employees form the crux of the companys mammoth global operations. It hires some
25,000 employees and seafarers across 125 countries worldwide. Recent changes in
organizational strategy are calling for employees to upgrade their skills sets. The
company has been investing in education and training to help them gain confidence in
unchartered waters
Bringing Change
Maersk Line has been making some organizational changes to maintain its lead position
in the industry. The company has turned its attention to the commercial side of the
business. There is a need to be more customer-focused, says Pete Baker, HR Director,
Asia Pacific at Maersk Line.
HR is at the heart of these changes as they call for new competencies among employees,
says Baker. For example, customer service, employees who previously just handled
routine transactions are now also required to establish closer relationships with customers
and solve problems. We need to give employees skills in areas with customers such as
communication, agility and problem-solving.
To achieve this, Maersk Line has been making special arrangements to allow front-line
staff to be away from their desks from time to time in order to attend training workshops.
Transactional and administrative tasks are also being assigned to global shared service
centers so that employees can focus on providing a superior and more customized
customer service experience.
Supporting employee development
Maersk Line places a lot of emphasis on its training and development efforts. Its online
Learning Management System offers over 100 courses that will help employees improve
their ability in a range of competencies like selling and negotiation skills. Employees can
proactively select and complete a module in their own time. In some offices where
English is not the first language, doing a course at your own pace is very helpful, says
Baker.

The company also organizes more structured courses for specific groups of employees.
Its Leading Others program, for example, is a one-week course that equips highperforming employees with skills to become good managers and coaches. Some of the
topics covered include prioritizing and setting objectives, work delegation and assessing
performance. A leadership role is a really critical jump and you need to give employees
the right skills to be successful, Baker says.
Netting new talent
The shipping industrys traditional image does not illicit the same sex appeal as banking
and finance, management consulting or information technology sectors that fresh
graduates typically flock to.
Yet the industry is one of the most global in nature and ripe with opportunities, says
Baker. Our big challenge is raising awareness of the roles within the industry. To
achieve this, the company has started participating at campus recruitment campaigns in
local universities. Its global online job portal also gives potential candidates more
information about the roles and vacancies available.
Another outreach effort is the Maersk Line Graduate Programme (MLGP), which aims to
hire top talent from universities who can be groomed to become future leaders in the
organisation, says Baker. The two-year programme exposes them to the operations as
well as commercial side of the business, through a series of accelerated assignments.
Upon completion, participants are posted to management positions within the company.
Maersk Line is also looking for talent outside of the industry as many roles in shipping do
not require specialist skills, says Baker. For example, members of my HR team do not
have a shipping background. More importantly, Maersk looks for candidates who fit a
desired personality profile individuals who drive results, exhibit good leadership
qualities and have the ability to collaborate. It does this by having candidates take an IQ
test and an interview with HR.
Another attractive employee value proposition presented by Maersk Line is the flexibility
to move across different business units in the A.P. Moller-Maersk Group, which also
covers sectors like oil, drilling and logistics. We offer a global career so it is possible for
an employee to relocate to another country and find a similar role there, Baker says.
Workplace diversity
Shipping is largely viewed to be a male-dominated industry. However, a study conducted
by the Maersk Group found that teams with an equal number of women and men will
have a higher employee engagement score that translates to better financial results. The
survey also found that 40% of teams at A.P. Moller-Maersk had no gender diversity.

Addressing this situation, the group has started a bigger push for diversity in the
organization, and rolling out a new program in 2010 saw the appointment of diversity
drivers in its six largest business units. They maximize opportunities for a diverse
workforce through mentoring, fair recruitment strategies and talent planning.
The groups Asia-Pacific businesses seem to be ahead of the curve, hiring a much higher
percentage of female leaders. This is especially true in the Philippines, where 42% of
General Managers are female. Two out of three Director Positions in Manila are also
filled by women.
As a global company, greater diversity is a natural progression Baker says.
The above examples show the importance of human resource management at workplace.
It is evident that by the implementation of human resource functions these companies
have earned massive revenues. By considering the human capital as an asset companies
can bring positive changes in their structure.

