EFFECTS OF HUMAN RESOURCE MANAGEMENT ON THE WORKING

BEHAVIOUR OF EMPLOYEES IN THE PHARMACEUTICAL INDUSTRY

- CASE STUDY BOSNIA AND HERZEGOVINA-

ABSTRACT

Aim: The aim of this paper is to analyze the impact of human resource management of the

working behavior of employees in the pharmaceutical industry in Bosnia and Herzegovina.

Introduction: The main purpose of this study is to give companies, from the pharmaceutical

industry, a view of their HRM from the standpoint of an employee. Methodology: The main

instrument for data collection is the quantitative survey which was conducted and primary

data was gained and analyzed with descriptive statistics. The Likert scale (1 to 7) was used in

the satisfaction determination process. The survey was successfully fulfilled by 118 people.

Respondents were made up by employees who work in pharmaceutical companies. The

survey was conducted online in the cross sectional time frame in the beginning of the first

quarter of 2016. The participants answered, anonymously, questions about their overall

satisfaction, positive and negative sides of HRM and human resource development in the

company. The results: The data collected from this survey were statistically analyzed and the

conclusions were additionally supported by the Pearson Product-Moment Correlation

Coefficient, at =0. 05 level of significance, confidence level were the null hypothesis (H 0)

was confirmed, and concluded that there is a correlation between the success or failure of

HRM and the working behavior of employees. Conclusion: The HRM department in the

pharmaceutical industry in not enough developed and need to be improved. They give the

workers' new equipment, teach them how to use it, they are offering educational classes to

improve their performance, but the company managers dont take into consideration the

emotional satisfaction level of employees. Their strategy should be oriented towards the
improvement of the interpersonal relations between employees, and a more social company

politic where the satisfaction of their employees should be a priority. That could lead to more

motivated employees.

Keywords: Human Resource Management, Business development, Professionalism,

Employees, Working environment.

I. INTRODUCTION

In establishing and building a business first come business management issues such as

customer acquisition and market presence in the foreground, but the internal development of

the enterprise is not considered a priority. Competitive and stable business development

cannot be realized without functioning internal structures and rules.

A closer look to the specific needs of an enterprise personnel management as a

management tool is the basis for such a structural development. Key elements of the human

resources management are creating and designing of a framework for optimized working

conditions of development perspectives for the employees and the promotion of employee

skills as a prerequisite for making the best use of human resources. According to Becker and

Huselid (2006) the construction of human resource management is not about the

implementation of a "perfect" and detailed system, but to create a basis that takes into account

the overall development of the company and builds on each other in their elements. In the

individual instruments and aspects of personnel management, the common mission of the

company must be reflected.

Staff Management examines the conditions under which staff is employed in work-sharing

activities. The aim is to meet both the needs of the company and the interests of the

employees. This result in a goal braid developed environmental with generally accepted social
goals of the company and individual goals of employees which must be considered in order to

manufacture and distribute the company's performance successfully.

The economic objective of human resource management emphasizes the perspective of

investors, who are interested in efficiency and profitability. To achieve this, companies need

to set up concrete implementation strategies, primarily long-term with profit maximization or

cost minimization strategies. The manpower is seen as a factor of production. In combination

with the other factors of production it is possible to achieve efficient use of human resources.

Whether the use is efficient depends on whether the staff required for the performance in real

numbers, is with proper qualification or not

Hereby the planning and implementation competence of the company is addressed to

recognize the profiles required and to act accordingly on the internal and external labor

market. Efficiency refers, however, in itself also on the increase in labor productivity of each

employee. It is all about the willingness of the employee to optimize their own performance

review.

II. HUMAN RESOURCE MANAGEMENT

In today's science and practice, there are a variety of terms which refer to the operational

function that deals with the human aspects of a company. It is generally understood, by

personnel management, the design and control of personnel management tasks and problems.

Experts define personnel management as segments that deal with the human aspect of the

system, its design and process control. The former includes the design of systems for the

control of behavior and conditioning, while the latter includes the management activities and

the handling of the systems.

For the purposes of system design personnel management takes lead activities for the

staff, by rules and conditions which were created and who regulate the procurement, training,
transfer, wages etc. of employees. By contrast, personnel management as behavioral control is

equivalent to the management of staff. The staff is under the leadership of the supervisors.

The term "personnel management" can now be used both in the institutional, functional and in

the procedural sense. If the Personnel Management is considered as an institution, Henderson

(2011) explains, the organization is seen as a system that includes both humans and machines

as elements of the production and the fulfillment of personnel management tasks is equally

distributed.

The personal-information management tasks, such as: Pay slips, recruitment and

exemptions, the keeping of personal files and information of the works are carried out as part

of a central personnel administration. The responsibilities for the performance of tasks within

the company may be regulated differently and depend mainly on the organizational tasks.

From the standpoint of the division of tasks we can also speak of a dual sponsorship of HR

activities, therefore, as personnel management activities which are not only carried out by the

central personnel department, but it is also the responsibility of executives falls with staff

competence.

Personnel management as a function includes all areas / functions that are connected to

people in organizations. The individual staff functions (e.g. as recruitment, deployment and

retention) are not seen as detached elements of human resources management, but they are

mutually interdependent in relation to other functions of the system and the subsystems that

extend the scope to which HRM belong.

