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HUMAN RESOURCE MANAGEMENT

Johnson N Johnson and Clariant Human Resource Audit Report


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PRESENTED BY: MOHAMMAD BILAL MUMTAZ (10017) Maaz Asad (10586) Anan Patel (10929) Hanzala Shamsi (10326)

INTRODUCTION

JOHNSON & JOHNSON:


Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. NATURE OF OPERATION: Business to consumer (Consumer Products, Medical Devices & Diagnostics, Prescription Products). Interactive National Corporate Reputation Survey ranked 1st. Operating profit :PKR 1,011,059,000 compared to PKR 1,009,242,000 a year ago(2010) MARKET SHARE: Market leader capture approx 58% of pharma market. HRM VALUES (CREDO): We are responsible to our employees. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. NUMBER OF EMPLOYEES: 125 J&J pharma (told by MARIUM QADEER HR Manager and specialist J&J pharma)

INTRODUCTION

CLARIANT:
Clariant Pakistan Limited manufactures and sells chemicals, dyestuffs, emulsions, and master batches to various industries worldwide. NATURE OF OPERATION: Business to business (plastics, cosmetics, polymer additives, laundry detergents etc) / intermediation (manufacturing agrochemicals and pharmaceuticals etc) Operating profit :PKR 1,004,389,000 compared to PKR 909,242,000 a year ago(2010) MARKET SHARE: Dominant market player and leader 63% of market share. HRM VALUES: Human resources are considered to be the life blood of the organization and are provided with every opportunity of enhancement which groom them and yield the best out of them with the utmost responsibility of securing them, training them and compensating them to induce loyalty toward their jobs and Clariant long term goals. NUMBER OF EMPLOYEES: 105 approx at facility of Clariant Pakistan.

STAFFING

MECHANISM:
Periodic analysis based on the past record and extrapolation of the employee enrolling data. Succession planning criterion and performance standards. Human need analysis, current rate of occupancy situation and resource availability are vital instrument.

ANALYSIS:
Due to a thorough job analysis they are well aware of the responsibilities of the jobs at different levels in the company Makes it easier to hire the right workers matching their characteristics and abilities with requirements of job to do it successfully

STAFFING

PROBLEMS:
RELIABILITY TESTABILITY TIME ORIENTATION TECHNOLOGY PERSPECTIVE

RECOMMENDATION:

The greater the amount of unreliability, the harder it is to determine the true signal that the measure is trying to detect. They need to keep pace with new technological changes in order to stay in the market and maintain their standards as well as their employees. They need to have a standard procedure to hire the right candidate for the right job at the right time. Time orientation is a major factor an organization should consider in order to carry out all the functions and plans to have appropriate results and outcomes.

RECRUITMENT AND SELECTION

MECHANISM:
Published advertisement elite corporate newspapers and magazines like Dawn, tribune etc. Procedure fully incorporate job description and job specification. Head hunting; Referencing of experience personnel. Acquire assistance of job portals and recruiting agents. Selection procedure incorporates assessment test internally generated followed by successive interviews. Executive level have duel interview session special interview carried by the M.D of J&J.

ANALYSIS:
Very comprehensive screening process to ensure that the right kind of employees are hired This is cost and time effective measure and methodology. Efficient system to tackle contingencies.

RECRUITMENT AND SELECTION

PROBLEMS:
No preemptive and proactive measure to attract best candidate in recruiting hence affecting selection. Not pitching the image in the market especially new graduates/ no university campaigns. GAPS (word of mouth and referencing)

RECOMMENDATION:
Ensure job specification is up-to-date and consistent with requirements of the job. Formulate selection criteria which are consistent with the job specifications Image of the organization is another factor having its influence on the recruitment of the organization. Good image of the organization earned by the number of overt and coverts action by management helps attract potential and complete candidates.

TRAINING AND DEVELOPMENT


MECHANISM:
Need assessment is conducted for each and every level of layer of management. i-lead process is implemented at all levels. Test scores scrutiny before and after training. Career development by identifying potential candidate send abroad to enhance career growth and development chances.