CHASE A. MENDOZA
VISION
To provide life and health to millions

OBJECTIVE
To provide quality medicine at competitive rates.

Introduction
In the year 1971, Chas. A. Mendoza was established in Karachi as a pharmaceutical
manufacturing company. It is a sub group of Medicam group of companies, which is a
privately owned group. Chase A. Mendoza has not been listed in Karachi stock exchange.
While conducting SWOT analysis, the rise in availability of spurious medicines in the
market, dollar - rupee disparity and a sluggish domestic economy remained the key
challenges facing the industry. These combined with pressures of lower prices of the
products if compared with those of multinational ones posed a threat to the business.
Nevertheless, the organization continued its drive for achieving sales growth and
improving profitability. Being first national pharmaceutical concern, they enjoy the
privilege to introduce unique formulation in the form of Heptocam (Silymarin with
Vitamins) in Pakistan.
Another product named Camozyme Syrup, the best selling enzyme preparation in the
country is very effective as it establishes proteolytic activity, improves food absorption
and gives the relief of heart burn, dyspepsia, unbalanced diet, abdominal distention etc.
Another product i.e. Siroline Syrup, is quite popular as it relieves bronchial congestion,
facilitates expectoration of secretion from Bronchial air-ways, provides soothing effect in
respiratory tract etc. Other products are also quite effective for treatment of various types
of diseases.
Today, Chas. A Mendoza has grown into a major Group of Companies enjoying constant
success and persistent growth of each of its components. The company has in total 250
employees which include 50 managerial employees. The annual turnover rate of the
company is 8%.

Human Resource Management At Chase A.


Mendoza
In our meeting with Chase A. Mendozas management and staff we investigated the key
functions of Human Resource at their company. The following information is based upon
our findings during the meeting.

Recruitment and Selection

In Chase A. Mendoza recruitment is initiated with the determination of vacancies by


respective department heads. After receiving the request from different departments, the
administration/HR department gives an advertisement in the national newspapers
including the position, qualification and experience required for the job. The process of
screening job applications is done by the top management which includes chairman and
the directors.
Finally, the top management along with the concerned department head conducts the
interviews of the shortlisted candidates and after assessing the candidates, the selected
employee is being provided with temporary appointment letter.
All the hired employees have to pass a temporary probation period of SIX months in
which their performance is analyzed. If the management is not satisfied with the
employee performance, they have the right to fire him/her at any time during this period.
On the basis of temporary performance the employees are given the permanent letter of
appointment and the contract. The selection is purely based on merit as they believe
favourism can lead them to heavy losses. Also, being a privately owned company they do
not have any political influence involved. However, they hire people who match their
culture and can adjust easily.
Moreover, the employees were satisfied with the recruitment and selection process as
they believed merit is given due importance. Mr. Shabir Admin. Manager, who also
handles the legal affairs, stated that:

The chairman and Directors are not biased in term of staffing and it is easy to
communicate with the management. At the time of recruitment I was unaware of
my job description and later I got to know about it with the passage of time.
Also, Mr. Naim Senior Product Manager, who is in charge for sales stated that:
It is impossible for us to hire someone on favourism because if we will hire people
biasly our sales will decrease and the company will suffer. Sales business cannot be
done without hiring the right person.

Problems in Chase A. Mendozas Staffing:


The following problems were observed in Chase A. Mendozas recruitment and selection
process:
The company does not conduct proper job analysis and as a result their job
description is not clearly defined.
The company takes no interest in HR planning, due to which the required demand
and supply for skills is never in equilibrium.
Job applications are randomly short listed without any assessment test which
causes loss of talented applicants.
The criterion for final assessment during selection is vague and not properly
defined. As a result the company losses talented applicants.

