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Introduction to corporate case study

Oct 24, 2018 | 0 comments

Oct 24, 2018 | Essays | 0 comments

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Introduction to corporate case study
Jamjoom Pharma, a well-established pharmaceutical company, Saudi nationality founded in 2000, started from Jeddah, with less than 10 employee, nowadays more than 500 employee worked in jamjoom pharma at different sectors e.g.: factory, sales, marketing and registration just in Saudi Arabia, not mention the export team in 21 countries, with rapid growth and successful track of record, it contribute 4.1% of pharmaceutical market share in Saudi Arabia (jamjoom pharma, 2012).
Jamjoom Pharma has in a very short span of time emerged, as one of the leading pharmaceutical companies in the Afrasia region. The geographical focus of the company is to countries in the Middle East, Africa and CIS regions. Strategic focus on selected therapeutic categories has contributed to the rapid growth, market acceptance and overall success of the company, The Manufacturing Facilities, and Head Office are located in the port city of Jeddah, Saudi Arabia. (linkedin , 2010)
As a reflection of the growing number of employee, and future planning for jamjoom pharma to enlist itself as top 10 company in pharmaceutical market in Saudi Arabia, an increasing role of supportive corporate function has to take place in order to achieve goals within the organization.
The human resource department in jamjoom Pharma was created in 2003 to support exit-re-entry visa from Saudi Arabia and IQAMA cards to other nationality within the organization, as jamjoom pharma consist of more than 80% of its team are non-Saudi nationality: Egyptian and Indian, then expanded its duty to include participating in salary adjustment, selecting new employee and other duty will be discussed later.
Definition of HRM:
It can be defined as Armstrong stated “Human resource management (HRM) is a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organization” (Armstrong, 2009).
Other definition of HRM:
“”Human resource management is a distinctive approach to employment management
Which seeks to achieve competitive advantage through the strategic deployment
Of a highly committed and capable workforce, using an integrated array of
Cultural, structural and personnel techniques” (Storey(ed), 1991)
Objective of HRM within the organization:
Human resource management aims to ensure that the organization can achieve success through people. HRM aims to maximize organizational effectiveness and capability, as the capacity of an organization to achieve its goals by making the best use of the resources available to it. (Armstrong, 2009)
In order to achieve organization objective, organization take care of human capital or as other organization named intellectual capital which consider employee as most precious resources and therefore tend to develop to attain core competencies (MATHIS, 2011)
Organizational objectives include building a competitive advantage, so corporate invest in their people, therefore, corporate invest in intellectual capital or human capital, as Armstrong and Baron (2002) stated that:
“People and their collective skills, abilities and experience, coupled with their ability to
Deploy these in the interests of the employing organization, are now recognized as
Making a significant contribution to organizational success and as constituting a major
Source of competitive advantage.”
HRM practices can be defined as a system that attracts, develops, motivates, and retains employees to ensure the effective implementation and the survival of the organization and its members. (Schuler and Jackson, 1987)
The concept of human capital is most usefully viewed as a bridging concept – that is, it defines the link between HR practices and business performance in terms of assets rather than business processes (Scarborough and Elias, 2002)
HRM Practices includes Performance Appraisal, Career Management, Training, Reward System, and Recruitment. (Armstrong, 2009)
In jamjoom pharma HR coordinates to produce an annual appraisal provided to line manager to discus with his employee, it includes business behaviour, team work attitude, innovation, time management, and commitment towards customers.
It also include the measurement of how employee run business that comply with corporate calibration, then the agreement of developmental plan and course need to attend to increase his productivity.
In February 2012 many employee complain of salaries against other pharmaceutical company working at the same sector in Saudi Arabia, so in respond to this complain jamjoom pharma hire a third party (mers) to run a transparent survey beyond other pharmaceutical company to measure the productivity per head for each company, then jamjoom pharma respond to employee complain to raise their salary.
Running huge business, full of competition with lots of every day challenges require capable employee that can strive for success, extra working load and enthusiasm, require employee with solid psychological contract to push them to compete.
Psychological contract definition: a psychological contract is concerned with the perceptions of both parties to the employment relationship, organization and individual, of the reciprocal promises and obligations implied in that relationship. (Guest (2007)
it can be described as a hidden contract between employer and employee that employer give his employee training, good atmosphere, work life balance, bonus, career pathway and compunsation if employee choose to leave company ,and the employee give all his best to compete and manifest his greatness in order to increase company profit and growth.
In jamjoom pharma, most cases it undergo psychological contract, but always following market feedback, not initiating its own competencies, it is a safe approach but always keep company on emergent strategy, so it remain second or third best choice for employee, so it may affect employee retention beyond its line.
 
