A REPORT ON

HUMAN RESOURCE PLANNING & DEVELOPMENT

HOW HRM CONTRIBUTES THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES, PLANNING &

DEVELOPMENT.

SUBMITTED TO:

MR. C. COKER

COURSE INSTRUCTOR

ADVANCED PROFESSIONAL DIPLOMA IN MANAGEMENT STUDIES

CITY OF LONDON COLLEGE

SUBMITTED BY:

MD. MUHAMMAD WAQAR

ROLL – 00205970JANUARY 2010

ADVANCED PROFESSIONAL DIPLOMA IN MANAGEMENT STUDIES

CITY OF LONDON COLLEGE

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DATE OF SUBMISSION: 25TH MARCH 2010

Table of Contents

Focus Page No

Introduction 03-04Origin of the report 03Objectives 03Source of information 03Methodology 04Scope of the report 46Limitation 04

Background of the organization

05

Global Perspective: 05Bangladesh Perspectives 05

Human Resource Planning 06-08HR Planning Issues at ROCHE 06HR Models in ROCHE 08-09

Job Analysis 10Roche’s Sources of Information for Job Analysis & Method Adopted

10

Roche’s Philosophy Underlying Job Analysis

10

Recruitment 11-12Roche as an “Employer of Choice” 11Roche’s Recruitment Criteria 11Recruitment Ethics 12

Selection 13-14Roche’s Selection Procedure 14Roche’s selection Devices are Used 43

Training & Development 15-16Training & Development Issues 15Training as a Reward 16Training Evaluation and Impact on Career

16

Performance Appraisal 17-18Principles for the Implication of a PA 17PA Interview with the Employee 17Personal Skill Analysis 18

Discipline 19Grievance 20Compensation Package 20Conclusion 21Recommendation 22Bibliography 23

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HR planning links people management to the organization's mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost.

Clearly the employees provide the focus for the personnel function. The role is not confined to “hiring-firing and record keeping” but extends to all aspects of the development of human resource. With functions so pervasive as such, a new concept of Personnel Management developed during the 1980s. This new perspective is known as HUMAN RESOURCE MANAGEMENT and is based on the following principles:

HR is the most important asset of an organization. The effective management of HR is the key to success. HRM must be integrated with the corporate objectives and strategic plans. Commitment of the workforce is essential. In view of the impact of organizational culture on performance, it is

important to manage culture. To produce high quality products, it is necessary to employ high quality

staffs.

Advocates of HRM argue that it is a fundamentally different approach to the management of employees. It shifts personnel management from a peripheral service role to the very center of strategic decision-making. It represents a reorientation of personnel management: HRM is, therefore, a total approach to the strategic management of a key resource… (Armstrong).

This report is a part of our course titled “Human Resource Planning”. I have been assigned by our course instructor Mr. Chris Coker to conduct an investigative report on Human Resource Activities under a particular pharmaceutical organization, which I have chosen to be Roche Pakistan Limited.

The primary objective of this report is to have a conception regarding the practice of Human Resource Planning in a multinational business organization, while the secondary objective is that I being business student are required to submit this matter as a part of our course requirement.

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Introduction:

Origin of the Report:

Objective:

All the information that is conveyed in this research paper is from secondary sources. The secondary sources of information were company (Roche’s) website, printed materials supplied by Roche and many of HR books on HR Planning, labor law and disciplinary actions.

Here given an outline as to what things must cover in the report. This outline has been my guide to plan my methodology. Based on the outline, we selected an organization I have easy access to and prepared subjective and objective questionnaires to have answers to my queries.

This research paper is a discourse to the real HRM practice in a pharmaceutical company. The scope of this report is relatively small because here try to focused mainly on the overall functions of HR Planning at a very brief and primary level.

The only limitation that faced for preparing this report is that I was not given Roche’s salary structure, which is highly confidential. As such, I couldn’t compare it with other pharmaceutical MNCs to see if it was as competitive as Roche claims.

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Sources of Information:

Methodology:

Scope:

Limitation:

On October 1, 1896, at the young age of 28 years, Fritz Hoffmann registered in Basle, Switzerland a new company. A year earlier in 1895, he had married a 19-year-old girl called Adele La Roche. Fritz Hoffman combined his and his wife’s name to call the new company F. Hoffman La Roche.

Now more than 100 years old, Roche is rated as one of the leading companies in the world with sales of more than CHF 24.6 billion (US $ 16.4 Billion) in 1988. The spectrum of Roche business operations involves four divisions: Pharmaceuticals, Diagnostics, Vitamins & Fine Chemicals and Fragrances & Flavors.