Recommendation and Analaysis:


In order to overcome the above mentioned problems the company must adopt following
recommendations:
They should conduct proper job analysis before staffing. The reason behind this is
the fact that through job analysis they will be able to determine the job description
and accordingly they will identify the skills and specifications required to meet the
job requirement. Thorough job analysis they will be able to set a fair salary for the
job. This would also help them to communicate the limitations of each job to the
employees.
In the modern era HR planning is considered to be the back bone of each company
as it enables it to meet the future demand for any skill and to prepare in advance
for the shortage of required skills. Therefore, Chase A. Mendoza must also pay
due attention on HR planning to maintain a balance between demand and supply
of the required skills. This will also help them to cut the additional cost incurred
due to hiring more employees then the demanded.
They should conduct an assessment test to short list the candidates for interview.
In their current process they just look at the Job application and decide whether to
short list the candidate or not. Sometimes even a candidate with not so strong
application has more talent than a high achiever candidate. According to the HR
manager of UniLever they have employees who have 2.5 cgpa, which indicates
that academic performance is not the only criterion to judge a candidate. Chas A.
Mendoza should prepare an initial assessment test and then short list the
candidates on the basis of this test.
They should give marks to the interviewed candidates individually and ultimately
choose the one with highest score from the panel instead of chairman selecting
alone and the rest of the panel just sitting for formality. With this they will be able
to evaluate candidates differently and also get the best candidate for the job.

Training

At Chase A. Mendoza training is provided only to the sales team. For that purpose they
conduct seminars and conferences to convey the knowledge about the medicines to their
sales representatives. Also, a manual is provided to each employee to learn about the
knowledge. After the seminar is conducted, the employees have to appear for a test to
evaluate the findings of the seminar.
At the time of induction no training is provided and employees are asked to work on
temporary basis for the initial six months. According to Mr. Shabir:
In Pakistan training is only provided in the banking sector and not in others as
they incur cost and everyone wants to minimize the cost. So, training is provided
only where it is necessary.
Other then the sales staff, the remaining departments had no clue about any sort of
training and they believed that, top management at the time of selection identifies
whether the person has the skills or not and then select. So those who are not good
enough are not selected.
However, in case of sales team training is considered to be a backbone for the company.
While interviewing with Mr.Naim, who is also the training manager we figured out that it
is necessary to provide training to the sales people as they require proper knowledge to
convince the customers for their pharmaceutical products. Mr. Naim said:
Without adequate knowledge it is impossible for the sales people to convince the
customers and therefore we pay due attention to groom our sales team and increase
our sales.
Career development is also not present in the company and the employees are also
unaware of it. Most of the employees were just concerned with the salary and
compensation. However, employees felt that a training need analysis should be conducted
in order to co-operate with the rapidly changing technology.

Problems in Training at Chase A. Mendoza:


After analyzing the overall situation at the company, we believe that following problems
exist:
At the time of induction no orientation is given to the employees and employees
are not informed about the rules and regulations of the company.
Training need analysis is not present and employees are not provided any
training.
Due to lack of understanding about training, both on job and off job training are
ignored in the company.
Career development is not given any importance and successors are not being
formulated before the time.

Recommendations and Analysis:


In order to overcome the above mentioned problems the company must adopt following
recommendations:
The company should provide a guide manual to the newly appointed employees to
make them familiar with the culture of the company. Orientation helps the
employees to understand their limitations and rights. Ethical environment of the
organization is also communicated through the orientation.
There should be clear policies that are necessary to identify the need for training
among the employees and to provide the needed training. Initially they shall figure
out at which level they want to provide training I.e. organizational level, task level
or individual level. This process avoids the waste of money and time which is
spent on useless training. If training is provided efficiently it can increase the
productivity and pay off more than its expenses. We can take the example of
TESCO. At TESCO all the employees are provided training on the basis of need
analysis and as a result their overall performance is increasing at a rapid pace.
Chase A. Mendoza should create awareness about training. They should send their
managers on off job training to understand the importance of training and train the
employees. In the present era the importance of training cannot be denied. With
the rapid changing technology and increasing competition it has become

obligatory to provide training to the employees to stay ahead. For this purpose the
company shall provide both on the job and off the job training to its employees
depending on the need and requirement.

