Leadership Management: Policy Planning & Risk Mitigation at GSK

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This report provides an analysis of leadership and policy management within GlaxoSmithKline (GSK), a global science-led healthcare company. It examines GSK's current business position, identifies key issues such as generic competition, rising costs, and employee turnover, and proposes policy redesign strategies to address these challenges. The report also emphasizes the importance of stakeholder involvement in policy making, including government bodies, employees, investors, and consumers. Furthermore, it explores sustainable policy options related to pharmaceutical pricing, cost containment, workplace hazards, and environmental sustainability. The report concludes with recommendations for GSK to enhance its cost and market management strategies and to contribute to a sustainable environment through responsible waste disposal practices. Desklib offers similar solved assignments and past papers for students.
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Running head: LEADERSHIP MANAGEMENT
LEADERSHIP MANAGEMENT
Name of the Student
Name of the university
Author’s note
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1LEADERSHIP MANAGEMENT
Leadership Management
Task 1
Research on the organization
GlaxoSmithKline (GSK) is a science led health care company that is famous globally. They are
famous for the research and the development of innovative products in pharmaceutical, vaccines
and consumer health care sectors (Au.gsk.com, 2017). With the increasing number of health care
consumers, the complexities related to health care are also increasing day by day. In context to
that, GSK have been found to adhere to the standards set out by the Medicines Australia code of
Conduct and the Australian Self medication industry standards (Kline 2014).
In spite of all the safety measures and policies, health care industries are associated with a
bundle of risks and like GSK also cannot stay beyond these risks. The major risks are cyber risk,
health care infections during vaccine or drug research, work place injuries, health care costs and
many more.
Current business position
GSK is quite a repudiated company and had already extended its paws in many countries.
GlaxoSmithKline Australia Pty. Ltd. has already gained the market of pharmaceuticals. Further
improvement strategies would help the company to flourish its business in this field. Under
GlaxoSmithKline Australia Pty Ltd, GSK's pharmaceuticals and vaccine's business have
produced revenue of about $925 million. GSK is currently the largest vaccine supplier of the
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2LEADERSHIP MANAGEMENT
National immunization project (Kline 2014). Hence, it is important to chalk out sustainable
policies for the workplace and the employees, such that they cater to the company’s production.
Policy planning
There are few issues over which GSK is facing problems such as generic competition
with other rising manufacturers, rising cost, political impacts, limited approval of the New
chemical entities, emerging market, changing pattern of the disease , patient demography. In
order to address the problems, there should be proper redesigning of the policies.
Generic competition- It is important that the company should prepare itself for the continuous
generic competition. The laws for the pharmaceutical companies have become more stringent
after the Drug Competition Action Plan. Since the generic competition of the drugs has to be
kept the same, it is the cost that can be checked.
Cost effectiveness- Increasing competitions are bound to put pressure on the company's
economy. GSK derives revenues from a large number of products across a large geographic
region. It is necessary to redesign the policies on cost control and improved yields and
simultaneously maintenance of the margins. It is essential to curtail the costs in order to decrease
the rate of competition, as it is very normal that people would love to get access to the
medications and vaccines of such a repudiated company in low prices.
Employee turnover- Like any time of company, leading company is also dependant on the
management team and the scientific staffs. Competition among the companies for qualified
employees are always high, hence the policies should aim to retain the qualified employees.
Insurance risks- The policies should also contain the terms for mitigating the insurance risks.
The policies should aim to cover medical and the accidental insurance cover.
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3LEADERSHIP MANAGEMENT
Foreign exchange risks- It is essential to make a note of the movements in the forex market.
Policy writing techniques
Easy accessibility: Although the concerned organization is quite big and repudiated, hence the
organizational policies that have to be implemented should be understandable to the employees.
Separate policies can be made according to the intensity of the risks, designation or role. For
example, the policies for the researchers would not be similar to that of the workers or the
laborers or the managers (Anderko et al.2012).
Use of legal frame work: Appropriate legal words should be used while making writing the
policies. The policies need to be supported by an up to date legislation. New policies adopted
without a proper legislative frame work may hamper affect the sustainability of the policy.
Cost effectiveness: The policies should be constructed using as less human resources as possible.
Online policies helps to save papers, reduces the cost over tele calls, cause fewer errors or if
caused can be rectified with ease and maintenance of consistency. There is no point of losing the
papers as the whole thing is conducted online (Avorn 2012) .
Responsiveness- Making policies electronically, make it easier to disseminate and update the
procedures, which ultimately help to address the requirement of the clients.
Accountability- A clearly written policy supported by a proper legal frame work plays a pivotal
role in the foundation of an organization where the employees are held accountable for adhering
to the policies and ten procedures (Anderko et al.2012).