With a focus on the value-adding process the task is to ensure that members of a company

administration have duties and that intangible flows are regarded as services and as value-

added activities. It is a characteristic of a process in which individual objects are no longer

considered separately, but as a set of steps that will lead to a desired result.
 II.1. Development of the Human Resource Management

Until the early 60s staff was hardly involved in the strategy development. The duties of

the personnel departments were essentially limited only to the management and to people on

administrative and operational functions. With the "institutionalization" in the mid-60s for the

first time was the concept of "personnel management" in circulation. The staff played a more

substantial role. Personnel work was centralized and professionalized to be human and

resource managers have specialized staff functions. As a central key factor man was in the era

of "humanization" from cca. 1970 with his needs, feelings and values.

While so far the staff has been adapted to the organizational requirements, the principle -

guided by slogans such as employee orientation, humanization of work and cooperative

management was aligned by employees. Since the '80s, in the time of "commodification",

dominated the strategic alignment of human resources. As shown by MacKenzie, Garavan and

Carbery (2014) the two factors "organization" and "stuff" - driven by market pressure - have

been adapted to the changed conditions to aspects of the economy.

II.2. Characteristics of the Human Resource Management

The U.S. Office of Personnel Management (1999) explained that the task of the staff

organization is not in the isolated optimization of individual staff functions, but in the holistic

optimization and the continuous improvement of the personnel management performance

which has to be based on the company's objectives. Experts have defined the following

requirements for a successful organization of the personnel department:

Transparency: The staff organization has to define the tasks and competencies of the

respective decision-makers in various fields and to ensure transparency. Thus is any

problem in the power process, there needs to be a responsible and competent contact

person.
 Flexibility: The organization should have a high degree of adaptability of human

resource managers to respond optimally to the change by the customer requirements.

Customer proximity: A rapid exchange of information between HR and the staff

represents a further condition to a staff organization. The timely availability of

decision relevant information shall be guaranteed by short and diverse channels of

communication between HR and the staff.

Integration: The choice of organizational form enables the breakdown of functional

interfaces in the internal performance process, thereby eliminating the wasting of time

and duplication of efforts.

Problem orientation: the decision-makers are for personal cross-functional problems

with complete solutions "from a single source" responsible. A problem-oriented staff

organization contributes to the avoidance of unnecessary, isolated, incompatible and

individual results.
Networking: The staff organization must allow rapid exchange of information

between individual personnel management tasks and areas of competence, so that the

decision-makers can work out an independent solution of personnel management

problems in the performance process with complete method solutions.

Employability: In-business decisions are made by the staff. Individual needs of all

organizational units and their staff must be identified and communicated by the

personnel management. The organizational structure assumes the main function in

human resources, which perceives a mediating, confidence-building role. In principle,

the personnel organization of the possibilities of human resources management, the

processes of self-organization and the commitment towards the overall objectives of a

company are important.

III. HUMAN RESOURCE DEVELOPMENT

Due to the ever faster changing and growing professional requirements, more and more

lifelong learning is expected today. In fact, companies that received particularly good
management say that they use more of targeted and planned development of their managers

and other qualified employees, which increase the responsibility of positions, create special

jobs, provide in-house and external training programs, to enable employees between

functions, divisions and countries, to have mentors and coaches to give them feedback on

their development progress and show them how they can make their own development.

After all, many organizations support their employees in their development activities,

institutionalized by the so-called Personal development (usually abbreviated as PD).

According to Gibb (2006) PD refers to all efforts of an organization serving to improve the

professional skills of their employees. The goal is the development of the professional

competence of all personnel groups, to get the skilled workers and managers. Haslinda (2009)

has done a research and concluded that the extension of competence, often divided by (a)

technical and methodological expertise, (b) social competence and (c) personal competence

should enable the employees to understand the increasing complexity of their professional

environment and is reflected by self-confidence, to establish responsible behavior.

All PD measures should be a determination of development needs. This is expediently

based on three foundations:

Organizational analysis - which provides overriding strategic considerations targets for

staffing;
Task and requirement analysis - which identifies the need to handle future tasks, to

develop knowledge, skills and attitudes of employees;

Individual analysis - which determines the individual performance, behavioral deficits

and development potentials.

However, Wright (2008) explained that such requirements planning efforts can be

unexpectedly thwarted by acquisitions and mergers of companies. They must then be replaced

by ad hoc measures to the urgency before they can determine requirements for a period of

consolidation again.
 III.1. Human resource development "ON THE JOB"

By processing more varied tasks, the joint structuring and solving problems in working

groups, identifying critical success behaviors of colleagues and supervisors, the knowledge in

real or simulated application contexts is developed.

Ultimately, the HR Council (2009) made a statement that it is about the creation of

opportunities of working immanent learning processes, the design of problem-oriented

learning environments as well as the motivation of employees for permanent learning

provides fertile theoretical approaches to:

A) The action control theory, which seeks to overcome the separation between thought

and action and learning, conceives as purposeful action that is based on the

assumption that the acting subject, the expected results of his actions are anticipated to

base on these objectives steers and control the execution of the action itself.
B) The concept of work-immanent qualification that sees learning in the work process as

a central means of shaping the personality. As conditions conducive to learning work

are interesting "training opportunities" (new work contents and structures) and

sufficient "qualification readiness" (attitudes, values, motives, self-concept) which

must be met.
C) Constructivist approaches of instructional psychology take learning as a constructive

process. One would like to get away from the predominantly passive-receptive

learning in traditional knowledge, because it has only "inert" knowledge without

adequate transfer what they have learned on various application situations result.

III.2. Human resource development "OFF THE JOB"

PD "off the job" includes all measures that are generally subsumed under training. To

convey complex knowledge or differentiated behavior patterns have emerged in addition to

the classical methods such as lecture, discussion and group exercises, especially simulation of

games, case studies, computer-based learning systems, team training, group dynamics training

programs, role playing and behavioral modeling are efficient methods.

