Human Resources Report on Smith Kline Beecham [Pakistan]
Human Resources Report On Smith Kline & Beecham ( SKB)
Smith Kline Beecham was among the first Pharmaceutical companies which started its operations in the newly established Pakistan in 1949 and today it is among the leading healthcare companies of the country. SB manufacturers and markets quality products which are saving and improving the lives of millions of people around the country, putting their vision of “striving to make people’s lives healthier” into actual practice.
The product range includes life saving antibiotics, gastrointestinal products, vitamins, cardiovascular products, oncology products, anti-virals, anti-malarials and haematinics, as well as leading consumer brands. SmithKline Beecham recognizes that vaccination can often mean the fight of life to a child. That is why SB has grown to be the world’s largest vaccine company. In fact, 25 doses of SB vaccines are distributed every second of every day tHuman Resourceoughout the world. SB is the primary supplier of Polio Hepatitis B vaccine to the World Health Organization, UNICEF and other international health agencies.
SmithKline Beecham Pakistan’s strong commitment to the community is reflected in various charitable projects, such as the support SB provides to the Trust for Health and Medical Science Hospital, Landhi – a hospital which provides treatment to more than 100,000 people every year. Its philantHuman Resourceopic focus is on Health Education and Mobilization.
SB Pakistan also takes pride in being the pioneer in health education campaigns in partnership with organizations like the Pakistan Medical Association. SmithKline Beecham is committed to be the benchmark for best practice in the Pakistan Healthcare Industry ensuring that SB is the company people trust with their healthcare needs.
As one of the world’s leading healthcare companies, we provide products and services that promote health and well-being tHuman Resourceoughout the world. With corporate headquarters in London and U.S. headquarters in Philadelphia, we are dedicated to the research, development, manufacture and marketing more than 400 healthcare products and services worldwide.
The SmithKline Beecham Values
SmithKline Beecham’s strength and success lies in their Values, as defined in the Promise. Values must be reflected in every decision they make . . . major or minor, strategic or operational. The five Values are:
- Customer: To achieve full customer satisfaction.
SB is customer-driven. They strive to provide products and services superior value to meet the expectations of the internal and external customers.
- Innovation: To be one step ahead of the competition.
SB constantly strives to be creative and innovative in all its endeavours. All SB employees are encouraged to bring forth new and better ideas for improved performance, whatever our responsibilities.
- Integrity: To be a team people trust.
SB demands openness and honesty tHuman Resourceoughout its operations to engender trust, and integrity underscores everything they do. They believe that every activity must be able pass the test of public and internal scrutiny at all times.
- People: To be the best place to work for the best people.
SB employees are all partners, working together in the pursuit of the SB mission and strategy. They strongly value teamwork, and want every employee to be motivated to succeed.
- Performance: To be the benchmark for success in the pharmaceutical industry. SB is performance-driven. SB continuously aims to improve in all that it do:
- scientific excellence,
- commercial expertise,
- operating efficiency — developing and delivering products and services that add value, in global healthcare and for its shareholders.
The Promise of SmithKline Beecham
At SmithKline Beecham, healthcare — prevention, diagnosis, treatment and cure — is purpose. THuman Resourceough scientific excellence and commercial expertise SB provides products and services tHuman Resourceoughout the world that promote health and well-being.
Sources Of Our Competitive Advantage :
The sources of competitive advantage are the energy and ideas of the people. SBs strength lies in what it values:
At SmithKline Beecham, the people have a purpose of working together to make the lives of people everywhere healthier, and striving in everything they do to become The ‘Simply Better’ Healthcare Company, as judged by all those they serve:
- The global community
THE WORK ENVIROMENT:
- Open, with a free exchange of ideas.
- Supportive, where rewards are linked to personal performance whenever possible.
- Creative, often the result of a risk-taking mindset that is encouraged. Challenging.
- Open-minded, where they truly appreciate the differences in their people & the diversity of their strengths.
The world’s best talent has every opportunity to achieve at levels beyond the ordinary because of certain guidelines, values and philosophies that influence and direct the daily activities at SmithKline Beecham.
The strength of the employees is reinforced by personalised and ongoing training and development programmes, integrated into a framework of solid support and resources. As a result, their contributions are what create SB’s continually growing success.
The Philosophy: Work Ethic 1
The SB philosophy is quoted below:
‘Simply Better’ is the way we live at SmithKline Beecham, as expressed in the Promise and by our Values and Leadership Practices. It embodies all that we are striving to be as a company and as individuals. It is what we believe in and value as a company.
The ‘Simply Better’ environment values and supports customers, innovation, integrity, people and performance, and tHuman Resourceough nine Leadership Practices, defines the day-to-day behaviour of employees to reflect these values.
