Novartis

[Name of the Institute]

Novartis

Globalization and Human Resource

Novartis is one of the largest providers of healthcare products. Its principal activity is the development and manufacture of pharmaceuticals, generic, diagnostic and consumer health products. The company operates in more than 140 countries around the world. Globalization has affected that company operation and human resources. One of the biggest problems that Novartis faced in relation to human resource management was the cultural differences among the countries of operation. The phenomenon of globalization comes as a result of increased trade and international investment faster than world output. This has caused it to expand economic model of capitalism as a whole. Countries are interested in finding alternatives to market and invest in other countries.

Thus, globalization has influenced the field of Human Resource Management in Novartis: the recruitment, selection, retention, compensation, benefit payments and employee training, organizational development, relationships with employees and occupational safety. Globalization has meant that when Novartis opened divisions in other countries some of its executives should be mobilized to take care of them. However, sometimes this exchange of employees is not successful because there are sensitive areas such as cultural differences that require specific knowledge so that successful strategies can be established (Budhwar, Varma, Katou, Narayan, 2009).

Novartis employees who transfer to other countries to work in new divisions should have the ability to adapt quickly and work efficiently anywhere, speak the language of that country and know the customs and living conditions of its inhabitants. For this reason, the Human Resources Manager must conduct a rigorous selection of employees who perform these functions abroad or other regions of the country focusing not only on the capabilities and expertise, but in the adaptability that has that employee for their efforts and performance are equally rewarded.

International Business Strategy

Having invested early (in relation to its Big Pharma peers) to develop a generics business, Novartis now boasts ownership of the industry's second largest player, with Sandoz expected to play a critical role in Novartis's overall performance. The central theme of diversification which dominates macro-level strategy at Novartis has also been implemented at Sandoz and is reflected in the M&A activity that has underpinned rapid growth for the company since 2003. Indeed, acquisitions have not been solely designed to expand scale and allow Sandoz to compete more aggressively in the segment for US-market first to file ANDA generic launches, typically the most lucrative segment of the ...