All of these methods are only blocks that can be used in all sorts of thematically different

trainings in a sequence with each other. Nevertheless, according to Laakso-Manninen and

Viitala (2007) there are priorities: "Hard" factual knowledge (like handling of new

technologies or understanding of critical market situations) is mediated rather with

simulations, case studies and computer-assisted learning systems and "soft" factors (such as

facets of social skills or leadership skills) are more likely to be developed through team

training, group dynamics training programs, role playing and behavioral modeling exercises.

IV. PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is very complex. It is in the modern era defined with

technologies related to medicament discoveries and further development within the limits of

human knowledge. The enormous size of the industry and the complexity of the process and

technology are major challenges for the organization and management. Development and

distribution systems are very expensive. Performance in managing all aspects of the industry

is a necessary condition for the survival of global pharmaceutical companies. This industry is

the largest in the world, because the world total revenue is about 900 billion US $. Tootelian,

Wertheimer and Mikhailitchenko (2012) concluded that it went through several significant

changes in recent years related to new investors, producers and consumers. Customers now

demand the same choices and benefits from the pharmaceutical industry that are found in

other industries.

The global pharmaceutical market has experienced strong growth during the period from

2006 to 2010 and has further increased from 2010 to 2015. The value of the global
pharmaceutical market will grow by 5-7% in 2016 to 980 billion US $, compared with 4-5%

in 2010. It is expected that the performance of the market to accelerate the estimated average

annual growth rate of 6 % for the five-year period 2015-2020. That will lead the market to a

value of 981.1 billion US $ at the end of 2016.1

The largest market in the world, the United States, grow by 3% to 5%, and sales of

pharmaceutical products reach between 320 and 330 billion US $. The European market is

growing by an average annual rate of 3.2% to the corresponding value of 250.3 billion US $

in 2015. Developed countries - Germany, France, Italy, Spain and the United Kingdom,

Europe's five major markets, have an average spread of 1% to 3%. The Asia - Pacific market

grow by an average annual rate of 8.4% over the same period, corresponding to the value of

274.8 billion US $ in 2015. China, one of the leading markets in the region in 2015 had a

growth of 20% to over 50 billion US $. The Japanese market has a growth from 5% to 9%.2

IV.1. Segmentation of the world pharmaceutical market

The total value of the world's pharmaceutical market has from 2011 to 2015, a constant

growth with an average of 6% in respect of any previous year. At the end of 2015, the total

value amounted to almost 900 billion US $. The pharmaceutical market segmentation can be

extracted into six regions. These are South and North America, East and Western Europe, the

Asia-Pacific region and the Middle East and Africa. The largest shares of 44.6% of the global

pharmaceutical market are the United States, while Europe takes up 29.2% of the global

market. In the Asia-Pacific region, the leaders are Japan and China, as the leading

manufacturers of pharmaceutical products and medical devices, while the region of the

Middle East and Africa accounts for only 1.3% of the worldwide pharmaceutical market.3

1
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
2
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
3
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
 IV.2. Global expenditure for pharmaceutical products

Global annual expenditures for pharmaceutical companies are predicted to achieve 1,000

billion US $ in 2016. The largest contribution to this growth will give pharmerging, biological

and generic markets. In developed markets - the US, EU and Japan, expenditures will decline

to 57% share in global expenditure in 2016, as opposed to 2006 when they amounted to 73%,

due to the expiration of the large number of patents, slower growth in spending on original

medicaments and increased living costs consumers. Pharmerging market will reach 30% of

global spending in 2016 due to increase in population and economic power in these countries.

Pharmerging markets recorded the highest growth in China. Pharmaceutical products for the

treatment of 20 leading authorities at the forefront of cancer, diabetes and asthma, will cover

42% of total expenditure.4

IV.3. Pharmaceutical industry in B&H

Since the earliest times, medicaments have played a major role in the treatment of diseases

and influence the improvement of quality of life and its continuation. Each person is expected

to have access to safe, affordable and effective medicaments, the latest technological and

biomedical advances. The pharmaceutical industry, based on research and development, gives

the outstanding contribution to finding and developing of new medicaments. Thanks to new

medicaments, today is successfully treated infectious hurts, some forms of cancer, heart

diseases, nerve disorders, asthma, hypertension and AIDS. The Pharmaceutical market in

Bosnia is one of the least developed markets in Central and Eastern Europe. The value of this

market is estimated at 607 million euros in 2014.5

4
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
5
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
 In the coming period it is expected to accelerate the development of the pharmaceutical

market in Bosnia. The main reason is the tendency of states to join the European integration.

To obtain a license for the introduction of a medicament on the market, there has to be

preceded legislations with respect to specific provisions to protect patents and intellectual

property rights. According to the ownership of the patent for the original medicament,

developed on the basis of new substances, the pharmaceutical industry is divided on the

innovation industry, producers of original medicaments and generic industry.

According to Desselle and Zgarrick, (2009) the innovative pharmaceutical industry is

entirely dependent on patents and these companies are focused on the protection of generics

(protected or unprotected stamp). Innovative companies are investing large sums of money in

research and development of new medicaments. From finding new substances to the

marketing authorization on average passes 10 to 15 years. In order to regain the invested

assets and invested profits in the research of new medicaments, producers need to pay special

attention to patent protection of their inventions. The patent is valid for 20 years and in that

period, generic companies are not allowed to produce generic copies. The generic industry is

engaged in the production of medicaments for which the basic patent protection expired.