The Philosophy: work ethic 2
‘Simply Better’ Way
This philosophy is quoted as it is described on the SB’s website: www.sb.com
‘Simply Better’ Way . . . the way we work at SB, is aimed at becoming world class and maintaining competitive advantage; it also reflects our culture, as expressed by our ‘Simply Better’ Values and Leadership Practices. Our Core Concepts — the foundation of ‘Simply Better’ Way — are reinforced tHuman Resourceough daily involvement of everyone, everywhere, working individually and as team members.
The Core Concepts are:
- Customer Driven Quality
- Process Thinking
- Management by Facts and Data
- Eliminate Waste / Value-Added Work
- Continuous Improvement
The ‘Simply Better’ Way is SB’s blueprint for achieving success — the foundation of its efforts to continuously improve its performance. Focusing on a disciplined approach to standardising, measuring and improving its work, ‘Simply Better’ Way helps the organization to effectively and efficiently create and deliver products and services that exceed the customer’s expectations.
In the process of helping SmithKline Beecham to be more successful, it enhances job satisfaction for each of the employees, and increases shareholder value as everyone works together towards challenging goals.
Combination of “simply better” and ” simply better way”:
SB believes the combination of ‘Simply Better’ and ‘Simply Better’ Way is a world-class approach to managing a company and making the most of the knowledge, skills and abilities of all of its people. Together, they are creating a ‘Simply Better’ work environment where each of them feels their full potential can be realized, where they know their creative ideas are valued and their achievements recognized, where they share a commitment to excellent performance, and where they have a strong sense of teamwork, belonging and job satisfaction.
SmithKline Beecham is people — more than 56,000 worldwide. It is these people who are the key to the current success and to the success of their strategic intent: to become the global leader in healthcare. To that end, every day is significant, and every activity a contribution.
That’s why each employee is so important.
The following five characteristics are looked for in a potential employee:
- Smart (includes street-smart)
- Good judgment
- Sense of humor
- Concern for people
These may not seem like traditional prerequisites for a job, but SB is not a typical company.
SmithKline Beecham’s Leadership Practices are habits that successful people at SB cultivate in order to translate our Values into specific behaviours. All employees are expected to:
1.Find opportunities for constantly challenging and improving his or her personal performance.
2.Work individually and with teams to determine new targets and to achieve higher standards of performance.
3.Identify and implement improved ways to anticipate and satisfy the needs of internal and external customers.
4.Develop, implement and continuously improve processes, products and services; making them more effective and efficient tHuman Resourceough use of analytical tools and reliable improvement methods.
5.Initiate and display a willingness to embrace change to obtain and to sustain a competitive advantage.
6.Reward and celebrate significant and creative achievements.
7.Develop and appoint high-performing and high-potential people to key positions.
8.Help all employees to achieve their full potential by matching their talents with the jobs to be done tHuman Resourceough quality performance feedback and coaching.
9.Communicate with all constituents openly, honestly, interactively and on a timely basis.
HUMAN RESOURCE DEPARTMENT AT SMITH, KLINE & BEECHAM
Human Resource Information System at SKB
SKB does have a computerized Information base for the Human Resource department which contains the bio-data of all employees at SKB including the unionized workforce at the factories, Field Force and all management levels.
New software has been recently installed at SKB HUMAN RESOURCE department, which has been designed by a UK based firm by the name of PWA inc. This software is highly sophisticated and therefore is not yet fully utilized. All the branches of SKB use it worldwide. It has been slightly modified by SKB Pakistan for its own use.
- MANPOWER PLANNING
Man Power Planning is exercised in June at SK&B. At this time of the year new business opportunities are explored and new business activities are planned. These may include:
- New projects
- Expansion Plans
- New Product Launch
Thus keeping these new strategic plans in mind the company’s HUMAN RESOURCE department plans and forecasts the HUMAN RESOURCE needs accordingly.
Zero-Based Planning is done for the next tHuman Resourceee years. This means that totally revised numbers for each department are estimated. This tHuman Resourceee year plan is most significant and detailed for the coming year and progressively less specific for the next two years. Retirements and resignation , known as natural waste are also taken in to account. No seasonal hiring or firing takes place at SKB.
At the time of Man Power Planning, all the activities are calenderized so that the need for personnel can be narrowed down to a particular time of the year/month.
External hiring to Internal hiring ratio is 2:1. There is a regular Job Posting Program whereby Vacancies within SKB on a global level is advertised and anyone from any one of the country operations can apply for it if they feel they are eligible. During the last tHuman Resourceee years, tHuman Resourceee international transfers have taken place from SKB Pakistan.
Internal hiring occurs also in the case of sudden opening of vacancies and in all kind of “across the board” transfers, the director of the department concerned, be it Production, Marketing, Finance e.t.c. is involved
- RECRUITMENT AND SELECTION PROCEDURE AT SKB
Recruitment is done for two different levels. The Field force, that comprises of the sales representatives who are the ones who generate sales for the company. Second level is for the management cadre.