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Authorization of the policy
The policies should be proposed by the human resource managers, which should be
approved by the director general or the C. E. O of the company.
Stakeholders to be included in the policy making procedure
Involvement with the stakeholders are important for the understanding their concerns and
needs. It is necessary to embed their requirements in the company's policy. It is believed that an
open and constructive dialogue is important for improving the company's ability to create a
sustainable growth (Anderko et al.2012).
The stakeholders involved in the policy making procedure are the government bodies, the
employees, the investors, managers the researchers and lot more. Stakeholder is the integral part
of a company to achieve its mission. It should be mentioned that discovery, development of
innovative new medicines is not possible without the involvement of the stake holders. Their
ability is to define the areas of the medical needs, for the operation of the business (Gereffi
2017).
Government bodies and
scientific communities
The department of health of Australia is responsible for making the
National drug strategic framework and plan. Other plans related to
pharmaceutical industries are Medicines Australia (MA) code of conduct
and Australian self medication industry code of practice. They help to co-
develop the methods for evaluating the benefits of the newly invented
medicines, or laboratory safety procedures or the infrastructure.
The C.E.O In case of small organizational policies within the workplace, the major
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5LEADERSHIP MANAGEMENT
decision maker is the C.E.O.
The employees It is the employees who will be responsible for the implementation of the
sustainable policies. The managers will keep a check whether the policies
are being implemented or not.
The managers It is the duty of the managers to look after how the process will be
implemented.
The consumers They are the biggest stakeholders of the company. The handsome
productivity of the concerned company is due to this group of
stakeholders.
Health care
professionals(HCPs)
They help in understanding the emerging clinical data and the advances in
treatment and diagnosis. They are also helpful in providing information or
safety concerns, correct use of products, quality control and other clinical
risks.
Sustainable policy options
There can be several sustainable policy options for a pharmaceutical company
Policy options for pharmaceutical pricing.
Less regulated pharmaceutical market may lack feasible pricing. The out of pocket expense due
to the medicines provides the rationale for the development of new policies.
Policy options for cost containment of the pharmaceuticals.
The pharmaceutical budget has been found to be increasing for the past few decades. 4
reasons have been found to increase the pharmaceutical cost.
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1. Fundamental difference between the medicines and other consumer products.
2. Medicine requires advanced research and technologies
3. Medicines are made under stringent regulatory requirements.
Policy options for reducing the laboratory and workplace hazards.
Various pharmaceutical operations that may involve hazards are the raw material weighing or the
dispensing area, washing and sterilization, chemical laboratory, steam generation plant and
microbiology laboratory (Carlsson et al.2006). Exposure to dust, heat, allergens, toxic chemical
agents, UV rays, infectious viral agents, lesions and cuts while handling apparatus and
Musculoskeletal injuries, while lifting of heavy objects. Hence, the policies have to be written
considering all these parameters (Brausch, et al.2012).
Policy options regarding the rules, norms and the penalties.
The policy option would discuss the federal rules and the company rules and should also contain
directives regarding the compensatory amounts in case of workplace hazards.
Policy options regarding the sustainability of the environment.
Environmental issue might arise due to the inappropriate disposal of the laboratory wastes which
can be harmful for the environment and the community. Both the federal and the state
government are responsible for making the policy guidelines
Recommendations
GSK is one of the leading pharmaceutical companies, yet it requires being more strategic
towards cost and market management. It is recommended that the company will abide the laws
related to the hazardous waste disposal and will con tribute to a sustainable environment. It can
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7LEADERSHIP MANAGEMENT
be expected that the company will be able to bring effect to the policy guidelines within a year.
Since, GSK is quite a repudiated company; the cost that would arise due to the sustainable policy
development would not affect the company’s revenue.
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References
Anderko, L., Roffenbender, J.S., Goetzel, R.Z., Millard, F., Wildenhaus, K., DeSantis, C. and
Novelli, W., 2012. Peer reviewed: Promoting prevention through the affordable care act:
Workplace wellness. Preventing chronic disease, 9.
Au.gsk.com. (2017). Home | GSK Australia. [online] Available at: https://au.gsk.com/ [Accessed
8 Dec. 2017]
Brausch, J.M., Connors, K.A., Brooks, B.W. and Rand, G.M., 2012. Human pharmaceuticals in
the aquatic environment: a review of recent toxicological studies and considerations for toxicity
testing. In Reviews of Environmental Contamination and Toxicology Volume 218 (pp. 1-99).
Springer US.