The high rating of Roche is not only because of its turn over but more so for its contribution in the field of research and development. Roche’s scientists created one of the first Sulfonamides, which revolutionized treatment of infectious diseases. The research in this area later produced innovative drugs such as Madribon and Bactrim, which was considered a break through in treatment of bacterial diseases. Roche’s research products are today acknowledged as wonder drugs for treatment of life threatening infections. The discovery of Benzodiazepines by Roche added a new dimension to the science of Psychiatry and treatment of psychosomatic disorders. The world came to know about vitamins through Roche as it is the pioneer in mass production of various vitamins. Roche with its pioneering technology culmination in the state of the art products in Molecular Biology, Molecular system (PCR) laboratory systems, patients care are highly respected names in the field of Diagnostics. Research at Roche is a never ending process. Scientists from a wide spectrum of disciplines continue working in Roche Research Centers of Excellence to develop drugs for many diseases such as Cancer and Aids for which there’s still no cure.

Roche’s products were available in the subcontinents even before partition.fter Pakistan emerged on the world map, imports continued, and after a few years some products started to be toll manufactured in Karachi.After Bangladesh emerged on

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Background of the Organization

Global Perspective:

Pakistan Perspectives:

the world map, imports continued and after a few years, some products started to be toll manufactured in Dhaka.

In the year 2000, the foundation of the Roche plant was laid in Rajendrapur Industrial area, 47 km from Dhaka. Within a span of three years, the plant was constructed and Roche Bangladesh started local manufacturing in November 2001.

Today, Roche Bangladesh Limited covers both pharmaceuticals and diagnostics. In the pharma market, Roche is ranged among the top ten companies while in the Diagnostic sector, Roche is the leader.

There’s an old management saying, “If an organization doesn’t plan, then it’s planning to fail”. This may not always be a management axiom, but Roche considers planning as a core base behind its success. As such, HRP (Human Resource Planning) has become an integral part of the Strategic Planning of Roche.

Roche Bangladesh Limited (RBL) doesn’t confine itself to making short term or long term HR plans. The company plans as per requirement. Some of the HRP issues at Roche are as follows:

HR Demand & Supply Forecasting: HR demand is a critical issue that calls for eventual recruitment by the company. In order to design and devise a good strategic plan, it is very important for Roche to make an estimate of the HR demand or requirement depending on which Roche would plan its recruitment, selection, training and development.

At Roche, HR demand is forecasted on the basis of a Group Consensus Method. In this method, each department represents each group and based on its short term and long term plans, it identifies the HR requirements to suffice the plans and communicates its estimate to the HRD and the top most management personnel. Then a meeting is held which is attended by the MD, the HR manager and the department heads who analyze the estimates of the HR requirements in alignment with the organizational goals and arrive at a definite figure of HR demand in terms of number and types. After arriving at a definite figure of HR demand, the HRD is entrusted with the task of determining the supply of HR to meet the existing demand.

In order to determine the HR supply, Roche’s HRD usually makes use of two tools, namely HRIS (Human Resource Information System) and Replacement

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Task One

Human Resource Planning

Human Resource Planning Issues at ROCHE:

Chart, especially when the HRD primarily attempts to bring supply from the internal source.

Human Resource Information System-Roche’s HRIS is an electronic database that contains detailed information regarding past and present employees of Roche. Since HR demand often implies HR requirements not only in terms of numbers, but also in terms of types, the HRIS thus plays a vital role in helping the HRD determine HR supply.

Replacement Chart-At Roche, the Replacement Chart tells the HRD which position in the organization is going to be vacant as a result of some promotion to some other vacant position. The replacement chart thus helps the HRD determine when and for what positions will HR demand arise and who and how will that demand be met.

Programs for HR Shortage & Surplus: During HRP, Roche reviews some of its needed programs like those in case of HR shortage or surplus. In case of HR shortage, Roche’s regular programs are: (a) recruit new employees (b) hire covenanted staffs. In case of excess HR, Roche usually engages surplus employees into other activities such as OSD (Officer on Special Duty) in government organizations.

Replacement Chart Review: Another HRP issue at Roche is the Development of the Replacement Chart. This chart is developed under set criteria, which are: (a) seniority (b) merit (c) performance. It must be noted that the top management alone does not design the replacement chart. The HRD is also involved in designing the Replacement Chart; however, the HRD’s discretion in this regard is limited to mid and below management positions. The reason is because the head of the HRD is the HR manager which is a mid level management position and as such, the HR manager doesn’t have the discretion to be involved in career decisions of those personnel who belong to the upper level management.

