M/508/9860 - Human Resource Management In Context Of Glaxo Smith Kline

1. Introduction

Human resource management is important and unique property for GlaxoSmithKline Company to increase the performance of employees in order fulfils the strategic goals of the organisation. HRM includes the assessment of the employees' progress, such as performance appraisal, compensation facility, profits, motivation and encouragement; maintain a healthy relationship between labours and official executive. GlaxoSmithKline is one of the leading pharmaceutical company in the UK and headquarter is located in Brentford, London. The company started operations in 2001 in merger two main management units for pharmaceutical and biotechnological. Total 99300 employees are currently working in the company. Key people of HRM of the company are Mr Philip Hampton (Chairman) and Emma Walmsley(CEO). The company consists of three different sectors such as Biotechnology, Consumer products and Pharmaceutical. Total net income of the Organization is $2.169 billion (2017) and total revenue is $30.186 billion (2017). The turnover of the company is $70 billion that shows that the company is in stable condition in the business market. This is one of the largest drug manufacturing industries based on pharmaceutical concern in the UK.

2. Describe the functions and purpose of HRM

(P1)

Human Resource Management is the process within the GlaxoSmithKline Company that mainly focuses on recruitment, management of the business, and provides manpower guideline in the company. HRM is completely concerned with employees’ management from job recruitment process to retirement process (Bratton and Gold, 2017). There are various functions of HRM regarding on workforce and resource plan management mentioned below:

Selection and Recruitment:

Recruitment is the technique of screening and choosing qualified and potential candidates based on job criteria of the particular post. The main purpose of the technique is to attract potential and qualified candidates. The GlaxoSmithKline Company executes proper employment plans and grades the number of applicants before starting selection and recruitment process. There are mainly three stages of job recruitment process, first one is written test, the second stage is the group discussion and last round is HR interview. The annual budget is comprised of employees forecasting and long-term benefits of the company. This process helps to reduce the cost redundancy and gives the encouragement to the employees. Total budget estimated for the recruitment process is $50000 in the annual budget. In last year, GlaxoSmithKline Company selected 2000 more employees for their pharmaceutical and biotechnological sectors (Marchington et al. 2016).

Employee Relationship Management:

Employees are main pillars of the GlaxoSmithKline Company. The HRM of the Organization always maintains the good relationship with employees. This process helps to the company to foster healthy relationship among employees. High work outcomes and business behaviours are fully interrelated with the employees. The management of the GlaxoSmithKline Company creates the business plans that will help to understand the qualities of the employees at both professional and personal stage. The company give the special award and monetary rewards to the employees for their good work performances. The healthy relationship promotes the balances between employer and employee (Armstrong and Taylor, 2014).

Orientation:

The GlaxoSmithKline Company provides the orientation to the new employees. The orientation of the organization helps new members to make compatible them with the job and employer. The orientation process of the technique includes the goals of the company and the way of employee help to fulfil the long-term target of the GlaxoSmithKline Company (Chelladurai and Kerwin, (2017) The business plan orientation includes good salary, compatible work environment, and guidelines help the employees for enhancing work performance.

3. Describe the strength and weaknesses of various approaches to the recruitment

(P2)

Wilton, (2016) stated that recruitment and selection is the fundamental technique of company’s overall human resource management. Jo recruitment is the process of selection and encouragement of potential candidates for the job. There are various processes of the recruitment are as follow:

Online recruitment board and web portals:

The websites and boards are helpful for the GlaxoSmithKline Company to attract the applicants.

Table 1: Strengths and weaknesses of online Recruitment

(Source: GlaxoSmithKline Company, 2018)

Job Recruitment Agencies

Various private agencies give permanent and temporary job placements.

Table 2: Strength and Weaknesses of Recruitment agencies

(Source: Brewster, 2017)

Consultancies Support

Business market consultants recruit new candidates in new vacancies which are not to become applicants’ knowledge.

Table 3: Strengths and Weaknesses of Consultancies

(Source: Rothenberg et al. 2017)

4. Describe the benefits of various HRM practices within the company

(P3)

The company's strategic resource management is the technique of managing the human resource operations that help to mitigate the strategic purpose of the GlaxoSmithKline Company’s business.

Figure: Benefits of HRM Practices

(Source : Brewster, 2017)

Performance Theory:

The theory helps to fulfil the primary target of the GlaxoSmithKline Company. This gives the concept of effective work performance and enhanced employees motivation and commitment to the job. The theory's principles stated that the management work efficiency is fully interconnected with the work efficiencies of the employees. The theory comprises four important operations of company's management, the operations are business pharmaceutical business planning, arranging, leading and monitoring the sectors of biotechnology and consumer goods. GlaxoSmithKline Company implements the ideas in the development of the pharmaceutical business. Theory gives the idea regarding on enhancement of pharmaceutical business outcomes and piece pay rate process for employees of the factory (Brewster et al. 2016).

