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HR Practices in Glaxo Smith Kline Pakistan

Executive Summary
GSK Profile
GlaxoSmithKline is a leading multinational pharmaceutical organization with 7% market
share worldwide and 15% market share in Pakistan.
GSK holds largest field force (786) in Pakistan and 40 in Multan. Company has annual turnover of Rs.7.5
Billion in Pakistan. In 2003 GSK is grew faster than the market.
So we selected GlaxoSmithKline for our report of Human Resource Management.
The purpose of this report was to analyze that how the industry leader carries out its Human Resource
Activities?
Cadres Available
GSK Pakistan Sales force has the no. 786. In Multan three cadres are available
o Medical Service Executives (MSEs) 28
o Regional Sales Managers (RSMs) 10
o Sales Managers (SMs) 02
Selection & Recruitment
As far as selection & recruitment is concerned for MSEs, external recruitment is carried out via advertisement
in National newspapers etc then through assessment centers they are selected.
RSMs & SMs are selected internally.
Compensation & Benefits
Annual Increment (ranges 5-20% depending upon the performance of an employee), Two Bonuses, Medical
Facility, reimbursement on actual expenditures, Provident fund, Group life insurance, EOABI Membership
(Employees Old Age Benefit Institute), 26 Privilege Leaves, Casual Leaves, Sick Leaves, Motor Cycle
Loan (After One Year Service), PC Loan, House Rent, Loan Advances.
Motivation
Company motivates employees (Sales Force) by giving them incentives not only in the shape of monetary terms
(Up to annually Rs.150,000) but also Via STAR CLUB & SUPER STAR CLUB On the achievement of their
quarterly targets with +ve & highest growth over last year on regional & zonal basis.
Orientation
To MSEs, GSK Academy gives orientation about job descriptions, organization, industry & competition, so that
MSEs should fully understand whole scenario and feel his responsibility from very 1
st
day.
For RSMs, they get their 1
st
orientation about the TEAM, products line, distribution network, geography,
topography, previous trends etc, from their ancestors. Time to time orientation is also given by their immediate
supervisor, sales manager.
As far as SMs are concerned, they get their 1
st
orientation about the TEAM, products line, distribution network,
geography, topography, previous trends etc, from their ancestors. Time to time orientation is also given by their
immediate supervisor, Business Unit Heads.
Career Planning & Development
Human Resource department identifies training & development needs of employees and plans to overcome
deficiencies with the help of GSK Academy & immediate supervisors.
Transfers/Relocation
On promotion or same cadre transfers/relocation, people are granted a relocation grant (Vary with different
cadres), a full truckload expense and a fixed daily allowance (Vary with different cadres for one month).
Separations
In GSK separations are very rare, because most of the people want to grow in this organization and want to plan
their career with GSK. Furthermore company can offer separations but with full compensation i.e., Golden
Hand Shakes etc.
Another type of separation is seen, though, very rarely and that is resignations (From either party) but on some
solid reasons like Disintegrity, misfit with the system.
In GSK, people are not separated/Terminated on the basis of underperformance but only due to Disintegrity.
Performance Management
New year targets are set on the basis of last year performance, market growth & corporate growth strategy.
Then allocated to individual MSEs & RSMs (Lower line managers). Targets are broken down on quarterly and
monthly basis. On the achievement of quarterly targets incentives are given to achievers, which are reimbursed
bi-annually. But for extra ordinary performers there is something beyond normal incentives like
Star Club:
The key prerequisites are the achievements of overall quarter targets with highest growth in the region.
Rewards are, Medal+ Certificate+ Household Gift.
Super Stars:
The member of this super club is, who is Star Club member for three times in a year.
Rewards are Gold medal + Certificates + 2 Umrah Tickets
Performance Appraisal
In performance appraisal, the supervisors about employees strengths & weakness, his promotability &
potential also give appraisal recommendations, which become a basis for employees career progression.
GlaxoSmithKline uses Past Oriented Appraisal Method for its employees. Employees are evaluated on
three categories:
o Skills and Competencies
o Overall Annual Objectives
o Sales Achievement (For Sales Department)
Here Behavioral Anchored Rating Scales approach is used.
In skills a competencies GSK uses Behavioral Expectation Scale in which specific named behaviors are
used as benchmarks.
Our Findings:
We came to know that majors motivating factors are:
o Training & Development (GSK Academy)
o Environment
o Company Image
