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Paper of People in Organization

Process, People, and Conflict Management In Organizations








Prepared by
Name : Topam Yordano Gautama Putra
NIM : 29113391
Class : ENTRE 6






Master of Business Administration
Institute of Technology Bandung
Jakarta
2014
Globalizing Work In The Life Science Industry :
Key People And Organization Considerations
There are so many science companies have made their strategy choice to expand their
footprint into emerging markets.so the impact is their ability to effectively address global human
capital consideration is becoming a differentiating competitive factor. So if they build a global
business to achieve growth, innovation, and cost saving systematically considered the people and
organizational issues that will be critical to reaching our goals.
In this era, in light of wide ranging challenge including shocks to the global financial
order, and discovery product across industries and the need to build local talent capability to
enable sustainable performance. So there are three big question to make this assumption become
make sense, there are :
How the company can be sure that emerging market strategies are sustainable ?
How the company can trust the integrity of their supply chain and determine that they
foster working practices that address issues of risk in an ethical way ?
Is that the company developing local leadership to help maximize business performance
in a manner that is aligned to the values of the company ?
In order to continue the organization strategy to expand their global operations, human capital
must be considered in these emerging market. This time companies are shifting from initial
consideration of low cost labor avaibility to those of source knowledge work and creating R&D
and commercial capabilities more closely aligned to the needs of the specific market and
geography in which they are operating. So in the life science of organization the global human
capital is important to note that the consideration across value chain in the order to effectively
address the global human capital consideration.
As we can see in other industry like manufacturing and consumer products, emerging
markets hold an attraction for life science as a source of low cost loabor supply. Moreover there
are two areas differentiate life science company from other consumer goods companies, that is
high stake investment in R&D (Research and Development) and proprietary product patents. As
example that we can see in this journal, pharmaceutical and medical service companies have
already recognized the lure of the China Price as much as companies in any other industry.
So the life science company differentiate the global aspiration is their desire to gain
access to large talent pool of knowledge workers within R&D and sles and marketing, as well as
to exploited commercial oppurtunities and reduce operating costs. In other Asian country like
China and India, their life science company made their step into phase III global registration
trilas and have established full-fledged sales and marketing operation to launch all of their
product in emerging markets concurrent with their launch in Western Market.
In these healthcare markets increasing exponentially, healthcare and life science
organization spending and setting up their sales operations in emerging markets to tap this newe
revenue stream. In this case historically life science companies have already entered emerging
markets by selling off-patent generic product, but this markets is mature, and it crate that the
company who joined these market would be more active selling patented products. For the
example, the Janssen Pharmaceutical is become the first foreign drug company to established
operation in China after the cultural Revolution, and entered the market by selling anti-fungal
product that were off patent in the West. And Right now Xian-Janssen made a joint venture
between Janssen and other four Chinese state Organization in the largest Pharmaceutical Joint
venture in China and sells several patented drug Products.
So the action of life Science companies to expand their markets into emerging markets,
they have already more active to recruit local talent that can understand the requirements of
selling to a specific geography. And the requires is their ability to navigate local business culture,
talent and rewards consideration, and talent with knowledge of the regulatory, tax and business
policies of the markets. So the company can take the advantage for the local recruitment such as
quick identifying and translating oppurtunities into appropriate business responses requires the
companies to be organizationally nimble. So the life science companies have already made a
consideration to introduce a new level of sophistication in organization, decision rights and
governance design as many life science companies seek to quickly scale their operation in
emerging markets.
This journal make an illustrative example for us to more understanding these thing. The
example is Bayer Schering Pharma (BSP) illustrated the increasing maturity in life Science
Companies global people and organization capabilities. In just 5 years BSP has grown to become
the number one foreign owned Pharmaceutical company in China, as ranked by overall sales.
In order responding to these trends and oppurtunities, life science companies have
ventured into a range of geographies that span the globe beyond the borders of BRIC (Brazil,
Rusia, India, and China) countries. Estimated in 2016, at least 84% of life science organization
will conduct more activities in emerging markets. For the example : Merck & Co. which
developed a global strategy to its strengthen its position within emerging markets and
established an Asia Pasific headquarters. Also Johnson & Johnson which has indetified
development of new growth oppurtunities in emerging markets as a top strategic priority and
many other foreign company.
As we see the track record of these life science companies in global activity have not
always fully considered the people and organization factors critical to operating successfully.
This is the impact of inability of the Human resource (HR) function to act as true strategic
partner and participate an and ensure the people and organizational consideration factor on
corporate strategy development and execution. So the challenge of globalization for HR is how
they can create a system in terms of differentiation rather than standardization. The past decade
has seen R&D budget increase by an average 7% annualy. But if you see in the productivity
sector, it is decrease 3% each year. So in this case, the avaibility of a large-pool of lower-cost
R&D knowledge workers in emerging market could help life science organizations enhance
R&D productivity.
In this journal they show us some example for this case. In India Local companies have
taken an advantage of the lower-cost R&D knowledge workers to expand their operations
globally. In India Ranbaxy Laboratories limited, one of the giant multinational companies and
the largets pharmaceutical distributor of medicine. In 2007, Ranbaxy Laboratories Limited
formed a multi-year R&D agreement with GSK to conduct research on a wide range of
therapeutic areas including anti-infective, metabolic, respiratory and oncology. With that
strategies to develop and manufacturing in India, and serving International Markets.