Upon expiry of a patent, generic company marketed medicaments are equivalent to the

original medicines, and have from 20% to 90% lower price than the original. The Bosnian

pharmaceutical market consists of three basic types of medicaments: innovative medicine

medicaments; Generic medicaments and original / brand medicaments.

Innovative medicaments are new medicaments obtained with biotechnological procedures.

They contain a completely new active substance which significantly affects the increase of

healing capabilities. The medicament is considered to be a therapeutic innovation when it is

covering the therapeutic indications for which there are no other alternatives, and when they

have the best results with absolute clinical significance.

 Generic medicaments are almost identical to the original medicament, contain active

substance and are applied for similar indications. Their biological equivalence in relation to

the reference medicinal product has been demonstrated by appropriate tests bioavailability, in

accordance with the law regulating the field of medicines and medical devices. Similar active

substances are considered to be generic medicaments with different salts, esters, ethers,

isomers, mixtures of isomers, complexes or derivatives of the substances, unless they do not

significantly differ in their safety or efficiency. Equally quality and harmless as the original

medicines. They cannot begin to produce it, only after the original medicament patent

protection expires. The price of generic medicaments is much lower than the price of the

original medicament because the initial, basic and clinical trials do not have to be repeated,

the cost of such a medicament manufacturer is lower than the cost of production of the

original.

The original medicament is a medicament that was first approved for marketing in the

world on the basis of complete documentation for efficacy, safety and quality of the

application to the applicable requirements. Original medicines contain a newly developed

active substance formed in an appropriate pharmaceutical form. They are copyright protected

and are the property of the company which is the holder of the patent. After the original

medicament, or active substances, patent protection expires, other manufacturers can use this

active ingredient to produce similar products - generic medicaments.

V. SURVEY ANALYSIS

For every company in the world, the most import assets are the employees. In companies

which work in the pharmaceutical industry, it is especially important that the workers have a

healthy environment and that they are satisfied with their work. A satisfied worker is not only

working for his own benefit, but also for the benefit of the company.
 This survey will analyze what the segments are in which employees in pharmaceutical

companies are not satisfied. With these results companies can change their company politics

and adjust them to be better for employees and so boost their production.

To analyze the results the Likert scale system is used. With this method we can determine

the satisfaction level of respondents and with that conclude results which can help companies

to improve their working environment.

V.1. Explanation of variables

To conclude results from the survey, a few core variables need to be explained firstly in

accordance to fully understand the purpose of the survey about the effects of Human Resource

Management on employees in the pharmaceutical industry.

Table 1: Explanation of variables

No VARIABLE NAME EXPLANATION

The strategic management is the decision pattern of a

company that determines their intentions, purposes or

objectives and defines the industries in which the

company wants to participate in the competition, where

STRATEGIC
1. the resources are concentrated so possible that clear
MANAGEMENT
competencies are transformed into competitive

advantages. The view according to which strategies

represent the complexity of the measures which are

dominated.
2. HUMAN The enormous growth in the importance of human
 resources has meant that personnel management has

evolved from a purely administrative task to a strategic

task. The goal of strategic human resource management

is to prepare human resource functions and to ensure that

the company has an advantageous competitive. Goals and

strategies of human resource management need to be

RESOURCE
vertically integrated into the corporate policy and in the
MANAGEMENT
individual areas of responsibility of managers and

employees, so the self-organization becomes more

important.

General, the labor productivity is the output per

employed labor. Particularly for personnel and

production planning, this measure is relevant because it

can be adapted to define specific information which is

needed (for example, output per day, processed requests

LABOR
3. per hour, sales per employee etc.). Labor productivity is
PRODUCTIVITY
only one part of productivity and not necessarily due to a

higher application rate of performance enhancement

(faster operation), but mostly for more efficient use of

other means of production (for example, technical

progress).
4. HUMAN The continuous change of the companies leads to a

RESOURCE growing importance of application-oriented personnel

 development, whose aim is to improve the theoretical

knowledge and the relevant practical knowledge and to

expand it. The personnel development concept is still

DEVELOPMENT characterized by heterogeneity and blur. The reason for

this is the involving of various technical disciplines, such

as economics, education, psychology or sociology in the

scientific study of human resource development.

V.1.1. Strategic Management

Corporate objectives serve as a measure of the company's management. Seen in the

formulation of objectives it is one of the basic functions of business. To that effect, it is argued

that the market value of a company or the value of the assets of the shareholders (shareholder

value concept) have to form the reference point for entrepreneurial actions. The organization

target is generally defined as a desired state which the organization wants to achieve at a

future date.

Strategies provides answers to several fundamental issues. The fundamental questions of

strategic management:

V.2. In which business areas, we have to operate? - Corporate strategy

V.3. What strategies we can achieve to gain a competitive advantage in the long

term in our business areas? - Business area strategies

V.4. How should we implement these strategies internally? - Functional area

strategies

Depending on the level for which the strategy is to be valid, we have a distinction:

V.5. Corporate strategies: growth, stabilization, shrinkage strategy

V.6. Business area strategies: market penetration, product / market development

strategy
 V.7. Functional area strategies: marketing, finance, human resources strategy

functional area strategies define the basic objectives and measures of functional areas

(R & D, production, marketing, human resources, etc.) firmly.

Overall strategic planning aims the stock and the profitability of the company, to ensure

durable by securing and building long-term defensible competitive advantages, which lead to

above-average returns. Strategic planning promotes and systematized thinking about the

central strategic issues and their practical implementation.