o Well establishes Product Portfolio
o Growth Potential
o Career Progression
We also came to know about few demotivating factors as:
o Employee No. Is Large
o Parasitism
o Performance Oriented Promotions
Recommendations
We recommend that there must be a check & balance system and complete accountability in GSK, so that
parasitism should be eliminated. They should develop a clear career pathway, so that every employee should
have understanding even in this high employee no.
WHY PEOPLE ARE IN GSK?
When they asked for why they are in GSK, most of the employee (93%) has expressed great satisfaction &
motivation over their organization, the GlaxoSmithKline. Some motivators are as follows:
o GSK Image
o GSK is Market Leader
o High Training
o High Incentives
o Conducive working environment
o Performance oriented approach towards promotions
o Well Establish & Stable Organization
o Very Low Turnover
On the other hand 7% has expressed demotivating factors as follows:
o Employee No. Is Large
o Parasitism. (Some are working, some are not)
o Performance oriented approach towards promotions
Explanation of Demotivating Factors
o Employee No. Is Large
Some employee of GSK thinks that due to very large no., (More than 750, the largest field force of Pakistan
Pharma Industry) it has become very difficult to recognize them to the management of the organization. They
feel it very inconvenient and almost impossible to make differentiation in such kind of rush.
o Parasitism. (Some are working, some are not)
When there is such kind of high no., it becomes very difficult to have check & balance for the management. It is
the thinking of some GSK people that in mega teams, parasites are there, who are eating others performance
and hard work. This was the key demotivating factors among themselves.
o Performance Oriented Promotions
All the promotions since last two years have been made purely on the basis of performance. In GSK length of
service is not important, competencies, capabilities & performance is important. But on the other hand this
approach is the cause of demotivation for those people, who have just length of service but lacking other
prerequisites.
History of GSK
1830
John K Smith opens his first drugstore in Philadelphia. John's younger brother, George, joins him
in 1841 to form John K Smith & Co.
1842
Thomas Beecham launches the Beecham's Pills laxative business in England. The laxative is to
become widely successful
1873
Joseph Nathan establishes a general trading company at Wellington in New Zealand - Joseph
Nathan and Co - the foundation for the Glaxo company to be formed later.
.
1880
American pharmacists Henry Wellcome and Silas Burroughs, four years after Joseph Nathan
opened a London office, establish Burroughs Wellcome & Company in London.
2000
GlaxoSmithKline formed through the merger of Glaxo Wellcome and SmithKline Beecham.
GlaxoSmithKline (GSK) is a world leading research-based pharmaceutical company with a
powerful combination of skills and resources that provides a platform for delivering strong growth in today's
rapidly changing healthcare environment.
Headquartered in the UK and with operations based in the US, the new company is one of the
industry leaders, with an estimated seven per cent of the world's pharmaceutical market.
GSK also has leadership in four major therapeutic areas
o Anti-infectives
o Central nervous system (CNS)
o Respiratory System
o Gastro-intestinal/metabolic
In addition, it is a leader in the important area of vaccines and has a growing portfolio of
oncology products.
The company also has a Consumer Healthcare portfolio comprising over-the-counter (OTC)
medicines; oral care products and nutritional healthcare drinks, all of which are among the
market leaders.
Based on 2003 Annual Results, GSK had sales of 21.4 billion ($35.2 billion) and profit
before tax of 6.7 billion ($11 billion).
Total pharmaceutical turnover grew 5% to just over 18 billion ($29 billion).
o GSK has over 100,000 employees worldwide.
o Over 40,000 are in sales and marketing, the largest sales force in the industry.
o Over 42,000 employees work at 91 manufacturing sites in 38 countries
o Over16, 000 are in R&D.
o GSK launches 1100 products annually in the different parts of the world.
GSK R&D is based at 24 sites in seven countries.
The company has a leading position in genomics/genetics and new drug discovery technologies.
The GSK R&D budget is about 2.4bn/$4bn.
At GlaxoSmithKline..
Every SECOND...
more than 35 doses of vaccines are distributed by GSK.
Every MINUTE...
more than 1,100 prescriptions are written for GSK products.
Every HOUR...
GSK spends more than 277,000/$450,000 to find new medicines.
Every DAY...
more than 200 million people around the world use a GSK brand toothbrush or toothpaste.
Every YEAR...
GSK factories produce 9 billion TUMS tablets, 6 billion Panadol tablets and 600 million tubes of
toothpaste.
Prescription Products OTC Products Oral Health Care