The requirement for eligibility to join the Field force is a Graduation Degree in Pharmacy or Science. For hiring at the managerial level, the applicants qualifications should match the requirements of the position for which he or she is applying.
The program focuses on recruiting management talent from top-tier business schools and providing rapid development opportunities by exposing these individuals to many facets of the organization. The program is typically 24 months in length, consisting of tHuman Resourceee 8-month assignments, and is geared toward capitalizing on the professional and academic experience that the successful applicant brings with them. Opportunities exist within all the businesses (Pharmaceuticals, Consumer Healthcare, Healthcare Services, Worldwide Supply Operations and Corporate Staffs) in the areas of Business Development, Communications, Finance, Human Resources, Information Resources, Managed Care, Marketing Research, National Accounts, Sales, and Marketing (Brand/Product Management). The most successful candidates will be those who are flexible and readily adaptable to different cultural and work environments. The manager of the Management Development Programme and a manager of the sponsoring business will provide mentoring tHuman Resourceoughout the length of the program.
SKB Assessment Center
All recruitment is directed towards SB’s Assessment Center for further testing and screening process.
First, a Written Test is conducted at the assessment Center to test the applicants Basic medical knowledge, general knowledge, calculating ability and fluency in English language. Next, the applicants who pass the test participate in a Group Discussion so that their interpersonal communication skills can be assessed. Next comes the Interview with the line managers and HUMAN RESOURCE personnel. Those who pass the interview are appointed for employment in various required capacities in SKB
- TRAINING AT SB
SB recognizes that to become the ‘Simply Better’ Healthcare Company means creating a working environment that first motivates, then nurtures, personal and professional growth.
That’s why, tHuman Resourceoughout an employees career with SB, he will be urged to identify and develop new skills so that he can realise his greatest potential. From day one, an employee will be making real contributions and get all the support he need. Every job comes with a built-in training element, designed specifically to introduce the employee to the people and equipment he’ll be working with, and to the techniques, processes and values by which SB operates. For employees in International and European markets, SB Academy is an example of SB’s commitment to training and development.
Each employees performance will be assessed and his salary reviewed regularly, within a varied and dynamic structure in which he can plan out his career. If he wishes, he can remain in one area and achieve rapid progress within it. But the scope and diversity of SBs business may open doors for him to move laterally and adopt a more flexible career progression.
By providing the employees with the means to continually develop, SB knows that it will continue to improve the health and well-being of the people they serve worldwide.
The SB Academy:
One of the ways in which SKB can provide its personnel with training and development is tHuman Resourceough the SB Academy. Launched in 1993, the SB Academy was established to train and develop SB people tHuman Resourceoughout International and Europe markets. For International and European markets, SB Academy is an example of SB ‘s commitment to training and development.
The SB Academy’s mission is to ensure that :
- SB is a company that the customers most want to deal with
- SB is the company that people most want to work for
SB recognizes that this vision can be achieved tHuman Resourceough investment , both in products and services and more importantly in its people. The SB Academy’s vision is to develop highly professional and customer focused individual and some 4000 staff have already achieved membership status. THuman Resourceough the adaptability and skills of its people, it can grow as a team to become the “ simply better health care company”
The SB philosophy:
“Committed to training, dedicated to you- the employee”
The SB Academy’s learning philosophy is to give the employee a competence base onto which he can build job-specific knowledge and skills. He must pass a Competence Foundation course before moving on to study job-specific courses.
SB provides activity-based training to develop the new employees into educated professionals who are flexible, multi-skilled, customer-focused business managers. Task Oriented Open Learning (TOOL) worksheets are used in every syllabus and he is encouraged to direct his own development. These distance learning methods result in professional development for SB and personal growth for the employee, and are now firmly established tHuman Resourceoughout the Company. SB Academy syllabuses set and maintain minimum standards of excellence. Each syllabus includes an assessment at each key stage which students must pass in order to obtain SB Academy Membership status. These assessments include both written and on-the-job observation. Membership of the SB Academy is not for life; to maintain skill levels, all Members must be re-accredited to the SB Academy every four years.
SB Academy’s objectives:
Focusing on the future:
For international and European markets, the SB Academy is an example of SB’s commitment to training and development as well as continuous improvement. For example tutors for whom training is a primary responsibility, can study for the “ Certificate Of Continuing Education” tHuman Resourceough the University of Cambridge. The value of the SB Academy extends beyond the sales force and encompasses competence development programs for many other groups of personnel. There are several distinct types of memberships within its structure, some of which are :
-Sales Representatives with a pharmaceutical background
-Sales Representatives with a consumer background
- Office based members ( Administration staff)
- Marketing members
- Training members
- Sales Management members
SB Academy’s Support System:
They provide all the support needed all of the time. The SB academy serves many people in different ways. The SB Academy is supported by:
- A Head Office management team
- A Cross functional panel representing the collective voice of the SB customer
- An Honoree Board- Experts from academia and industry directly related to the SB academy agenda.
