OB & HRM Report: SPL, WPL Organizational Structure & HR

This report provides an in-depth analysis of organizational behavior (OB) and human resource management (HRM) practices at Square Pharmaceuticals Ltd (SPL). It begins with an introduction to OB and HRM, followed by an overview of SPL's business strategies and objectives. The report identifies thr...Read More

OB & HRM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Three possible objectives from companies vision and mission that can help for business long
run...............................................................................................................................................2
Importance of linking departments and possible problems they can face..................................3
Comparison between organisational structure of SPL and WPL................................................4
Critical examination of factors that can affect human resource plan of the department.............5
Recommendations for human resource practices of SPL ..........................................................6
SPL business strategy linked to HR strategies to achieve overall objectives.............................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational behaviour is the study in business units of the individuals or groups and
the way they interact with each other. This study is made for more efficient working of the
business organisation and control human behaviour in organisational settings that interface in
relation to the organisation and individual action. Human Resource Management is the
management of human resource in the HR department and to enhance the employee's
performance in the company. It is mainly concerned with managing the people in the
organisation and the policies of the company. Square Pharmaceuticals Ltd is the leading
company in Bangladesh that is the manufacturer and marketer of the finished Pharmaceutical
products such as basic chemicals and Agro based products. The company has 16.23% of market
share and growth rate of 14.9% per year and is also extending their range of service to the vast
global market. In the present report, the business strategy adopted by SPL that has helped them
to take over the greater market share is discussed.
Business strategy adopted by the company to take over the greater part of market share
Business strategies are the business functions decisions made to enable an organisation to
achieve its long-term goals. Square pharmaceutical limited has adopted the business strategies
that helps them to achieve their long-term goals and become the leading pharmaceutical
company in Asia. To achieve these goals and objectives they follow these business strategies
discussed below:Well-structured Human Resource Planning- The human resource plan that is
developed to ensure growth in the business. They plan to hire the best talented pool in the
company to gain advantage in the business. To recruit the best employees HR department
prepares the plan at the end of the year and make sure to collect information from all the
departments and the requirement of human resource for the departments to achieve the desired
objectives (Johnson, Whittington and Regnér, 2013). Recruitment and selection- They recruit well qualified people to meet the needs of the
organisation and to achieve the business objectives and to maintain their practices. To
achieve these, they recruit capable employees who can easily achieve organisation
requirements and maintain the relationship with the management for the business
activities.
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 Implementing good recruitment policies- The human resource department maintains their
policies to recruit the best employees for all the departments of the company. They try to
find a talented candidates who are suitable to complete the given job and also help the
organisation to maintain its growth in the business. Structured recruitment process- The company deals in well-structured recruitment
process where all candidates are hired only after completing each step of recruitment in
detail. The process takes place under the guidance of HR manager and candidates are
selected on the basis of their qualification and the requirement of organisation. Those
candidates who can fulfil the needs and demand of the company to establish and grow in
the business environment are only selected.(Ryan and Wilson, 2013).
 Providing proper induction and training- The hired candidates are further given proper
induction of the company’s profile and made to deal with the companies' working and
goals. They are kept in probation period and then again, their evaluation is taken, if not
satisfied with their performance then they are given a chance or termination on the spot.
The company only deal with the talented employees who are capable to extend
organisational growth and help it to acquire greater market share.

Three possible objectives from company’s vision and mission that can help for business long run
The vision of SPL is to become the leading pharmaceutical industry in Asia. It wants to
produce and provide quality and innovative heath care relief for people and maintain ethical
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Illustration 1: HR strategy
(Sources: HR strategy, 2016)

business practices and benefit to their shareholders, stakeholders and society. From company’s
vision and mission the possible objectives that can help them for long run in the business are: To adopt legal and social framework in business practices- Company’s objective for the
long run can be attained by implementing legal and social framework in the business.
