Strategic Human Resource Management at Leo Pharma UAE: Analysis

This report provides a comprehensive analysis of the strategic human resource management (SHRM) practices implemented by Leo Pharma UAE. It begins with an introduction highlighting the significance of SHRM in the context of globalization and the competitive talent landscape in the UAE. The report then delves into Leo Pharma UAE's operational procedures, including its HRM management structure, which involves collaboration with the parent company in Denmark and local recruitment strategies. It examines various SHRM activities, such as employee retention strategies, reward policies, and internal recruitment initiatives. Furthermore, the report assesses the role of SHRM in achieving organizational goals, particularly in recruitment and expatriate policies. The report also analyzes the impact of business factors on SHRM policies and the importance of aligning HRM with the organization's objectives, including fostering a culture of innovation and adaptability. The report also covers the use of technology to improve communication, monitoring the effectiveness of HRM, and concluding with relevant references.

Contents
Assessment 1...............................................................................................................................................3
SHRM for the sustainability: the case of Leo Pharma UAE...................................................................4
Introduction.........................................................................................................................................5
Objectives and working procedures of Leo Pharma.............................................................................6
Working procedures related to HRM management..............................................................................6
SHRM activities related to the retention of the employees and cover other aspects of the
functionality.........................................................................................................................................8
The role of SHRM in fulfilling the organizational goals related to the recruitment.............................9
Assessment 2.............................................................................................................................................11
Question 1.............................................................................................................................................12
The role of business factors in the formation of SHRM Policies of Leo-Pharma UAE.........................12
Question 2.............................................................................................................................................12
Question 3.............................................................................................................................................13
The purpose of the Human Resource Policy......................................................................................14
Question 4.............................................................................................................................................14
Regulatory Requirement........................................................................................................................15
The regulatory requirements for setting up the incentives.................................................................15
The creation of an adequate social environment................................................................................15
The regulatory requirement for the expatriate policy.........................................................................16
Question 5.............................................................................................................................................16
The culture of pre-fixed productivity agreement...............................................................................16
The culture related to the adaptability................................................................................................17
The culture related to employee engagement.....................................................................................17

Question 6.............................................................................................................................................18
Assessment 3.............................................................................................................................................19
Question 1.............................................................................................................................................19
The problem areas and innovations to support the communication gaps...........................................19
The role of technology in introducing some innovations...................................................................20
Question 2.............................................................................................................................................21
Monitoring of the effectiveness HRM in Cygnet...............................................................................21
References.................................................................................................................................................23
Assessment 1

SHRM for the sustainability: the case of Leo Pharma UAE

Introduction
The practices related to strategic human resource management have become the order of the day
because of the onset of globalization and the culture of multinational companies doing business
in various countries of the world where the cultures and other setups are different. In the year
2011, Dr. Khalid Othman Al Yayha raises some poignant questions related to the need for the
SHRM practices in UAE with an intention to end the war for the talent which was sprawling up
in various industrial sectors of UAE (Yahya, 2011).
He demanded a holistic approach towards the procurement and the retention of the workforce
working in the UAE. In order to practice this holistic approach, he suggested that all the
stakeholders from the side of the government and non-government sectors should come up with a
set of practices that can create a collateral platform for employees and businesses with the help
of SHRM initiatives.
The current report is an attempt to check the SHRM related practices of “Leo-Pharma UAE”
This pharmaceutical company has a considerable present in UAE and the Middle East where
they are selling more than three thousand products on a regular basis (Sun, 2018). The present
report will highlight the crux of their SHRM practices that helped them in developing and
retaining a talent pool. The scope of this report will also cover some external factors that
supported them in this successful procurement of a talent pool with the help of SHRM practices.

Objectives and working procedures of Leo Pharma
Leo-Pharma UAE is a subsidiary company of the parent company which is located in Denmark.
The parent company has a glorious history of 111 years and has a strong presence in more than
100 countries where it is, directly and indirectly, impacting the lives of more than 125 million
people. The operations of Leo Pharma in the UAE can be treated as an extension of its operations
with an intention to scale up in a market that has the capacity to cater to the premium products
offered by the company (About us, 2019).
Working procedures related to HRM management
In order to understand the HRM culture at Leo-Pharma UAE follows two command lines. The
first command-line belongs to the Denmark based parent company where they send experts with
international insights related to the business medical solutions. The local subsidiary of Leo-
Pharma in UAE takes care of the recruitment of the local employees (Other Countries, 2019).
Prior to the introduction of the SHRM practices in the company, it is very important to
understand the need for SHRM based practices in the recruitment. In order to cater to the
operations in the GCC region, Leo-Pharma needs three layers of talent pools to form orchestrate
the team to take care of various operations. Under the orchestrate team structure, Leo-Pharma
needs a team leader with a global vision who has this understanding of the global service
standards, on the second layer they need local leaders taking care of the inventory in accordance
with the demands created by the local markets. finally, they need manpower to handle the mean