But, perhaps most importantly, they have the support of SB’s CEO:
“ Investment in people is going to be more important than ever in the success of Smith Kline Beecham in the future. I am totally committed to this training initiative and I am asking for your commitment to achieve total dedication to excellence.”
And the commitment of Chairman SB International:
“ As the company, we must adapt to change in order to gain a competitive edge. SB’s success from the focus and commitment of its people. We must offer structured, practical training that our people need to operate within the customers world. SB Academy is a progressive training program that supplies the individuals with the resources and skills they need to achieve both personal and professional growth.”
The SB Academy is today developing the skills and competencies of the future.
The coursework at SB Academy:
After the Interviews the final selection list is generated and all those selected by the company are sent for Training to the SKB Training Academy. This Academy is affiliated to the Cambridge University in UK and most of the trainers in various subsidiaries of SKB all over the world are trained at the Cambridge colleges. In this way the Company ensures that the same training material and same methodology is used by its employees world wide, especially the Field Force.
Initially the new recruits are given a month long training which is 80% technical and 20% on skill enhancement.
The technical portion is on:
3) Drugs; Formulation and Side Effects
4) The organization and its systems
- Competitors products
The Skills Enhancement portion:
1) Selling Skills
3) Public Speaking
At the end of a one-month initial training session for all newly selected sales personnel, they are awarded a Continuing Certificate of Education by the Academy. The process of training and skill enhancement continues tHuman Resourceough out the employees career at SKB.
Training is a continuous and compulsory procedure at SKB whereby several different training modules are conducted each quarter. And every quarter the Sales personnel are re-tested to check and ensure that their basic knowledge of products and the market is updated.
A Training Needs Analysis is conducted during January/February every year in which several needed skills are identified and grouped together into training modules. Then these modules are calendarized for the coming year.
Other kinds of workshops or training sessions are Need Based.
Quarterly Promotion Meeting
At a convenient time each quarter when most of the sale force is gathered together in one place the company holds a Quarterly Promotional meeting to discuss several issues.
- Performance achievement is reviewed
- Sales targets set at the beginning of the year are reviewed and revised
- New competing products are discussed
- Competitors activities including Below the Line promos are discussed
- New training modules are announced and calenderized on a Need Basis.
Training at Management Level
For the Senior Management a Performance Management System has been set up which conducts workshops that are compulsory for the managers to attend at least once a year. Workshops are help on the following topics/skills:
- Objective Setting
- Conducting Interviews
- How to conduct Employee Appraisals
- How to manage employees
- Leadership development
Philosophy behind Academy Training for the Field Force:
After the merger in 1989, the management decided to syncHuman Resourceonize efforts to build synergy within the newly formed company by concentrating on developing a well-trained Field Force. Therefore they created a complete Academy for a systematic, standardized methodology for training that could be applied globally at all SKB companies.
The philosophy of selling at SKB is not just “Join and begin Selling”, in fact the Field Force is made to realize that the company’s products have a very good reputation for quality, availability and distribution amongst the retailer and medical community. The company’s name lends a certain status to their products in the market. Therefore the Field Force are given extended training to bring them up to the level that is in alignment with the company and brand image and reputation.
The extensive attention given to developing a well-trained Field Force culminated into a Number One ranking awarded to the SKB Field Force by the medical community.
- PERSONNEL DEVELOPMENT:
Coaching is a style of management which aims to maximize the contribution of the individuals. It is this process whereby, whereby drawing from the individual’s experience, development opportunities are identified and highlights.
- In the context of an ongoing career within the organization, coaching is concerned with the longer-term development of individuals. In the repertoire of manager’s skills coaching an help to generate a climate in which performance improvement is enhanced not only tHuman Resourceough increased skills and knowledge but also tHuman Resourceough building relationships which encourage and enable people to learn for themselves. This helps to reinforce the perception that mangers can be viewed as resources to their staff, rather simply than the other way round.
- Coaching can be expected to focus, therefore, on helping individuals identify their own strengths and weaknesses. Both preplanning and evaluating experiences; Providing ongoing instruction, guidance and feedback; and encouraging people to establish long term development goals.
- In short term and in special situations, a directive style of relating maybe more appropriate. For e.g.: In an emergency or crises or where the individual lacks knowledge or expertise to the extent that direction and feedback are more valuable.
- Probably 90% of an individual development takes place in the normal course of work. But often randomly or accidentally. Potential opportunities provide conscious guided improvement therefore go begging. Skilled coaching tries to remedy this and may also help staff adopt similar approaches towards the people for whom they are not responsible.
