abbott final
TRANSCRIPT
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Instructor Ms. Deep Kiran
Group Members:
Samran Ali Malik 12285
Maheen Zubair 11449
Jahanzeb Malik 11536
Samira Noorani 13149
ABBOT PHARMACEUTICALS
Strategic Human Resource
ManagementIMPACT OF SHRM ON THE ORGANIZATIONAL
PERFORMANCE
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ACKNOWLDGEMENT
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Table of Contents
ACKNOWLDGEMENT ..................................................................................................................................................... 2
EXECUTIVE SUMMARY ................................................................................................................................................... 4
INTRODUCTION ............................................................................................................................................................. 5
Abbott in Pakistan ..................................................................................................................................................... 6Mission ...................................................................................................................................................................... 6
Vision ........................................................................................................................................................................ 6
Core values................................................................................................................................................................ 7
Products of Abbott .................................................................................................................................................... 7
Pharmaceutical products ..................................................................................................................................... 8
Nutritional products ............................................................................................................................................. 9
CORPORATE STRUCTURE ............................................................................................................................................. 10
LITERATURE REVIEW .................................................................................................................................................... 11
1st Research - The impact of SHRM on organizational success - The public sector and multiple goals .................. 11
2nd
Research Strategic HRM Practices and their Impact on Company Performance From Chinese Enterprises
Perspective ............................................................................................................................................................. 13
HYPOTHESIS ................................................................................................................................................................. 15
FINDINGS ..................................................................................................................................................................... 16
Corporate & Business Strategy ............................................................................................................................... 16
Human Resource Planning ...................................................................................................................................... 17
HR Policies ............................................................................................................................................................... 18
Staffing .................................................................................................................................................................... 19
Recruitment ....................................................................................................................................................... 19
Selection ............................................................................................................................................................. 20
Employee Retention ............................................................................................................................................... 21
Training ................................................................................................................................................................... 22
Formal Training Need Assessment ..................................................................................................................... 23
Informal Training Need Assessment .................................................................................................................. 23
Training Need Assessment translated into a training program ......................................................................... 24
Performance Appraisal ........................................................................................................................................... 25
The Reward System ................................................................................................................................................ 27
Succession Planning ................................................................................................................................................ 28
FINANCIAL STATEMENTS ............................................................................................................................................. 29
ANALYSIS & CONCLUSION ........................................................................................................................................... 30
REFERENCES ................................................................................................................................................................. 31
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EXECUTIVE SUMMARY
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Abbott Pakistan
INTRODUCTION
Abbott is an international health care organization dedicated in identifying, discovering and
providing new medicines to its customers, latest technology and innovative means to maintain
and manage health care.
It provides a wide array of products, from nutritional products to pharmaceutical therapies.
Their broad product line encompasses life itself, by identifying important health needs
throughout an individuals life cycle.
Abbott at present has over 90,000 employees across the globe (as per 2011 stats) and has a
worldwide existence in above 130 countries. It is dedicated in refining the lives of people by
providing them by all means cost efficient and cost effective means of nutritional and heath
care products that meet the needs of the consumers.
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Abbott in Pakistan
In Pakistan, Abbott started its operation as an affiliate in marketing in the year 1948. Currently
the organization has a total of 2000 employees with 1500 as permanent employees and 500 as
contractual and temporary employees.
Here, two manufacturing facilities are located in Landhi and Korangi industrial area which
continue to serve as high tech, innovative sector producing best quality products for the
individuals.
Mission
To deliver consistently superior products and services which contribute significantly to
improve the quality of life of the consumers.
Vision
To be a premier healthcare company in Pakistan.
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Core values
The core values of the company are as follows:
1. Pioneering; leading-edge science and innovative executionThe company aims at providing solutions that cater to human needs by being pioneers in
providing innovative products, treatments, medical devices, and innovative methods to
improve health standards.
2. Achieving; customer-focused outcomes and world-class execution.
Abbott drives significant outcomes challenging themselves so they can significantly contribute
that ultimately results in improving peoples lives. They are devoted to work in harmony by
delivering resolutions that are efficient and profitable. They promise to serve in the best
interest of their customers and everyone revolving them.