Recruitment Criteria Review: Upon determining HR requirements, the HRD plans the recruitment criteria with concerned department heads. Although the recruitment criteria are usually preset, some modifications often need to be brought. For instance, advertising in the media to invite applicants for a position is a regular recruitment criterion; however, Roche may issue blind advertisement this year because it doesn’t want to bring a large pool of applicants. So, the company’s HRD needs to plan keeping in view their specific objectives.

Compensation Package Review: In order to retain its employees who have sieved through Roche’s selection procedure, the company ensures that its compensation package is attractive and highly competitive. In this regard, the MD, the HR manager and the various department heads review the entire compensation package in order to make it more competitive and motivating.

Employee Motivation and Development Programs : Roche believes in motivating employees through rewards like promotion and development programs, for e.g., develop a steeper linear career path. Utilizing employees is not always possible by positive reinforcement. Often negative reinforcements are necessary to secure organizational interest.

Career Path Development: A significant aspect of Roche’s HRP is the development of the Career Path. At Roche, the career path of its employees is linear; however, the HRD along with top management is always making

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modifications such as whether it will be a steeper linear career path or a flatter linear career path.

Training Programs Determination: Other HRP issues at Roche are like determining the level of productivity, interpreting TNA (Training Need Assessment) for HR improvement, determining the choice of training programs based on TNA result, who are to be groomed for upper positions, what development programs should be organized for such grooming, what other beneficial programs could be organized and what benefits would they bring to the HR as well as to Roche as a whole.

Other Issues: Finally, Roche’s HRP involves considering issues like the existing turnover rate, the number of HR retiring and also the time when they’re retiring with specific implications on strategic plan of the organization, the number of HR on study leave and those who intend to go on study leave with specific implications on RBL’s strategic plan, surmising possible turnover like resignation due to unsettled disputes and preparing accordingly, transfer-in and transfer-out and lastly, should Roche have its RIF policy or should it strive to maintain the same image of No Job Cuts @ Roche.

At Roche, HR demand is forecasted on the Guest’s Model and The New York Model of HRM.

Guest’s Model used in ROCHE- In David Guest's (1989, 1997) model of HRM has 6 dimensions of analysis:

o HRM strategy o HRM practices o HRM outcomes o Behaviour outcomes o Performance outcomes o Financial outcomes

The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different from traditional personnel management (rooted in strategic management, etc.).

It is idealistic; the company implicitly embodying the belief that fundamental elements of the HRM approach (essentially those of the Harvard map) such as commitment has a direct relationship with valued business consequences.

Like its American predecessors, this UK model is unitarist (tying employee behaviour and commitment into the goals of strategic management) and lukewarm on the value of trade unions. The employee relationship is viewed as one between the individual and the organization.

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Human Resource Planning Issues at ROCHE:

The New York Model- Developed by Schuler and Jackson (1987). This is a contingency model, so has elements in common with Harvard model, like ‘Harvard’ argues – the content of HRM policy must vary with business strategy. Business strategy is in turn a product of the conditions prevailing in the wider competitive environment.

In Roche, New York Model argues managers need to make choices about: Planning, Staffing, Appraising, Compensation and Training, which reflect important contingencies.

Using this model the HR managers can understand an intuitive appeal, emphasizes contextual factors and highlights some degree of managerial choice.

A specific implementation strategy that works in one organizational context might not work in another. In my opinion, a central role is played by the top managers. Confronted with a specific problem, managers must decide how they will deal with it; they have to decide on how decisions are going to be made. For each possible solution that arises, such as- a smoking ban, management has to assess the level of acceptance in the organization, and it has to estimate how effective, efficient and satisfactory this specific solution will be. Based on these considerations, a specific decision-making approach is chosen. This approach will determine the smoothness and length of the implementation process and the resulting outcomes. Hence, the central issue is the decision-making approach of managers, and how this is determined and affected by how managers perceive the organizational context. In this case, we see the ROCHE is taking same strategy to follow this model.

In terms of decision making, the `standard' approach, which is very much in line with the community organization theory, is a highly information-driven decision-making style. Moreover, a fairly democratic decision-making style is normally recommended. Employee representatives are advised to take part in the decision-making process from the start. We are interested in discovering under which conditions this approach works well and in which organizational conditions other decision-making styles may be more appropriate.