- Coaching may be more effective if it is based on some understanding of how people learn. Those individuals who attend the core program “foundations of learning” are given the opportunity to explore their own preferred ways of learning and to examine the concept of the learning cycle. This postulates that effective learning involves a number of steps and that omitting anyone can lead to shallow/partial learning or understanding.
The idea of a learning cycle can be used in coaching to ensure that the experience or information has been properly analyzed and understood.
- Every manager is ( or should be) a coach.
- Coaching is teaching instructing, directing or guiding people individually on the job. ( training is off-the job usually in groups)
- Occasions for coaching occur when…
- There is a problem to be solved or an opportunity to do something better
- A subordinate returns to the job from a training course in which case ask…
” What did you learn?”
” How are you going to apply it on the job?”
” What problems or difficulties will you face in applying it?”
” How can I help?”
Discussion steps for coaching
Effective coaching for performance improvement can be done tHuman Resourceough the practice and application of six straightforward discussion steps:
- Outline the performance area that needs improvement and why
- Find out the reasons for the subordinates present performance and make it clear you understand the position.
- Ask the subordinate for ideas on how to improve performance, and note these ideas.
- Ask what you can do to help the subordinate
- Confirm action steps to be taken by both you and the subordinate
- Establish a specific follow up date
Coaching Hints And Tips For Managers
As already mentioned, the managers role as a coach is essential for the successful development of his/her staff.
Outlined below are some simple hints used by SB for this process:
- What is coaching?
Ans: Coaching is a two way process building on strengths and ideas. In development therefore, it should be positive and focus on strengths and building on them rather than highlighting areas of weakness.
The purpose of coaching is to improve performance tHuman Resourceough the transfer of skills , knowledge or understanding either directly from the manager or from a formal learning experience which the manager can relate to the work situation.
The coaching process should increase confidence and enhance the self-concept of the individual and hopefully lead to empowerment and continuous improvement in the organization.
The stages of coaching are as follows
Preparation: Ensure that all relevant information is gathered, ensure clear aims for session, plan the process and prepare the environment
Build rapport and establish an agreed purpose for discussion.
Explore the situation as it is
Discuss, question and clarify
Seek and give information- build on strengths and ideas.
Determine outcomes and how they might be achieved.
Identification of any barriers and how to overcome.
Give suggestions and if appropriate, guidance
Key Skills in Coaching
- Use of questions:
Using the questions can affect the outcome of a coaching session.
|Questions statement||Useful for||Not useful for|
|OPEN” Tell me about…”Encourages the person to talk.||Most openings.Exploring and gathering information||Gaining specific information|
|CLOSED”How many styles are there?…”narrow, specific facts||Probing single , specific facts||Gaining information on a broad basis or in areas where the person isn’t well informed|
|PROBING” What happened next?”Vital for detail||Establishing an checking||Emotionally charged areas|
|REFLECTING” You say you cant understand the…”powerful playback||Encourages others to keep talking. Gets them to explore||Checking information or facts|
|LEADING” I expect you think..”||Gaining compliance||Knowing how the person feels|
|SUMMARIES” So what have we agreed?”||Avoiding discrepancy||If used early|
Rapport builds bridges into the world of others. The skills include concentration on the process as well as the content of the interaction and on the verbal and non-verbal behavior.
- Gain trust
- Communicate effectively
- Leads to greater flexibility and increased cooperation
- Results in win-win situations
- Non Verbal communication
When used effectively, this can help in coaching.
- Effective listening:
- Prepare the manger for listening -it is NOT a passive process
- Put the talker at ease-make him/her free to talk
- Remove distractions-do not shuffle paper, answer phone, allow interruptions
- Maintain good eye contact
- Use body language effectively
- Empathize-try to see the situation from the other person’s point of view
- Be patient-don’t interrupt
- Listen to voice ,tone and volume
- Be aware of non verbal messages-gestures, facial expressions, gaze etc. give a lot away
- Remain relaxed-help others to relax
- Quickly establish rapport
By concentrating on specific behaviors which can be changed, expressing the feelings and listening to the other person and contacting future behaviors, the problem is resolved and interpersonal relationships are positive rather than conflicting.
- Get the timing right
- Using real examples only as much feedback should be given as the other employee can tale
- Focus should be on the behavior and NOT the person
- Ask for and listen to the response to feedback
- Avoid feedback which is negative, judgmental, moralizing.
- Ask for and listen to the options open to the employee to resolve the problem.
What SB looks for in its managers
Senior managers have many responsibilities at SB. Amongst them they must:
- Manage the SB network:
Managers do not have direct control over resources needed to achieve their business targets. They must negotiate for resources, therefore they need an excellent understanding of SB’s organization as well as the ability to develop and use their network.
- Balance short and long term results:
Mangers must deliver results to the business on a year to year basis. At the same time, they must be alert to thee enveloping trends within their markets so that they can develop the initiative and relationships that will strengthen SB’s business.