3. Caring; Making a difference in peoples lives.
To be caring is vital to the effort that they to do so that it may help people enjoy healthy
lifestyle. They aim at contributing tremendous esteem for the lives of every person moved by
their company. Their respect is validated by what they do for people around them.
4. Enduring; Commitment and purpose.
For Abbott, to endure means maintaining commitment to the future. They are constantly
striving to work for the best interest of the people that they serve and keeping their promises
aligned to the business goals and objectives. To them, being committed is the last resort and
they continuously strive to achieve that no matter what.
Products of Abbott
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Abbott has expertise in providing its customers with two categories of products. These are:
1. Pharmaceutical products2. Nutritional products
Pharmaceutical productsFollowing is the list of its products in this category.
A B C D E F G H I K L M
Abbutol
Artifen
Acyclovir
Abocain
Abocal
Abozole
Arinac
Becefol
Bejectal
Bevidox
Brufen
Burnol
Calcijex
Cecon
Cofcol
Citro Soda
Cremaffin
Dayalets
Daycor
Dijex
Dopamine
Enoxabid
Entamizole
Epival
Erybron
Erythrocin
Eryderm
Flexin
Forane
Froben
Ganaton Hytrin Iberet Klaricid Lucrin
Lincomycin
Loftyl
Moculator
Mospel
http://www.abbott.com.pk/Abbutol.htmhttp://www.abbott.com.pk/Artifen.htmhttp://www.abbott.com.pk/Acyclovir.htmhttp://www.abbott.com.pk/Abocain.htmhttp://www.abbott.com.pk/Abocal.htmhttp://www.abbott.com.pk/Abozole.htmhttp://www.abbott.com.pk/Arinac.htmhttp://www.abbott.com.pk/Becefol.htmhttp://www.abbott.com.pk/Bejectal.htmhttp://www.abbott.com.pk/Bevidox.htmhttp://www.abbott.com.pk/Brufen.htmhttp://www.abbott.com.pk/Burnol.htmhttp://www.abbott.com.pk/Calcijex.htmhttp://www.abbott.com.pk/Cecon.htmhttp://www.abbott.com.pk/Cofcol.htmhttp://www.abbott.com.pk/CitroSoda.htmhttp://www.abbott.com.pk/Cremaffin.htmhttp://www.abbott.com.pk/Dayalets.htmhttp://www.abbott.com.pk/Daycor.htmhttp://www.abbott.com.pk/Dijex.htmhttp://www.abbott.com.pk/Dopamine.htmhttp://www.abbott.com.pk/Enoxabid.htmhttp://www.abbott.com.pk/Entamizol.htmhttp://www.abbott.com.pk/Epival.htmhttp://www.abbott.com.pk/Erybron.htmhttp://www.abbott.com.pk/Erythrocin.htmhttp://www.abbott.com.pk/Eryderm.htmhttp://www.abbott.com.pk/Flexin.htmhttp://www.abbott.com.pk/Forane.htmhttp://www.abbott.com.pk/Froben.htmhttp://www.abbott.com.pk/Ganaton.htmhttp://www.abbott.com.pk/Hytrin.htmhttp://www.abbott.com.pk/Iberet.htmhttp://www.abbott.com.pk/Klaracid.htmhttp://www.abbott.com.pk/Lucrin.htmhttp://www.abbott.com.pk/Lincomycin.htmhttp://www.abbott.com.pk/Loftyl.htmhttp://www.abbott.com.pk/Moculator.htmhttp://www.abbott.com.pk/Mospel.htmhttp://www.abbott.com.pk/Mospel.htmhttp://www.abbott.com.pk/Moculator.htmhttp://www.abbott.com.pk/Loftyl.htmhttp://www.abbott.com.pk/Lincomycin.htmhttp://www.abbott.com.pk/Lucrin.htmhttp://www.abbott.com.pk/Klaracid.htmhttp://www.abbott.com.pk/Iberet.htmhttp://www.abbott.com.pk/Hytrin.htmhttp://www.abbott.com.pk/Ganaton.htmhttp://www.abbott.com.pk/Froben.htmhttp://www.abbott.com.pk/Forane.htmhttp://www.abbott.com.pk/Flexin.htmhttp://www.abbott.com.pk/Eryderm.htmhttp://www.abbott.com.pk/Erythrocin.htmhttp://www.abbott.com.pk/Erybron.htmhttp://www.abbott.com.pk/Epival.htmhttp://www.abbott.com.pk/Entamizol.htmhttp://www.abbott.com.pk/Enoxabid.htmhttp://www.abbott.com.pk/Dopamine.htmhttp://www.abbott.com.pk/Dijex.htmhttp://www.abbott.com.pk/Daycor.htmhttp://www.abbott.com.pk/Dayalets.htmhttp://www.abbott.com.pk/Cremaffin.htmhttp://www.abbott.com.pk/CitroSoda.htmhttp://www.abbott.com.pk/Cofcol.htmhttp://www.abbott.com.pk/Cecon.htmhttp://www.abbott.com.pk/Calcijex.htmhttp://www.abbott.com.pk/Burnol.htmhttp://www.abbott.com.pk/Brufen.htmhttp://www.abbott.com.pk/Bevidox.htmhttp://www.abbott.com.pk/Bejectal.htmhttp://www.abbott.com.pk/Becefol.htmhttp://www.abbott.com.pk/Arinac.htmhttp://www.abbott.com.pk/Abozole.htmhttp://www.abbott.com.pk/Abocal.htmhttp://www.abbott.com.pk/Abocain.htmhttp://www.abbott.com.pk/Acyclovir.htmhttp://www.abbott.com.pk/Artifen.htmhttp://www.abbott.com.pk/Abbutol.htm -
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Nutritional products
The company provides food guide pyramid as shown below and then according to this it
provides its customers a wide range of nutritional products.
The list of its nutritional products is as follows:
1. Ensure2. Pediasure3. Glucerna SR4. Pedialyte5. Ensure Plus6. Formance7. Pedialyte8. Glucerna RTF
http://www.abbott.com.pk/Ensure.htmhttp://www.abbott.com.pk/Pediasure.htmhttp://www.abbott.com.pk/Glucernasr.htmhttp://www.abbott.com.pk/Pedialyte.htmhttp://www.abbott.com.pk/EnsurePlus.htmhttp://www.abbott.com.pk/Formance.htmhttp://www.abbott.com.pk/Pedialyte.htmhttp://www.abbott.com.pk/Glucernasr.htmhttp://www.abbott.com.pk/Glucernasr.htmhttp://www.abbott.com.pk/Pedialyte.htmhttp://www.abbott.com.pk/Formance.htmhttp://www.abbott.com.pk/EnsurePlus.htmhttp://www.abbott.com.pk/Pedialyte.htmhttp://www.abbott.com.pk/Glucernasr.htmhttp://www.abbott.com.pk/Pediasure.htmhttp://www.abbott.com.pk/Ensure.htm -
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CORPORATE STRUCTURE
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LITERATURE REVIEW
1st Research - The impact of SHRM on organizational success -
The public sector and multiple goals
Reference: http://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdf
In the article started above, it clearly depicts that strategic human resource management is of
extreme importance because it aids in the overall effectiveness and efficiency of the
organization. Moreover its also vital in achieving productivity and better results.
There was a research conducted that showed that if you employ certain practices such as
proper staffing, training, performance appraisal, provide proper job descriptions, employee
security and performance based compensation, then goals and objectives are better achieved
resulting in positive outcomes.
This research focused on 5 main things;
1. Internal Career Leaders2. Formal Training Systems3. Result Oriented Performance Appraisal4. Employment Security5. Employee Voice/Participation6. Broadly Defined Jobs7. Performance-Based Compensation
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The research was conducted in the North Carolinas county for social reforms. Strategic human
resource management and outcome assessment showed a weak relationship because they
were not a predominant feature of North Carolina counties.