The decision-making model that is used as a theoretical framework in the present study, it is an integration of elements of previous models on strategic decision making. The company ROCHE HR system is overall following the New York Model which is a part of contingency model.

The model is founded in the so-called contingency approach in organization theory, which states that organizational performance is related to or `contingent upon' a proper fit between the decision-making style and the organization and its environment. The basic assumption is that there is not one most effective way of organizing. That works in one organization and the works with respect to one specific problem, might not work in another organization or with respect to another problem- it strongly depends on the circumstances. It is therefore crucial to study how these circumstantial factors affect the decision-making process and its outcomes.

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The company considers Job Analysis a very important function of the HRD because it reduces the risk and cost of hiring more employees than are actually required for doing jobs. Job Analysis is an important method of re-engineering job needs.

Job Analysis is conducted exclusively by RBL’s HRD for every other department. The HRD aims to bring two important dimensions of job analysis, namely Job Description and Job Specification. Roche has always been giving Job Description to its employees while the Job Specification has always been mentioned in the advertisement for recruitment.

The HRD at RBL conducts Job Analysis by gathering information from the following sources:

Job incumbent Supervisor Existing job description Existing job specification Training manuals Popular literature such as magazines, newspapers etc

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Task Two

Job Analysis

Roche’s Sources of Information for Job Analysis & Method Adopted:

RBL’s HRD usually follows a Structured Job Analysis Approach under which, questionnaires are circulated among the relevant employees not just to gather actual facts, but also their opinions as to what should be included and or excluded from certain job responsibilities etc. In Job Analysis, each job is broken down and studied on the basis of the component parts or elements that comprise it. The Job Analysis is conducted once a year, usually at the end of a year for it to be implemented the following year and the report is subject to change.

According to the Human Resource Manager of Roche, Job Analysis has always proven to be beneficial for the organization and for the staffs because of the following reasons:

Jobs are subject to change in terms of duties, responsibilities and tasks. As such, Job Analysis gives the scope of reengineering job needs thereby improving effectiveness (achievement of objectives) and efficiency (achievement of objectives using least resources) of job incumbents.

By making Job Analysis, Roche can project an image before its employees that their opinions regarding job responsibilities and tasks are considered vital because job incumbents have always been an important source of information for conducting Job Analysis.

Job Analysis often results in increasing or reducing one or more responsibilities in a particular job. Increasing responsibility in a job often motivates the concerned incumbent because doing so indicates that his job is important and so is he. Besides, it gives the picture that the organization has confidence in the concerned incumbent. On the other hand, reducing responsibility in a job relieves the concerned incumbent of a burden and tends to increase his work efficiency because he has now relatively less work to coordinate and monitor. Besides, it gives the pictures that the organization does care about the pressure that a job incumbent undergoes which can yield more loyalty and dedication from the employees.

Roche Bangladesh Limited is known as “The Employer of Choice”. In this regard, Roche makes sure that it recruits people not only effectively, but also efficiently. The philosophy that guides recruitment at Roche is that they hire people for long-term careers. This strategic thinking of Roche regarding recruitment has proven it to be really “An Employer of Choice”.

Roche recruits people as per requirement and in doing so, it views the candidate as a commodity to be purchased. Although recruitment is a need of the organization, Roche doesn’t feel the urge to impress the candidates that face interviews. The main reason is probably because Roche receives more candidates than are expected from a single advertisement in the media, not to mention informal job inquiry by job incumbents from other organizations.

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Roche’s Philosophy Underlying Job Analysis:

Recruitment

Roche as an “Employer of Choice”:

According to HR of Roche, candidates should be viewed as products to be purchased because recruitment is an expensive process for an organization in terms of time, money and efforts. In this regard, it is not desirable that an organization makes mistakes in recruiting people. Since it is the selected candidate who will finally serve the organization, it is therefore very important that the candidate is the best and appropriate for the job he has been selected for and also for future careers within the same organization. In this regard, recruitment, this is a step right before selection should be proper in order to invite candidates from the right field.

External Recruitment: Roche invites applicants for a position in the organization in the following ways:

Advertisement in the media like newspaper. Prominent references. Website (on the Internet) both Roche’s (www.roche.com) and

in other employment site like www.bdjobs.com Campus recruitment

Internal Recruitment: Roche’s internal recruitment criteria involve applicants through the following ways:

Promotion Transfer In (from other department/division/regional office)

There’s no hard and fast rule as to following certain recruiting methods, however, Roche follows the above-mentioned methods as per necessity and urgency. The external methods are usually followed for recruiting people for low-level management while the methods of recruiting people for mid and top level management are discretionary, i.e., they may vary according to necessity and urgency although Head Hunting is a usual practice for such levels.