V.7.1. Human Resource Management

The planning, implementation and control of basic courses of action are the earlier

deployment, the maintenance, the use or the degradation of human potential. With regard to

the implementation of corporate objectives of personnel we can assume a service function to

help to support the provision of services within the company, and they to specifically ensure

that the staff needed at the right time is provided in the right place. These demands have led to

the formulation of a target system for personnel management. The success of organizational

and management measures in the personnel area is identified based on two principles:

1) The economic success (achievement of objectives)

2) On the socio-psychological efficiency (achieving the objectives

of the organization members)

The pure alignment to only one principle is unlikely to be successful. Both efficiency

criterias must meet. The non-recognition of social-psychological efficiency can further have

the effect that customers and employees do not accept the company completely, productivity

decreases, difficulties in recruitment occur and the company will suffer a loss in total of

efficiency.

V.7.2. Labor productivity

 The main concern of most managers or personnel, developers is understandably of the

increase in labor productivity. Finally, an increase of this factor almost inevitably leads to

higher profits. Companies should instead ask themselves if they have created the conditions

for positive work in the company. Only so employees can work productively. Simple rule: If a

continuous increase in productivity wants to be achieved, the employees need to be satisfied.

One way how to motivate employees to work more productively, is technical improvement

This requires investment in better equipment, because it is a major driver for increasing

productivity. But it is not sufficient to only install the software on the computers. It is

important to ensure that the employees learn the different options offered by the new software

and how it can be used productively. Individual or group training is necessary.

What sounds theoretically logical is often forgotten in practice. Many practical functions

of the software are simply not used out of ignorance. Small improvements in the flow can

increase the overall productivity significantly.

Leaders should not lose the micromanagement, which means to sit down individually with

each employee to explain the benefits of the new software, machines and strategies. A good

alternative to expensive, external training is that employees introduce new improvements each

other and work together on further measures for productive work in regular meetings. People

are creatures of habit, so they like to keep as tight unproductive patterns. However, regular

improvement rounds can help ensure that the employees, supply each other with tips and so

change their habits.

V.7.3. Human resource Development

Staff development should be a main objective of every company. Triggered by

globalization, individualization, information and communication technologies are changing

the objectives, content, methods and media personnel developments. Heterogeneous teams
and virtually organized core and peripheral workforces are specifically prepared by education,

promotion and organizational development to do competent performances on their tasks.

Individual personnel development requires sophisticated knowledge of the tasks which

every employee needs to do. The research has to deal with the phenomena lifelong learning

and diversity as well as the virtualization and progressive dissolution of the company as a

legal, economic, social and local unit. Competency based work, learning, connecting,

Systematics integrated HR and organizational development need to be explored as well as

construction, preservation, measurement, evaluation and exploitation of Human assets

from a business and interdisciplinary perspective.

Personal development is primarily a non-delegable executive function, which shall give

the supervisor in businesses and public administrations for their direct employees. Everyone

must take their employability active and responsible in their own hands with the appropriate

staff development. Personal development is and remains a companys task that is shaped by

the human resources department as a core task. A professional working personnel

development is always an engine of progress of the company and guarantees the personal

development of each individual.

V.8. Data and methodology

In the modern era of globalization where everything is digitalized, the best way to conduct

a survey on this topic was through the internet. The survey was conducted online and was

targeted to companies which work in the pharmaceutical industry. The survey had 118

respondents who were mostly females between the age of 30 and 44 with 4 to 7 years of

experience in the pharmaceutical industry with a bachelor or master degree. They are medium

level employees which means that they know best how the HRM department is working and

what they are doing in the company and for the employees.
 The main purpose of this survey was to show where the HRM needs improvements and to

show the overall satisfaction of employees in this particular industry. The results show that the

working environment in companies in this industry is good, but the HRM department isnt

paying much attention to the satisfaction of their employees but are focused on the production

development and profit maximization. The main point is that the employees want the

company to take their suggestions and opinions into consideration and with their help try to

improve the business flow.

V.9. Literature review

Table 2: Literature review

Title of the
# Authors Brief description of the article
article
1 Brian E. Becker and Strategic

Mark A. Huselid Human

Resources The authors Becker and Huselid are giving

Management: us a preview about the importance of

Where Do We strategic human resource management,

Go From Here?, what the main challenges are and how

2006 SHRM is affecting the performance of a

company. They explain us that there

doesn't exist one perfect human resource

management system and rather they show

us that every company has its own

techniques which make them unique. This

paper also focuses on the impact of HRM

 on the management of the company and

the challenges which every company is

facing. The implementation of new

techniques can reduce the costs, boost the

productivity and create a better

environment for the employees in a

company.

2 Iain Henderson Human A good management of people has the

Resource same importance as the quality of the

Management, product or service which the company is

2011 offering. Every manager is not only

controlling and leading the economic

aspect of a company, he is also responsible

for the working behavior of his employees.

They need to treat worker as important

members of the organization and not as

"tools" which only do their job. In this

paper we see what the main characteristics

of HRM are and how the "people

management" need to be set up. Through

the time "people management" has evolved

into "personnel management" because

every worker has its own ideas and

working behavior which need to be

directed in a way in which the employee

 and the employer are satisfied. The author

Iain Henderson is explaining us the

perspectives in the management of people

and based on that every company leader

needs to choose which type of

management is good and acceptable.

3 ClodhnaMacKenzie, The Global When a problem occurs, it is mainly the

Thomas N. Garavan, Financial and fault of persons who are not doing their job

and Ronan Carbery Economic correctly. In this article the author analyses

Crisis: Did the global economic crisis of 2008 and try

HRD Play a to identify if the Human resource

Role?, 2014 Development (HRD) strategies were not

good enough and if their

underdevelopment was one of the main

sources of the crisis. They explain how the

development of human resources is

individual in every company and that large

organizations are taking risks in this

department by not paying much intention

to it and focusing more on profit gaining.