- Influence the political environment:
Managers represent SB in their local market. They need to develop their visibility and reputation to make an effective contribution to policy discussions, regulatory matters etc.
- Combine flexibility with integrity:
Mangers often work with people who have different cultural perspectives on how to do business. Demonstrating understanding and a willingness to adapt to the customers culture is the key to building productive , long term relationships. At the same time, the mangers must model the core SB values and represent them in the local market environment.
- Lead the Organization:
Mangers have a complex and demanding role. Their business goals can only be achieved if they are backed by an effective organization. This calls for strong leadership, effective delegation and the ability to inspire an talented staff.
- JOB EVALUATION SYSTEM:
The company utilizes a program called The Point System designed for it by UK consultants for the purpose of Job Analysis. According to this system Jobs at Unionized staff level, are divided into 10 job classes. Salaries, perquisites, benefits and allowances vary according to each Job Class. This system also created a formal career path for the workers within the organization. However, incase anyone reaches a career plateau at some level, he or she is compensated for not getting promotions via salary increments.
A Job Evaluation Committee periodically conducts Job Analysis to see the evolving nature of jobs and to judge whether jobs can be modified tHuman Resourceough job simplification or enlargement.
SKB believes in fitting people to the jobs. Jobs once designed are set while people have to fit into them and perform them satisfactorily. The complexity and requirements of a job is converted into numbers and then a total is arrived at, which is the value of that job to the company.
- PERFORMANCE EVALUATION:
This is an annual exercise, which takes place at two levels. For the senior management LADR forms are filled and for the middle-level and lower management Appraisal Forms are filled and jointly discussed by the manager and employee before it is signed and submitted.
The Evaluation and Appraisal system at SKB is very open and there are no Annual Confidential Reports required for any employee. Annual appraisal, as well as, quarterly checks on performance takes place.
The value of a job is based on the following important information:
- Job Analysis conducted by the Job Evaluation Committee at SKB which conducts surveys and calculates the total cost of each job to the company. Thus assigning it a minimal monetary value, (explained above).
- Survey of the going rates in the Industry for each type of Job so that SKB can offer competitive salaries too. Not only is the Pharmaceutical Industry analyzed but for non-technical, managerial jobs, similar departments of companies in other industries are also reviewed. Thus they make sure that as pay masters they are at par with companies like ICI. Level Brothers and P&G, within the 75th
Monetary and Non-Monetary Benefits
SmithKline Beecham’s Benefits Program is just what the employee would expect from one of the world’s leading healthcare companies. Influenced by the need for a healthy balance between work and family life, SB’s comprehensive benefits package and services match those provided by the very best of our competitors.
The employees of SB enjoy a full range of flexible benefits and services, from pension and medical plans to company savings and employee assistance programs.
At SKB most benefits and incentives are monetary in nature, usually in the form of cash increments or bonuses. This is the case firstly because most employees prefer monetary benefits. Secondly, unless a persons job is not enhanced or unless the job cannot be converted into the next level of complexity there can be no promotions. Therefore, to keep the employees motivated and to give them incentive to reach targeted performance level they are given monetary benefits..
- Letters of recommendation/commendation
Officially the employees of SKB are allowed a fully paid holiday of 20 working days.
Sick leave is need-based and there is no Leave Fare Allowance anymore.
Medical Benefits Policy:
Medical benefits are Actuals-Based. However, room-ceiling are set beyond which medical expenses are not covered by the company. Medical benefits such as treatment by physician or hospitalization can be availed by the employee, the spouse and the children.
For the unionized staff at the SKB factories SITE doctors are available for immediate treatment or first aid, however only if the doctor refers the case to another specialist, the cost is borne by the company, that too up to a ceiling.
All employees are covered under a Group Insurance Scheme.. This is for Life and Permanent Disability. It if fully funded by the company and incase of a genuine case the employee or his survivors are given 36 gross salaries or tHuman Resourceee years salary as an accumulated compensatory payment.
Gratuity, Provident and Pension Funds
The provident Fund and Gratuity fund provides equivalent coverage to employees of both SK&F and SK&B that have not yet legally become one company.
A Gratuity Fund has been established which is fully funded by the company.
A Provident Fund also exists, to which 10% of the salary is contributed equally by the employee and employer.
The Company’s policy on executive Directors’ remuneration is established by the Remuneration and Nominations (R&N) Committee and approved by the Board itself. The remuneration package of each executive Director is determined by the R&N Committee. The R&N Committee is a committee of the Board consisting exclusively of non-executive Directors.
Remuneration of all of the Company’s non-executive Directors is determined by the Board itself, upon receipt of advice from external consultants.
The R&N Committee, with advice from a leading firm of compensation and benefit consultants, aims to provide a package of incentives and rewards which will be competitive by reference to other global healthcare companies as well as other multinational company considered similar to the Company in terms of size, geographical spread and complexity of business.