For recruiting personnel for low-level management, Roche usually requires the candidate to be within 30 years of age, communicative, and should not have a job experience of more than 3 years. The reason behind this experience requirement is that Roche believes that a candidate who has a job experience of more than three years, if selected may cause some troubles, because low level management positions usually require team work and such people try to project an image of “all-knowing” which makes it difficult for others to work in a team. Moreover, it gets difficult for the mid management to shape up such candidates.

Roche also observes strict ethics in recruitment. It always specifies in the advertisement for recruitment that any persuasion for the candidate to get the job would disqualify the candidate without prior notice. However, in case of recruiting for mid level management and above levels, Roche does practice Head

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Roche’s Recruitment Criteria:

Recruitment Ethics:

hunting, which to some extent is unethical but not illegal, which thus saves Roche of any dispute.

The selection preparation (not process) at Roche broadly involves two steps, which are as follows:

Designing procedural and structural relations: In this step, company gives attention as to the number and types of hurdles to be included. The HRD decides as to how many of such hurdles as the following are to be used: application blanks, reference letters (references are usually checked over telephone), interviews, personal observation, and psychological tests etc. and how detailed should these tools be. It is also in this stage, that the HRD sets criteria for short-listing candidates. The usual set criteria are whether the candidate meets job specification, education, age requirement, job experience, etc.

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Selection

Induction of new employees: Roche considers this step an output of selection. In this step, Roche inducts the new employee into his new surroundings and place him on his new job. This is an important step because Roche’s experience says that turnover among new employees is higher than among those with greater seniority. In making induction, the HRD takes into account two activities: (a) acquainting the new employee with his new surrounding and company rules and regulations and (b) indoctrinating him the philosophy of Roche and its reasons for existence.

Contract of Employment:When the successful candidate is selected, he is offered a Contract of Employment. This contract contains implied or unwritten but nonetheless binding terms. It is implied that Roche (as an employer) should act reasonably and pay for the work carried out. It is also implied that the employee of Roche will obey reasonable instructions, be loyal and cooperative. In addition, there are specific terms and conditions of employment which usually relate to the following:

Date of commencement Pay Hours of work Holiday entitlement Sickness pay Pension Period of notice Title of job Job Description and Job Specification

Although the top management is the ultimate decision maker in the selection of a candidate, the HRD is also involved in this decision process.

As regard to selection, Roche has a Selection Taboo. From past experiences, Roche has observed that when a candidate is selected despite a selector’s objection, that candidate never stays for long with the organization. As such, Roche has introduced a Veto System in the selection board. If there are objections against the selection of a candidate, even if it’s a single objection, the candidate will be disqualified irrespective of his potential for the job he’s applied for.

Roche’s selection procedure involves a Multiple Hurdles Approach consisting of one written test and two interviews. The written test is conducted exclusively by the HRD. A candidate’s success in the written test would qualify him to attend Interview-I. In Interview-I, the candidate is examined by the HR manager and the concerned department head. If the candidate passes this interview, he’s allowed to attend Interview-II in which, the HR manager, the concerned department head and the Managing Director are present to make the final examination of the candidate. Roche’s interview falls into the Semi Structured

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Roche’s Selection Procedure:

Category. According to Roche’s HR manager, this interview style is less orthodox in nature and gives the candidate an opportunity to express himself more clearly which a totally structured interview would not have given because in such cases, questions are closed ended and do not encourage the candidate to reveal himself and instead the candidate becomes more defensive.

At Roche, selection is a rejection process because at each stage of selection, candidates are sieved from among the pool of applicants.

There’s an old Chinese saying, “Give a man a fish, you feed him for a day; Teach a man to fish, you feed him for a lifetime.” This is the intrinsic philosophy of any training. At Roche, training has been considered very important not only for conducting current jobs by job incumbents, but also for surviving in the future careers. On the organization’s part, training yields effective, efficient and motivated workers.