These legal frameworks will benefit the company to produce products ethically and they
will be able to maintain transparency in business (Brown, 2014). These practices of the
business will help them to attract customers and will also help in building trust in their
customers. Further it will help them to increase their productivity and deliver products to
different countries and run business effectively. To increase sale up-to 6% within 8 months- Companies vision is to be the leading
pharmaceutical company in Asia, so to achieve this company will need to increase its sale
in the next 8 months so to increase the competition and gain competitive advantage. They
will hire employees who are talented and capable of increasing sales by developing
effective business strategies that help them to achieve their goals and objectives.
 To produce innovative healthcare product in 12 months- They need to aim at producing
innovative products within 12 months, so that they can have competitive gain in the
business and attract customers. If they are able to attract customer to their product they
will gain automatically and to produce innovative products they need to hire talented
employees so that they can have a long business run and develop effective strategy
(Bamberger, Biron and Meshoulam, 2014).
Importance of linking departments and possible problems they can face
SPL has several individual departments and all these departments are linked with one or
more departments within the organisation. These departments need to be interconnected as
supply chain department of the organisation works as the procurement department. This
department purchases all the needed raw material, machinery and required equipment and all the
necessary material for staff and management. This department purchase all the materials and also
manages the suppliers outside the organisation for it. All those departments that are in the need
to procure materials apply a requisition to the supply chain department with their department
head consent.
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 Decrease in productivity- If the Human Resource department and Production team are
not linked between each other they would not be able to understand the need of human
resource for the production process (Armstrong and Taylor, 2014). Less human resource
will lead to decrease in the productivity and that will result in the sales department as
they will not be able to make proper sale in the market. The production team refers their
requirement of number of people in the department that is then taken care by human
resource department. Resource scarcity- The production team needs resources to produce materials and to do
so they need to have contact with supply chain department so to provide raw material and
have contact with outside suppliers. They provide materials to the production department
and then they are able to produce the required product. If both the departments do not
have connection then it will take long procedure to be available with the resources.
 Less sales in market- The marketing and sales department need to organise promotional
events for the product, for this they need money so that their marketing strategies are
accomplished. For this process, the amount is distributed by accounts and finance
department, therefore there is a need to have a direct link between both the departments
and make proper promotion for the product and attract customers and increase the sales
of the product (Marchington, Wlkinson and Kynighou, 2016).
Comparison between organisational structure of SPL and WPL
Square pharmaceuticals Ltd and Watson pharmaceuticals Ltd have different
organisational structure that controls their organisational activities. The comparison between
them is considered on the basis of certain organisational principles such as: Span of control- It is the number of people that report to one manager in a hierarchy, in
this process the situation in which the more people are under the control of single
manager then it is said to be wider span of control. Therefore, if the less number of
people are there then it is said to be narrow span of control. On comparing both the
companies it is concluded that SPL possesses narrow span of control in the organisational
structure whereas, WPL possesses wider span of control (Kehoe and Wright, 2013). The
narrow span of management is costly in comparison to wider span as there are large
number of managers and it also has great communication issues at various level.
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 Chain of command- It refers to the organisation hierarchy of relationships that is from
lower level to upper level of the organisation, who will answer to whom. This not only
shows its accountability but also shows the companies' authority and decision-making
power. In SPL, the chain of command is addressed systematically as there is only one
person per department to delegate every task, job position and also assumes the
responsibility for performance. Whereas, in WPL the chain of command is
interconnected and the decision-making powers are to the top management and that needs
time to communicate the messages. Lines of communication and Decision making- The business structures are to simplify the
decision-making process of the company and their communication process. The
organisational chart depicts the authority that starts with the chairman, CEO and other
managers of different departments that set goals and direction of the company. In SPL,
the line of communication is centralised whereas in WPL, the communication line is not
effective (Mitchell, Obeidat and Bray, 2013).