Panadol
ENO
Brylcream
Iodex

Macleans Tooth Paste
Macleans Tooth Brush
Aqua Fresh Tooth
Paste
Aqua Fresh Tooth

Lucazade
Horlicks
Tagamet 200mg
Brush
Sensodyne Tooth Paste

Augmentin
Amoxil
Septran
Zantac
Calpol
Tagamet 400mg
Ventolins
Engerix-B (Vaccine)




Mission
To improve the quality of human life by enabling people to do more, feel better and livelonger.
Vision
We want to be indisputable leader of the industry.
GSK Spirit
We undertake our quest with the enthusiasm of entrepreneurs, excited by the constant search
for innovation. We value performance achieved with integrity. We will attain success as a world-class
global leader with each and every one of our people contributing withpassion and an unmatched sense of
urgency.

GSK International
No. Of employees (Total World Wide) 100,000
No. Of employees (World Wide Sales & Marketing) 40,000
No. Of employees (Pakistan Sales & Marketing) 786
GSK Employees Cadres Available in Multan
Medical Service Executives (MSEs) 28
Regional Sales Managers (RSMs) 10
Sales Managers (SMs) 02
Selection & Recruitment Process
For Medical Services Executives
Advertisement in National News Papers
Locations, Eligibility, Preferences are given
Assessment Center at Multan/Lahore for Punjab having:
o Aptitude Test
o Group Discussions
o Panel Interviews
Successful candidates are offered the jobs and after getting their willingness, they are called upon for a 35 Days
comprehensive training program held by GSK Academy at Karachi (usually).
After successful completion of training program, candidates are awarded appointment letters.
Selection & Recruitment Process
For Regional Sales Managers
On the basis of consistent performance of MSEs, (which is a pre-requisite), it is management discretion to
evaluate the potential of the persons suitability for promotion and career progression. After careful evaluation
a pool of MSEs are called for an assessment center. Which may include following steps:
Case/ Real Life Business Situation for Analysis
Presentation on the real life situations
Panel Interview
Depending upon the vacancies available, best of the bests MSEs are promoted as Regional Sales managers, who
could be placed anywhere in Pakistan.
At GlaxoSmithKline length of service is not important, but Performance, competencies, capabilities, abilities &
potential for growth is important.
Selection & Recruitment Process
For Sales Managers
On the basis of consistent performance of RSMs, (which is a pre-requisite), it is management discretion to
evaluate the potential of the persons suitability for promotion and career progression. After careful evaluation
a pool of RSMs are called for an assessment center. Which may include following steps:
Case/ Real Life Business Situation for Analysis
Usage of Computers
Presentation on the situation
Panel Interview
Depending upon the vacancies available, best of the bests RSMs are promoted as Sales managers, who could be
based anywhere at following places
Karachi
Multan
Lahore
Islamabad
At GlaxoSmithKline length of service is not important, but Performance, competencies, capabilities, abilities &
potential for growth is important.
ORIENTATION
Medical Service Executives
After selection all newly selected Medical Service Executives are gone through an extensive four weeks training
by GSK ACADEMY.
Along with usual training program, GSK Academy also gives orientation about job descriptions, organization,
industry & competition, so that MSEs should fully understand whole scenario and feel his responsibility from
very 1
st
day.
Regional Sales Manager
After selection & appointment, Regional Sales Managers joins their regions. They get their 1st orientation about
the TEAM, products line, distribution network, geography, topography, previous trends etc, from their
ancestors. Time to time orientation is also given by their immediate supervisor, sales manager. Furthermore
different courses are also conducted time to time by GSK Academy for better understanding of Job description,
requirements and minimum acceptable standards.
Sales Manager
After selection & appointment, Sales Managers joins their Zone. They get their 1st orientation about the TEAM,
products line, distribution network, geography, topography, previous trends etc, from their ancestors. Time to
time orientation is also given by their immediate supervisor, Business Unit Heads. Furthermore different
courses are also conducted time to time by GSK Academy for better understanding of Job description,
requirements and minimum acceptable standards.
Career Planning & Development
Human Resource department identifies training & development needs of employees and plans to overcome
deficiencies with the help of GSK Academy & immediate supervisors.
As far as Career planning is concerned Human Resource Department deals as follows:
Transfers/Relocation