At Roche, there are two training programs common for all employees, which are as follows:

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Older in Which Roche’s selection Devices are Used:

APPLICATION BLANK

WRITTEN TEST

INTERVIEW-1

REFERENCE CHECK

INTERVIEW-2

CONDITIONAL OFFERS

HIRE

Training & Development

Communication Skills (Spoken and Written English) Corporate Culture (Roche has its own distinctive culture)

It must be noted that probationary period at Roche ranges from three to six months and employees receive formal trainings (both On the Job and Off the Job Training) during probationary period. Trainings at Roche involve both In-house and External trainings. Before offering formal trainings after probationary period, a TNA (Training Need Assessment) is conducted by the HRD, the concerned department head and the Training Manager to identify the staffs requiring trainings, the types of trainings to be offered, the duration of trainings and other related issues.

In the case of On the Job Training, employees receive salary, however, in the case of Off the Job Training, employees only receive allowance and no salary.

FIGURE: CHART DISPLAYING ROCHE’S TRAINING PROGRAMS

The various training programs of Roche (for Off the Job Training) are classified as follows:

FOUNDATION PROGRAMS: Basic Rx-1 (I2 Days Training Program)Basic OTC-1 (4 Days Training Program)

ADVANCED PROGRAMS:16

Training & Development Issues:

FOUNDATION PROGRAMS

ADVANCED PROGRAMS

SPECIALIZED PROGRAMS

TEAM BUILDING WORKSHOP

TRAINING PROGRAMS OF ROCHE PAKISTAN LTD

BASIC Rx-1 BASIC OTC-1 BASIC-2 (Rx/OTC) TRAINING

SKILLSMARKETING STRATEGIES-

1

MARKETING STRATEGIES

-2

NEGOTIATION SKILLS

LEADERSHIP &MANAGINGSKILLS

MANAGINGCHANGE-1(BASIC)

FINANCE FOR NON SPECIALISTS-1(BASIC)

SALES MANAGEMENT-1(BASIC)

BASIC PRODUCT MANAGEMENT

MANAGING CHANGE-2

(ADVANCED)

SALES MANAGEMENT-2

(ADVANCED)

FINANCE FOR NON SPECIALISTS-2

(ADVANCED)

Basic-2 (Rx/OTC) (4 Days Training Program)

SPECIALIZED PROGRAMS:Negotiation Skills (3 Days Training Program)Leadership and Management Skills (4 Days Training Program)Managing Change-1 Basic (3 Days Training Program)Finance for Non-Specialists-1 Basic (3 Days Training Program)Sales Management-1 Basic (3 Days Training Program)Basic Product Management (4 Days Training Program)Managing Change-2 Advanced (4 Days Training Program)Sales Management-2 Advanced (3 Days Training Programs)Finance for Non-Specialists-2 Advanced (3 Days Training Program)

TEAM BUILDING WORKSHOPS: These are arranged as per countries’ requirements. They are as follows:Training Skills (3 Days Workshop)Marketing Strategies-1 “Marketing Pharma Products” (4 Days Workshop)Marketing Strategies-2 “Value Added Marketing” (5 Days Workshop)

Except Workshops on Marketing Strategies-1 & 2, rest of the trainings and workshop are offered in Bangladesh. Workshops on Marketing Strategies-1 & 2 are run by MCE-Brussels in Belgium.

It must be mentioned that Roche’s program for On the Job Training includes only Coaching in which the employee’s direct supervisor guides him during operation.

Trainings at Roche are sometimes given as rewards because certain trainings are seen as motivational tools both by the organization and by the employees. The only ground for an employee to receive such trainings is “Performance”. Such trainings are often referred to as Development Programs, which are offered to those employees who require grooming for occupying upper level careers within the organization.

As regard to evaluating trainings, employees, after completion of the training undergo a final performance test and receive grades thereafter. These grades can have significant impact on their careers in the organization. The management of Roche takes into account an employee’s training grade while making decisions about his or her career at Roche.

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Training as a Reward:

Training Evaluation and Impact on Career:

Task Three

Performance Appraisal

Although Performance Appraisal (PA) is not a function of the HRD unless for the employees within HRD, however, designing the PA Form and determining the relevant grounds of performance evaluation and preparing the final performance evaluation report is a very important and difficult task conducted exclusively by the HRD.

At Roche, performance is assessed by comparing anticipated achievements with the actual ones, taking into account external and personal factors, which may have determined or influenced the actual achievements although MBO approach is practiced at Roche. An overall appraisal of the employee is made on the basis of this comparison, taking into consideration the results of previous appraisals and other assessable factors. The PA of Roche concludes with suggestions for suitable steps to be taken for the utilization and encouragement of the strengths of the employee and the elimination of weaknesses all of which relate to his present assignment and possible future assignments.