In case to increased R&D productivity, global R&D operations also offer unique
oppurtunities for drug development. As more clinical trials get shifted overseas, a more diverse
workforce and patient population can be helpful in patient recruitment and management and an
increase understanding of how disease affect various ethnic groups and subpopulation. With the
rising of the competition for knowledge worker in emerging markets, so the company needs to
carefully evaluate future talent avaibility and reward trends when selecting geographics to
operate within, it will bring the competition in global market of emerging market become more
thight. Because the competition its not only with the local companies, but it will be also take the
competitions with another multinational company from around the world in this industry. So if
the companies want to expand their business into a global market, the companies have to explore
the capabilities and skill of their employee and not just only that, the company have to build a
strong relations with their employee.
So this is why we have to have a unique people and organization capabilities required to
capitalize on the rapidly evolving an increasingly favorable business environments in emerging
markets. There is another thing that we have to considering carefully, and in this journal we can
see that government regulatory policies is one of that thing that can give the benefit or risk to the
company. In this journal we can see that the Government Regulatory policies gives the benefits
for the Pharmateucal business, for the example in Brazilrecent government investment in R&D
and biotech sectors motivated companies like Genzyme, Shire and Biogen to expand their local
operations.so on this case we can learn from there is an oppurtunities in emerging market that
requires life science companies to grow recognize that there are limits for the player to choose
with which strategies and policies designed for the main company to expand their business into
global market.
So the company must have some kind of key people that can explore their self and give to
the company. In this journals tell us a thing that we have to considering some point how to
successful in sustaining performance in emerging markets, in this case in life science business,
the company should address a holistic set of people and organization issues as part of their global
strategy. There is 4 essential element for that, which is :
Talent Management : Recruiting, developing, motivating and retaining the right people
for the right jobs
Rewards : Determining that compensation and incentives are aligned to the performance
managements requirements of the organization model.
Organization : Determining that operation model, organizational designe and governance
model support a global organization.
Culture : Developing and instilling corporate philosophy, working norms and values
including consideration of corporate social responsibility.
In these four factors is a big issues influence the people in organization and organizations
itself that have a significant impact for the organization to implemented and developing a global
business strategy. If the company make carefull consideration of these four factors can help the
companies make a big move, informed strategies decision and execute accordingly. For the
example when the company defining a market entry strategy life science companies should
consider the avaibility of critical workforce (talent), the effect of country specific and regional
reward trend on costs and perational sustainability, the opportunity to create or build for local
operation, and the last is how your parent company can influence and accepted your locally
business accepted the behavior of the parent companies.
The talent consideration is the closest consideration that associated with knowledge
workers (R&D) vary from those of manufacturing and sales & marketing. This is why the
knowledge and skill of the employee is affected to the business, and the experience of the
employee in his background into a specific channels play ke role in defining the talent a
company needs. Key factors in attracting and retaining talent also vary by geography. In India,
there is a competition for talent frequently result for the employee to more explore theirself. In
China, employee tend to work long hours, they consider team bonding and pleasant workplaces
as key components of their quality life. In South America, key factor to attracting top talent is
providing oppurtunities for International Assignment. So in these two example we can see how
the geography have their own strategy to attract their employee talent and how they motivating
not only the employee but the whole management itself to build balance global talent strategies
with local realities.
But in some cases, the issues is that the top talent consideration for globalizing work is
consideration of the role of expatriates against that of local talent. For this case it takes two thing
that confusing the management which is they want to promote local talent, but at the same time,
as the importance of these markets grows, they also want tighter control. In the Pharmateucal
Business, the company is rely on local talent to navigate the rapidly evolving markets,
proactively address the unique needs of local customers and to develop relationship with the
local government, the trademark of these industry is they always use ex-employee to develop
high-level strategy by their knowledge and experience, conduct quality assurance programs and
ensure compliance.
In the rewards points, compensations level for knowledge workers are rising significantly
across all life science sector and segments including R&D, manufacturing and supply Chain and
Commercial in most emerging markets. Increasingly however there is a need for a more holistic
approach to rewards that goes beyond compensation considerations. Future plansof the
companies is addressing the issues of Globalizing work are beginning to think I terms of
programs that embrace compensation, learning and development including overseas assignment
and other mechanism to reward critical workforce segment and high potential talent.
For the Organizational, In pharmateucal companies ae developing operating models
based on partnership or other formal relationship with local companies to facilitate activities in
their R&D organization and also in sales and distribution channels. However, wether to build,
partnership or buy R&D capability is a key considerations as life science companies enter
emerging markets, balancing considerations of speed to market with operational efficiency and
effectiveness as well as compliance requirements.
The last thing is Cultural, the relations between cultural and organization is very close,
the cultural things is aligment is a top consideration for many expanding life science companies
as it can enhance the effectiveness of global collaboration towards global standard. The factors
such as historic experience, political and legal framework as well as geographic proximity to the
North American or Western European parent company will all influence local business culture.
Most of cultural gaps thay we cann see easily in organization wich is operate in overseas is the
communication and work styles.

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