ANALYSIS
Heavily focused on employee training and development Believe that continuous training is necessary for employees and liberal approach towards it Efficient workforce key strategy for the company to keep its sustained market leadership

TRAINING AND DEVELOPMENT

PROBLEMS:
LEVELS COVERED AND FREQUENCY CHANGING NEEDS CLIMATE FOR SELF-DEVELOPMENT

RECOMMENDATION:
The company should hire experts to provide the same training to many employees instead of sending a single employee abroad for training since it is more expensive procedure The business environment keeps changing as new products keep coming in the market so workers should be provided continuous training to keep them updated with the market In todays Hi-tech environment, there are ample opportunities for individuals to learn anything of their interest

APPRAISAL

MECHANISM:
360 degree evaluation system mostly to judge the performance of the workers. Utilize both absolute (production line) and relative (managerial level) methodology. Clear and explicit objectives communicated to the worker before the appraising period. An after appraising interview in which employee briefed on his performance.

ANALYSIS:
Expected objectives defined clearly to workers before they start working Follow a broad ranged 360 degree evaluation system mostly within the company Formal and informal feedback given regularly to employees by supervisor

APPRAISAL

PROBLEMS:
BENEFITS AND/OR DRAW BACKS/PROBLEMS KNOW-HOW OF APPRAISING CONSISTENCY IN RATINGS

RECOMMENDATION:
The dimensions on the basis of which they will be judged must be told to all the employees so that they know on what they have to concentrate while working The set standards and the underlying benchmarks must be communicated to the workers so that they know what qualities to inculcate in themselves

* The employees should be well motivated and satisfied overall at the job and not just at the time of appraisal. This strictly depends on the structure and the communication in an organization.

COMPENSATION

MECHANISM:
Performance based pay system. Pay premium and extensive salaries packages relative to market according to the post and designation of the job. Adequacy of reward (extensive and exclusive fringe benefit). transparent and easy to understand system for compensation .

ANALYSIS:
Performance based compensation system 5% to 25% increment guaranteed for employees meeting expected standards Regular bonuses for top performers

COMPENSATION

PROBLEMS:
NATURE OF JOB DESCRIPTIONS FLEXIBILITY IN JOB EVALUATION SYSTEMS CONTROL OVER COSTS RATIONALE OF REWARD SYSTEM OPPORTUNITIES FOR IMPROVEMENT

RECOMMENDATION:
There is always room for improvement and workers should be given rewards if they keep consistently improving their performance

GOVERNANCE

MECHANISM:
There is high and strong integration among the department in terms of communication and coordination as J&J ideology is based on Kaizen and Total Quality Management. Executive Committee reviews financial results and develops strategies ensure objectivity and realistic approach that well communicated top down. Invoke employee citizenship behavior common mess for lunch.

ANALYSIS:
Motivated workforce with high productivity and quality. Clarity in terms of plan of action and job performance. Strong working environment.

GOVERNANCE

PROBLEMS:
SUGGESTION FOR CHANGE ATTIDUDE AND APPROACH

RECOMMENDATION:
There is a strong need to reduce shrewd departmental belongingness and induce a Johnsonian citizenship behavior. This can be achieved by focusing on teamwork and sharing the reward and credit for achievements.

CLARIANT PAKISTAN

STAFFING

MECHANISM:
HR department carried out a periodic analysis based on the past record and extrapolation of the employee enrolling data to access current and future HR need. The use of previous records, extrapolation, and current rate of occupancy, future demand supply analysis, external factors and variant analysis along with future Clariants prospect are vital instrument that are implemented by the Clariant to attain efficient management. Succession planning and career developmental consideration .

ANALYSIS:
Helps Clariant to attain accurately the number of employee it needs currently and for the future Saves cost by reducing emergency hiring Allows long term career path growth

STAFFING

PROBLEMS:
HIGH COST OF PROCEDURE BIASNESS AND ERRORS HURTING THE INTEGRITY OF OUTCOME. TIME ORIENTATION. TECHNOLOGICAL PERSPECTIVE

RECOMMENDATION:
Tailor the process for each issues traditionally, each unit is asked to provide the same information regarding staffing, using a common template, at the same time each year, for the same planning period/time frame. While this approach may bring consistency to the approach, it also forces every unit to adopt a process and set of planning parameters that may not be appropriate.

RECRUITMENT AND SELECTION

MECHANISM:
Published advertisement in local newspapers considering the nature of position. Mostly recruitment and hiring practiced at lower level position higher a 80% filled by succession planning training and career development. Word of mouth or reference hiring is practiced. Theory based test checking the knowledge, IQ and competence of the candidates followed by interviews conducted by HR manager and vacancy held department head.