The reason of this shortcoming was that public sectors play a huge role in making social
reforms, and in the North Carolina counties, the public sector had not been contributing much
because of their deficiency in practicing SHRM effectively. Hence it was concluded that
implementation strategic human resource management is of utmost importance in order to
implement goals and objectives which in return would result in better outcomes.
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2nd
Research Strategic HRM Practices and their Impact on
Company Performance From Chinese Enterprises
Perspective
Ref: http://www.shrm.org/Education/hreducation/Documents/47-1%20Akhtar%20et%20al.pdf
In the past experts have debated that human resources is important for a particular company
until the competitor cannot copy them. This research article has classified seven strategic
human resource practices that play a role towards the organizations performance. These
functions are referred as best practices which are internal career opportunities, formal
training systems, results-oriented appraisals, employment security, participation, job
descriptions, and profit sharing. The researcher in this article focuses on three aspects, first is to
measure the validity of best practices with respect to Chinese market and can these be usefully
implemented in other countries, then how effectively these practices are being applied and
third is what are results in terms of product and monetary performance.
1. VALIDITY OF SHRM PRACTICES
In the past, Chinas public owned companies dominated their production but later there was a
dramatic increase in foreign investment and organizations. This resulted in changes in SHRM
practices such as performance based reward system, market oriented staffing, labor contracts
and increased focus on social security. The validity of global strategic HRM practices to be
applied in Chinese environment can be measured by recent industrial developments.
2. APPLICATION OF STRATEGIC HRM PRACTICES
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In China, training and development is considered most crucial SHRM function by the
management of foreign owned companies therefore they tend to invest in it more than the
state owned companies. They also strongly believe that job description need to be clearly
defined as it defines the reward system for employees. Majority of companies have changed
overall performance appraisal system but few companies still consider it ineffective as they do
not have proper evaluation criteria and defined objectives for workers. To attract and retain
young graduates, companies are now focusing on creating a learning environment and
opportunities for developing careers.
3. OUTCOME OF SHRM BEST PRACTICES
The success of strategic HRM practices in foreign companies has led to reforming large state
owned companies where as the small ones are seeking to be privatized. Recently, various
studies have been conducted in China and they have demonstrated positive results in terms of
quality based on satisfaction of customers and innovation whereas financial performance was
based on ROI, growth and profitability.
CONCLUSION
As a result, Chinese market is now concentrating on developing its human capital by
considering strategic HRM as a core function to deliver knowledge culture and implementing
the HRMs functions to gain sustainable competitive advantage. The government is trying to
apply best practices across all organizations whether they are state owned, foreign companies
or their subsidiaries. The aim is not only to attract effective and efficient human capital but also
to establish a structure to manage, motivate, train and compensate with alignment to
companies strategies.
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HYPOTHESIS
H1 Strategic Human Resource Management Enhances Productivity and achieve overall
Organizational goals and objectives
OBJECTIVES
To find out how the functions of Human Resource Management are strategicallyaligned.
To see, whether, these strategic functions help organization achieve organizationalgoals.
To find out how these functions impact overall organizational performance.
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FINDINGS
Corporate & Business Strategy
Abbott Pakistan follows the Sustainability as its Corporate Strategy. Company is in its
Maturity stage.
Abbott Pakistan, according to their corporate strategy, uses Cost Leadership as its Business
Unit Strategy.
However, according to our interview, they said that they use a mixture of Cost Leadership and
Differentiation as their business unit strategy but mainly focusing on Cost Leadership to
strategically align it their Corporate Strategy
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Human Resource Planning
At Abbott, key consideration is given to innovation in almost all their business functions
because the organization is in its maturity stage of lifecycle and in order to survive in the long
term and to be better than their competitors, they keep an eye on the opportunities and make
the best use of it.
For this purpose, they plan and devise strategies with the help of cross functional teams where
suggestions and recommendations are collectively taken by different divisions and
departments, and the best decisions are implemented.
Furthermore, an attractive strategy adopted by Abbott is that employees of HR department
play dual roles. They have broad job classes. One specialized and the other one generalized.
