Human Resource Management Challenges at Cipla Pharmaceuticals

This essay delves into the human resource management (HRM) challenges faced by Cipla Pharmaceuticals, a leading Indian pharmaceutical company. It identifies key issues such as retaining talented employees, particularly in a competitive market, and providing competitive compensation packages. The essay explores these challenges through the lens of a strategic HRM model, analyzing the importance of corporate strategy, recruitment, training, performance management, and employee retention. It emphasizes the need for transparent work cultures, healthy employee-employer relationships, and competitive rewards to maintain a motivated workforce. The analysis considers the impact of competitor actions, the importance of employee loyalty, and the need for continuous improvement in HRM practices to ensure Cipla's continued success. The essay also examines the role of strategic human resource models in addressing these challenges, highlighting the importance of employee contributions and a flexible work environment.

HUMAN RESOURCE MANAGEMENT
CIPLA PHARMACEUTICALS

HUMAN RESOURCE MANAGEMENT
Contents
INTRODUCTION.....................................................................................................................................3
MAJOR CHALLENGES.............................................................................................................................3
STRATEGIC HUMAN RESOURCE MODEL................................................................................................5
REFERENCES..........................................................................................................................................8

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INTRODUCTION
Cipla Pharmaceuticals is an Indian pharmaceutical company which is leading
globally. Cipla is always dedicated to high quality, branding and generic medicines. Being
one of the best pharmaceutical company it is trusted by healthcare professionals, patients and
the people who are associated with the company. It was started in 1935 by its founder Dr.
K.A. Hamied. Cipla’s founder has started the company with a vision to make India self-
sufficient in healthcare especially. Nobody from India should anywhere else for any type of
disease or treatment. In last almost 80 years they have got the best and most respectful name
among the pharmaceutical companies. Everybody knows the company name and it is very
popular for ensuring highest quality medicines at very affordable prices. (Gudiguntla, 2012)
Cipla has more than 25000 employees and more than 2000 products in many therapeutic
categories above all. They have a very good and bigger level presence in the market all over
either it is India or in other 170 countries. They have won many of the awards and recently
they have got lifetime achievement award in 2014. Cipla main headquarters is located in
Mumbai, Maharashtra itself and other offices are in United States, UK and Belgium also.
There are many challenges that the company or the organization has to face in the future like
retaining same talented candidates, best future leaders, flexible work arrangements, better
compensations and many more like open leadership and work culture.
MAJOR CHALLENGES
The main problems or the challenges Cipla has to face, is to retaining and rewarding
the talented candidates and their future leaders. Second, the most important is to same work
culture with better compensations. Cipla is a fastest growing pharmaceutical company from
many years but nowadays there is a huge competition either in the pharmaceutical segment or
generic medicine segment. Many competitors or even new local players are getting into the
business very fast. They are always ready to compete with Cipla at Doctor’s level which is
tough for them as Cipla has a huge and respectful name for Doctor’s especially but when the
other pharmaceutical companies are offering other benefits to the Dr’s or in fact to the
employees then definitely it breaks the chain of Cipla and giving a loss to the company.
Every person needs a growth time to time in his/her life but if by their hard work other
companies or the competitors will offer them more than their present then. Definitely
everybody will switch his/her company. (Sharma, 2011)Today competition level is so high
that retaining talented and well performing candidates is the toughest job for any of the
Human resource management. (Kiran Kabbta Somvanshi, 2017) Loyalty of an employee is

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also not considered on the company or the benefits, it is just depending upon the employee
itself. Rewarding your employees at every point is good for the company but you can’t even
confirm that employee is temporary or permanent in the organization. On the other hand,
competitors are trying very well to share Cipla business from the market by launching some
same salt products with different names and promoting them in the market. Doctor is always
use to give share to every company almost but some of the Doctors are ready to even shift
from Cipla to other local players. For example, if a Doctor is a Cipla product prescriber and
other company is offering them some good deals or bonus/gifts then definitely that Doctor
will provide at least 5-10% of the prescription share to the competitor. A little bit and small
share is enough for the competitors because they are not spending a big amount like Cipla
and also not providing the best quality medicines. Same is happening with the current
employees of the organization as they also feel that they are getting good remuneration and
benefits in the new organization rather than working in Cipla. In that situation it is very
difficult for Human resource management of the company to retain the same talented
candidates for a longer duration of time. (Dandekar, 2016) Next main and big challenge for
any of the organization is to provide better compensations and provide a clear and transparent
work. Better compensations are a big part that has to be played by the company or the
organization. Undoubtedly money matters to everyone but every employee who expects a
better compensation than others in the organization or comparison from other companies
should have some extra talent of course. If that employee is liable and having some extra
talents, then definitely he/she can achieve the best compensations. More over these days
every company has to provide better compensations as if they will not provide a good start
for the new joining or the talented person then, there are many companies who are ready for
hiring such candidates. It is very important for the Human resource management to recruit the
right person at right time and at a very right package. Many of the organizations are
providing attractive packages, incentive slabs, foreign trips and many more to get profits and
also making the interest for the employees so that they always give their best for the company
and for themselves. If the work culture will be absolutely clear and transparent in all aspects.
Employees will have more faith on the management and the organization. Every employee
should feel like a familiar and Cipla is doing best among all this. Cipla is always trying to
make every employee as a familiar but it is a topic of faith. Sometimes an employee is not
doing good in his job and still thinks of a better remuneration that is wrong. Same on other
side when companies are taking hands back or support less then employee is not at all happy
with this un cleared culture. When a company or the management will not be 100% open to