Theory of Motivation

This theory was developed by Abraham Maslow. The theory helps to the GlaxoSmithKline Company for enhancing the techniques of encouragement and motivational process over the employees. Maslow stated that the top hierarchy should always maintain the good behaviours and attitudes of the employees for maximizing the profit rate and make the business successful (Bratton and Gold, 2017). The fundamental needs are accomplished that make team members feel safe in the GlaxoSmithKline Company. The theory gives the concept that provides the idea of developing the healthy relationship between top management and subordinates in the Organization. The employees of the GlaxoSmithKline fears for the job security that cannot concentrate on the good performance for achieve the targets (Reiche et al. 2016).

Theory of Constraints

The Constraints theory can be used to analyse employees' work efforts, energy of the employees and business success constraints of the GlaxoSmithKline Company. The main concept of the theory comprises of products manufacturing, multiple activities regarding on business tasks execution. This theory gives the idea to improve the business planning and hypothesis with proper resources utilization. The resources are land, labour and capital investment over the business. One of the main approaches to the theory is to give the priority of current market trends and business constraints (Bratton and Gold, 2017). The theory gives the GlaxoSmithKline Company for the following benefits:

• Profit maximization with the help of proper resources utilization.
• The pharmaceutical business focuses on all market attention over the business constraints.
• Lead times reduction that helps to develop faster product services.
• Inventory reduction over business work performance that increases demands of the goods.
• Help to make additional production capacity with less investment.
• A fast and spontaneous response to the conflict between employees.
• Good control and monitor the business and reduce the stock-outs in product supply chain.

5. Analysis and evaluate the effectiveness of various HRM practices in order to company's profit

(P4)

The discipline process of the human resource management practices helps to develop guide management and proper use of financial resources to maximize the profit GlaxoSmithKline Company. The important economic investments return more profit with the help of rigorous components need to be attached to the manpower planning (Bamel et al. 2018). The resource planning of the company creates to have the right employee at the right job to achieve goals of both company and individual objectives. The proper business planning and analysis help to attract more customers towards the pharmaceutical and biotechnological business for increase the business profits. GlaxoSmithKline Company separate employees training and market development, the training process includes a compatible working platform with business learners to exchange current issues of the business. Reward system inspires employee’s performances that help to develop business profit (Kidwell et al. 2018). The business program management plans meet the objectives of the company; the objectives are quality services to the consumers, sell pharmaceutical instruments and medicines at the reasonable cost and 24/7 delivery services. Total revenue of the company is $30.186 billion and last year profit revenue is 4.087 billion (2017). In the year company set the profit margin of 6 billion in 2018-19; this can be achieved with the help performances and the tasks execution ineffective way (Keegan et al. 2018).

Figure: HRM Practices

(Source: Bueller et al. 2018)

Audit Account Approach:

HRM audit is the business process of analysing the effectiveness of the business operations such as the supply of the products, delivery on time, customer services via online and quality of products. The HRM techniques help to evaluate business profit in 4 different quarters of the year. The audit approach consists of dependencies between product quality and product cost, verifiable information on HRM operations. This helps to make alignment over the organizational profit strategy (Bueller et al. 2018).

Business Analytical Approach:

The business analytical approach relies on cost-benefit evaluation. This approach seeks to explain financial evaluation that is helpful for GlaxoSmithKline company's decision makers for new business development. The HRM activities have been evaluated for new market growth strategies that include new job recruitment for new vacancies, capital investment for setting up new business and proper place (Helmreich and Merritt, 2017).

Balanced Scorecard:

This includes 4 business dimensions such as economical standard, customer services, the internal market process for making more profits and business learning ability that help to understand the demands of the customers and current market trends. The balanced scorecard gives the shape of the current work performances of the GlaxoSmithKline Company and triggers for business growth rate in future (Stone and Deadrick, 2015).

Figure 3: HRM Practices

(Sources: Rees et al. 2017)

6. Analysis the importance of the relationship between HRM and Employee

(P5)

The human resource professional plays the vital role in making the healthy relationship between HRM and employees in GlaxoSmithKline Company. The importance of employees relations with HRM is as follow:

• In the difficult business situation, an individual professional cannot take actions alone.
• Business work becomes easy and simple by shared the idea among all the team members.
• Work together helps to increase the happiness in the GlaxoSmithKline Company.
• Good interaction gives the encouragement and motivation to the employees in the GlaxoSmithKline Company (Keegan et al. 2018).
• The problems and difficulties are easily reduced by healthy employees’ relations with HRM (Kidwell et al. 2018).
• For better work performances, need share business ideas with each other.