On promotion or same cadre transfers/relocation, people are granted a relocation grant (Vary with different
cadres), a full truckload expense and a fixed daily allowance (Vary with different cadres for one month).
Separations
In GSK separations are very rare, because most of the people want to grow in this organization and want to plan
their career with GSK. Furthermore company can offer separations but with full compensation i.e., Golden
Hand Shakes etc.
Another type of separation is seen, though, very rarely and that is resignations (From either party) but on some
solid reasons like Disintegrity, misfit with the system.
In GSK, people are not separated on the basis of underperformance but only due to Disintegrity.
Compensation & Benefits
In broader sense GSK has following compensation & benefits policy:
Annual Increment ranges 5-20% depending upon the performance of an employee.
Two Bonuses are paid and merged in the monthly salary.
Medical Facility: reimbursement on actual expenditures.
Provident fund
Group life insurance
EOABI Membership (Employees Old Age Benefit Institute)
26 Privilege Leaves
Casual Leaves
Sick Leaves
Motor Cycle Loan (After One Year Service)
PC Loan
House Rent Advance Loan
Incentives on the achievement of quarterly budgets reimbursement on six monthly bases.
Performance Management
New year targets are set on the basis of last year performance, market growth & corporate growth strategy.
Then allocated to individual MSEs & RSMs (Lower line managers). Targets are broken down on quarterly and
monthly basis.
Every month actual performance is evaluated and compared with the target. On the achievement of quarterly
targets incentives are given to achievers, which are reimbursed bi-annually.
But for extra ordinary performers there is something beyond normal incentives.
STAR CLUB
This is the elite club. Members are those, who perform extra ordinary. The key prerequisites are the
achievements of overall quarter targets with highest growth in the region.
Rewards are, Medal+ Certificate+ Household Gift.
SUPER STARS CLUB
The member of this super club is, who is Star Club member for three times in a year.
Rewards are Gold medal + Certificates + 2 Umrah Tickets.
PERFORMANCE APPRAISAL
In performance appraisal, the supervisors about employees strengths & weakness, his promotability &
potential also give appraisal recommendations, which become a basis for employees career progression.
Performance Appraisal
In GlaxoSmithKline performance Appraisals has great importance for key HR activities. GlaxoSmithKline
uses Past Oriented Appraisal Method for its employees. Employees are evaluated on three categories:
o Skills and Competencies
o Overall Annual Objectives
o Sales Achievement (For Sales Department)
Here Behavioral Anchored Rating Scales approach is used.
In skills a competencies GSK uses Behavioral Expectation Scale in which specific named behaviors are
used as benchmarks.
1
st
Part evaluates Key competencies, which are as follows:
o Analytical Thinking
o Concern for achievement
o Customer service
o Influence & Impact
o Information gathering & Use
o Planning & organization
o Team Player
o Tenacity
Each competencies is described subjectively and employees are given rating from 1-5 described as follows:
1- Does not meet performance standards
2- Partially meets performance standards
3- Meets performance standards
4- Exceeds performance standards
5- Exceptionally exceeds performance standards
2
nd
Part is about overall key objectives for the year to be evaluated.
It contains Key Objectives (4-5) like Annual budget, Key products target, Group activity target, Personal
development objectives etc, measures, like Target VS Ach, performance standard like % of
achievement, Time frame, Appraisers review which is comments of appraisal on each objective evaluation
and finally Rating (1-5) Description of which as mention above.
3
rd
Part contains a brief summery of overall sales achievement of all key products. Key products are
evaluated on the basis of Achievement (In percentage) and growth over last year (in percentage).
4
th
Part contains the appraisers overall rating given to the employee on the basis of his competencies (20%
weight) and Annual budget achievement (80% weight).
This rating method contains 1-5 rating described as below:
1- Does not meet performance standards
2- Partially meets performance standards
3- Meets performance standards
4- Exceeds performance standards
5- Exceptionally exceeds performance standards
The HR department for its uses like annual increments, placements etc use this overall rating.
GlaxoSmithKline & Community
Being a global industry leader, GSK not only realizes its social responsibilities but also fulfilling this in a very
professional manner. Lets talk about in Pakistan perspective. In Pakistan GSK has contributed in the following
way.