This helps their function to align strategically and become more cost effective.
They formulate a plan every that what would they accomplish in the next 2-3 years. What the
company does is, every department sets goals on the daily basis in inclination with the targets
which they assess constantly and keeping in view the internal and external forces operating.
Therefore, at Abbott, HR revolves around strategic implementation of policies reflecting
staffing, talent management and acquisition, training and development, performance appraisal
and compensation, etc.
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HR Policies
Abbot has quite an impressive set of HR policies. They believe in open and encouraging
environment. This is the main reason that their turnover rate is quite low and below the
industry average and their HR policies is helping them to maintain this rate in future as well.
Their HR policies are strategically aligned with their corporate goal and as result they are
continuously attracting, developing and retaining their talented workers. Their main focus while
hiring is to hire such employees that ensures quality output. Therefore their policies are made
in such a way that can meet long term objective.
Abbott uses consultants for recruiting low level staff and also uses online web browser and
print media this provides them to generate larger pool and then identifies the best talent
among them.
A system called KRV is introduced recently where provides complete information about
recruitments and vacant positions and it works for Abbott globally. Employees are recruited
both internally and externally. There will be at least 2 interviews before hiring middle and high
level employees. Interview will be conducted in panel including HR representative.
According to recruitment policy of Abbott all middle and high level jobs will be first announced
on employees portal globally tries to fill it internally, the strategic aspect of internal hiring is
cost effectiveness, trust factor and such hires are well adjusted with the culture of the
company.
Other policies includes paid leaves, vacations, holidays, compensation for extra working,
medical leaves and allowance, tea and meal breaks and equal emplacement opportunities.
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Staffing
The company and its management strongly believes that along with establishing effective and
sustainable strategies, they need to recruit and select right people in order to execute those
strategies to achieve organizational goals. The aim is to achieve this fit by finding the people
with right attitude, experience and motivation focusing on four key objectives:
Look for cultural diversity, skills and talent in employees, not only in Pakistan but also acrossglobal cultures with a particular level of knowledge.
The growth of human capital needs to be in line with the companys global strategies. Provide adequate guidance and support to their workforce in terms of development
opportunities, communicating culture and values to be followed.
Reducing turnover by motivating and retaining human capital with opportunity to grow andclear cut reward system.
Recruitment
Abbott Pakistan is devoted to assist its employees achieve their optimal efficiency and build
long term progressive and rewarding careers. They tend to recruit their employees cautiously
and direct them towards learning and long term careers. Abbott being a pharmaceutical
company attracts people from medical backgrounds and has limited positions from business
fields.
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The company uses various methods for recruiting employees such as
Job posting on companys intranet External recruitment through online and print media Employee referrals Outsourcing to staffing agencies such as nRcruitment consulting, HRSI Human Resource
Solution International and TEI Consultants
On-campus for internees Have their own job and career board online- globally Succession planning
Selection
The selection process at Abbott Pakistan is usually a long and thorough as they tend to select
carefully because they want right person for the job with right skills therefore the turnover rate
of employees is considerably lower compared to their competitors. Initially for external hiring,
the screening of resumes and interview is conducted by the consulting HR companies and later
two interviews are taken by the management at Abbott Pakistan. Reliability of candidates in
terms of consistency is checked and measured at assessment and training centers.
In internal hiring employees are encouraged to apply through online portal which is maintained
and monitored globally. The past performance of candidate is evaluated against job description
to check his qualifications and skills. The company strictly follows merit based system so that
fairness and equality is maintained throughout organization.
Once the candidate is selected then management has an orientation program for them so that
they become familiar with the environment and culture of Abbott Pakistan. At Abbot, they
encourage internal hiring to align it with their strategy.
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Employee Retention
The average age of an employee in Abbott is 10 years which reflects that employees are highly
motivated and committed towards their jobs. All functions and strategies along with corporate
culture strategies motivate and help them to retain their employees. Other retention strategies
include thank you cards, birthday cards and extra ordinary performance awards from HR
department give them sense of belongings with company. The turnover rate is very low due to
such strategic retention strategies. These strategies are effective and thus help them save cost.