ANALYSIS:
Right workers are hired for the jobs they are suitable for in terms of personality Workers which will work for the fulfillment of the company objectives and goals

RECRUITMENT AND SELECTION

PROBLEMS:
No preemptive and proactive measure to attract best candidate in recruiting hence affecting selection. Not pitching the image in the market especially new graduates/ no university campaigns. Not as intensive as competitors like GSK, Abbott etc COVERAGE (do not capture intensive market advertisement agencies, job portals) GAPS (word of mouth and referencing)

RECOMMENDATION:
Image of the organization is another factor having its influence on the recruitment of the organization. Good image of the organization earned by the number of overt and coverts action by management helps attract potential and complete candidates

TRAINING AND DEVELOPMENT

MECHANISM:
Clariant provide training at its own operated and managed training centre. These sessions are headed by the managers and supervisor along with the specialized instructors to yield best out of the training provided to the workforce. Need assessment is carried out. Assessment test are conducted after sessions. Incorporates impact of interference, transfer and integrates online, off-job, on-job, send abroad managerial level, coaching, apprenticeship, leaning culture, creativity training.

ANALYSIS:
Lower level workers are provided general job training Feasibility test to ensure that relevant training is provided to employees Specialized training depending on need of middle and upper management

TRAINING AND DEVELOPMENT

PROBLEMS:
LEVELS COVERED AND FREQUENCY CHANGING NEEDS CLIMATE FOR SELF-DEVELOPMENT

RECOMMENDATION:
Objectives set for the training period should be realistic and specific Provide training to the supervisors to ensure that they know when and why the employees need to be given training The training provided to the worker should be a continuous process as the workers need to keep his skills updated

APPRAISAL

MECHANISM:
The vital crux is that appraisal is performance and standard based. Audits are taken at periodic interval to ensure conformity of the standard. Evaluation stand and procedure are transparent and well communicated. Feedback reflected in rewards and incentive and word of mouth.

ANALYSIS:
Evaluation done by supervisor as he is the best source for doing it HR Committee responsible for the evaluation of top management Efficiently conducted post evaluation interview to motivate the employee and make him feel better

APPRAISAL

PROBLEMS:
BENEFITS AND/OR DRAW BACKS/PROBLEMS KNOW-HOW OF APPRAISING CLEAR OBJECTIVES CONSISTENCY IN RATINGS FEEDBACK TO EMPLOYEES

RECOMMENDATION:
The supervisors should be trained so that they have the skills to evaluate the workers correctly. The appraisal process must be relevant to the job and related to the work that the employee does for the company. The employees should be provided regular feedback in a courteous way so that the employee does not feel ashamed or ridiculed.

COMPENSATION

MECHANISM:
As per market rates, the fix rate of pay is received by an employee in the form of salary or as an hourly wage. Performance based/ seniority pay comes under compensation of executives which promotes cross training. Supervisor decides benchmarks in the form of targets and HR committee for managerial and executive level.

ANALYSIS:
Aim to provide stakeholder value and employee satisfaction Follows the rules set out in the Swiss Code of Best Practice for Corporate Governance and the SIX for employee equality protection Performance based pay

COMPENSATION

PROBLEMS:
NATURE OF JOB DESCRIPTIONS FLEXIBILITY IN JOB EVALUATION SYSTEMS CONTROL OVER COSTS RATIONALE OF REWARD SYSTEM OPPORTUNITIES FOR IMPROVEMENT

RECOMMENDATION:
Use the market to determine pay increases. Award increases based on performance. Consider using a compensation consultant.

GOVERNANCE

MECHANISM:
Strong culture seniority provide guidance in the form coaching and apprenticeship. Interdepartmental rotation and job enrichment are practiced. Organizational citizenship culture prevails in the company. Interdepartmental conferences to discuss objective and problems.

ANALYSIS:
Realigned company according to the criteria of sustainability and corporate and social responsibility Able to create a sound operational and technological basis Maturing and learning the best practices since its a new company

GOVERNANCE

PROBLEMS:
EXPECTATION FROM HUMAN RESOURCE STAFF DEGREE OF SATISFACTION ADEQUACY ATTIDUDE AND APPROACH CAPABILITY AND POTENTIAL SUGGESTION FOR CHANGE

RECOMMENDATION:
Work Environment Performance Incentives

A safe and happy workplace makes the employees feel good about being there. Each one is given importance and provided the security that gives them the motivation and incentive to stay.

Every good performance is appreciated in the form of a pat on the back, bonuses or giving some other compensation for a job well done.

Performance Feedback This is one the methods that is being followed by many organizations. Feedback is not only taken from

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