 Type of structure- SPL possesses line organisational structure, as it has the vertical
relationship with different departments in the firm. These have simple and clear frame of
authority and responsibility and promotes decision making process and is simple to
understand. Whereas, WPL has functional organisational structure as the line managers
have direct authority and needed to be exercised by themselves to reach their objectives
and goals.
Critical examination of factors that can affect human resource plan of the department
The supply chain department has a human resource plan that enables it to meet their
human resource needs but there are some internal and external factors that affects the human
resource plan of the department. So, to overcome these problems HR managers needs to be
aware of the organisational activities. Some factors that affect its practices are: Political factors: The political government change or while entering different countries in
Asia, the political factors affects the most in the supply and demand of the material of the
company. The government decides tax rates for particular products and they are also
influenced by them and the fund's requirement, minimum wage rates and market controls
are anticipated by political parties (Serra and Kunc, 2015).
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 Economic factors: The human resource department is concerned about the amount
available for salaries, training and other external economic conditions of the company.
The economic conditions of the country affect the sales and purchase in the products of
the company. If people do not have much money to spend in the back down of economic
condition then they tend to be selective in the purchase and sell of the services. Social: HR planning is influenced by several social factors but the companies need to
equally partial and diverse in particular situations. When some people extent to take
wrong decisions for the company then there is a need to open opportunities to control it. Technological factors: New technologies always bring requirement of new skills, so that
also affects the human resource planning of the company and they need to be aware of
the needs of training when planning human resources. The advancement in new products
also requires hiring of highly skilled employees or training for existing employees. The
HR department needs to be aware of needs of new technology and training needs for
employees. Legal: Recruitment of new employees and planning for human resource must be
developed effectively as employment laws is the most significant factor that affect the
human resource planning. The mangers need to keep themselves up to date and must
know all the information about employment rules and change in those legislations.
 Environmental: These factors include the place of operations of business and needs to
find sufficient and appropriate staff for the changes in the business environment
conditions and requirements of the employees. The possibilities of change in supply and
demand of product and requirement of sales in the market affects human resource
planning (Slocum, Lei and Buller, 2014).
Recommendations for human resource practices of SPL
Human resource practices of Square Pharmaceuticals Ltd are carried out smoothly
and effectively but there are some situations where they can make changes for successfully
achieving their goals. The human resource practices are discussed below: Recruitment and Selection- The human resource department is responsible for the
recruitment and selection process of the SPL. The supply chain department needs
qualified people that can meet the organisational needs so to make sure that they are
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recruiting talented employees they conduct different procedures and select the best
candidate. It is only recommended that they should also make proper guidelines for the
candidates and try to select employees that are highly qualified for the position. Their
process of selection is the best suitable to appoint for the post but just need to enhance
their skills after hiring. Training- The company organises induction training for the new employees during this
time they are taught about the job-related activities. They also conduct classroom training
and off the job training. It is recommended for the company to make sure that they
organise training for every employee and make it compulsory for them to attend them so
to enhance their skills. These training should be conducted at frequent times so that
employees are trained and are capable to perform many duties. They should not only be
trained in one field although there should arrangements for different training schedules. Performance Appraisal- Performance appraisal is conducted for every department in the
organisation and they are given opportunities for self-assessment and then evaluation is
compared with their performance. Therefore, it is recommended that the employee's
performance should not only be evaluated but they must be given opportunities to
evaluate organisational performance and give suggestions for it. This will increase their
interest in organisation’s activities (Zalengera, Blanchard and Gondwe, ,2014).
 Reward and Compensation system- The reward and compensation system of the
organisation is best but they should not only give them rewards in the form of money and
increment. They should also give them prizes in front of everyone so to motivate them
and increase other interest in their activities.
SPL business strategy linked to HR strategies to achieve overall objectives.