Figure 4: Models of Human Resource Management

(Source: Banfield et al. 2018)

The Tichy, Fombrun and Devanna Model:

The model emphasizes four important operations and their services. Four operations are an appraisal, selection, business development and rewards to the employees. These four tools help the management to increase effectiveness in the business market. The model helps to ignore bad business environmental factors and business contingency factors to improve HR operations. The model provides the ideas to increase the work performances to make the high profit in GlaxoSmithKline Company. The ideas related to two way communications during the project execution, instant feedback from top management, and rewards for the encouragement to the employees (Banfield et al. 2018). 

The Model of Warwick:

The model was developed by Pettigrew and Hendry. The model includes macro business environmental force, profit strategy content, HRM content and inner organizational context. The GlaxoSmithKline Company used the model to evaluate the market growth and current status of the business. The Organization applies the functions of vaccines healthcare system. The company provides the products of nutritional, vaccines and counter medicines. The model gives the concept of business strategy and internal and external HR practices over relation development. The business activities include the relationship between context and content changes over business planning. GlaxoSmithKline Company identifies and classifies their human resource management influences in relationship management. The influences factors are tasks alignment for the employees, positive feedback, consumer services and actual market demand (Kidwell et al. 2018).

Guest Model:

The model was developed by David Guest in the year of 1997. The model claims that human resource manager has compatible business strategies to start the new project. The GlaxoSmithKline Company used the model for increasing the outcomes with high profit. The model mainly emphasizes the logical sequence of six business development tools such as HR practices, high outcomes, best performance result, economic consequences, high profits, and employee performance. Employee’s commitment comprises of business behavioural outputs with quality and reliability. The inputs and outputs evaluation of the GlaxoSmithKline Company is simply measured by the principle of guest model (Moutinho et al 2018). 

7. Identify the Important Elements of Employment Legislation

(P6)

Employment Act of Right 1999:

The parliament of UK made the act for trade union and relationship between top management and labours. Sections 1 to 6 comprises of the new statutory process for the employers to identify the present status of the trade union. GlaxoSmithKline Company has 33000 male employees and 66300 female employees. The company provides the compatible environment to the trade union and ground individuals for discussion with the higher authority about their problems. The union members of the Organization are not subject to the dismissal detriment (Stone and Deadrick, 2015).

Anti Discrimination Law of 2005:

The act of law prohibits the discrimination against labours on the issues of race, cast, sex and national origin. The GlaxoSmithKline Company apply the law to the employees who have the working experience more than 15, company has already started new payroll system against the issues of national origin, cast, sex and race. According to the act of discrimination in employment generation, GlaxoSmithKline Company also enhances the prohibition in job recruitment process (Rothenberg et al. 2018).

Fair Employee Standards Act 2002:

According to the act, GlaxoSmithKline Company establishes the good amount of salary of the federal wages. The HRM of the company continuously analyse and verify the accuracy of the wages amount pay to the employees. The HR manager of the Organization gives the ensured to the employees are specifically classified for their responsibilities over the business project (Bamel et al. 2018).

8. Illustrate HRM Application with Suitable Examples

(P7)

HR of the GlaxoSmithKline Company has the talent to develop the business in right track regardless of the financial conditions. HR director Teo Lay Kuan, maintains the balance between consumer demand and company's health care services in UK. Quality of product and fulfil the requirements of the customers on time are very difficult task to manage. The HRM unwilling to hire new candidates for fulfil the company's mission of enable the right person for at right time. Teo says that this is important to provide good interaction with consumers as well as subordinates for the business of innovative medicines and other medical products (Ahammad et al. 2018).

Figure: HRM Application

(Source: Reiche et al. 2016)

9. Conclusion

Human resource management concentrate on the basic needs of the business with employees’ generation. This is best process to get best candidate for the job. The best and dedicated candidates should be selected for the job and selected candidate should remember the responsibility over the organizational growth and development. The HR management of company should always provide the services regarding on primary benefits of the Organization.

10. Recommendation

Human Resource Plan for Multi Integration Business:

The GlaxoSmithKline Company should consider developing multiple integration pharmaceutical business and proper human resource plan for sectors that give the high growth outcomes in order to success of the Organization.

Risk Factor Analysis:

HR should analyse the risk factors of the business at regular interval and take fast actions against the poor business planning. The HR should arrange meetings and conferences with subordinates for taking steps against the risk issues.

Report Plan Problems:

The Human Resource Manager should formalize the work performances in report format for the business plan that will help to detect the problems of the plan.

From the above analysis, the report stated that HRM is the key part to increase employees’ skills and assure high progress of the Organization.