Effective HRM Practices: A Case Study of Greenwich Pharmaceuticals

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Desklib provides past papers and solved assignments. This report analyzes HR strategies at Greenwich Pharmaceuticals.
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HUMAN RESOURCE MANAGEMENT
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Contents
INTRODUCTION...........................................................................................................................................3
TASK 1: DEVELOPING ORGANIZATIONAL AND HR STRATEGIES...................................................................3
TASK 2: HR PLANNING IN A BUSINESS ENVIRONMENT................................................................................6
TASK 3: EFFECTIVE HR PRACTICES AND PERFORMANCE MANAGEMENT IN ORGANIZATIONS....................8
TASK-4: INFLUENCE OF EMPLOYMENT LEGISLATION ON HR PRACTICE IN ORGANIZATION......................10
CONCLUSION.............................................................................................................................................11
RECOMMENDATIONS................................................................................................................................11
REFERENCE LIST.........................................................................................................................................12
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INTRODUCTION
Human resource management (HRM) is the process of recruiting, organizing, staffing and
controlling the employees in the organization. The main purpose of HRM is to increase the
productivity of the employees to achieve the objectives of the organization effectively and
efficiently. The HRM function includes different activities such as motivating, compensation,
appraising, recruiting, training and development, maintaining the relationship with employees
and trade unions and so forth (Bratton and Gold, 2017).
Greenwich pharmaceutical is a UK based subsidiary of a US parent company. Greenwich
pharmaceutical develops thousands of drugs, proven drug discovery and the process of
development of drugs. The company employs more than 400 employees and they deal in
manufacturing, sales, distribution and the technical duties of the laboratory. The re-framed
mission of the company is:
The mission statement of Greenwich pharmaceuticals is to bring excellence and innovation in
the patient care and to the communities by providing the quality services through hiring,
training, compensation and benefits to the employees so that they provide quality of services
to the customers.
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TASK 1: DEVELOPING ORGANIZATIONAL AND HR STRATEGIES
HR strategies are the strategies adopted by the manager which aims to integrate the
employees, culture and the organizational objectives. Thus to achieve the long-term goal of the
company, its mission, vision and goals should be aligned together. Following are the strategies
the company can adapt to achieve the organizational mission.
1. Employee compensation
The main factor that affects the employee’s objective to retain in the organization is the
company’s compensation policy. It is compulsory for the company to offer an attractive package
to the employees to retain the employees in this competitive environment. The compensation
plan must include salary, bonus, retirement plan, health benefits and all other perks to retain
the competent employees (Cascio, 2015).
2. Training and development:
In the pharmaceutical industry, the discovery and the manufacturing of the drugs require
regular training. The managers should invest in the employee’s professional development so
that there is personal and organizational growth. The company can also send the employees to
conferences or to attend the sessions. The training and development method helps in boosting
the employee's morale and increase productivity (Brewster et al., 2016).
3. Motivation:
The job of the employees should be according to the skills and talents of employees. The
employees are motivated to achieve more if the task assigned is of their interest. The manager
must take efforts to understand the skills, talents and past experience of employees to
understand the factors that can motivate the employees to achieve more.
4. The internal source of recruitment:
To fill the higher post of the management the company can choose the competent employees
from the internal source of recruitment. This will motivate the existing employees to perform
well because there are greater chances of being promoted in the company. On the other hand,
it is beneficial for the organization as well. The organization can get talented employees from
the company itself and it leads to less wastage of time, money and efforts (Wilton, 2016).
5. Budget allocation:
The company should keep an amount of the profit for the compensation and other benefits for
the employees. Some part of this budget will be kept as a salary and the rest of the budget
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should be distributed in the form of incentives. These incentives will motivate the employees to
work with zeal and enthusiasm. Further, this incentive brings loyalty to the company.
6. Package benefit:
Like other pharmaceutical companies, the Greenwich pharmaceutical can also use the different
benefit packages such as medical insurance, travelling expenses, and accommodation facilities
and so forth to attract and retain the competent personnel. Sometimes the employees look for
such benefits apart from the salary (Nankervis et al., 2016).
7. Performance management system:
The managers must regularly assess the performance of the employees to ensure that whether
the employees make an effort to meet the corporate objectives or not. This will also help the
management in making decisions regarding the training, salary, coaching or mentorship
program. Performance management system and the compensation policy can easily influence
the employee’s performance and engagement.
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TASK 2: HR PLANNING IN A BUSINESS ENVIRONMENT
Human resource planning
Human resource planning is the continuous process of identifying the present and future
requirement of manpower in the organization. It also includes identifying the capability of
present employees to fulfil the objective of the company. This is the most important function of
HRM as it helps the management in forecasting the demand and supply of workforce in the
organization (Taylor et al., 2015). Human resource planning allows the companies to plan in
advance the requirement of the manpower so that they can manage it before it creates
hindrance in meeting the objectives. HR planning should be flexible to meet the short-term as
well as the long-term need of the organization.