In constructing and reviewing remuneration packages, the emphasis is on linking pay to performance by rewarding effective management as well as individual achievement. The mix within a package is designed to align personal reward with enhanced shareholder value over both the short and the long term.
The Executive Directors’ remuneration consists of four components:
A.Salary: This reflects an executive Director’s experience,
responsibility and market value.
- Bonus: This is based on annual performance by business teams against demanding financial targets and individual accomplishments against objectives. Annual bonuses are subject to upper limits. There is an option to invest the bonus in SB shares, in which case the bonus is enhanced by 10% but the shares must be held for a minimum of tHuman Resourceee years.
- Pension and Other Benefits: Executive Directors participate in SB’s senior executive pension plans, including an individual. These are defined benefit schemes based on length of service and earnings. Benefits are payable on retirement from age 60.
There are no pension arrangements for non-executive Directors.
- Long Term Incentives: These comprise share options, participations in the Mid-Term Incentive Plan and stock appreciation rights (SARs) that link reward to add shareholder value over the longer term. It is the Company’s policy to make an annual long-term incentive grant to each executive Director, the value of which is related to his contribution to the management of the business as assessed at an annual appraisal.
Share options allow executive Directors to buy the Company’s shares at a future date at a price determined reference to the open market price of the shares at the date of grant. Commencing with the share option grant made in November 1995, vesting of options granted to executive Directors is subject to total shareholder return (TSR) for SB shareholders being equal to or greater than the weighted average total shareholder return of the companies comprising the FT-SE 100 Index or the S&P 500 Index.
Mid-Term Incentive Plan
Participation in the Plan are granted annually to approximately 350 top executives in the Company, designating a target number of shares for each participant based on job grade. Following a tHuman Resourceee-year measurement
period, the R&N Committee will review the Company’s TSR relative to the other companies comprising the FT-SE 100 Index, and will make a final award of a proportion of the target number of shares, up to 100%, depending on the Company’s performance.
SARs Incentives are currently granted to executive Directors in the form of share options and participation in the Mid-Term Incentive Plan, although a part of the option grant can be in the form of SARs. These entitle the holder to cash sum at a future date based on share price growth between the date of grant and the date of exercise.
Directors’ Service Contracts:
Until 1998,the Company’s service contracts with executive Directors generally provided for the Company to give tHuman Resourceee years’ notice of termination. The Company believed that these contracts had good justification in light of the Company’s position as a science-based and global business, although with a U.K. base. The contracts included garden leave, non-competition and confidentiality provisions and also provided that, in the event of early termination, compensation paid over the balance of the term of the contract would be reduced in the event the Director concerned obtained further employment.
In response to increasing shareholder concern that, following the report of the Greenbury Committee, tHuman Resourceee year directors’ service contracts no longer represented best practice, the Company in 1998 varied the terms of these contracts. Under the new terms, the Company need give only two years’ notice of termination. In consideration for the reduction in notice period, the Company has. agreed that on termination it will make an immediate payment of two years’ salary and bonus. Executive Directors who would have received tHuman Resourceee years’ pension accrual under their previous contract, will continue to receive tHuman Resourceee years’ pension accrual. Reflecting SB’s policy, Directors’ contracts continue to contain non-competition and confidentiality clauses. The Company believes that one year contracts would not be in the Company’s best interests regarding offering a competitive overall remuneration package and securing the maximum protection for its intellectual property.
Payment of Non-Executive Directors in Shares since 1998, to further enhance the link between Directors and shareholders, the Company has had a programme enabling non-executive Directors to receive part of their fees in the form of shares. These will be paid out on the Director’s retirement from the Board, or at a later date, on the basis of dividends being reinvested in the interim. It is pleasing to note the support for this method of paying non-executive Directors in the final report of the Hampel Committee on Corporate Governance.
Promotion at SK&B is not on the basis of qualification or seniority. It is based on the result of the Performance Evaluation. It doesn’t matter if the employee is under-qualified or over qualified; if he or she producing or achieving the targeted numbers he has a chance for promotion.
- SUCCESSION PLANNING:
At SKB succession planning takes place tHuman Resourceough the LADR Process:
Leadership Annual Development Review (LADR)
This is a Performance Evaluation System formulated by SKB. All the line managers in collaboration with the HUMAN RESOURCE department conduct this review. The strengths and weaknesses of the members of each department are reviewed and a thorough Need Analysis is conducted to find out the Gaps in knowledge, skills and accordingly training is provided to remove the gaps.
THuman Resourceough the LADR process a matching of individual skills to jobs is done in close consultation with the line managers. The skills inventory is reviewed and then potential appointees for promotion to the next level are identified.