 
Task 2
Recruitment and selection
Recruitment definition is “the process of attracting individuals on a timely basis, in
Sufficient numbers and with appropriate qualifications, to apply for jobs with an
Organization” (Mandy, R. W.2008)
Selection definition is ”The process of choosing from a group of applicants the individual best
Suited for a particular position and the organization” (Mandy, R. W.2008)
Recruitment is a vital process for the corporate need to expand own human capital, the risk of choosing wrong candidate can cause failure of job and operation entitled for while a right candidate can rise business to a maximum extent.
HRM have major responsibility for not only recruitment and selection of candidates but also monitoring, measuring, and appraising their attitude and performance via different methods.
Steps of recruitment process:
1-Recruitment Planning:
The first step it involved in the recruitment process is planning,it involves to draft a job specification for the vacant position, outlining its major and minor responsibilities,as skills, experience and qualifications needed, grade and level of pay, starting date, whether temporary or permanent, and mention of special conditions, if any, attached to the job to be filled (Anon., n.d.)
2-Strategy Development:
Once it is known how many with what qualifications of candidates are required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates in the organisation.
The strategic considerations to be considered may include issues like whether to prepare the required candidates themselves or hire it from outside, what type of recruitment method to be used, what geographical area be considered for searching the candidates, which source of recruitment to be practiced, and what sequence of activities to be followed in recruiting candidates in the organisation. (Anon., n.d.)
3-Searching:
This step involves attracting job seekers to the organisation. There are broadly two sources used to attract candidates.
These are:
Internal Sources, and External Sources
4-Screening:
Though some view screening as the starting point of selection, we have considered it as an integral part of recruitment. The reason being the selection process starts only after the applications have been screened and shortlisted. Let it be exemplified with an example.
In the Universities, applications are invited for filling the post of Professors. Applications received in response to invitation, i.e., advertisement are screened and shortlisted on the basis of eligibility and suitability. Then, only the screened applicants are invited for seminar presentation and personal interview. The selection process starts from here, i.e., seminar presentation or interview (Anon., n.d.).
Job specification is invaluable in screening. Applications are screened against the qualification, knowledge, skills, abilities, interest and experience mentioned in the job specification. Those who do not qualify are straightway eliminated from the selection process.
The techniques used for screening candidates vary depending on the source of supply and method used for recruiting. Preliminary applications, de-selection tests and screening interviews are common techniques used for screening the candidates.
5-Evaluation and Control:
Given the considerable cost involved in the recruitment process, its evaluation and control is, therefore, imperative. (Anon., n.d.)
The costs generally incurred in a recruitment process include:
-Salary of recruiters
-Cost of time spent for preparing job analysis, advertisement
-Administrative expenses
-Cost of outsourcing or overtime while vacancies remain unfilled
– Cost incurred in recruiting unsuitable candidates
In view of above, it is necessary for a prudent employer to try to answer certain questions like: whether the recruitment methods are appropriate and valid? And whether the recruitment process followed in the organisation is effective at all or not? In case the answers to these questions are in negative, the appropriate control measures need to be evolved and exercised to tide over the situation.
However, such an exercise seems to be only rarely carried out in practice by the organisations employers. Having discussed recruitment process, it will be now relevant to have an idea about recruitment practices in India.
In jamjoom pharma it consider the quality of candidate chosen by line manager and human resource coordinator, it choose an electronic way of announcing vacancies: LinkedIn, other route is recruitment agency in Egypt to make the screening and choose best candidate to show to the line manager to choose.
Legal aspect of selecting:
It can be argued that jamjoom pharma most of time choose Egyptian, as the 90% of health care provider dominated by this nationality, it can called as diversity, and male only because the restriction of driving in Saudi Arabia, and low of not allowing female to enter some premises.
 