The main advantage of Human Resource

Development is that it provides long-term

sustainable benefits for the company. Many

managers don't work on long term success

but rather on short term profits. This is one

 of the causes why the economic crisis in

2008 occurred. Many companies tried to

gain much profit in a short amount of time

and do not take into consideration the most

valuable asset of a company, the

employees.
4 U.S. Office of Strategic

Personnel Human

Management Resource The U.S. Office of Personnel Management

Management: conducted a study in which the explaining

Aligning with how the integration of Human Resource

the mission, Management can bring more advantages

1999 than disadvantages to a company. The most

important aspect is that the HRM

department understands the goals and

vision of the company. By doing that they

can manage the human resources is such a

way that they can do their best work in a

short amount of time. The human resources

are responsible for the accomplishment of

the mission and the managers job is to

analyze the strength and weaknesses of

their employees and to combine them to

get the best possible team for a task. The

defined strategic goals need to be achieved

and the HRM department is the core

 element of it.

5 Dennis H. Tootelian, Essentials of

Albert I. Wertheimer Pharmacy

and Andrey Management, This paper gives us a preview how the

Mikhailitchenko 2012 pharmaceutical industry is conducted, how

the financial segment is constructed, what

the human resource management functions

are and how the operations management

functions are set up. Here we see how the

pharmacy managers, beside the economic

factors of the country, they need to take

into consideration the structure of the

population and their characteristics. The

organization inside a pharmaceutical

company is much more complex than in

other companies. Here the human

resources play the major role because the

success of a product is depending on their

professional and competence work. The

ethical segment is also important in the

pharmaceutical industry, especially for

employees, because they need to work with

 the vision to help other people.

6 Haslinda A. Evolving terms

of human

resource As the process of globalization is

management spreading over the world, many changes in

and companies have been done. As the author

development, of this article is concluded, the biggest

2009 changes in companies have happened in

the human resource and development

segment. Much more attention is given to

the working force rather than to the

production process. New ideas and

concepts have arrived in the HRM

department and these have changed the

philosophies of HRM and HRD.

Companies need to understand the changes

and try to implement them in accordance to

optimize their business. The author also

gives us an inside view about the history of

HRM and HRD and why they have been

implemented and developed through the

years.
7 Patrick M. Wright Human

Resource

Strategy -

Adapting to the

age of

globalization, The author of this paper explains us how

2008 the human resource strategies have

changed in the age of globalization. He

shows us what HR strategies are and how

their implementation can change the

workflow of a company. Another point

which is explained, are Generic HR

strategies which are changing with the

environment and how they affect the

performance of companies. This article

also shows us how companies can build

their own HR strategies, what the

challenges in the future are and how to

handle them. This can help smaller

companies develop a new system to boost

their own performance.

8 HR Council for the HR

Voluntary & Non- Management

profit Sector Standards, 2009

Human Resource Standards are core

elements of the Human Resource

Management. Through the years, as the

business environment is constantly

changing, these standards have also

developed. The principles constantly

adapted to the target audiences. In this

article we can see how the HRM policy

frameworks are conducted and it gives

ideas how to get the right people, manage

them and their work and also how to

organize their working environment. The

authors explain how the government is

affecting the employees and what

regulations need to be followed.

 RitvaLaakso-Manninen and RiittaViitala

are showing us the results of their analysis

of the changing business paradigm in the

modern worlds and how an integrated

system for HRM and competence

Competence management is important to sustain in the

RitvaLaakso- management modern business environment. They give

9 Manninen and and human an overview about Human Resource

RiittaViitala resource Development, its changing trends,

development development and new methods which are

used. In this paper the link between

knowledge management, human resource

development and competence management

is explained.
 In his study, Dr. Stephen Gibb, gave us

information about the definition and

concepts of Human Resource

Development, its processes, capabilities

and about the performance management of

the human resource development segment.

Human The first thing every company need to do

10 Stephen Gibb Resource is to analyze its own organization, to do a

Development work and occupation analysis and to

evaluate the needs which the company has

in the HRD segment. This can help to

improve the business environment of the

company and with that boost the

productivity and profit.

11 Shane P. Desselle Pharmacy Shane P. Desselle and David P. Zgrarrick

 give us a detailed preview of the

pharmaceutical industry, how its

management is organized, what business

planning models they are using and how

they general operations management is

organized. We can see in the paper how the

human resource management is organized

and what performance appraisal systems

management: they conduct in this type of industry. As

and David P. Essentials for new working staff comes almost every day,

Zgrarrick All Practice they can have, in the pharmaceutical

Setting industry, contemporary workplace issues

because in one segment, they can have an

oversized working staff and on the other

segment they can have a deficit of the

working staff. This is a special type of

problem which occurs in this type of

business and the Human resource

department needs to have extraordinary

time management and organizational skills.

V.10. Results

V.10.1. Demographics

This data gives an overview of the respondents. Variables which were included are,

gender, age, education level, years of working experience in the pharmaceutical industry and
their current working position. The survey has mostly female respondents (78%), which are

between the age of 30 and 44 (69%), with 4 to 7 years of experience in the pharmaceutical

industry (47%) and with a bachelor or master degree (49%, 37%).