Carlsson, C., Johansson, A.K., Alvan, G., Bergman, K. and Kühler, T., 2006. Are
pharmaceuticals potent environmental pollutants?: Part I: Environmental risk assessments of
selected active pharmaceutical ingredients. Science of the total environment, 364(1), pp.67-87.
Gereffi, G., 2017. The pharmaceutical industry and dependency in the third world. Princeton
University Press.
Kline, G.S., 2014. Glaxo Smith Kline Annual Report 2014.
Smith, M.C., 2014. Principles of pharmaceutical marketing. Routledge.
Stave, G.M., 2016. Physical and biological hazards of the workplace. John Wiley & Sons.
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9LEADERSHIP MANAGEMENT
Veleva, V., Hart, M., Greiner, T. and Crumbley, C., 2003. Indicators for measuring
environmental sustainability: A case study of the pharmaceutical industry. Benchmarking: An
International Journal, 10(2), pp.107-119.
Task 2
Scope of the policy
The environmental issue related to health care industry has long been a major concern.
GSK is committed to pursue the opportunities to reduce their consumption of resources, avoid
hazardous disposal of wastes and to comply with all the federal laws. Pharmaceutical pollutants
are ubiquitous and hence pose threat to soil, air and water. Pharmaceuticals have also been
detected in the water bodies. Environmental performance by the companies can lessen the
expenditures by the reduction of wastes and energy savings and also helps to decrease the burden
of the pollution on public health (Smith 2014).
GSK wants to minimize their impact on the environment by the development of dynamic
sustainable policies, which would include all the employees, staffs, managers, director general
and the consumers. GSK will facilitate the implementation of this policy by following a robust
method of communication among the employees.
Healthcare companies and the pharmaceutical companies are contributors of CO2
emission. The company will abide by the guidelines of the green house challenge, which aims at
reduction of the CO2 by voluntary and cost neutral steps.
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Aim of the sustainable policy
The aim of a sustainable policy is to minimize the effects of the organization on the
environment and the community. The sustainable policy would be able to accomplish this by
involving the employees and the other stakeholders.
Policy
1. Having a safe and sustainable workplace
2. Developing strategies for the cost containment.
3. To maintain a sustainable and pollution free environment by a proper disposal of the
hazardous laboratory wastes.
4. Conservation of the natural resources and ensuring a proper use of the energies during the
production.
5. To avoid biological risks and laboratory associated infections during the preparation of
the vaccines and the toxoids.
6. Increasing knowledge among the employees and encouraging them to work in an
environment responsible manner.
7. There should be regular assessment and audits to monitor the implementation of the
policies.
8. To reduce the CO2 emission by following the Green house challenge plus.
9. A periodic re-evaluation of the life cycle environmental impact of the company's activity
on the environment.
Policy Implementation procedure
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GSK Pvt. Ltd. will develop robust policy guidelines in order to maintain environmentally
safe workplace.
The company will promote central systems for the disposal of pharmaceutical wastes and
should develop advanced wastewater treatment technologies to for the controlled
discharge of the pharmaceutical pollutants (Jegannathan and Nielsen 2013).
The company will use reasonable endeavors for handling the pharmacy hazard wastes
and should notify the Department of Environmental protection.
GSK will minimize the use of resources and energy.
The company will carry out a thorough audit for the cost containment.
The company will ensure to use protective masks and use laminar flow extraction hoods
in order to control the contamination and thus laboratory acquired infections.
GSK will ensure that there are Sound proof cabinets to prevent sound pollution.
The company will use reasonable endeavors to use mechanical and power assisted load
handling devices in order to avoid musculoskeletal injuries.
The company will use reasonable endeavors to employ duly authorized personnel in the
areas concerned with microbiology activities or vaccine production.
GSK will ensure that all the drug policies and the guidelines are being followed. The
managers are the one to supervise whether the policies are being followed.
GSK will ensure that proper communication strategies will be taken up to train the
employees.
The managers and the surveillance head of the work place will use reasonable endeavors
to seek feedback from the employees, to measure the affectivity of the policies.
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References
Avorn, J., 2012. Two centuries of assessing drug risks. New England Journal of
Medicine, 367(3), pp.193-197.
Jegannathan, K.R. and Nielsen, P.H., 2013. Environmental assessment of enzyme use in
industrial production–a literature review. Journal of cleaner production, 42, pp.228-240.
Kotula, A.W., Aguilar, C.M. and Tivnan, T., 2014. Developing a writing instruction observation
protocol: Implications for practice, research, and policy.
Modi, S., Hughes, M., Garrow, A. and White, A., 2012. The value of in silico chemistry in the
safety assessment of chemicals in the consumer goods and pharmaceutical industries. Drug
discovery today, 17(3), pp.135-142.
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