The company must facilitate career development as it increases the employee


motivation and dedication toward a company. Chase A. Mendoza should
encourage programs for career development and provide the employees to
develop. They shall prepare successors for jobs and prepare the current employees
for the future jobs. This will give them the opportunity to recruit internally and
save the time and cost. Internal hiring results in motivation and minimizes the
risks involved in recruiting a new person.

The company shall also evaluate the results of training through sales figures and
overall performance of the employees and also taking their perspective about it. In
case if they feel training program has not worked well they shall reconstruct it and
design a new one accordingly and it should be implemented as soon as possible.

Performance Appraisal

At Chase A. Mendoza the employees are evaluated once a year. The immediate
supervisor evaluates the performance of their subordinates in term of performance,
behavior, sales and relationship with other employees. Appraisals are generally held at
the end of the year. In order to check the attendance and working hours of employees a
device is installed at the main gate which operates with the finger prints of the
employees. This keeps an automatic record of how much time an employee spends on
outdoor work and punctuality as well as attendance.
The supervisor considers all these factors while evaluating the subordinate. The
employees are also informed about the standard performance which is mutually decided

by the supervisor and the subordinate. After evaluation is done a face to face interview
between the appraiser and appraise is conducted to discuss the performance of employee.
The employees are not aware about the importance of the performance appraisal and
consider it to be an audit for them. The management lacks in providing future advice to
the employees and do not ask what sort of training they will require to polish their skills
and enhance their performance.
However, the employees believe that appraisals are done unbiasly and without any
political or external pressure. All the employees are given equal chances and also the
perspective of employee is taken into account during the interview. Also, the employees
are aware of their bosses who will be evaluating their performance.
According to one of the employee at Chase A. Mendoza:
I know what is expected of me and my standards are known to me. I m satisfied
with the management and they just focus on performance and nothing else.
At Chase A. Mendoza the standards are set mutually with the consent of employees and
keeping in view all the external factors. However the final decision about the standard is
done by the supervisors. The objectives given to the employees are realistic and
achievable.

Problems in Performance Appraisal System of Chase A. Mendoza:


After analyzing the overall situation at the company, we believe that following problems
exist:
Employees are evaluated once a year which increases the margin of error and does
not provide any future advice.
There is no clear policy to isolate the solid performers and not so solid performers.
Lack of awareness about the PAS among the employees restricts them to utilize it
completely.
Managers are not well trained in conducting the appraisals.

Recommendations and Analysis:


In order to overcome the above mentioned problems the company must adopt following
recommendations:

In order to increase the effectiveness of appraisals, the company must conduct it


regularly and the supervisors shall provide the subordinates with the knowledge
and skills they require to improve their work. The subordinate shall keep a regular
check on the performance of the employee and must guide him/her accordingly.
This will give the employees a chance to improve themselves immediately and
also for the supervisors to control the faults as they arise.
A bell shape curve shall be implemented to differentiate solid and not so solid
performers. We will suggest Chase A. Mendoza to have a band of 5/21/51/21/2
with 5% being the solid performers, 21% being not so solid, 51% being average,
21% below average and 2% being the worst and considered to be fired. This
should also be communicated to employees as they will have the opportunity to
work accordingly.
The employees consider performance appraisal system as the audit of their work
and we found that most of them were scared of it as they believed their
performance will be revealed and the will have to listen to supervisors harsh words
and criticism. In order to overcome this, the employees must be informed about
the importance of the PAS and for that a number of seminars shall be conducted
and the manager must not only criticize them and instead shall appreciate their
achievements as well.
The managers shall be given off the job training to conduct the appraisals
effectively. They should not just criticize the employees for their lacking instead
appreciates them and provide guidance to overcome these lacking. This would
create a healthy relationship between supervisor and subordinate and also the
overall performance of the company will increase. Also, the managers will
become aware of how to criticize in a positive manner and to communicate

companys objective more clearly and as a result the employees will not take
appraisals as burden over them.

