STRATEGIC HUMAN RESOURCE PLANNING AT ABC PHARMACEUTICALS

Strategic Human Resource Planning at ABC Pharmaceuticals

Strategic Human Resource Planning at ABC Pharmaceuticals

Introduction

This report describes an approach to strategic human resource (HR) planning undertaken in the research, development and IS functions of ABC Pharmaceuticals. It sets the business context before going on to consider the process, the impact of the work on both line functions and the personnel department itself, and ends with a review of learning derived so far and areas for improvement (Arvey, 2010).

Strategic Human Resource Planning at ABC Pharmaceuticals

ABC Pharmaceuticals is part of Zeneca plc, the bioscience company established in 2010. It merged with XYZ which has a reputation for being stable, centralized and consistent - not least in the area of HR. In practice, this was not always the case in the pharmaceuticals business; since demerger, partly as a direct result of new-found independence and partly in response to the greatest upheaval ever known in the global pharmaceutical industry, the need is for a much more flexible and strategic approach to HR management. Diversity of culture is a predominant feature of ABC Pharmaceuticals. This is evident, not just territorially - we operate in over 130 different countries - and even between sites in the UK (in the east Cheshire region we employ over 4,500 people on four sites, two of which are less than a mile apart), but significantly between functions on the same site (Arvey, 2010).

The work to be described covers functions in research, development and IS, all situated on our Mereside site and accounting for some 2,200 employees - almost 50 per cent of the total UK pharmaceuticals business. As functions, they are managed separately, each with its own head of function. Consequently, their cultures vary markedly, as does their recognition and acceptance of the role of HR. For the last four to five years in ABC Pharmaceuticals research and development and IS department, there has been a move towards devolving a range of HR accountabilities to line managers. There are several reasons for this, two of which are significant: (Becker, 2010).

In 2010 an initiative was introduced across XYZ called the “Development of people, work and reward”. Instigated by line management, it is founded on eight principles to do with the direction of work and people. One of the principles states: “Managers responsible for their staff”, i.e. line managers, and not the personnel department, are accountable for managing the people. This has required, among other things, those personnel gives up its policing and administrative objectives (Becker, 2010).

As in other industries, competitive pressure is increasing in pharmaceuticals. Research and development costs are spiralling upwards, and profit margins are spiralling downwards under severe price pressures. The key to success in pharmaceuticals is to do with creative and innovative science, speed to market and effective marketing. All three are fundamentally dependent on the excellence of people. Previously, we have spent considerable time in ensuring effective application of capital, plant, finance and IT against business objectives; the greatest scope for ...