Strategic Human Resource Management

This paper discusses the rationale of embedding HR strategies into the broader corporate strategies, how AstraZeneca embeds its HR to the corporate strategy, implementation of HR strategy at the departmental level, and contemporary HR challenges facing the AstraZeneca company.

Running Head: STRATEGIC HUMAN RESOURCE MANAGEMENT 1
STRATEGIC HUMAN RESOURCE MANAGEMENT
Name
Tutor
Institution
Date of submission

STRATEGIC HUMAN RESOURCE MANAGEMENT 2
Introduction
AstraZeneca is a British-Swedish science-led multinational biopharmaceutical company
headquartered at Cambridge in United Kingdom. The human resource of AstraZeneca company
has understood the importance of developing and implementing proper human resource
strategies aimed at achieving maximum benefits. The HM strategies at AstraZeneca are aligned
to the broader corporate strategies of achieving scientific leadership, being a great place to work,
and creating a valuable and trustworthy relationship with the stakeholders (Mazzetti et al., 2018).
To ensure the overall strategy of the organization is achieved, the human resource strategies
should be aligned to the mission and vision of the company. This paper discusses the rationale of
embedding HR strategies into the broader corporate strategies, how AstraZeneca embeds its HR
to the corporate strategy, Implementation of HR strategy at the departmental level, and
Contemporary HR challenges facing the AstraZeneca company.
1. Rationale of embedding HR strategies into broader corporate strategies
Integration of the HR policies and practices to the organizational strategy involves
aligning them to the global-arching human resource management (HRM) so as to achieve a
competitive edge over the rivals (Noe, Hollenbeck, Gerhart, & Wright, 2017). While formulating
the HR strategies, it is important to put into consideration the external and internal environment
factors that may influence the company’s business strategy. Embedding HR strategies to
organization strategy requires in-depth knowledge of the process. The HR Organization
Alignment and Integration Model has been used by many companies to embed the HR strategies
with the overall organization planning and organization management (Sthapit, 2010). The model
uses the top-down, bottom-up, and Management by Objectives (MBO) approaches to align the
HR strategies to the broader corporate strategy as well as evaluate the effectiveness of strategies.

STRATEGIC HUMAN RESOURCE MANAGEMENT 3
Therefore, the HR-Organization Alignment/Integration Model involves: identifying organization
mission/goals, core competencies, needs assessment, integrating solutions, and finding
organization outcomes (Sthapit, 2010).
a) Organization mission/goals/strategies- The human resource need to make strategies that align
with the goals and mission of the company. The Human resource functions such as staffing,
performance appraisal, and performance management systems should be designed in such a way
that they support the overall company goals (Bratton & Gold, 2017).
b) Core competencies- The core competencies such as skills, abilities, and knowledge employed
in making the HR strategies should be steered towards achieving a corporate success. The HR
strategies, systems, and employee career paths should be able to promote and strengthen the
company’s core competencies.
c) HR needs assessment- The strategies should identify any performance issues and opportunities
that are crucial for innovation and invention within the company. The human resource should
have enough training that will enable them to make the right decisions and proper strategies in
line with the organization priority (Pollach, 2015).
d) Integrated solutions- The strategies should find solutions to performance issues that are arise
within the organization. This may include automating work, improving management systems,
training, and development. Here, the HR practices, programs, and priorities are configured in
support of the broader company future plans (Sthapit, 2010).
e) Organization outcome- After embedding the HR strategies, it is possible to expect positive
outcomes such as improved organization performance and enhanced outputs (Pollach, 2015).