Compensation
At Chase A. Mendoza employee compensation is given high importance and the
promotions are strictly based upon performance and not seniority. Also the company
gives priority to internal promotions for vacant jobs. All the employees are given a bonus
almost every year. The executives are provided cars and all the employees are provided
facilities like free food, non pay cut holidays and fifteen days leave is granted after a
year.

The lunch for all the employees is provided by the top management and also refreshment
like tea and coffee is also provided. The lunch is of good quality and according to an
employee:
In lunch we have things like chicken biryani and all those things which everyone
likes. We do not feel inferior in term of food. The food is of high quality and
delicious as well.
The employees are highly satisfied with the compensation system and they believe it is
free of biasness and any political influence. The criterion for promotion is performance
and everyone is aware of it. According to an employee:
I have been part of this company for the last 20 years. I feel that the promotions
are given on merit and not any other reason. I am satisfied with the management in
this regard.
Also, the company takes its high achievers every year for an abroad trip and their an
annual award ceremony is being conducted and the employees are given awards for their
achievements. Approximately around 30 employees along with the top management go
on this trip. Mr. Naim stated:
Last year we went to Thailand and it was a fun trip. An award ceremony was also
conducted their and we went to different places and enjoyed a lot. It refreshed our
minds and made us ready to face the upcoming challenges.
In order to keep the lower level employees motivated the management provides them
with basic food necessities pack after every 15 days. This pack includes wheat, rice,
sugar, oil and other important stuff. An employee in this regard said:
Our owners understand our needs and they provide us with all the basic
necessities. We are satisfied with the compensation plan in the country.
Sick leaves are also provided to employees in case of emergency. The employees can
take additional leave by writing a request to their immediate supervisor and if the
supervisor believes the employee deserves the holidays they provide them.

Problems in Compensation plan of Chase A. Mendoza:


After analyzing the overall situation at the company, we believe that following problems
exist:

Bonuses are provided regardless of the performance, which eliminates its


importance.
As the system is entirely based upon performance, sales representatives are given
more importance for promotions and admin and management people are ignored.

Recommendations and Analysis:


In order to overcome the above mentioned problems the company must adopt following
recommendations:

The company shall provide bonuses only to the high performers or those who are not so
solid performers. Providing bonuses to all the employees regardless of their performance
creates demotivation among those employees who work hard all year. The purpose of
providing bonuses is to motivate the employees and by providing it to all makes it an
ordinary thing.

When it comes to performance sales people always get an edge over other departments
because their performance is clearly evident from the sales figures while the management
and administration people are unable to make their performances evident to the top
management. Therefore, these employees are not considered much for promotions. The
company must consider factors like attitude with other employees, behavior and
punctuality. There shall be equal opportunity for all the employees.

Employee Relationship

Employee relationship is given due value at Chase A. Mendoza. The top management believes
that there should be no communication gap between the employees and management. Employees
are welcomed by the supervisors to discuss their conflicts and resolve them.
All the managers and the top management daily have lunch together, where they discuss day to
day issues and also resolve them. Eating with the owners creates a sense of ownership among the
managers and also builds their self-esteem.
According to a Manager:

Daily our lunch comes from chairmans house. It is a three course meal and we all have it
together in the conference room. We also discuss the day to day issues in a non-formal manner
and also communicate subordinates view to the top management.
The employees are never discouraged to express their view. Also, stick rules are set by the top
management against any sort of unethical act and any such act results in immediate action
against the employee involved in it.

Problems concerning Employee Relationship:


The following problem is observed at Chase A. Mendoza concerning employee relationship:

Not all employees have the courage to go and discuss their issues with the supervisors. At
Chase A. Mendoza there is no concept of employee counseling.

Recommendation and Analysis:


To overcome the above mentioned problem the company shall encourage the supervisors to go
the employees and ask them about their problems if they believe that the employee is not
performing up to the standards. The managers must also provide counseling to the employees
and encourage them to think about their future. This would create a sense of awareness among
the employees and the communication barrier will be demolished. Employees will work on their
skills for the betterment of their future and the company.

COMPANY OVERVIEW

Mission statement
The mission of GSK is very challenging and inspiring which is to improve the quality of human
life by enabling people to do more, feel better and live longer.

