Genzyme - Giving a New Meaning to HRM - Research Paper Example

Genzyme –Giving a new meaning to HRM Introduction   Human Resource Management (HRM) has replaced the ordinary personal department that was until now recruiting people to fill vacancies for routine jobs as decided by management. The advocates of this theory believe that it is people that make the difference; that the workforce is the most vital asset; and that human resources are the real sustainable competitive advantage.           Genzyme is a Fortune 500 company and a global biotechnology Corporation, focusing on rare disorders, renal diseases, orthopedics, organ transplant, diagnostics and cancer (Datamonitor, 2008). The company is headquartered in Cambridge, Massachusetts, and employs about 10,000 people, who find it a great place to work in. The fact that Genzyme was honored as a “Best Workplace” by the Great Place to Work Institute® in Italy, 2009, is testament that Genzyme genuinely cares for its employees and has succeeded in translating good HR policies and programs into a reality for its employees. As stated on the Company’s website “Genzyme was ranked 14th among the top 35 workplaces and 1st among Pharmaceutical companies. The survey assessed employee happiness in the workplace, team spirit, work/family-life balance, pride and commitment toward work, and the opportunity for growth.” As a consequence of the team spirit and opportunity for growth that the Company provides, it has recorded revenues of $3,813.5 million during the financial year (FY) ended December 2007, an increase of 19.7% over 2006. The net profit was $480.1 million, as compared to a net loss of $16.7 million in 2006 (Datamonitor, 2008). Organizational Culture As a company, Genzyme has proven that its environment encourages and supports new people from diverse backgrounds, where they can develop and succeed most comfortably, in tandem with the established employees. (Miller & Katz, 2002)The company has successfully created a work place where workers from diverse backgrounds fit in easily. This natural mix of employees working constructively to achieve common goals can be credited to the efforts of the company’s Chairman, President and Chief Executive Officer Mr. Termeer, who has played a key role in establishing an unbiased and fair environment, promoting understanding among people of diverse religious, ethnic and racial backgrounds. (BusinessWeek, 2009) At Genzyme, he has created a culture that welcomes nurtures and develops its entire people, whether their differences are visible, cultural or temporal. (Miller & Katz, 2002) In today’s competitive global environment, understanding, leveraging, and crafting capabilities of employees has become a sure shot means of creating successful organizations and leaders. (Ulrich, 1996) Employee Motivation Amongst the many theorists of HR one outstanding contribution was that by McGregor (1960) that is still practiced today. Negative or Positive attitude of the management is explained by Douglas McGregor (1960) in his theory X and theory Y. According to him a negative attitude of the management, theory X, presupposes that workers are lazy, passive, without ambition, willing to be led and resist change. Hence management is through control, coercion, threats and punishment. This results in low productivity, antagonism, unionism and subtle sabotage. In contrast positive management, theory Y, believes that people are motivated, active and interested, ambitious, prefer to lead and are interested in change. Hence management is through open systems, communications, self-managing teams and peer controlled pay systems. The result is high productivity, bonhomie and care for the organization.             Most industries operate on the X theory and therefore there is the usual mistrust and struggle between the management and the workers. Unions are stronger and teamwork is only on paper. Self actualization is narrowed to self empowerment at the cost of others. The abysmal results are there for all to see. Bankruptcies and failures abound and productivity is at all time low. Genzyme operates on theory Y. value is delivered to its employees via excellent benefits plans, like; Retirement and Financial Benefits, Employee Stock Purchase Plan, Equity Program, Financial Education Programs, Financial Advisors (provides access to CAPTRUST Financial Advisors to help with saving and investing for retirement. Employees can meet one-on-one with a professional to plan for retirement, participate in on-site group education meetings by CAPTRUST, and take advantage of their toll free advice hotline), to name a few. These benefits also act as incentives and rewards, motivating employees on an ongoing basis as well as relieving them from the burden of dealing with their financial issues without help and guidance of professionals. In short, recognition and rewards become useful tools that reinforce successful employee performance. (Gatlin, 1997) But the benefits that really stand out and make a difference in the day-to-day life of an employee are: Medical Plans, Life Insurance and Disability Coverage, Parental Leave ( five days of paid parenting leave for the birth or care of a newborn child), Adoption Leave (this provides the primary caregiver eight weeks of paid time off to care for a newly adopted child), Back-Up Dependent Care (a back-up dependent care program for those occasions when regular child or eldercare breaks down), College Savings Plan (save for college expenses in a tax advantaged way, through a 529 Plan, employees can set aside funds for the express purpose of paying for a child’s future education), Commuter Benefits (pre-tax programs to help offset transportation expenses, whether employees drive to work or take public transportation). Such family-friendly policies are associated with positive outcomes for both, the company as well as the employees. (Poelmans et.al, 2003) Once the employees are free from the worry of caring for their families, they can dedicate themselves to their career with an easier mind, ensuing in better performance and efficiency at work. Conclusion Presently organizations are not just about delivering value to investors and customers, but also to employees. Thus, it has become vital to allow employees to share the success of the company as stakeholders, and not just employees. (Ulrich, 1996) At Genzyme people are truly cared for, and this shows in every aspect of the company. Including its policies, employee benefit plans, acceptance and nurturing of a diverse work force, and most of all in the way each individual employee is treated with genuine care and concern. Bibliography BusinessWeek, (2009) Accessed on: 24, June Read More