jobs of placement of the goods in the store and other jobs where unskilled or semiskilled labor
can be utilized (Strategic HRM and Project Management in Abu Dhabi, 2012).
The company needs SHRM based interventions to cultivate local talent into the global
workforce. Another issue is related to the expatriation of the international component of the
team. Under the SHRM based intervention, the company has a specific focus on employee
rewards and stability in the career with an intention to retain them (Pharma 2020: Marketing the
future Which path will you take? 2019).
This company is aware of the fact that the recruitment process of trained men power is not an
easy task because human ware is in short supply and talented employees are also practicing a
choice while choosing their companies. The process of the SHRM begins at the level of the
scrutiny of the application where the HRM department searches for the right profiles of the
employees that can be cultivated as a loyal team player for the company in the coming future
(Waxin, 2016).
The loyalty commitment and the productivity commitment offered by this company present an
opportunity in front of the employees where they can upgrade their job profiles while working in
the company and the company gives them productivity-driven promise to promote to the
leadership posts. This is how; the company adds a strategic twist in the recruitment process by
offering an up-gradation of the status and pay hike during the phase of recruitment itself. Instead
of hiring highly talented local people for the leadership post the company hires less experienced
individuals and presents a learning environment in front of them where they can rub shoulders
with the global workforce of the company and increase their knowledge (Budhwar, 2018).

This report will be incomplete without the mention of the expatriate policy of the Leo-Pharma,
the central bodies of the company adopt a rotation policy where they motivate employees to
work in other countries under various exchange programs. The intention behind this exercise is
related to the procurement of a global organizational culture ahead of the differences caused by
various cultures and local traditions (LEO Pharma Buys Astellas’ Dermatology Business for
$725M, 2015).
SHRM activities related to the retention of the employees and cover other aspects of the
functionality
The metrics of the performance developed by the company allows an employee to set goals for
himself. This exercise allows the company to shortlist the dark horses. The reward policy of the
company should also be taken into an account; under this reward policy, the company offers
weekly rewards, monthly rewards, and yearly rewards. A reward taken on a yearly basis attracts
a bonus reward, weekly rewards, on the other hand, does not entertain this bonus clause. This
quantification of the rewards is a prudent move to retain the employee for a longer period (The
future of pharmaceutical human resources; the battle for talent, 2001).
The clause of the termination of the misfit employees is another salient feature. The company
follows a rotational policy for these employees, under this policy, they try to expose a misfit
employee to various other environments existing in the company. If an employee fails to deliver
then all the departments then receive a termination letter on the condition that most of the team
leaders find that they are not able to utilize a person (Mir, 2012).

The company also follows an internal recruitment policy; under this policy, they give incentives
to its employees for introducing experienced talents. The purpose of this internal recruitment
policy is based on the fundamental of mouth publicity. The existing employees of the company
act as the motivational factor for the new experienced employees to join the company, this is an
unconventional channel and allows the HR departments to negotiate certain deals in an informal
environment. The same tactic becomes an SHRM practice when the HR department takes the
support of internal recruitment to fill some crucial posts that have a competitive advantage for
the main operations of the company (Leo Pharma in the UK, 2018).
Sometimes they elongate the training period of such employees to give them a second chance.
The incentive plans offered by the company are another area where they take the support of the
external bodies to ensure the retention of the employees. Under this retention plan, the company
strikes strategic tie-ups with other service providers like Insurance companies, health insurance
providers, recreational facility providers, law firms handling the taxation and other job-related
issues and life coaches (Ridzuan, 2017).
The company prompts an employee to share a commitment for longer tenure; in return, it offers
other value-added incentives to the employees. Here the company also exploits the benefits given
by the external agencies for the purpose of the creation of sustainable employment procurement
facilities (Life at Leo-Pharma, working with us, 2018).
The role of SHRM in fulfilling the organizational goals related to the recruitment
The flexibilities in the recruitment and procurement facility along with an attractive incentive
plan can be attributed as the major reasons behind its success in retaining employees and fill the
leadership posts with the help of proper expatriate policies designed by the parent organization.

The model of recruitment carries forwards a promise of assurance against the trials and errors of
employees, this factor allows the company to attract potential employees. Further, the policies
related to the self-goal setting, the choice to select the terms of the perks and other incentives
inclusive of the main package can be considered as major draws for various employees (Rubel,
2018).

Assessment 2