The business strategies of Square pharmaceuticals are linked with the Human Resource
strategies as they also focus to develop their strategies to evaluate the needs and requirement of
human resource to complete the given work. Both HR planning is made for their long term goals
and objectives of the company. In SPL the business strategies focus on recruiting the right person
for the job and HR strategies also the planning is done to recruit right person to accomplish the
job objectives. After the business has hired the right person they accomplish their goals by giving
complete training to the newly hired employees so to achieve their objectives. The recruitment
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and selection process is made effectively and they focus on selecting the best suitable candidate
to accomplish their goals and objectives. The recruitment process and policies are developed to
find the best talented candidates along with suitable to complete the job. HR strategies works on
selecting and training the candidate to make sure that their goals and objectives are achieved.
SPL business strategy includes training and development program as compared to HR strategy
they also organise these programs to enhance the skills and abilities of the new employees and
existing employees as well. They have also included performance appraisal for the employees
working that relates in the HR strategies as they compare the performance of the employees to
make sure that they are completing their functions properly (Kusari, Spiteller and Kusari, 2014).
They also have mentioned in their business strategies about the reward and compensation that
they give to their employees and to benefit the organisation. The business strategies develop
these functions to make sure that they give rewards so to enhance employees interest in the
company and motivate them to work more effectively. HR strategies makes these steps to
increase the interest of the employees so that they feel easier to attract employees interest and
they are highly motivated with these functions or practices.
Conclusion
From the above report, it is concluded that to achieve the organisational objectives and
become Asia's leading pharmaceutical company they need to have well-structured organisational
activities. These activities must be practised smoothly in the organisation, they also need to have
talented and skilled employees in the organisation so that they can easily achieve their
objectives. It is essential to link all the departments in the organisation with each other as it helps
in having contact with each other so that they do not face any problems in planning process. It is
important for the organisation to hire talented employees and conduct recruitment and selection
process effectively. The recruitment of employees who are capable to perform the business
strategies gives a positive impact on the organisational activities. The training and development
programs must be done effectively to increase employees interest and skills in the company.
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REFERENCES
Books and Journals
Kehoe, R. R. and Wright, P.M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bamberger, P. A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Brown, A., 2014. Organisational paradigms and sustainability in excellence: from mechanistic
approaches to learning and innovation. International Journal of QuaZalengera, C.,
Blanchard, R. E., and Gondwe, K. T., 2014lity and Service Sciences. 6(2/3). pp.181-190.
Johnson, G., Whittington, R., and Regnér, P., 2013. Exploring strategy text & cases (Vol. 10).
Pearson.
Kusari, P., Spiteller, M., and Kusari, S., 2014. Recent advances in research on Cannabis Sativa
L. endophytes and their prospect for the pharmaceutical industry. In Microbial Diversity
and Biotechnology in Food Security (pp. 3-15). Springer India.
Marchington, M., Wilkinson, A., and Kynighou, A., 2016. Human resource management at
work. Kogan Page Publishers.
Mitchell, R., Obeidat, S. and Bray, M., 2013. The Effect of Strategic Human Resource
Management on Organizational Performance: The Mediating Role of High‐Performance
Human Resource Practices. Human Resource Management. 52(6). pp.899-921.
Ryan, B. and Wilson, J. R., 2013. Ergonomics in the development and implementation of
organisational strategy for sustainability. Ergonomics. 56(3). pp.541-555.
Serra, C. E. M. and Kunc, M., 2015. Benefits realisation management and its influence on
project success and on the execution of business strategies. International Journal of
Project Management. 33(1). pp.53-66.
Slocum, J., Lei, D. and Buller, P., 2014. Executing business strategies through human resource
management practices. Organizational Dynamics. 43(2). pp.73-87.
Zalengera, C., Blanchard, R. E., and Gondwe, K. T., 2014. Overview of the Malawi energy
situation and A PESTLE analysis for sustainable development of renewable
Online ??????????????????
Onlineenergy. Renewable and Sustainable Energy Reviews. 38. pp.335-347.???
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