Human Resource Management

Contents 1. Introduction -------------------------------------------------------------------------- 1 2. Control Strategy -------------------------------------------------------------------- 2 3. Commitment Strategy -------------------------------------------------------------- 2 4. Workforce Strategies --------------------------------------------------------------- 2-3 5. About My Organization - Pfizer --------------------------------------------------- 4 6. Organization Approach to HRM --------------------------------------------------- 4 6.1 Job Design ------------------------------------------------------------------------ 4 6.2 Performance Expectation ------------------------------------------------------- 4 6.3 Management-Organization Structure ------------------------------------------ 4 6.4 Compensation Policies ---------------------------------------------------------- 5 6.5 Employment Assurances -------------------------------------------------------- 5 6.6 Employee Voice Policies -------------------------------------------------------- 5 6.7 Labor-Management Relations --------------------------------------------------- 5-6 7. Conclusion ----------------------------------------------------------------------------- 6 8. References ----------------------------------------------------------------------------- 7

Human Resource Management

1. Introduction Walton (1985) suggests there is distinction between commitment and control strategies. Commitment and control are two distinct ways in which employee behaviors and attitudes can be influenced. Human Resource Management (HRM) consists of a series of internally consistent practices, which combine into a specific HRM system. It can be argued that HRM systems are either control or commitment oriented.

2. Control Strategy Control HRM system is characterized by a division of work into small, fixed jobs for which individuals can be held accountable and direct control with managers supervising rather than facilitating employees (Walton, 1985). This type of HRM system aims at reducing direct labor costs or improves efficiency, by enforcing employee compliance with specified rules and procedures (Walton, 1985). 3. Commitment Strategy Commitment HRM system is characterized by managers who facilitate rather than supervise. This type of HRM system aims at establishing psychological links between organizational and personal goals, where jobs are designed to be broader than before, more planning and implementation, and increase efforts to upgrade operations (Walton, 1985).

4. Work Force Strategies In table 1, the transformations from control strategy to commitment strategy were summarized. The human resource strategies in the table will be referenced in accordance to my organization HR policies and this will conclude the type of strategy that my organization had adopted.

Human Resource Management

4.1 Workforce Strategies - Table 1

Data source: From control to commitment in the workplace by Richard E Walton 3

Human Resource Management

5. About My Organization - Pfizer Pfizer is a leading pharmaceutical company in every major market around the world. Much of her achievement comes from the importance she places on fulfilling employees mission and values, as well as creating an environment that fosters the growth and development of her people. Pfizers goal is to create a culture where all employees are valued, and where their ideas are encouraged and respected. 6. Organization Approach to HRM At Pfizer, HRM functions focus primarily on recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring the personnel and management practices conform to various regulations. Her HRM also includes managing the approaches towards employee benefits, compensations and personnel policies. The strategies listed in table 1 that explains the organization

approach to HRM will be elaborated in details shortly. 6.1 Job Design At Pfizer, work arrangement for every individual is customized and personal development training courses would be conducted with the objective of reducing or overcoming job dissatisfaction. HR policies in place also include job rotation options that allow any employee to identify and pursue his job specialization. 6.2 Performance Expectation Every employee in Pfizer is required to identify goals and objectives that are specific to his job as part of the HR policies requirements at the beginning of the year. The

employee s performance on the job will then be assessed periodically over the year by his superior. Ad-hoc review sessions are often conducted by the superior with his employee in a bid to assist him in achieving his objectives and goals more easily. At the end of the year, the employee will be formally evaluated once again and be informed on how closely they have performed against the set goals and objectives determined at the beginning of the year.

Human Resource Management

6.3 Management-Organization Structure Pfizer facilitate working relationships between various entities in the organization and improve the working efficiency within the organizational units. HR policy allows for application of individual skills re-training to enable high flexibility and apply creativity in his work. Team-building session is held annually to foster better tie between management and employees across all business units too. 6.4 Compensation Policies Teamwork is one of the core values of the organization. Pfizer rewards everyone with variable bonus when the organizations target set is achieved as a whole on top of incentive given to individual effort. Furthermore, individual skills and knowledges are compensated with higher job grades. 6.5 Employment Assurances Pfizer valued colleagues and everyone will be given substantial training to maximize their potential in the performance at work. HR policy states that if any employee is not confident in his competency at work, he is encourage to join the internal Performance Improvement Program (PIP) to further improve his skill and knowledge under supervision and monitoring. This policy also enhances employee employability continuity. 6.6 Employee Voice Policies Pfizer adopted open-door policy as one of the feedback means. Grievance procedure is one of the HR policies and employees are encouraged to feedback for any grievances. Helpline and suggestion box is also available for any issues that require organization to look into. Organization HR department also initiated a communication platform held weekly to communicate all organization plans and information to all employees. 6.7 Labor-Management Relations Organization encourages the labor and management to share the same goal of company as a common value. Pfizer s goal is to continuously strive to improve working conditions; and employees shall cooperate with the company's policies in order to ensure the

Human Resource Management

organization's success. All organization policies will be communicated to employees annually. 7. Conclusion In conclusion, based on the strategies and practices discussed, it is more appropriate to conclude that my organization had adopted a commitment HRM system. Although there are few HR policies suggested control strategy but in overall, Pfizer had implemented commitment-based-approach to the workforce through focusing on the internal development of employees competencies and integration of the workforce into the organization. Pfizer HR is also consistently changing to meet the need of the business in order to have the most capable senior leaders, managers and colleagues in the world to execute organization s business strategy in a challenging and changing competitive, socio-economic, regulatory and political environment.

Human Resource Management

Reference: Beardwell, J. & Claydon, T., 2007. Human Resource Management. 5th ed. Edinburgh Gate: Pearson Educated Limited. Walton, R, E., 1985. From control to commitment in the workplace. Harvard Business Review March-April, 77-84. WorldLink. 2007. Social responsibility: HR tends to implement, not create strategy. [Online] Available at: http://www.wfpma.com/publications/PDFs/wlv17n1.pdf [Accessed 12 May 2010].