Table 3: Socio-demographic data of respondents

Socio-demographic data of respondents

Variables Categories Frequency Percent
Female 92 78%
Gender Male 26 22%
Total 118 100%
18-29 16 14%
30-44 82 69%
Age 45-59 17 14%
60 3 3%
Total 118 100%
Other 4 3%
Bachelor 58 49%
Master 44 37%
Highest
PHD 12 10%
education level
Total 118
100%
Years of Less than 1
2
working year 2%
1-3 years 37 31%
experience in 4-7 years 55 47%
8 and more
the 24
years 20%
pharmaceutical
Total 118
industry 100%
Low level
Current 18
employee 15%
working Medium level
97
position employee 82%
Manager 3 3%
Total 118 100%
Source: Author, 2016

V.10.2. Overall satisfaction

 In the pharmaceutical industry, many workers are satisfied with the job which they have

and considering the current economic situation in the company they will do anything to stay

in their positions and to have a job. The respondents agree that their working environment is

good and acceptable. The fact which they cant agree or disagree is about the salary, which

they get considering the amount of tasks which they do. The workers know that the pharma

company in which they are working is selling these medicaments into other countries with a

huge profit, because the working force there is more expensive. The fact with which almost

everyone from this industry agree is that the salary is always on time and that the treatment

there is good because they know that their success is depending on their human capital.

Table 4: Overall satisfaction

Overall satisfaction Std.

Nr. N Mean
( Mean = 5,38) Deviation
The current position in which
1 118 5,21 1,057
I am working is satisfying me
The working environment is
2 118 6,33 1,003
good and acceptable
My salary is equivalent to the
3 118 4,07 1,016
amount of tasks that I do
4 The salary is on time 118 6,54 1,116
The treatment of employees in
5 118 4,77 1,076
my company is good
Source: Author, 2016

V.10.3. Human resource management positive sides

The Human Resource Management department can have positive and negative sides. The

respondents slightly disagree that if they have a problem that the HRM department will

immediately solve their problem. They are also not satisfied with the fact that their company

is not organizing seminars to give them informations about their right in the company. Such
informations are strategically not given to employees so that they dont know what their

rights exactly are. In this company every employee need to be strictly educated and because

of some reasons the HRM department is not always employing fully qualified staff. They

dont care about the satisfaction level of the employees in the company and they dont give

reports to workers about the changes that are happening in the company.

Table 5: Human resource management positive sides

Human resource
Std.
Nr. management positive sides N Mean
Deviation
( Mean = 2,54)
When I have a problem I can 118

go directly into the HRM

1 3,08 1,023
department and they will

solve it immediately.
The HRM department is 118

organizing seminars to give us

2 2,13 1,005
informations about our right

in the company.
The HRM department is 118

3 employing staff, which is not 3,66 1,069

qualified to do their tasks.

The HRM department is 118

giving us tests to identify our

4 1,86 1,100
satisfaction level with this

department.
5 This department analysis 118 1,97 1,054

appeals and gives us a report

 about the changes they have

made to improve them.

Source: Author, 2016

V.10.4. Human resource management negative sides

When the HRM department is not working correctly if affects the workflow and is

generating less profit for the company. When a problem occurs, it need to get through all

relevant management stages so that it can be analyzed, but this process is slow and in the

meantime the problem could have grown. Also, if employees complain about problems inside

of the company they can have consequences and because of that many of them are afraid to

say anything, instead they try to fix it by themselves. The HRM is working for the benefit of

the company and not for the benefit of the employees. They are not investing into the

development of the interpersonal relations by organizing events.

Table 6: Human resource management negative sides

Human resource

management negative Std.

Nr. N Mean
sides Deviation

( Mean = 5,42)
Problems are not solved 118

immediately, they need to be

first analyzed by the upper

1 4,95 1,031
management level and then

approved to be solved which

requires a big amount of time.

 An employee can have

2 consequences if he/she 118 5,46 1,118

complains about problems.

The HRM department only

acts if they a benefit for the 118

3 5,51 1,087
company and not for the

employees.
The HRM department is

doing less to improve the 118

4 5,76 1,066
interpersonal relations inside

the company.
Source: Author, 2016

V.10.5. Human resource development

One segment in which the pharmaceutical industry is developed is the technical segment.

They are almost always buying new equipment and they train employees how to handle them

in accordance to be more productive and to optimize their productivity. The companies in

which our participants are working are organizing meeting, but they are not focusing on

suggestion of regular employees how to improve the production. The positive thing is, they

are offering employees the opportunity to visit educational classes to improve their

educational level, but these classes are not free. It is not always guaranteed that the salary will

be bigger with the rising of the educational and specialization level, but in most cases it is so.
Table 7: Human resource development

Human resource development Std.

Nr. N Mean
( Mean = 4,94) Deviation

The company is investing in

their employees by giving them

new technical equipment and

1 118 6,17 1,006
teaching them how to use these

machines to optimize their

productivity.
The HRM department is

organizing the annual meeting

to see the overall satisfaction of

2 the employees, to receive 118 3,46 1,103

suggestions what to improve

and to implement these

changes.
Every employee has the

opportunity to visit educational

3 118 5,32 1,039
classes to improve his/her

educational level.
With the rising of the education

4 and specialization level the 118 4,80 1,072

salary is equivalently rising.

Source: Author, 2016
CONCLUSION

In the ever-changing requirements and the growing importance of interpersonal (social)

skills, there are many things that can an organization do to promote employees with potential,

but only if the candidate in question is in a particular way even willing and able to develop.

The main responsibility for the successful development of its competence lies with the

individual candidates themselves in the area of personal development which through which he

gains self-management approaches that require autonomous learning, which is becoming

increasingly important. Companies should be well advised to raise the learning itself, which

becomes a basic discipline of their training and development programs. After all, even the

educational and psychological research discovered the theme of self-directed learning

recently.

