Novartis - Essay Example

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Novartis is a healthcare provider that is engaged in the provision of innovative healthcare services that address the ever-changing needs of patients and the community. As part of its corporate social responsibility, Novartis emphasizes on efficiency in performance and utilization of its human resource. …
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Download file to see previous pages In addition, the company is concerned about the role of its employees in the provision of quality services and achieving the company’s performance target. To facilitate the objective, Novartis introduced the annual energy excellence awards to motivate its employees. Although, Novartis has promoted an extensive performance management process, their efforts have not attained the desired levels of expectation.
The Performance Management Process Can Be Considered ‘Strategic’
Novartis PM Process is strategic since it links other HR polices such reward, talent development and training with its performance management policies. This is a good strategy since it enables the company to achieve its management objectives through direct approach. The pay for performance system is strategic since it enables the company to motivate its employees by rewarding them for exceptional performance. Moreover, the company can evaluate the value of its employees in terms of the value that they contribute to the company. Rewarding employees for exceptional performance also enables them to benefits from their initiatives and handwork (Randle, 2007). To implement the performance program Novartis has implemented a training program to equip its staff with the required skills. Although the PM process is rewarding in the short term, it cannot be relied upon in the long term. This is because; employee’s performance is limited to several factors including their ability and performance capacity. Moreover, the policy does not promote loyalty and skill development among the company staff. This is because the employees are only concerned with the gains they are making out of their performance rather than the overall performance of the company. The HR policy does not help to sharpen the skills of individual employees since it focuses on the overall performance of the team rather than the performance of individuals. Line managers rather than HR staff drive the process. This is an advantage as well as a disadvantage to the company in terms of skill development and company’s performance. Line managers are more inclined to production and overall company’s’ performance rather than skill development. This makes them less suitable for the job considering that the company needs to establish a long-term relation with its customers. Alternatively, being managed by line managers is superior to being managed by HR officers since they focus on the production aspect of an employee. Components & Techniques of the Process PM components and techniques involve employee rating and performance evaluation. The “First Steps 2006/7 was the first Novartis PM process for all V&D staff. The rating process was used to determine and categorize employees according to their performance capacity. Throughout the PM process, measuring or rating employees according to their performance ability is essential. However, the process is not beneficial to members of staff since it only targets employee’s performance rather than the cause of poor or exceptional performance (Marketline, 2012). The process only provides a comparison on employee’s performance rather than the cause of poor performance among employees. Consequently, the pulse check 2008 provides a review of employee’s performance rather than strategies to improve the performance. The survey emphasizes on identifying key improvements that have led to the company’s development. This is not a strategic move since it does not define any specific plan or activity that will lead to the company’ ...Download file to see next pagesRead More
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