These LADR meetings are formal, and the Regional HUMAN RESOURCE head from the Human Resource Department at Head Quarters in UK, also attends it. This meeting ends with an Annual Dinner for all the members.
- UNIONIZED STAFF
The strength f the unionized staff is as follows:
1) Landhi Plant (Former Beecham Plant) : 155-160 workers
2) SITE Plant : 120 workers
The unionized plant is protected by labor laws against discriminatory action. The staff has legal cover against retrenchment.
The factory workers are divided into 10 Job classes and are provided remuneration and allowances accordingly. These classes were specified by the Point System used by SKB globally, however, they may differ at regional level. How ever, in some cases compensation is different due to seniority.
There are no seasonal fluctuations in hiring at factory worker level. However, in case of an unplanned bulk order that must be met soon, contract labor is hired tHuman Resourceough a Contractor which liaisons between the labor suppliers and the company.
Flexi-time is exercised during Ramazan for levels of workers at the two factories.
SKB has a separate section in the HUMAN RESOURCE department that is lead by the Employee Relations Officer who deals with the problems and issues relating to the unionized staff.
Major Labor Laws followed by SKB
SKB is bound by law to observe the following laws and to abode by the guidelines and rules laid out by these laws. These include:
- Minimum wages Act
- Employees Old Age Benefit Insurance (EOBI)
- Sindh Employees Social Security Institution (SESSI)
- Group Insurance (Minimum Rs.100,000)
- Work Council
- CHALLENGES FACED BY HUMAN RESOURCE DEPARTMENT
The department feels that if faces the greatest challenge in hiring competent people for their Field Force. This is because of the prevailing Low Literacy Rate in the country and the consequent sub-standard quality of workers in the Job Market.
Secondly, the movement of competent, skilled workforce over seas also reduces the numbers in the pool of potential workers available for the companies operating in Pakistan.
- ENVIRONMENT AND SAFETY:
As we manufacture and deliver high-quality healthcare products and services around the world, we are committed to conducting ourselves in a manner that protects both people and the environment.
To manage that commitment, we have established environment and safety practices and policies and have integrated them into the very fabric of our business. Key achievements during 1998 include:
Accelerated Safety Programme :
An accelerated safety programme was launched in 1998. Safety has been the subject of intense management focus. As a result, safety objectives are communicated to all levels of the organisation and progress is measured against key performance indicators. Significant improvements have been made in procedures at many sites with further sites to follow in 1999. These elements have combined to decrease the injury and illness rate for SB. A behaviour-based safety programme that was piloted at two locations in 1998 is planned for roll out to all SB manufacturing sites starting in 1999. Ongoing implementation of this programme is expected to deliver continuous improvements in our safety performance in the future.
Integration of Environment and Safety Issues into the Businesses A key theme in 1998 was the integration of environment and safety issues into key business processes, including the capital review, contract manufacturing and acquisition and divestment processes.
In 1997, environment and safety concerns were formally integrated into the R&D SB Market Aligned Planning process, our global programme to launch customer-driven products in worldwide markets quickly, efficiently and cost-effectively. As a continuation of this effort, measures of effectiveness and an auditing process were developed in 1998.
In support of a number of business processes, a system has been developed for categorizing hazards and defining the corresponding level of administrative and engineering controls required to ensure safe and environmentally responsible handling and production of SB materials. The control matrix covers occupational exposures, process safety and environmental emissions.
Environment and Safety Management:
The Environment and Safety Management System developed and issued during the past two years applies worldwide and goes beyond legislative requirements in many countries. Implementation is nearing completion at most of the major manufacturing sites and will continue at the remaining sites until completion, which is scheduled for 2000.
Compliance Corporate Environment and Safety continued to review site performance on a tHuman Resourceee-year schedule with 30 performance assessments undertaken in 1998. These assessments will be scored beginning in 1999 using a system that was developed and piloted during 1998. SB had no environment-related fines or penalties in 1998 but one facility paid a safety-related fine of $750.
A company-wide effort to set environment and safety performance goals has resulted in the establishment of numerical targets for key performance indicators. We believe this will help us to further improve our environment and safety performance.
Performance and Environment and Safety Report will be available in 1999 from Corporate Environment and Safety and will also be posted on the World Wide Web here at http://www.sb.com.
The report will highlight SB’s product stewardship activities as well as key performance indicators. These will include levels of releases of substances to air, water and land, our use of natural resources, costs of maintaining our environmental programmes and safety performance. Some of the data from the report are shown here.
Environmental operations costs at worldwide facilities
|1992 ( baseline year)||14.4|
Lost time injury and illness incidence rate
(incidents per 100,000 work hours)
As we manufacture and deliver high-quality healthcare products and services around the world, we are committed to conducting ourselves in a manner that protects both people and the environment.
To manage that commitment, we have established environment and safety practices and policies and have integrated them into the very fabric of our business.