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their employees, till then no strong bonding or the relation will be there between an employee
and the employer. (Advisor leap, 2016)
STRATEGIC HUMAN RESOURCE MODEL
There are many strategic human resource models are available and having a strong
aspect on the company or the organization itself. Here is a Model available for Strategic
Human Resource Management. Strategic human resource model is basically used to ensure
that an organization can get success through various steps like recruitment of the talented
staff, training of the staff, management of the performance, feedback of the work from the
market, planning for different and new resources, retaining of the talented and successful
employees and then offering them valuable and good incentives or remunerations for their
hard work as a token of appreciation. An organization should always retain the employee
with their good impact of relations. A healthy relationship between an employee and an
employer is always beneficial for both employee and the organization. (Bratton, 2005) In
short a Strategic human resource aims to enable the organization to retain the motivated and
well talented work people, boost the contributions of the employees by providing them
training, develop high presentation work. Appreciate them even for smaller things they do or
give them a chance to share their ideas so that they will feel homely atmosphere and the most
important is to create an environment in which productive and pleasant relations can be
maintained, Environment should be flexible and freestyle. Such organizations which are
following these parameters either from their side or employees contributing full in these
parameters are completely successful in the market rather than the companies who don’t have
a good and healthy environment either it is internal or external environment. There is a
diagram which clearly shows that every step is depending on other step but all this is not
possible without two persons and that are employee and an employer. Both are important for
each other and together with a positive way they can achieve a higher success professionally.
(Grobler, 1993)

HUMAN RESOURCE MANAGEMENT
Firstly, it starts from the main corporate strategy which is formulated at the top management level.
This strategy is influenced by both internal and external environment forces. Internal environment
planning is basically a business strategy in which only company is related and external environment
forces includes competition and government regulations etc. Business strategy is very necessary for
every organization as it will focus on the overall objectives of the organization. Then, the Human
resource strategy roles come where the HR people has to recruit and select the perfect people or
the most suitable candidates for the jobs they have. (Emily Pribanic, 2018) They have to provide the
best training because training is the process of increasing knowledge, helps productivities and
overall changing the attitude of the employees for achieving further targets or the objectives of the
organization. They have to manage their performance in all aspects. The performance of the
recruited people in the organization is up to the mark and worth the package or the remunerations
they are getting. This is the main job of Human resources to get the best suitable person for the
perfect field of the job. Performance management is also very essential as it should be effective
through which it can contact both the organizational and specific needs and can plan for the future
progress for both organization as well as for themselves. Analysis of the performance is important so
that an organization can come to know that which employee is more fruitful for the organization. It
is a race between the employees as we all know that the employee will work hard and better will get
the remunerations much better. Company is always ready to provide incentives, remunerations and
all other benefits to the employee who is the most profitable for them. (Rasel, 2015) It is a give and

HUMAN RESOURCE MANAGEMENT
take relationship for example if an employee is getting a good business for the organization then.
He/she will be awarded with incentives and other remunerations but, if an employee is not working
properly or not doing good business for the company then he/she will not be rewarded in fact they
will be more measured by the company itself. Rewards are the part of income and reflect only in
those accounts or the employees who are giving their best for the organization and themselves.
Compensation is a very difficult task for Human resources management as if the compensation slab
is accepted by the leaders or employees head then, It will be more beneficial for the organization as
every employee will love to work and having their complete mind in their job but if the
compensation slab is not good for the union leaders or other employees then no fruitful work can be
done in the organization because employee’s mind is stacked in between their job profile and the
compensation. Retaining well talented employees and their services are very hard these days. It is
not because they don’t work, it is because of the hard competition in the market itself. Every other
organization in the market wants that your talented employees should work for them. The other
companies are offering them huge hike in their packages, remunerations and many other benefits
through which many of the employees switch their jobs into other companies. It is very painful and
disturbing for a company because you have given the training and trained that candidate.
Employee’s talent is a mixture of his hard work and the knowledge you have given to him. After
setting up and gearing in good position in the market any other company is hiring them so some
extra remunerations. (Ranjan, 2017) If the relations are good between the higher and the lower
management then, definitely there will be a smooth work in the organization or the company.
Smooth relations between the employee and the employer is helpful for both the employee and the
organization. These relations can be maintained by proper appreciation from the management time
to time and a positive approach towards every employee. Healthy relations of employer and
employee will lead to long term relations itself. An employee should be rewarded for every good
thing he/she is doing because appreciation is the best step to keep them more motivated towards
the organization.

HUMAN RESOURCE MANAGEMENT
REFERENCES
Advisor leap, 2016. Major challenges. The 9 big problems facing the pharmaceuticals company.
Bratton, J. 2005. Strategic human resource model. Strategic human resource management.
Dandekar, V. 2016. Major challenges. Top drug makers like Sun Pharma, Torrent, Cipla working on
quality standards at manufacturing facilities .
Emily Pribanic, E.2018. Strategic human resorce model,. 8 Steps for Developing a Competency Model
in SHRM.
Grobler, P. 1993. Strategic human resource management. STRATEGIC HUMAN RESOURCE
MANAGEMENT MODELS: A REVIEW AND A PROPOSAL FOR SOUTH AFRICAN COMPANIES, Volume 2.
Gudiguntla, R. 2012. Introduction. Cipla introduction.
Kiran Kabbta Somvanshi, 2017. Major challenges. A look at how pharma giant Cipla has lost its mojo
over the years .
Ranjan, P., 2017. Strategic human resource model. Hr employee strength.
Rasel, 2015. Strategic human resource model. 13 Models of Strategic Human Resource
Management.
Sharma, E. K., 2011. Major Challenges. Hamied's tough options.