Running head: TRANSFORMING HUMAN RESOURCES AT NOVARTIS 1

Transforming Human Resources at Novartis: The Human Resources Information System

Vanessa Anguiano

Southern New Hampshire University

OL-667 Human Resources Information Systems

April 9, 2017
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What are the major challenges facing the Novartis HR organization in the implementation

of the HRIS (technical, organizational, managerial)?

Novartis faces several challenges as a global organization operating within multiple

socioeconomic environments and cultures. There are numerous technical challenges to be

overcome, however, the organizational and managerial solutions may be less straightforward.

Technology in a sense is easier to modify, as machines and software run as programmed. The

human element is more challenging due to each individual’s interpretation of policy and

procedure, which can further be influenced by each business unit’s location.

Technical Challenges

After the merger of Ciba-Geigy and Sandoz, Novartis suffered from a lack of

standardization of HR data. Prior to the merger, locations within both companies featured

different systems of varying capabilities, or featured no HRIS at all. The lack of a consolidated

database results in challenges providing consistency and proper data support in employee

tracking and onboarding (O’Reilly & Wang, 2004).

Organizational Challenges

As integration occurs, based on location and previous business practices, business units

may want to maintain their own ways of doing things, deviating from the mandated company

procedures. And because constant communication is needing during the integration of an HRIS

and during a merger, there is the danger of miscommunication in the global environment.

Communication varies based on culture and even communities, so the challenge is found in

ensuring the message communicated is the one that is received, allowing for a smoother

implementation of a cohesive HRIS and uniformity of policies and procedures (O’Reilly &

Wang, 2004).
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Managerial Challenges

Successful integration of an HRIS directly involves management commitment to keeping

a project on track. Global integration takes time, and without leadership involvement the project

could stall. Management faces the challenge of keeping employees engaged in the learning about

the oncoming changes as well as appropriately managing expectations for the new system so as

not to oversell its capabilities. Further, once integration is successful, it falls to Novartis’

leadership team to accept HR in a more strategic role and take advantage of all HR competencies

(O’Reilly & Wang, 2004).

Why do these systems sometimes fail?

Leadership

For the implementation of an HRIS, a project manager should be chosen to lead to focus

solely on the successful application of a system. As an expert in the proposed HRIS, some

companies choose to rely on the software vendor. If installation of a system is led by the HRIS

vendor, there may be a difference in priorities that results in conflict and slow implementation.

The vendor is in most cases very familiar with the HRIS, but not necessarily with the company

(Rietsema, n.d.).

Poor Planning

Proper planning of an HRIS implementation project can be key to a successful project.

Creating a detailed timeline can make the project move faster, saving both time and money as

budgeting and business needs and possible shortfalls are anticipated (Rietsema, n.d.).

Inaccurate Data Entry

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Data transfer is central to making use of an HRIS, but if the data is inaccurate, the system

becomes worthless. Rushing the data entry or technical setup of a system can cause system

failure and waste valuable time (Rietsema, n.d.).

Lack of Communication

Not receiving input on system needs prior to implementation can be inefficient if the

HRIS chosen by leadership does not meet the needs of each business unit. Communication is

necessary with proposed change, and oftentimes is thought of as employees receiving

communications from leadership. To successfully manage change, leadership needs employee

feedback to ensure business vision is being executed fully, and employee buy in is present

(Rietsema, n.d.).

Given these challenges, what are the major obstacles and what will it take to overcome

them?

Time

The initially cited timeline of two years for total integration of the new HRIS may prove

difficult in a global environment. Trees Segers, the Global HRIS program manager notes the

potential for resistance to change in each location, as employees may not look forward to

performing their HR tasks differently. Novartis has taken the initial step in navigating this

obstacle in the form of building a guiding coalition knowledgeable in multiple business areas to

lead the change effort. With a group well versed in leadership, communication and system

implementation skills, overcoming project resistance in a short amount of time should be

possible (O’Reilly & Wang, 2004).

Communication
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Overcoming communications challenges will be an obstacle based on the number of

countries involved in the HRIS project. With over 70,000 employees in 140 countries, effectively

communicating the importance of having a fully integrated system, as well as policies and

procedures to guide the use of the new HRIS will be a project unto itself. To address this

challenge, the Global HRIS program team should carefully observe cultural customs prior to

communicating with other offices to ensure a more congenial encounter. The more someone feels

as if their culture is respected, the more cooperation they will extend (Brown, 2010).

Given a successful implementation, how will the role of HR be in the future? How will it be

different from today? What competencies will be needed by HR professionals?

Strategic Partners

With a significant reduction in administrative workload, HR will have more time to work

within Novartis as strategic partners, but with successful implementation of the HRIS HR faces

the challenge of overcoming stereotypical negative views of their job function. Overcoming

those stereotypes will be somewhat dependent on support from leadership as they look to HR to

engage more in further developing business plans. Ideally, HR professionals will demonstrate an

understanding of business and industry dynamics and be able to apply HR functions around the

Novartis business model, anticipating and solving problems in conjunction with each business

unit’s needs (Gurchiek, 2011).

Competencies developed with the goal of becoming a strategic partner should focus on

supporting the business as a whole. HR partners should be credible activists, culture stewards,

organizational designers, strategy architects, business allies and operational executors. These

roles directly impact the success of an organization, without focusing on what is thought of as
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traditional HR functions (Grossman, 2007). Demonstrating these competencies will place HR as

a strategic partner and change agent within Novartis.

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References

O'Reilly, C. A., & Wang, I. (2004, January 14). Transforming human resources at novartis: The

human resources information system (hris). Retrieved from

https://cb.hbsp.harvard.edu/cbmp/content/62863490

Rietsema, D. (n.d.). Top hris implementation mistakes to avoid. Retrieved from

http://www.hrpayrollsystems.net/top-hris-implementation-mistakes-to-avoid/

Brown, J. (2010, August 12). How can cultural differences affect business communication?

Retrieved from http://smallbusiness.chron.com/can-cultural-differences-affect-business-

communication-5093.html

Gurchiek, K. (2011, June 27). Take a good look at strategic hr. Retrieved from

https://www.shrm.org/hr-today/news/hr-news/Pages/takeagoodlookatstrategichr.aspx

Grossman, R. J. (2007, June 01). New competencies for hr. Retrieved from

https://www.shrm.org/hr-today/news/hr-magazine/pages/0607grossman.aspx