STRATEGIC HUMAN RESOURCE MANAGEMENT 4
2. How HR strategies are embedded in the broader corporate strategy of AstraZeneca
company
AstraZeneca seeks to embed these HR strategies to the broader corporate strategy; a
culture of ethics and integrity, promoting sustainability programs, adopting higher governance
standards, and improving relationships with stakeholders, shareholders, and employees. Through
inclusion and diversity strategy, the HR seeks to foster an inclusive workplace and workforce
that values equality (Holder, Devpura, Lee, & Chandran 2019). AstraZeneca understands the
importance of creating a conducive environment for employees where they feel empowered,
needed, and safe. As a result of this, the employee engagement is increased which translates to
improved productivity and innovation which is the bottom line strategy of the company. Also,
they have invested in diversifying the workforce by creating a diverse pipeline of leaders from
different backgrounds (Morgan et al., 2018). Women as well are encouraged to take up
leadership roles which encourages equity. The ratio of male to female employees globally stands
at 49.9% and 50.1% respectively. Creating a workforce diversity is in line with the broader
corporate strategy of enhancing innovation and discovery of new medicine (Winkfield et al.,
2017).
In line with achieving sustainable development in the future, AstraZeneca has
implemented environmental protection, ethics and transparency strategies that seeks to offer
accessible healthcare to all people. To achieve this the company has embedded the HM strategies
into the larger corporate strategies through an operational model that encourages every employee
to work towards achieving the set goals of the company (Mason & Simmons, 2014). An
induction model also that includes sustainability employee training is incorporated into the
company’s overall strategy that aims at improving the skills of the employees. The HR strategies

STRATEGIC HUMAN RESOURCE MANAGEMENT 5
as well includes risk management and financial reporting that ensures that operations of the
company run smoothly (Schneider, Wilson, & Rosenbeck, 2010). All these strategies set by the
company’s management and the Human Resource team are directed towards the larger goal of
the company.
3. Implementation of HR strategy at the departmental level
Efficient implementation of HR strategies at the departmental level is crucial in ensuring
productivity and success of the company. AstraZeneca has implemented the inclusion and
diversity strategy at all enterprises or departments responsible for increasing engagement and
overseeing the operations of the company. In 2018, the company established Inclusion Councils
that were to ensure that the workforce was balanced between men and female employees.
Additionally, a Senior Executive Team (SET) and Board was created that ensures that there is no
sexual harassment amongst the female workers and gender and leadership ethnic diversity is
maintained. The company also launched Global Women Leaders program in 2017, that seeks to
support women in line with the corporate strategy of gender equality (Doyle, 2015). The
Employee Resource Groups (ERGs) as well have been created that aims to align the needs of the
employees to the business priorities.
AstraZeneca has understood the role a heathy environment plays in their search to offer a
heathy community. As such, they have embedded environmental sustainability in all their
operations so as to minimize any environmental impacts (Longcor, Masturzo, & Matty, 2011).
They have mandated the Natural Resources Reduction Governance Group (NRRGG) to oversee
all projects involving natural resources and audits. They ensure that that the product-
environmental stewardship is maintained, the greenhouse gas is reduced, and waste is
minimized. They educate their customers on the importance of proper disposal of medicines and

STRATEGIC HUMAN RESOURCE MANAGEMENT 6
also encourage recycling. (Mahapatra, 2015). The human resource department has mandated the
Bioethics Advisory Group (BAG) to watch over all the bioethical issues of the organization. This
involves ensuring the animal welfare policies are followed during the experimental studies.
Through implementation of the HR strategies to different departments and groups, it allows the
operations of the company to run smoothly without interference from one another (Morgan et al.,
2018).
4. Contemporary HR challenges facing the AstraZeneca company
Since AstraZeneca is an international company, the human resource team is faced with
several challenges especially in managing a diverse workforce and stakeholders of different
cultural background. Such groups have different values, standards, beliefs, and norms. Therefore,
making them to agree in same values and norms of the company is difficult. As such, the
implementation of HR strategy of inclusion and diversity is very challenging (Remneland &
Styhre, 2018). However, the AstraZeneca seeks to create a culture that embeds inclusion to all
sectors of the company. To overcome this challenge, the company has instilled an inclusive,
diversity, and ethical program that teaches the significance of accepting and respecting each
other despite of their origin. In addition to diversity training program, the company can
implement a system of accountability through which employee’s standards of behavior will be
monitored (Mahapatra, 2015).
In line with environmental sustainability strategies, the AstraZeneca has faced a lot of
challenges in regard to greenhouse gas reduction. Many of their sites in Sweden have
experienced problems in facility cooling capacity due to prolonged hot periods. The company
aims to replace all the power consumption with certified renewable energy by 2020 in Europe
and United States and 2025 globally. In terms of other environmental issues, the company poses