Managerial level vacancies are mostly filled internally though their job portal which give them
chance of promotion and development and as a result they stayed in company. Timely trainings
and development programs also helps in retaining employees.
These strategies are timely reviewed and analyzed and chance are made according to need of
time.
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Training
Training at Abbott is fully focused on transmitting knowledge to employees to work on multi-
dimensional areas with an aim to fulfill the strategic objectives of the company. Each employee
is given a goal for the future challenges ahead and to find out any gaps between job
requirement and the skills the person have and its performance. The gap is then closed by the
training provided to the employee after the assessment. Abbott pledges to provide numerous
training opportunities globally and nationally. They are focused on bringing the change in future
and ensure employee engagement.
An individual starts on the job training from the time that person is hired with regular feedback
about its performance. These trainings are conducted on a regular basis to ensure the rapid
growth of the companys business aimed at transmitting knowledge to furnish and polish
technical and soft skills of the employees. The unconditional commitment to Training and
Development has been a cornerstone of Abbotts success.
At Abbott, Talent Management is at the forefront of the company. Talent profile of all
employees is updated on software which is global. Talent profile consists of vision, strategies,
goals and appraisal of employees. The portal is flexible and time effective for both employees
and employers. It helps in promotion and identification of skills gap for which training is
provided.
At Abbott, training need is regularly assessed. There exist two types of training needs
assessment:
i) Formal Training Need Assessmentii) Informal Training Need Assessment
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Formal Training Need Assessment
Formal TNA is conducted once a year. It is done in three ways:
a) Goals SettingOrganizational and individual goals are set every year. Managers analyze the competencies
required to perform these goals. They assess employees current skills and identify the
areas in which employees are lacking and training is needed.
b) Performance AppraisalEmployees performance is formally appraised at the end of each year. If there are any gaps
identified between the job requirement and employee performance then need for training
is assessed and provided to that person.
c) Growth PlansEvery year employees are required to fill out their growth plans. Employees themselves
realize identify the areas of deficiencies. They also see where training can bring efficiency in
their current processes.
Informal Training Need Assessment
Informal TNA is conducted on regular basis. When the particular course is happening,
managers do need analysis to see if employees need training for particular course. For
example currently sales tax training was conducted and finance people showed interest.
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Further, ad hoc training needs arises as new systems are implemented. Currently Abbott is
implementing new talent management system for which training is required.
Training Need Assessment translated into a training program
After the training needs are analyzed and training is announced, on the basis of need identified,
the list is sent as request to each concerning department. Then the employees are sent for
training in particular courses.
Training DesignWhen they go for external training through for e.g. Narejo or Novartis, then such organizations
make their own training design but if the trainings are given by Abbott themselves they chalk
out their own training design.
Training HoursEvery year training sessions are planned for more than 1500hrs. At Abbott training is not
mandatory for everyone thus there is no fixed minimum number of training for any employee.
Trainings at Abbott Pakistan are given, once they assess the need. They mostly focus on internal
trainings which costs them relatively less than off-the-job training. However, these trainings
have helped company achieve its strategic goals and a place where employees enjoy working.
The absenteeism rate is also lower and skills also up-to-date to cope up with the challenges.
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Performance Appraisal
Abbot follows the following performance appraisal cycle.
1. Planning and goal making- goals are set mutually by employee and supervisor andSMART goals are made.
2. Midyear review of goals with performance- midyear review helps them to identify thegap between goals and actual performance so that employees can take corrective
measure before hand and their appraisals are not suffered.
3. Appraisal at year end- finally at year end each employees is appraised and its two wayprocess. Appraisal of each employee is updated on TMS.
Planningand goalmaking
Midyearreview
Appraisal
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Performance appraisal is done annually and results are uploaded on Talent management
system portal, which is recently introduced in Pakistan and employees required training to use
that. Hence these appraisals become part of their talent profile. Good performance adds value
in their talent profile. Performance appraisal is used as:
Controlling tool, & To identify skills gap
Good performers are awarded by bonuses whereas high level employees are awarded by
variable bonus plans, which motivate them to work for growth and sustainability of company.