In addition, we need to understand more about the potential that development of staff

means for the performance of the company. The performance of a candidate: his attitudes,

values and willingness, which can be seen as a potential for identification or identification

readiness are a key psychological condition of future performance and professional

development. The organization has to fit the employees into the system of the company which

may not be in conflict with the organizational values at least. Companies should put renewed

emphasis on values, morals and integrity - except of course on the job-related requirement

characteristics. They need to realize that the selection and identification, promotion and long-

term commitment of talent is increasingly becoming a critical success factor of companies and

other organizations.

Companies need help channeling their further development in the direction of relevant

professional experience. For companies in global economic competition high performance

and good results are essential for survival. It is much easier and cheaper for companies to
invest in the development of one worker instead of hiring 2 additional workers with no

experience.

REFERENCES:

1. Brian E. Becker and Mark A. Huselid (2006), Strategic Human Resources

Management: Where Do We Go From Here?

2. Clodhna MacKenzie, Thomas N. Garavan and Ronan Carbery (2014), The Global

Financial and Economic Crisis: Did HRD Play a Role?, Publisher: SAGE
3. Dennis H. Tootelian, Albert I. Wertheimer and Andrey Mikhailitchenko (2012),

Essentials of Pharmacy Management, Publisher: Pharmaceutical Press

4. Haslinda A. (2009), Evolving terms of human resource management and

development, The Journal of International Social Research

5. HR Council for the Voluntary & Non-profit Sector (HR Council) (2009), HR

Management Standards,.
6. Ian Henderson (2011), Human Resource Management, Publisher: CIPD
7. Patrick M. Wright (2008), Human resource strategy: Adapting to the age of

globalization, Publisher: SHRM Foundation

8. Ritva Laakso-Manninen and Riitta Viitala (2007), Competence management and

human resource development, Publisher: HAAGA-HELIA University of Applied

Sciences
9. Shane P. Desselle and David P. Zgarrick (2009), Pharmacy management:

Essentials for all practice settings, Publisher: The McGraw-Hill Companies

10. Stephen Gibb (2006), Human resource development, Publisher: Stephen Gibb
11. U.S. Office of Personnel Management - Office of Merit Systems Oversight and

Effectiveness (1999), Strategic Human Resources Management: Aligning with the

Mission

APENDIX

SURVEY

EFFECTS OF HUMAN RESOURCE MANAGEMENT ON THE WORKING

BEHAVIOUR OF EMPLOYEES IN THE PHARMACEUTICAL INDUSTRY

- CASE STUDY BOSNIA AND HERZEGOVINA-

Please answer all questions

For each numeric question, circle the number that best reflects your opinion of the factor

judged 1=strongly disagree, 2=disagree, 3=slightly disagree, 4=neither, 5=slightly agree,

6=agree, 7=strongly agree

Circle only one number for each scale

Demographics
a Gender: Male Female
b Age: 18-29 30-44 45-59 60
c Highest education level: PHD Master Bachelor Other
d Years of experience in the pharmaceutical industry: less than 1 yes 1-

3 years 4-7years8 and more years

e Current working position: Low level employee Medium level

employee Manager CEO

Please indicate your level of agreement about the following

Disagree Agree
Overall satisfaction
The current position in which I am working is satisfying
a 1 2 3 4 5 6 7
me
b The working environment is good and acceptable 1 2 3 4 5 6 7
c My salary is equivalent to the amount of tasks that I do 1 2 3 4 5 6 7
d The salary is on time 1 2 3 4 5 6 7
e The treatment of employees in my company is good 1 2 3 4 5 6 7

Please indicate your level of agreement about the

following Disagree Agree

Human resource managementpositive sides
 When I have a problem I can go directly into the HRM
a 1 2 3 4 5 6 7
department and they will solve it immediately.
The HRM department is organizing seminars to give

b us informations about our right in the company and 1 2 3 4 5 6 7

about the development of the company.

The HRM department is employing staff, which is not
c 1 2 3 4 5 6 7
qualified to do their tasks.
The HRM department is giving us tests to identify our
d 1 2 3 4 5 6 7
satisfaction level with this department.
This department analysis appeals and gives us a report
e 1 2 3 4 5 6 7
about the changes they have made to improve them.

Please indicate your level of agreement about the

following Disagree Agree

Human resource management negative sides
Problems are not solved immediately, they need to be

first analyzed by the upper management level and then

a 1 2 3 4 5 6 7
approved to be solved which requires a big amount of

time.
An employee can have consequences if he/she
b 1 2 3 4 5 6 7
complains about problems.
The HRM department only acts if they a benefit for the
c 1 2 3 4 5 6 7
company and not for the employees.
The HRM department is doing nothing to improve the
d 1 2 3 4 5 6 7
interpersonal relations inside the company.
Please indicate your level of agreement about the

following Disagree Agree

Human resource development
The company is investing in their employees by giving

a them new technical equipment and teaching them how 1 2 3 4 5 6 7

to use these machines to optimize their productivity.

The HRM department is organizing the annual meeting

to see the overall satisfaction of the employees, to

b 1 2 3 4 5 6 7
receive suggestions what to improve and to implement

these changes.
Every employee has the opportunity (if he/she wants)

c to visit educational classes to improve his/her 1 2 3 4 5 6 7

educational level.
With the rising of the education and specialization level
d 1 2 3 4 5 6 7
the salary is equivalently rising.
The HRM department is focused on the establishment

e of a healthy interpersonal relationship between 1 2 3 4 5 6 7

employees.
Source: Author

Part II: Please add here any positive /negative comments regarding the issue