Roche observes some principles for the implementation of a PA, which are as follows:

The employee is neither good nor poor but is considered to be more or less suited for the job or duties he is expected to fulfill.

His suitability can, therefore, only be measured by objectively assessing his performance. Personal circumstances and characteristics, which are not relevant to his performance and performance, related behavior must not be allowed to influence the appraisal result.

Each employee is motivated from within to a certain activity and has the urge to develop himself. The appraisal should, therefore, aim at fostering his urge for development.

If the PA is correctly understood, it is a common concern of the superior and his subordinate. Therefore, the establishment of the appraisal basis as well as the appraisal itself should be built upon their interpersonal relationship.

PA at Roche is done twice a year and the following individuals provide information regarding performance appraisal of an employee:

The employee himselfSupervisor or Immediate superior

The Appraisal Interview between the direct supervisor and the employee concerned is a very important aspect of Performance Appraisal. In this step, the employee is informed of the result of the appraisal and has the opportunity to give his opinion. Possible measures for his development and possible future assignments are also discussed at the interview session.

In the appraisal interview session, other persons (functional or next higher superior) can also take part provided that there is consent of the superior or the employee. However, the next higher superior and if required, other competent persons are involved when conflicting opinions on important issues of the PA become difficult to reconcile.

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Principles for the Implication of a PA:

PA Interview with the Employee:

Personal Skill Analysis:

This is another important aspect of PA which is done on a number of set criteria or grounds rated on 5 grades: A+, A, B, C, D, and E. These grades are assigned the following points: 10, 9, 8, 6, 4, and 2 respectively. There are also comments or remarks corresponding the grades: A+ stands for “Outstanding”, A for “Very Good”, B for “Good”, C for “Average”, D for “Below Average” and E for “Does not satisfy”.

Now the grounds on which Personal Skills are analyzed are as follows:

Knowledge/Skill Performance/Efficiency Cooperation & Team Spirit Punctuality Motivation & Sincerity Hard working/Ability to work under pressure Attitude & Behavioral pattern Loyalty, Honesty and Confidentiality Communication Planning & Decision Making Leadership/Staff development/Delegation Initiative/Drive/Creativity Selling Skill/Salesmanship

PA at Roche, unlike that in some other organizations is very democratic because the PA form is signed both by the Supervisor and the employee concerned. This indicates that the employee gets to know how he or she has been evaluated and can also figure out the extent to which PA is true and fair.

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Discipline involves Disciplinary Rules and Disciplinary Actions. At Roche, the top management in collaboration with the HRD takes the disciplinary actions, while the disciplinary rules are all preset. The disciplinary rules are the same as in all organizations and conform to The Employment of Labor Act 1965. I have not projected any rules and regulations in our report, instead, we have highlighted an important aspect of Disciplinary actions, i.e., the grounds on which order of discharge or dismissal of an employee is made and the legal steps thereby.

Section 18 (1) of Employment of Labor (S.O) Act 1965 has lain down that no order of discharge of dismissal of an employee shall be made unless:

The allegations against him are recorded in writing. He is given a copy thereof and not less than three days time to

explain. He is given a personal hearing if such a prayer is made. The employer or the manager approves of such order.

Based on these four grounds, the legal steps for disciplinary actions involve six stages:

o Issue of a Charge Sheet or Show Cause Notice.o Consideration of an explanation submitted by the employee concerned.o Notice to the employee of holding the enquiry.o Actual holding of enquiry (a) to give an opportunity to the person charged

to make a statement in regard to all the charges that are made against him and also to examine any witness in his defense and to cross examine the prosecution witness and (b) to give an opportunity to the employer to assess the merits of the case so as to come to a definite conclusion as to the guilt of the accused and to decide the quantum of penalty to be imposed upon him.

o Activating Enquiry and preparing Enquiry Report thereafter.o Issuing a letter to inform the accused the punishment, which has been

decided to be given to him by the Management.

Roche Bangladesh Ltd makes sure that violation of disciplinary rules that require dismissal or discharge is dealt with through the above mentioned six legal stages. Other disciplinary actions at Roche are:

Warning Caution Increment held and Forced Retirement

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Discipline

Roche Bangladesh Limited does not have any formal procedure to handle Grievances; however, it does face grievances the usual causes of which are as follows:

o Dissatisfaction regarding compensation packageo Attitude problemso Interpersonal behavioral conflictso Basic Incongruity conflictso Superior’s inertia about subordinate’s promotion

Since there are grievances at Roche, they need to handle tactfully. The direct supervisor of an employee handles grievance at the initial stage. The employee expresses his grievance to his supervisor who with the help of the employee tries to come to a definite solution. If solution cannot be reached this way, the HRD is involved. In this stage, the employee, his direct superior and the HR manager attend a discussion session and try to come to a definite solution to the particular grievance.