They do not carry out their performance appraisal on daily, monthly or weekly basis. To
become cost leader, they have focused on mid-year performance appraisal. In this way, they
are aligning its function strategically.
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The Reward System
Abbott Pakistans total rewards program consist of base and variable pay with a broad array of
allowances, benefits and opportunities for growth and development in the future. Companys
compensation philosophy is to pay for performance. Their reward system is aimed to match
favorably with the compensation plans of other leading health care organizations and other
companies with similar financial results outside industry locally and globally. This pay-for-
performance strategy, combined with internal and external reviews, surveys and analysis helps
to align with organizations total compensation strategy to superior and sustainable overall
performance.
The total reward system is perceived competitive and fair by the employees as it is based on
external equity. Incentive plans are designed to balance short-term and long-term financial and
strategic objectives that build shareholder value and reward overall company and individual
performance. Senior managers tend to receive large amount of variable bonuses as per their
performance as their base pay is comparatively low. The company realizes the importance of
monetary and non-monetary rewards as its strategic HRM includes focus on compensation and
corporate branding.
The satisfaction of employees in terms of compensation can be analyzed by the low turnover
rate and the average working time for a single employee at Abbott Pakistan is around ten years.
The reward system is strategically aligned in the way that they are giving low base pay if
employee wants to earn additional amount they have to improve their performance and can
earn bonuses to meet external equity.
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Succession Planning
Abbott started the concept of succession planning from its very inception and it is designed in
accordance with knowledge, skills and abilities of employees. Key consideration is given to job
rotation in the sales and marketing departments so that the employees understand the ins and
outs of all the segments where they work.
Currently, they have a launched a portal which started its operation in the year 2012. On this
portal, all the profiles of employees are active and tasks are assigned on that portal by their
supervisors. This way they keep a close check on the performance of their subordinates and
hence thats how they ensure best performance. Furthermore, Abbott believes in absolute
meritocracy therefore for this purpose the process of succession planning is carried out for top
level management.
At middle level positions, no succession planning exists. They are assigned tasks as mentioned
above on the new portal system launched in Pakistan and a close check is kept on the employee
performance.
Succession Planning concentrated only to senior management and internal hiring middle-level
management resulting to become the cost effective company. They have strategically aligned
their succession planning function as well.
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FINANCIAL DATA
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ANALYSIS & CONCLUSION
By looking at the companys financial statement, it is evident that the company has been
generating profits at the end of every year. Moreover, liquidity of the company has improved in
2011 as compared to existing years. Hence, after analyzing the operations of the company, it'd
not be wrong to say that they been able to achieve the profitability they require.
According to our findings, all the functions are almost linked to their cost leadership strategy of
the business unit. Their corporate strategy is Sustainability which they have implemented quite
effectively through their business unit strategy. All the functions are strategy aligned.
We can conclude from the fact that, company has been profitable due to successfully aligning
its functions to the overall company strategy. Thus, we accept our Hypothesis through our
findings that, Strategic Human Resource Management impacts overall Organizational
performance.
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7/29/2019 Abbott Final
31/31
REFERENCES
1. http://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdf
2. http://www.shrm.org/Education/hreducation/Documents/47-1%20Akhtar%20et%20al.pdf
3. http://www.abbott.com.pk/ 4. http://www.abbott.com.pk/pdf/AnnualReport2011.pdf
http://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdfhttp://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdfhttp://www.shrm.org/Education/hreducation/Documents/47-1%20Akhtar%20et%20al.pdfhttp://www.abbott.com.pk/http://www.abbott.com.pk/http://www.abbott.com.pk/pdf/AnnualReport2011.pdfhttp://www.abbott.com.pk/pdf/AnnualReport2011.pdfhttp://www.abbott.com.pk/pdf/AnnualReport2011.pdfhttp://www.abbott.com.pk/http://www.shrm.org/Education/hreducation/Documents/47-1%20Akhtar%20et%20al.pdfhttp://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdf