Professional Documents
Culture Documents
ABSTRACT
Aim: The aim of this paper is to analyze the impact of human resource management of the
Introduction: The main purpose of this study is to give companies, from the pharmaceutical
industry, a view of their HRM from the standpoint of an employee. Methodology: The main
instrument for data collection is the quantitative survey which was conducted and primary
data was gained and analyzed with descriptive statistics. The Likert scale (1 to 7) was used in
the satisfaction determination process. The survey was successfully fulfilled by 118 people.
survey was conducted online in the cross sectional time frame in the beginning of the first
quarter of 2016. The participants answered, anonymously, questions about their overall
satisfaction, positive and negative sides of HRM and human resource development in the
company. The results: The data collected from this survey were statistically analyzed and the
Coefficient, at =0. 05 level of significance, confidence level were the null hypothesis (H 0)
was confirmed, and concluded that there is a correlation between the success or failure of
HRM and the working behavior of employees. Conclusion: The HRM department in the
pharmaceutical industry in not enough developed and need to be improved. They give the
workers' new equipment, teach them how to use it, they are offering educational classes to
improve their performance, but the company managers dont take into consideration the
emotional satisfaction level of employees. Their strategy should be oriented towards the
improvement of the interpersonal relations between employees, and a more social company
politic where the satisfaction of their employees should be a priority. That could lead to more
motivated employees.
I. INTRODUCTION
In establishing and building a business first come business management issues such as
customer acquisition and market presence in the foreground, but the internal development of
the enterprise is not considered a priority. Competitive and stable business development
management tool is the basis for such a structural development. Key elements of the human
resources management are creating and designing of a framework for optimized working
conditions of development perspectives for the employees and the promotion of employee
skills as a prerequisite for making the best use of human resources. According to Becker and
Huselid (2006) the construction of human resource management is not about the
implementation of a "perfect" and detailed system, but to create a basis that takes into account
the overall development of the company and builds on each other in their elements. In the
individual instruments and aspects of personnel management, the common mission of the
Staff Management examines the conditions under which staff is employed in work-sharing
activities. The aim is to meet both the needs of the company and the interests of the
employees. This result in a goal braid developed environmental with generally accepted social
goals of the company and individual goals of employees which must be considered in order to
investors, who are interested in efficiency and profitability. To achieve this, companies need
with the other factors of production it is possible to achieve efficient use of human resources.
Whether the use is efficient depends on whether the staff required for the performance in real
recognize the profiles required and to act accordingly on the internal and external labor
market. Efficiency refers, however, in itself also on the increase in labor productivity of each
employee. It is all about the willingness of the employee to optimize their own performance
review.
In today's science and practice, there are a variety of terms which refer to the operational
function that deals with the human aspects of a company. It is generally understood, by
personnel management, the design and control of personnel management tasks and problems.
Experts define personnel management as segments that deal with the human aspect of the
system, its design and process control. The former includes the design of systems for the
control of behavior and conditioning, while the latter includes the management activities and
For the purposes of system design personnel management takes lead activities for the
staff, by rules and conditions which were created and who regulate the procurement, training,
transfer, wages etc. of employees. By contrast, personnel management as behavioral control is
equivalent to the management of staff. The staff is under the leadership of the supervisors.
The term "personnel management" can now be used both in the institutional, functional and in
(2011) explains, the organization is seen as a system that includes both humans and machines
as elements of the production and the fulfillment of personnel management tasks is equally
distributed.
The personal-information management tasks, such as: Pay slips, recruitment and
exemptions, the keeping of personal files and information of the works are carried out as part
of a central personnel administration. The responsibilities for the performance of tasks within
the company may be regulated differently and depend mainly on the organizational tasks.
From the standpoint of the division of tasks we can also speak of a dual sponsorship of HR
activities, therefore, as personnel management activities which are not only carried out by the
central personnel department, but it is also the responsibility of executives falls with staff
competence.
Personnel management as a function includes all areas / functions that are connected to
people in organizations. The individual staff functions (e.g. as recruitment, deployment and
retention) are not seen as detached elements of human resources management, but they are
mutually interdependent in relation to other functions of the system and the subsystems that
With a focus on the value-adding process the task is to ensure that members of a company
administration have duties and that intangible flows are regarded as services and as value-
considered separately, but as a set of steps that will lead to a desired result.
II.1. Development of the Human Resource Management
Until the early 60s staff was hardly involved in the strategy development. The duties of
the personnel departments were essentially limited only to the management and to people on
administrative and operational functions. With the "institutionalization" in the mid-60s for the
first time was the concept of "personnel management" in circulation. The staff played a more
substantial role. Personnel work was centralized and professionalized to be human and
resource managers have specialized staff functions. As a central key factor man was in the era
of "humanization" from cca. 1970 with his needs, feelings and values.
While so far the staff has been adapted to the organizational requirements, the principle -
management was aligned by employees. Since the '80s, in the time of "commodification",
dominated the strategic alignment of human resources. As shown by MacKenzie, Garavan and
Carbery (2014) the two factors "organization" and "stuff" - driven by market pressure - have
The U.S. Office of Personnel Management (1999) explained that the task of the staff
organization is not in the isolated optimization of individual staff functions, but in the holistic
which has to be based on the company's objectives. Experts have defined the following
Transparency: The staff organization has to define the tasks and competencies of the
problem in the power process, there needs to be a responsible and competent contact
person.
Flexibility: The organization should have a high degree of adaptability of human
interfaces in the internal performance process, thereby eliminating the wasting of time
individual results.
Networking: The staff organization must allow rapid exchange of information
between individual personnel management tasks and areas of competence, so that the
organizational units and their staff must be identified and communicated by the
Due to the ever faster changing and growing professional requirements, more and more
lifelong learning is expected today. In fact, companies that received particularly good
management say that they use more of targeted and planned development of their managers
and other qualified employees, which increase the responsibility of positions, create special
jobs, provide in-house and external training programs, to enable employees between
functions, divisions and countries, to have mentors and coaches to give them feedback on
their development progress and show them how they can make their own development.
After all, many organizations support their employees in their development activities,
According to Gibb (2006) PD refers to all efforts of an organization serving to improve the
professional skills of their employees. The goal is the development of the professional
competence of all personnel groups, to get the skilled workers and managers. Haslinda (2009)
has done a research and concluded that the extension of competence, often divided by (a)
technical and methodological expertise, (b) social competence and (c) personal competence
should enable the employees to understand the increasing complexity of their professional
staffing;
Task and requirement analysis - which identifies the need to handle future tasks, to
However, Wright (2008) explained that such requirements planning efforts can be
unexpectedly thwarted by acquisitions and mergers of companies. They must then be replaced
by ad hoc measures to the urgency before they can determine requirements for a period of
consolidation again.
III.1. Human resource development "ON THE JOB"
By processing more varied tasks, the joint structuring and solving problems in working
groups, identifying critical success behaviors of colleagues and supervisors, the knowledge in
Ultimately, the HR Council (2009) made a statement that it is about the creation of
A) The action control theory, which seeks to overcome the separation between thought
and action and learning, conceives as purposeful action that is based on the
assumption that the acting subject, the expected results of his actions are anticipated to
base on these objectives steers and control the execution of the action itself.
B) The concept of work-immanent qualification that sees learning in the work process as
are interesting "training opportunities" (new work contents and structures) and
must be met.
C) Constructivist approaches of instructional psychology take learning as a constructive
process. One would like to get away from the predominantly passive-receptive
adequate transfer what they have learned on various application situations result.
PD "off the job" includes all measures that are generally subsumed under training. To
games, case studies, computer-based learning systems, team training, group dynamics training
All of these methods are only blocks that can be used in all sorts of thematically different
Viitala (2007) there are priorities: "Hard" factual knowledge (like handling of new
simulations, case studies and computer-assisted learning systems and "soft" factors (such as
facets of social skills or leadership skills) are more likely to be developed through team
training, group dynamics training programs, role playing and behavioral modeling exercises.
The pharmaceutical industry is very complex. It is in the modern era defined with
technologies related to medicament discoveries and further development within the limits of
human knowledge. The enormous size of the industry and the complexity of the process and
technology are major challenges for the organization and management. Development and
distribution systems are very expensive. Performance in managing all aspects of the industry
is a necessary condition for the survival of global pharmaceutical companies. This industry is
the largest in the world, because the world total revenue is about 900 billion US $. Tootelian,
Wertheimer and Mikhailitchenko (2012) concluded that it went through several significant
changes in recent years related to new investors, producers and consumers. Customers now
demand the same choices and benefits from the pharmaceutical industry that are found in
other industries.
The global pharmaceutical market has experienced strong growth during the period from
2006 to 2010 and has further increased from 2010 to 2015. The value of the global
pharmaceutical market will grow by 5-7% in 2016 to 980 billion US $, compared with 4-5%
in 2010. It is expected that the performance of the market to accelerate the estimated average
annual growth rate of 6 % for the five-year period 2015-2020. That will lead the market to a
The largest market in the world, the United States, grow by 3% to 5%, and sales of
pharmaceutical products reach between 320 and 330 billion US $. The European market is
growing by an average annual rate of 3.2% to the corresponding value of 250.3 billion US $
in 2015. Developed countries - Germany, France, Italy, Spain and the United Kingdom,
Europe's five major markets, have an average spread of 1% to 3%. The Asia - Pacific market
grow by an average annual rate of 8.4% over the same period, corresponding to the value of
274.8 billion US $ in 2015. China, one of the leading markets in the region in 2015 had a
growth of 20% to over 50 billion US $. The Japanese market has a growth from 5% to 9%.2
The total value of the world's pharmaceutical market has from 2011 to 2015, a constant
growth with an average of 6% in respect of any previous year. At the end of 2015, the total
value amounted to almost 900 billion US $. The pharmaceutical market segmentation can be
extracted into six regions. These are South and North America, East and Western Europe, the
Asia-Pacific region and the Middle East and Africa. The largest shares of 44.6% of the global
pharmaceutical market are the United States, while Europe takes up 29.2% of the global
market. In the Asia-Pacific region, the leaders are Japan and China, as the leading
manufacturers of pharmaceutical products and medical devices, while the region of the
Middle East and Africa accounts for only 1.3% of the worldwide pharmaceutical market.3
1
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
2
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
3
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
IV.2. Global expenditure for pharmaceutical products
Global annual expenditures for pharmaceutical companies are predicted to achieve 1,000
billion US $ in 2016. The largest contribution to this growth will give pharmerging, biological
and generic markets. In developed markets - the US, EU and Japan, expenditures will decline
to 57% share in global expenditure in 2016, as opposed to 2006 when they amounted to 73%,
due to the expiration of the large number of patents, slower growth in spending on original
medicaments and increased living costs consumers. Pharmerging market will reach 30% of
global spending in 2016 due to increase in population and economic power in these countries.
Pharmerging markets recorded the highest growth in China. Pharmaceutical products for the
treatment of 20 leading authorities at the forefront of cancer, diabetes and asthma, will cover
Since the earliest times, medicaments have played a major role in the treatment of diseases
and influence the improvement of quality of life and its continuation. Each person is expected
to have access to safe, affordable and effective medicaments, the latest technological and
biomedical advances. The pharmaceutical industry, based on research and development, gives
the outstanding contribution to finding and developing of new medicaments. Thanks to new
medicaments, today is successfully treated infectious hurts, some forms of cancer, heart
diseases, nerve disorders, asthma, hypertension and AIDS. The Pharmaceutical market in
Bosnia is one of the least developed markets in Central and Eastern Europe. The value of this
4
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
5
Pharmaceutical Commerce, http://www.pharmaceuticalcommerce.com/, Last accessed: 12.02.2016.
In the coming period it is expected to accelerate the development of the pharmaceutical
market in Bosnia. The main reason is the tendency of states to join the European integration.
To obtain a license for the introduction of a medicament on the market, there has to be
preceded legislations with respect to specific provisions to protect patents and intellectual
property rights. According to the ownership of the patent for the original medicament,
developed on the basis of new substances, the pharmaceutical industry is divided on the
entirely dependent on patents and these companies are focused on the protection of generics
(protected or unprotected stamp). Innovative companies are investing large sums of money in
research and development of new medicaments. From finding new substances to the
assets and invested profits in the research of new medicaments, producers need to pay special
attention to patent protection of their inventions. The patent is valid for 20 years and in that
period, generic companies are not allowed to produce generic copies. The generic industry is
engaged in the production of medicaments for which the basic patent protection expired.
Upon expiry of a patent, generic company marketed medicaments are equivalent to the
original medicines, and have from 20% to 90% lower price than the original. The Bosnian
They contain a completely new active substance which significantly affects the increase of
covering the therapeutic indications for which there are no other alternatives, and when they
substance and are applied for similar indications. Their biological equivalence in relation to
the reference medicinal product has been demonstrated by appropriate tests bioavailability, in
accordance with the law regulating the field of medicines and medical devices. Similar active
substances are considered to be generic medicaments with different salts, esters, ethers,
isomers, mixtures of isomers, complexes or derivatives of the substances, unless they do not
significantly differ in their safety or efficiency. Equally quality and harmless as the original
medicines. They cannot begin to produce it, only after the original medicament patent
protection expires. The price of generic medicaments is much lower than the price of the
original medicament because the initial, basic and clinical trials do not have to be repeated,
the cost of such a medicament manufacturer is lower than the cost of production of the
original.
The original medicament is a medicament that was first approved for marketing in the
world on the basis of complete documentation for efficacy, safety and quality of the
active substance formed in an appropriate pharmaceutical form. They are copyright protected
and are the property of the company which is the holder of the patent. After the original
medicament, or active substances, patent protection expires, other manufacturers can use this
V. SURVEY ANALYSIS
For every company in the world, the most import assets are the employees. In companies
which work in the pharmaceutical industry, it is especially important that the workers have a
healthy environment and that they are satisfied with their work. A satisfied worker is not only
working for his own benefit, but also for the benefit of the company.
This survey will analyze what the segments are in which employees in pharmaceutical
companies are not satisfied. With these results companies can change their company politics
and adjust them to be better for employees and so boost their production.
To analyze the results the Likert scale system is used. With this method we can determine
the satisfaction level of respondents and with that conclude results which can help companies
To conclude results from the survey, a few core variables need to be explained firstly in
accordance to fully understand the purpose of the survey about the effects of Human Resource
dominated.
2. HUMAN The enormous growth in the importance of human
resources has meant that personnel management has
important.
progress).
4. HUMAN The continuous change of the companies leads to a
formulation of objectives it is one of the basic functions of business. To that effect, it is argued
that the market value of a company or the value of the assets of the shareholders (shareholder
value concept) have to form the reference point for entrepreneurial actions. The organization
target is generally defined as a desired state which the organization wants to achieve at a
future date.
strategic management:
strategies
Depending on the level for which the strategy is to be valid, we have a distinction:
strategy
V.7. Functional area strategies: marketing, finance, human resources strategy
functional area strategies define the basic objectives and measures of functional areas
Overall strategic planning aims the stock and the profitability of the company, to ensure
durable by securing and building long-term defensible competitive advantages, which lead to
above-average returns. Strategic planning promotes and systematized thinking about the
The planning, implementation and control of basic courses of action are the earlier
deployment, the maintenance, the use or the degradation of human potential. With regard to
help to support the provision of services within the company, and they to specifically ensure
that the staff needed at the right time is provided in the right place. These demands have led to
the formulation of a target system for personnel management. The success of organizational
and management measures in the personnel area is identified based on two principles:
The pure alignment to only one principle is unlikely to be successful. Both efficiency
criterias must meet. The non-recognition of social-psychological efficiency can further have
the effect that customers and employees do not accept the company completely, productivity
decreases, difficulties in recruitment occur and the company will suffer a loss in total of
efficiency.
increase in labor productivity. Finally, an increase of this factor almost inevitably leads to
higher profits. Companies should instead ask themselves if they have created the conditions
for positive work in the company. Only so employees can work productively. Simple rule: If a
One way how to motivate employees to work more productively, is technical improvement
This requires investment in better equipment, because it is a major driver for increasing
productivity. But it is not sufficient to only install the software on the computers. It is
important to ensure that the employees learn the different options offered by the new software
What sounds theoretically logical is often forgotten in practice. Many practical functions
of the software are simply not used out of ignorance. Small improvements in the flow can
Leaders should not lose the micromanagement, which means to sit down individually with
each employee to explain the benefits of the new software, machines and strategies. A good
alternative to expensive, external training is that employees introduce new improvements each
other and work together on further measures for productive work in regular meetings. People
are creatures of habit, so they like to keep as tight unproductive patterns. However, regular
improvement rounds can help ensure that the employees, supply each other with tips and so
the objectives, content, methods and media personnel developments. Heterogeneous teams
and virtually organized core and peripheral workforces are specifically prepared by education,
every employee needs to do. The research has to deal with the phenomena lifelong learning
and diversity as well as the virtualization and progressive dissolution of the company as a
legal, economic, social and local unit. Competency based work, learning, connecting,
the supervisor in businesses and public administrations for their direct employees. Everyone
must take their employability active and responsible in their own hands with the appropriate
staff development. Personal development is and remains a companys task that is shaped by
development is always an engine of progress of the company and guarantees the personal
In the modern era of globalization where everything is digitalized, the best way to conduct
a survey on this topic was through the internet. The survey was conducted online and was
targeted to companies which work in the pharmaceutical industry. The survey had 118
respondents who were mostly females between the age of 30 and 44 with 4 to 7 years of
experience in the pharmaceutical industry with a bachelor or master degree. They are medium
level employees which means that they know best how the HRM department is working and
what they are doing in the company and for the employees.
The main purpose of this survey was to show where the HRM needs improvements and to
show the overall satisfaction of employees in this particular industry. The results show that the
working environment in companies in this industry is good, but the HRM department isnt
paying much attention to the satisfaction of their employees but are focused on the production
development and profit maximization. The main point is that the employees want the
company to take their suggestions and opinions into consideration and with their help try to
Title of the
# Authors Brief description of the article
article
1 Brian E. Becker and Strategic
company.
Thomas N. Garavan, Financial and fault of persons who are not doing their job
and Ronan Carbery Economic correctly. In this article the author analyses
employees.
4 U.S. Office of Strategic
Personnel Human
of human
years.
7 Patrick M. Wright Human
Resource
Strategy -
Adapting to the
age of
is explained.
In his study, Dr. Stephen Gibb, gave us
and David P. Essentials for new working staff comes almost every day,
V.10. Results
V.10.1. Demographics
This data gives an overview of the respondents. Variables which were included are,
gender, age, education level, years of working experience in the pharmaceutical industry and
their current working position. The survey has mostly female respondents (78%), which are
between the age of 30 and 44 (69%), with 4 to 7 years of experience in the pharmaceutical
and considering the current economic situation in the company they will do anything to stay
in their positions and to have a job. The respondents agree that their working environment is
good and acceptable. The fact which they cant agree or disagree is about the salary, which
they get considering the amount of tasks which they do. The workers know that the pharma
company in which they are working is selling these medicaments into other countries with a
huge profit, because the working force there is more expensive. The fact with which almost
everyone from this industry agree is that the salary is always on time and that the treatment
there is good because they know that their success is depending on their human capital.
The Human Resource Management department can have positive and negative sides. The
respondents slightly disagree that if they have a problem that the HRM department will
immediately solve their problem. They are also not satisfied with the fact that their company
is not organizing seminars to give them informations about their right in the company. Such
informations are strategically not given to employees so that they dont know what their
rights exactly are. In this company every employee need to be strictly educated and because
of some reasons the HRM department is not always employing fully qualified staff. They
dont care about the satisfaction level of the employees in the company and they dont give
reports to workers about the changes that are happening in the company.
Human resource
Std.
Nr. management positive sides N Mean
Deviation
( Mean = 2,54)
When I have a problem I can 118
solve it immediately.
The HRM department is 118
in the company.
The HRM department is 118
department.
5 This department analysis 118 1,97 1,054
When the HRM department is not working correctly if affects the workflow and is
generating less profit for the company. When a problem occurs, it need to get through all
relevant management stages so that it can be analyzed, but this process is slow and in the
meantime the problem could have grown. Also, if employees complain about problems inside
of the company they can have consequences and because of that many of them are afraid to
say anything, instead they try to fix it by themselves. The HRM is working for the benefit of
the company and not for the benefit of the employees. They are not investing into the
Human resource
( Mean = 5,42)
Problems are not solved 118
employees.
The HRM department is
the company.
Source: Author, 2016
One segment in which the pharmaceutical industry is developed is the technical segment.
They are almost always buying new equipment and they train employees how to handle them
which our participants are working are organizing meeting, but they are not focusing on
suggestion of regular employees how to improve the production. The positive thing is, they
are offering employees the opportunity to visit educational classes to improve their
educational level, but these classes are not free. It is not always guaranteed that the salary will
be bigger with the rising of the educational and specialization level, but in most cases it is so.
Table 7: Human resource development
productivity.
The HRM department is
changes.
Every employee has the
educational level.
With the rising of the education
skills, there are many things that can an organization do to promote employees with potential,
but only if the candidate in question is in a particular way even willing and able to develop.
The main responsibility for the successful development of its competence lies with the
individual candidates themselves in the area of personal development which through which he
increasingly important. Companies should be well advised to raise the learning itself, which
becomes a basic discipline of their training and development programs. After all, even the
recently.
In addition, we need to understand more about the potential that development of staff
means for the performance of the company. The performance of a candidate: his attitudes,
values and willingness, which can be seen as a potential for identification or identification
development. The organization has to fit the employees into the system of the company which
may not be in conflict with the organizational values at least. Companies should put renewed
emphasis on values, morals and integrity - except of course on the job-related requirement
characteristics. They need to realize that the selection and identification, promotion and long-
term commitment of talent is increasingly becoming a critical success factor of companies and
other organizations.
Companies need help channeling their further development in the direction of relevant
and good results are essential for survival. It is much easier and cheaper for companies to
invest in the development of one worker instead of hiring 2 additional workers with no
experience.
REFERENCES:
Financial and Economic Crisis: Did HRD Play a Role?, Publisher: SAGE
3. Dennis H. Tootelian, Albert I. Wertheimer and Andrey Mikhailitchenko (2012),
Management Standards,.
6. Ian Henderson (2011), Human Resource Management, Publisher: CIPD
7. Patrick M. Wright (2008), Human resource strategy: Adapting to the age of
Sciences
9. Shane P. Desselle and David P. Zgarrick (2009), Pharmacy management:
Mission
APENDIX
SURVEY
For each numeric question, circle the number that best reflects your opinion of the factor
Demographics
a Gender: Male Female
b Age: 18-29 30-44 45-59 60
c Highest education level: PHD Master Bachelor Other
d Years of experience in the pharmaceutical industry: less than 1 yes 1-
time.
An employee can have consequences if he/she
b 1 2 3 4 5 6 7
complains about problems.
The HRM department only acts if they a benefit for the
c 1 2 3 4 5 6 7
company and not for the employees.
The HRM department is doing nothing to improve the
d 1 2 3 4 5 6 7
interpersonal relations inside the company.
Please indicate your level of agreement about the
these changes.
Every employee has the opportunity (if he/she wants)
educational level.
With the rising of the education and specialization level
d 1 2 3 4 5 6 7
the salary is equivalently rising.
The HRM department is focused on the establishment
employees.
Source: Author
Part II: Please add here any positive /negative comments regarding the issue