This mission statement helps the company to develop innovative medicines and products
that help millions of people around the world.
GSK is one of the world's leading research-based pharmaceutical and healthcare
companies. Headquartered in the UK, it is a global organization with offices in over 100
countries and major research centres in the UK, USA, Belgium and China.
Being a market leader also comes with great responsibility. This means that they care
about the impact that we have on the people and places touched by our mission to
improve health around the world.
GSK is one of the few pharmaceutical companies researching both medicines and
vaccines for the World Health Organizations three priority diseases HIV/AIDS,
tuberculosis and malaria, and are very proud to have developed some of the leading
global medicines in these fields.
They produce medicines that treat major disease areas such as asthma, anti-virals,
infections, mental health, diabetes, cardiovascular and digestive conditions. In addition,
they are a leader in the important area of vaccines and are developing new treatments for
cancer.

GSK Also Markets Other Consumer Products, Many Of Which


Are Among The Market Leaders
GlaxoSmithKline Pakistan Limited stands today as the largest pharmaceutical company
of Pakistan, came into existence as a result of the merger between SmithKline and French
of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan)
Limited- as on January 1st 2002.
GSK leads the industry in value, volume and prescription market shares. They are proud
of their consistency and stability in sales, profits and growth. Some of the key brands
include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and
renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO.
In addition, GSK is also deeply involved with the communities and undertake various
Corporate Social Responsibility initiatives including working with the National
Commission for Human Development (NCHD) for whom it were one of the largest
corporate donors. They consider it their responsibility to nurture the environment and
operate in and persevere to extend our support to our community in every possible way.
GSK participates in year round charitable activities which include organizing medical
camps, supporting welfare organizations and donating to/sponsoring various
developmental concerns and hospitals an example of which was they initiated THE
BEACH CLEANUP in association with Management Society of Institute Of Business
Management [IoBM]. Furthermore, GSK maintains strong partnerships with nongovernment organizations such as Concern for Children, which is also extremely
involved in the design, implementation and replication of models for the sustainable
development of children with specific emphasis on primary healthcare and education.

MAJOR ISSUES FACED BY GSK


Employee Retention
Major pharmaceuticals companies all over Pakistan including GSK face a similar
problem which is of employee retention, in terms of attraction and retention of the best
performing employees. However, within the industry GSK Pakistan is ranked as the
most preferred employer
Generally it has been researched and observed that pharma industries are least
preferable for the prospective candidates pay wise.
Many prospective candidates opt for working in financial or oil & gas sectors due
to lucrative remuneration packages & the fringe benefits associated with it.
GSK have a high turnover rate among their sales representatives which results in
the high recruitment and selection cost for the organization as majority of the
sales representative join GSK for mere experience in their resumes as GSK is the
industry giant in the world of pharmaceuticals of Pakistan.

Solution
GSK should provide their employs with the market compatible pays and benefits,
they should look after employees & take care of their welfare revise
remuneration & perks from time to time maintain good employee-employer
relations which would help reduce the turnover rate in the organization.
GSK should give them a better opportunity to grow so that the employees could
become willing to build long term associations with the organization. One way of
doing this is keeping the employees looking internally at opportunities within the
organization via talent management exercise and the Performance Development
Program (PDP) process.
Career coaching if provided to the employees can also reduce the turnover and
help them having a clear goals of what their career path is and how will they
succeed in the organization.

Many employees feel resentment when they see the amount of time and effort
put on their part into the job and then at the time of promotion a new employee
is hired to fill up a vacancy that they deserve. Thats why the company should do
internal postings before making any vacancy go public so that the internal
employee have no resentment and get the promotion that they deserve, if they
are capable for it.

Compensation System
One of the issues faced by pharmaceuticals today is the intensity of competitions
compensation where they have to ensure that all benefits are in line with all
levels/grades of employees which is a difficult yet an important task. All
pharmaceuticals differ from each other in this aspect as some have large field strengths
while others have low making it difficult for the organization to benchmark these grades
accordingly. As the employees are in constant touch with the different employees from
the same industry and in this way they get to know what are the compensation and
other benefits therefore these compensation should be satisfaying.

Solution
Surveys are conducted on a regular interval for benchmarking the compensation
system and also to balance the short term with the long term incentives.
GSKs HR uses a software where the personals can view and edit their personal
information.
The design of GSKs salary packaging is,
To provide with the Optimum flexibility and choice in targeted incentive
programs which helps them to attract and retain world class employees.
Bonus plans are one of the essential and key component of the GSKs
compensation system.
Long term incentive schemes are offered to the senior managers of the
organization.
The top achievers of the organization can receive significant monetary
awards which can be for both individual and team achievements.
The employee of GSK receive following as compensation.
Pay - salary, bonus/sales incentives and recognition awards
Shares & savings - share plans, savings plans, pension plan

Health & life - healthcare plan, health mot, holidays, employee assistance
program, tax-free: plans, discounts
Development - performance and development plan

Low Attendance Issue


One of the problem GSK is facing nowadays is the low attendance relatively higher
among the female employees which further results in the below average performance
overall resulting in lower productivity, when asked they notified that the concentration
of the female staff at work was declining due to their unsatisfied needs towards their
families especially child.

Solution
A Day Care facility should be introduced by GSK for their female staff so they can
work properly and effectively with convenience which would increase their productivity
and the attendance too when they know their child would be taken care off while they
work. With that they can also provide for the female staff with the flexi-time to support
them.

Job Security
One of the challenges faced by GSK is whenever any merger take place then each
position ultimately have two candidates whereas the organization only require one
of them at each position hence downsizing takes place and one of them has to be
eliminated from the organization after the evaluation.

Solution
The employee who is being eliminated after the evaluation must be given enough
compensation at least for three months in advance so he can have time to look for a
new job. The organization should keep their record for any future job if available so
as they have the first hand right to avail that opportunity.

Market Recession:
One of the largest problems faced by the company is during the market recession where
by majority employees had to be laid off. Downsizing within the organization and letting
go of individuals is a challenging task for the organization.

Solution
This issue was resolved by ensuring that the employees know exactly why they
were being laid off, that it wasnt because of their performance but as a result of
recession.
The organization tries to fully reward them for their efforts and ensure that if and
whenever there are job vacancies their records will be kept safe within the
organization for future reference; moreover they would be given the first
preference because of their old experience in the organization.
Another way of dealing with such an issue is that, GSK does its work through
contractors who have temporary employees working under their supervision.
Therefore in this way they not only manage bring about the stability but also cost
effectiveness.

APPENDIX

Questionnaire Used For Human Resource Audit


PART - 1

1. Approximately how many people are employed by your organization?


In total ________ Male ________ Female ________
2. Approximately how many people are employed in your HR function by your organization?
In total ________ Male ________ Female ________
3. What is your annual turn over rate? What measures do you take to reduce it?
2. Has your HR function increased in scope and responsibilities in the last few years?
5. Can you briefly describe the role/listed functions of the HRM department at your Company?
6. What has been some of the changes that have been brought about to your particular institution
due to the HRM dept?
7. What were things like before HRM was given as much importance as it is now?
8. Its contributions aside, could you please list some of the new issues/problems that have arisen
from a management perspective due to the HRM Dept., if they exist.
9. How is performance measured for HR in your company?
10. What types of opportunities are available for the advancement/development of human
resources?
11. What are the criteria for the selection and recruitment for job?
12. What have been the primary factors in the changing perspective towards Human Resource
Management?
13. To what extent is the human resource staff/department involved in strategic Organizational
decisions?
14. To what extent do the employees come to you concerning their problem? Mostly what
problem are they?
15. In your opinion, what are some of the most pressing human resource issues faced by the
pharmaceutical industry today? Why?

