Monthly Archives: September 2014

Nowadays, whether to split HR has became a hot-debated topic among CEOs on the global stage. One of a convincing example is the Multinational Corporations.

The reason why CEOs are considering kick it out should be the ineffective cooperation between subordinates and superiors. Some higher-level managers inside the business complained their human resources department should be rewired because they miss the key value of their works. That is, although HR is good at the business fundamentals, they put a lot of time into talent architects, staff training as well as culture building. On the other hand, they think more about the staff compensation rather than costs, it is unrealistic. Just like the Libby Sartain said, who was a board member from ManpowerGroup.

HR leaders should deliver the business strategy to CEOs and help them better allocate the labour resources, but most of them are not doing these in the current situation. Which brings so many pressures to CEOs because it is difficult to meet their businesses’ performance goals without the guidance from HR people.

Ram Charan, a worldwide business advisor has a plan and solution to tackle this issue. He appeals the companies to eliminate the positions of Chief Human Resources Officer and then divide them into two strands: which is the HR-A and HR-LO. HR-A focus on the administration, helping the CEO manage the compensation and benefits and reporting the valuations to CFO directly, so that the CFO can judge weather the compensation is effective to staffs or not. The other one, HR-LO is designed to assess the staffs’ performance and find their potentials, those people would get chances of promotion after a long time observation and judgement.

References:

http://web.b.ebscohost.com.ezproxy.library.ubc.ca/ehost/pdfviewer/pdfviewer?sid=998d628d-5254-420b-b0cc-ac7a20966c8d%40sessionmgr115&vid=4&hid=127

http://hbr.org/2014/07/its-time-to-split-hr

http://www.dtssydney.com/blog/time_to_split_hr:_backlash_from_around_the_web

“We are deeply concerned and disappointed by these serious allegations of fraudulent behaviour and ethical misconduct by certain individuals at the company and third-party agencies. Such behaviour would be a clear breach of GSK’s systems, governance procedures, values and standards. GSK has zero tolerance for any behaviour of this nature.” Said by one of the official representatives in GSK in 2013.

GSK, a global healthcare company which aimed to help people live longer and better enjoy the life by offering them a diversified range of services, including chemical reagents, drugs and also some health care products. Last year, the Chinese government and judicial department accused the huge bribery scandal in GSK plc, they revealed the whole bribe process from internal of the business to the outside society. From the latest news, the Ministry of Public Security has arrested several suspicious includes the sales director and financial manager in GSK China and other related people from third party like the travelling agencies etc.

After a long investigation, the police got to know the cause for their bribery: due to expanding of the chemical market and inflation reasons, GSK China chose a special ways to release sales pressure in order to maintain the market share in the pharmaceutical industry. Therefore, the superior passes sales target to subordinate and then give the plan to pharmaceutical sales representatives, those sales people use the travelling tickets to try to attract attention of the doctors as well as the superintendent in hospitals. So that the doctors need to use the prescription they gave and introduce them to patient. Thus “invisible dark hand” prompts the sales growth of a company without caring about the customers.

That evidence of unethical conduct violated the human right of general public and collapses the moral dimension and social rules. Which is a typical case to appeal the public start thinking about the business’s social responsibilities and sustainability, once a company gains the profits, what they need to do is how to pay back the society, not try to maximize the benefits only, some great examples just like the Novartis, the MSD, they donate a lot of money every year to set up own charity and school. The public, as well as the individuals should realize that the business ethic is a fundamental of success.

References:

http://www.gsk.com/

http://news.xinhuanet.com/fortune/2013-07/05/c_124964343.htm

http://uk.reuters.com/article/2014/09/09/uk-gsk-china-corruption-idUKKBN0H407S20140909

http://www.stockwisedaily.com/glaxosmithkline-plc-adr-gsk-might-face-legal-trouble-in-chinese-consumer-healthcare-unit/235406/

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