The HR planning of Greenwich pharmaceutical can help the manager in the following ways:
To promote the employees.
Selecting and providing training and rewarding the best candidate.
Solution to the problem of absenteeism and conflict.
Find, attract and recruit competent personnel.
Keeping in mind the manpower inventory and to find the individual who has the
capability to take higher responsibility.
Develops proper work environment. The HR planning helps in avoiding the situation of
overload and under load of work.
Human resource planning ensures the best-fit within the workforce while avoiding manpower
shortages or surpluses through these steps. The human resource planning steps involve four
stages which are as follows:
1. Current HR supply
The HR manager analyzes the current supply of manpower in the organization. The analyzes of
the current strengths of employees in terms of number, skills, talent, qualification, experience
and so on. The Greenwich pharmaceutical should take a detailed interview with different
departments of the company to understand the type and number of employees needed to
achieve the departmental goals (Bryson, 2018).
2. Future HR demand
After analyzing the internal strength, the HR manager forecast the future HR demand. This can
be done through calculating the number of retirement, transfer, promotion, and people resigns
from the job etc. Further, additional uncertain factors also affect the demand of the manpower
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of Greenwich pharmaceutical which includes attractive salary from the competitors, death etc.
The company should analyze all the factors while determining the number of HR demand.
3. Demand forecast
The next step includes matching the current supply to the future demand and prepares a
demand forecast. The demand forecast is a very important step to match the future
requirement of the employees with the organizational goal. The HR manager must understand
the objectives and strategies of the company so that he can demand forecast matched with the
organizational objective.
4. HR sourcing strategy and implementation
After finding the gap between the demand and supply the HR manager must prepare the HR
sourcing strategies and implement it to meet the future requirement of the business. The HR
manager can control the situation of shortage or surpluses by formulating HR strategies and
implementing it. The HR manager can formulate the strategy after discussing with the
employees, manager of the different department, recruitment and selection, training and
development and through other methods. The strategy should be implemented so that the
operations of business work smoothly (Nankervis et al., 2016).
The Greenwich pharmaceutical company can manage its shortage or surpluses of the
employees by applying the stages of HR planning. After the implementation of these stages, the
HR manager can evaluate the stages of planning by comparing it with performance, production,
sales, retention, employee satisfaction or profit. If the stages are working in the proper manner
and organization can able to achieve its target then the manager can continue with the same
steps otherwise the manager can make changes according to their requirement.
Figure 1: HR Planning Process
Current HR supply Future HR
demand Demand forecast
HR sourcing
strategy and
implementation
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TASK 3: EFFECTIVE HR PRACTICES AND PERFORMANCE MANAGEMENT
IN ORGANIZATIONS
The success of the organization depends on the performance of the employees. It is not
difficult to create an environment where the employees can maximize its performance; proper
HR practices enable the employees of Greenwich pharmaceutical to increase their performance
for achieving the organizational mission. HR practices are as follows:
1. Clearly define the organizational goal and performance objectives
It is important for the manager to clearly define the mission and objectives of the company; if it
is not clearly defined it leads to ineffective performance management. The manager can do this
by sending the e-mail; prepare the chart of their work or through conducting the meetings to
define the roles, responsibilities and expectation from the employee.
2. Performance feedback
To make an effective performance management system in the organization, the manager must
regularly provide feedback to its employees. This HR practice will help the employees in taking
the corrective actions to avoid such a situation in the future. Good performance feedback
motivates the individuals and set as an example in front of other employees. While poor
performance feedback encourage the individual to work hard. Regular and timely feedback of
employees is one of the best methods to bring efficiency in their performance (Arunprasad,
2017).
3. Use of 360-degree reviews
The effectiveness of performance is also measured through 360-degree reviews. In the 360-
reviews the feedback of employees is taken from the colleagues, superior, subordinate,
customers and all the parties that interact with the employee. This method encourages the
worker to build a relationship with other colleagues, work with the coordination and to
improve themselves by watching their colleague members (Kanaslan and Iyem, 2016).
4. Set regular meetings for recognition or to discuss the results
There should be an arrangement of regular meetings with the employees to discuss the result
or the output of the particular time period. The meetings can be held in weekly, monthly,
quarterly as it is required. But the manager should keep in mind that all members must be
present at the time of the meeting. The meeting should include the achievement done by the
team, reviews of the colleagues, reward or incentive for achieving something extra, discussing
the plans or projects for the future.
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5. Use of performance management software
It becomes quite difficult for the manager to remember the performance of more than 400
employees. The company can make use of different performance software for evaluating the
performance of employees. The characteristics of the software should be it is easy to use by all
types of employees in the organization i.e. it must be user-friendly. The software helps both the
employers and the employees to work smoothly in the organization. The main objective of
performance management objective is to improve and enhance employee engagement (Wang
et al., 2016).
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TASK-4: INFLUENCE OF EMPLOYMENT LEGISLATION ON HR PRACTICE IN
ORGANIZATION
Local, state and federal law affect the activities of the business. Various laws are made to
protect the interest of employees such as law for employee retention, compensation, minimum
wage, health and safety, labor relations and many more. The general laws that affect the
business of Greenwich pharmaceutical are as follows:
Civil Rights Act (1964): Title VII of this law protects the employees against the
discrimination on the basis of age, gender, caste, religion, color and race. This law is
applicable to all the organization has more than 20 employees. The Greenwich
Pharmaceutical cannot refuse to hire the individual or reject the individual from the
hiring process or discriminate the employees for some other reasons (Wright, 2015).
Fair Labor Standard Act (1938): This law ensures the rights of the employees for
minimum wage, child labor standards, and pay eligibility as well as work regulations. HR
manager must regularly evaluate the amount to be paid to employees according to this
act. The company should pay according to the work done by the employees. Paying less
than their efforts will lead to a violation of this act as well as it demotivates the
employees.
Federal and Medical Leave Act (1993): This law gives the rights to the employees to
take leave of 12 workweeks in a period of 12 months. The reason can be an emergency
in the family, to take care of a spouse or any other family members or for any other
reason. These leave are the paid leaves and provides job protection from the employer
(Donovan, 2017).
Equal Pay Act (1963): This law protects the employees from the discrimination in the
compensation and benefits due to gender or any other cultural factors. This law defines
that it is compulsory to pay equally for equal work with the aim of ending the
discrimination on the basis of gender. This law described that men or women who are
working for the same job should be treated equally in terms of skills, responsibility,
efforts and working culture.
Occupational Health and Safety Act (1970): This law was enacted in 1970 with the aim
to protect the employees from the hazardous workplace. The law was not only
applicable to the employees who work with the dangerous machines or equipment but
also to the person who acts like a whistleblower at the time of the accident. It is the
responsibility of the HR manager to keep the documents of all the hazardous material
used and provide proper training to work with such type of machines (Friend and Kohn,
2018).
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Age Discrimination in Employment Act (1967): This law is for the employer who refuses
to hire the employees on the basis of age. This law also covers other components of
employment such as compensation, health care benefits, terms and conditions. This act
specially protects the employees from the age-based discrimination against the
employees (Sargeant, 2016).
National Labor Relation Act (1935): The employees are free to join any labor union they
wanted to join. The act prohibits the employer to discriminate the employee because
that employee belongs to a particular affiliation or union activities. Employees either
develop the Union or give the choice to the employees to vote for a union
representative and they are obligated to bargain with the employer to behave on all the
member (Goad, 2017).
CONCLUSION
Therefore, it can be concluded that the Greenwich pharmaceutical should alter its mission
statement for retaining and attracting the competent personnel and to protect them from the
attractive offers of the competitors. The HR manager must take various practices to retain the
employees such as proper training, compensation benefits and so on. The HR department must
prepare its strategy for HR planning so that there will no shortage or surpluses of the workforce
in the organization.
RECOMMENDATIONS
The suggestions to solve the problem of Greenwich pharmaceutical can be:
The tools or the techniques for the training, reviews, and process should be employee
friendly.
The employer and employee should use the system in the area of performance
development, performance planning, achieving results and feedback so as to bring the
feeling of coordination in the business environment.
The system of organization should be aligned with the organization's objectives and
performance of employees to achieve success.
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REFERENCE LIST
Arunprasad, P., 2017. Inevitable knowledge strategy: A paradigm shift in strategic HRM
practices to augment firm’s performance. Employee Relations.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice.
Palgrave.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European
resource management. Springer.
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
Donovan, S.A., 2017. Paid family leave in the United States.
Friend, M.A. and Kohn, J.P., 2018. Fundamentals of occupational safety and health.
Rowman & Littlefield.
Goad, K., 2017. Columbia University and incarcerated worker labor unions under the
National Labor Relations Act. Cornell L. Rev., 103, p.177.
Kanaslan, E.K. and Iyem, C., 2016. Is 360 Degree Feedback Appraisal an Effective Way of
Performance Evaluation?. International Journal of Academic Research in Business and
Social Sciences, 6(5), pp.172-182.
Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2016. Human resource management:
strategy and practice. Cengage AU.
Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2016. Human resource management:
strategy and practice. Cengage AU.
Sargeant, M., 2016. Age discrimination in employment. Routledge.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Wang, X.L., Wang, L., Bi, Z., Li, Y.Y. and Xu, Y., 2016. Cloud computing in human resource
management (HRM) system for small and medium enterprises (SMEs). The International
Journal of Advanced Manufacturing Technology, 84(1-4), pp.485-496.
Wilton, N., 2016. An introduction to human resource management. Sage.
Wright, G., 2015. The regional economic impact of the civil rights act of 1964. BUL Rev.,
95, p.759.
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