STRATEGIC HUMAN RESOURCE MANAGEMENT 7
a threat to the marine life especially due to discharge of waste and drugs to the rivers (Snell &
Yemen, 2017). The company ought to find means in which the waste is not directed into the
rivers or they should treat them before release into the environment. Due to ever increasing and
changing pace in scientific developments and technological advancement, the AstraZeneca
company ought to invest more in technology so that they can remain at the top of the scientific
world.
Conclusion
Human resource strategies are crucial for proper management and smooth operations of
an organization. Nevertheless, most of the times, HR strategies are not aligned with the broader
corporate strategy of the organization. Due to such gaps, it becomes hard for the company to
achieve the set goals and objectives since the HR strategies does not fit into the general corporate
strategy of the company. Therefore, it is important for HM strategies to be aligned and executed
in line with the company’s corporate strategy. Implementation of strategies such as diversity and
inclusion, environmental protection, ethics and transparency strategies has seen AstraZeneca
company achieve greater success in health sector. Despite ethnic and environmental challenges
faced by the company, they have managed to overcome them through integration of HR
strategies into the broader corporate strategy.

STRATEGIC HUMAN RESOURCE MANAGEMENT 8
References
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Doyle, E. (2015). Identifying Best Practices for Gender Diversity in Leadership Roles in the
Workplace (Doctoral dissertation, Ohio University).
Holder, M., Devpura, A., Lee, A., & Chandran, S. (2019). Aligning Data Analytics and Supply
Chain Strategy in the Biopharmaceutical Industry. In Aligning Business Strategies and
Analytics (pp. 67-78). Springer, Cham.
Longcor, J., Masturzo, T., & Matty, K. (2011). Pharma's globalization of China: AstraZeneca
Case Study. Proceedings of the Northeast Business & Economics Association.
Mahapatra, G. P. (2015). Interview with Ms Smita Saha, Vice President-HR, AstraZeneca
Pharma India Ltd. South Asian Journal of Human Resources Management, 2(1), 100-106.
Mason, C., & Simmons, J. (2014). Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics, 119(1), 77-86.
Mazzetti, M., Hedwall, M., Crowther, M., Lennard, S., Richardson, M., & Taylor, L. (2018,
January). AstraZeneca Creates a Culture of Agility and Innovation. Project Management
Institute.

STRATEGIC HUMAN RESOURCE MANAGEMENT 9
Morgan, P., Brown, D. G., Lennard, S., Anderton, M. J., Barrett, J. C., Eriksson, U., ... &
Matcham, J. (2018). Impact of a five-dimensional framework on R&D productivity at
AstraZeneca. Nature Reviews Drug Discovery, 17(3), 167.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Pollach, A. (2015). Strategic corporate social responsibility: the struggle for legitimacy and
reputation. International Journal of Business Governance and Ethics, 10(1), 57-75.
Remneland, B., & Styhre, A. (2018). Managerial challenges of outbound open innovation: a
study of a spinout initiative in AstraZeneca. R&D Management.
Schneider, J. L., Wilson, A., & Rosenbeck, J. M. (2010). Pharmaceutical companies and
sustainability: an analysis of corporate reporting. Benchmarking: An International
Journal, 17(3), 421-434.
Snell, S. A., & Yemen, G. (2017). AstraZeneca: Transforming How New Medicines Flow to
Patients. Darden Business Publishing Cases, 1-25.
Sthapit, A. (2010). Integrating HRD with organization strategy as a precursor to strategic
management: a review. Administration and Management Review, 22(1), 1-27.
Winkfield, K. M., Flowers, C. R., Patel, J. D., Rodriguez, G., Robinson, P., Agarwal, A., ... &
Wollins, D. S. (2017). American Society of Clinical Oncology strategic plan for
increasing racial and ethnic diversity in the oncology workforce.