Task 3
Employee performance and reward
Performance management is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. (Armstrong and Baron, 1998).
It can be argued that performance management link between employee performance and objective of the organisation, it comes with identification, measuring and development of the organization.
It concern by producing high quality leader can face future challenge and changes within organization, and producing competencies over other organization.
Performance management includes:
Planning. In an effective organization, works planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.
The regulatory requirements for planning employee’s performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required. (Anon., n.d.)
Monitoring. In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals.
Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performances compared against their elements and standards. Ongoing monitoring provides the supervisor the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic problematic standards. By monitoring continually, supervisors can identify unacceptable performance at any time during the appraisal period and provide assistance to address such performance rather than wait until the end of the period when summary rating levels are (Anon., n.d.)
Developing
In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology Carrying out the processes of performance management provides an excellent opportunity for supervisors and employees to identify development needs. While planning and monitoring work, deficiencies in performance become evident and should be addressed. Areas for improving good performance also stand out and action can be taken to help successful employees improve even further. (Anon., n.d.)
Rating
From time to time, organizations finder useful to summarize employee performance. This helps with comparing performance overtime or across a set of employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee’s performance plan. (Anon., n.d.)
There are many of techniques used in performance appraisal:

  1. Rating scales ,Behaviourally anchored rating scales
  2. Critical incidents
  3. Appraisal interviews
  4. Comparison with objectives
  5. Competency based
  6. Narrative reports / self-appraisal
  7. 360-degree appraisal

Some obstacles may affect the effective performance appraisal which are:

Jamjoom pharma undergo this appraisal to give bonus to employee, presented in annual increase percentage and promotion
Flexible working practice and HRM
It can be argued that flexible worker has low commitment and low work low due to not fully participating in whole organisation activity
On the other side, from organisation perspective it can be argued that flexible worker can give more effort as they having less fatigue due to less working hours
Establishing good work atmosphere is great for business can improve whole business, jamjoom pharma give employee annual international trip to increase inter relation and encourage information exchange and family gathering every quarter to ensure enjoyment of all family member to give great family experience
 
Armstrong, M., 2009. Armstrong’s Handbook of Human resources management and practices. 11th edition ed. London: Kogan Page Limited.
jamjoom pharma, 2012. jamjoompharma. [Online]
Available at: http://www.jamjoompharma.com/index.php?option=com_content&view=article&id=114&Itemid=195
[Accessed 5 june 2015].
linkedin , 2010. linkedin. [Online]
Available at: https://www.linkedin.com/company/jamjoompharma
[Accessed 1 june 2015].
MATHIS, R. L. &. J. H. J., 2011. HUMAN RESOURCES AS ORGANIZATIONAL CORE COMPETENCIES . In: human resource managment. Mason,USA: Joseph Sabatino, pp. 4-6.
Storey(ed), J., 1991. New Perspectives on Human Resource Management. Issue Asia Pacific Journal of Human Resources, september, 29(1), pp. 141-142.
Armstrong, M and Baron, A (2002) Strategic HRM: The route to improved business performance, CIPD,
Armstrong. & Baron, A. (2004). Managing performance: Performance Management in Action. London: CIPD London
Schuler, R. S. and Jackson, S. E. (1987), ―Linking competitive strategies with human resource management practices‖, Academy of Management Executive, Vol.1, No.3, pp. 207-219.
Scarborough, H and Elias, J (2002) Evaluating Human Capital, CIPD, London
Mandy, R. W. (2008). Human resource management (10th Ed.). Prentice Hall, NJ: Pearson
Guest, D. (2007). Human Resource Management: Towards a new psychological contract. Oxford: Oxford University Press
 

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