The company compensation packages offered at different levels of management are highly competitive and only unreasonable incumbents or those with too high expectations may find their packages demotivating.

As regard to Compensation Package, Roche maintains 100% pay secrecy primarily because payments at mid and top management are often agreed upon through negotiation. This system acts as a drive for all employees of Roche to perform well and thereby earn better than before.

Roche Bangladesh Limited’s Compensation Package consists of the following:

Basic salary House rent TADA (Transport Allowance & Diet Allowance) Entertainment Children Education Support Sales Incentive Performance Bonus

RBL also has the following Employee Protection Programs:

Medical AllowanceLife InsuranceGratuity and Provident Fund upon RetirementChildcare Assistance

Roche has some future plans about offering the following group incentives:

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Grievance

Compensation Package

o Profit sharingo Gain sharingo Employee Stock Ownership Plan

From my extensive research on HR Activities at Roche, I have come to learn not only the practice of HRM at Roche, but also some of the negative and positive aspects of its HRM operations. Since positive aspects are all implied in the report, there’s no point in highlighting them in the conclusion. Instead, we present here, the problems or the probable problems that may arise due to certain patterns of operations within the organization with obviously significant implication on HR of Roche and here they are:

Roche maintains a provision of OSD in case of HR surplus. This is nothing but an unnecessary cost for the organization because the excess staff is enjoying the same benefits as his peers.

Since the excess staff is enjoying the same benefits as his peers, this may demoralize them because his colleagues will justify that given the same benefits, the extra employee is not under as much workload and decision-making pressure as themselves.

Roche practices head hunting which is unethical. As such, this practice may contribute to projecting a negative image to other pharmaceutical organizations.

Three years is a relatively short time for gaining adequate experience and a person with work experience of more than 3 years wouldn’t necessarily bear an “All-Knowing” attitude as Roche believes. Thus, it cannot be a good judgment criterion for recruitment.

Roche’s selection taboo which prompts the veto system is totally unreasonable because often veto may result in disqualifying potential candidates, who, if selected, would have served better the organizational interests.

Roche doesn’t have an RIF or Retrenchment Policy for low to top management positions (RIF’s policy for blue collar workers are the same in all organization because it conforms to Bangladesh Labor Law). As such, even if situation demands in future, Roche will have no legal grounds to make job cuts.

Roche doesn’t have any formal grievance procedure. Some problems that may arise as a result are:

Corrosion from within: Due to unsettled dispute, the employee may start corroding the organizational interests leading it to the point of jeopardy.

Turning labor force against the organization through communicating self-distorted information.

Playing politics for securing own interests.

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Conclusion

Having identified the various problems of HRM operations at Roche, here are some recommendations as to how such problems could be solved: (Solutions are given to respective problems in order of those stated in the Conclusion)

Develop RIF’s policy for low-top management positions that will reduce unnecessary cost of keeping OSDs.

Development of the RIF’s policy eliminating OSD provision will stop demoralizing employees.

Recruit through employment agency instead of Head Hunting.

Change the policy of requiring candidates having experience of no more than 3 years. This will bring more potential candidates to the organization.

Abolish Veto System because Roche’s selection taboo is unreasonable and doesn’t have any statistical significance. With such unreliable probability, it is not wise of Roche to maintain Veto System. Besides, elimination of this system would enable Roche to hire more potential candidates.

Develop RIF’s policy for low-top management positions because this will give Roche legal grounds to make job cuts if situation demands in future.

Develop formal grievance procedure in order to avoid the risk of the problems that may arise due to unsettled disputes. Besides, a formal grievance procedure would give Roche legal grounds to hold his employees responsible for expressing his own independent style of expressing grievance that is counter-productive for the organization.

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Recommendation

Books and Journals:

Human Resource Management, Ivancevich, 7th edition.

Business for the 21st Century, Steven J. Skinner.

An Integrated Approach to Business Studies, Bruce R Jewell, 2nd edition.

Bangladesh Labor Code, A. A. Khan.

Law & Practice Relating to Disciplinary Actions, S. A. Huq.

Website:

Roche’s Websites:

URL: www.roche.com

URL: www.rocheusa.com

URL: www.google.com- HR Models

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Bibliography