16. What was the most difficult organization problem faced by the human resource department
in the last few years? How was it resolved?
17. What are the quality and competence you think a HR Manager should have? (To be asked to
HRM and CEO, GM)
18. In terms of your workers training background, Do you hire already trained professionals for
the most part?
19. Do you jointly fund training in those skill areas which more directly effect performance?
20. If your organization has a business strategy, and at what stage the HR function is involved in
its development (please tick only one)?
a. From the outset, participates in the strategy formulation
b. Through subsequent consultation
c. On implementation, as Key Leader
d. Does not participate
22. What do you foresee you would need to meet these challenges? (Please tick a maximum of
three and in order of perceived importance):
a. Training
b. Tools
c. HR measures
d. Best practices
e. Consulting
f. Other, please specify
23. Approximately what percentage of employees has received training within the last year?
a. External __%
b. Internal __%
c. Both __%
24. Which are the most important areas of HR training need for your organization over the next
few years?

25. How does the HR function in your organization contribute to Human Capital Development?
26. Please mention the priorities in your organization for Human Capital Development (please
tick all that apply and indicate in order of importance with 1 as most important):
a. Strategic Skills/Competencies
b. Leadership
c. Culture/Strategic Awareness
d. Strategic Alignment
e. Strategic Integration
a. Other, please specify:
27. Please mention the difficulties, which the organization had in previous year in recruiting
personnel with professional skills.

PART - 2

1.
Does your company have a separate business strategy and a HR strategy, if so, how does
the company keep the two of them aligned?
2.
Within the organization, who develops the HR strategy? Is it just the responsibility of the
HR personnel or the organization as a whole sets them?
3.

What is the role of the HR function in the support on the organizations strategy?

4.
Do you feel the need to transform your organization from a traditionally run HR to a more
strategically aligned HR function?
5.
If so, what are the changes that you feel will have to be incurred in the overall
organization, in terms of personnel and their designation, AND the HR function alone as well?
6.

Outline the HR departments present role, list its function.

7.

How do you measure the effectiveness of the HR function?

8.
Do you benchmark any other organization, within the same industry or out of it, where HR
functions are concerned?

Please describe the Human Resources Policies of the company. If possible, please specify the
policies for each HR function (recruitment & placement, training & development, performance
appraisal, etc)
10. Does this company have a clear job description for each job/position?
11. What is the total number of all employees (headcount) at the business unit?
Managerial level

Supervisory level

Staff/operator level
Total

:
:

12. What is the total number of employees (headcount) for the human resources department?
Number

Managerial

Supervisory

Staff

Total

13. Can you give us a brief on the recruitment process of your organization?
14. Do you use executive search services to help you in the recruitment area?
15. Who eventually makes the Hiring decision for a particular position?
16. Are there any programs for employee retention in this organization? What are they?
17. Is there high turnover rate? Could you please specify this organizations turnover rate?
18. What are the programs of training that you provide your employees?
19. What are the forms of training that you provide your employees? Is generally skill based or
technical (job based)?
21. What kind of training programs offered to employees?
22. How do you evaluate training effectiveness?

23. What types of performance management systems do you use? Please describe. And how do
you evaluate its outcomes?
24. Who designed the current compensation system? Does the BOD / HR Department involve in
formulating pay strategy? Are they equally involved in the pay of all the employees of the
organization?
25. Do you compare the companys compensation programs with the market rates? Does the
current compensation system competitive? Does your company have succession planning? What
is the current system of succession planning? Do succession plan exist for all critical positions?
26. What problems does the company encounter in labor relation issues? Do you have labor
union? Does the labor union represent the employees well? How do you solve labor relation
(LR) issues?
27. What IT systems and infrastructure do you use to support your HRIS?
28. Do you create an environment of open communication between employees and management?
How?
29. Do you create environment to delegate decision making to the lowest level possible?

References:

http://www.hrmasia.com/case-studies/delivering-value/120548/
http://www.hrmasia.com/case-studies/maersk-line-running-a-tight-ship/120000/
http://en.wikipedia.org/wiki/Maersk_Line
http://mgcpakistan.com/
http://www.gsk.com.pk/aboutgsk.html
http://en.wikipedia.org/wiki/GlaxoSmithKline