Novartis Hr Management System
Novartis International AG-- a Swiss multinational pharmaceutical company based in Basel, Switzerland, was created in 1996 through the merger of Ciba-Geigy and Sandoz, two companies with a rich and diverse corporate history. In 2010, it ranked No.2 in sales (46.806 billion US$) among the world-wide industry. (Wiki, Novartis) With mission to discover, develop and market innovative products, provide a shareholder return that reflects outstanding performance and adequately reward people who invest ideas and work in the company (The Novartis Mission), Novartis under the direction of its CEO Daniel Vasella, M.D., built its own highly efficient global talent management system to facilitate reaching its goals.
1. The GTM system at Novartis Companies all around the world are facing the challenge of managing talent pipeline. (Günter K. Stahl, 2012) The GTM system at Novartis is built based on three central tasks and responsibilities for the company and every manager: talent identification, the use of systematic talent development, and strong pay for performance principle. (Jordan Siegel, 2008) For “talent identification”, Novartis prefers development talent for leadership positions from within and insists moving individuals to their desired positions before they were solicited from the outside; for “systematic talent development”, CEO Vasella implemented a far-reaching and globally standardized incentive system with two branches: one is for rating performance system and another is for assessing human potential. For “pay-for-performance”, Novartis adopted a compensation system paying mix with market-level base pay and large proportion of incentive pay which is highly associated with their performance. Over the years, the company had instilled a culture in which employees had no sense of entitlement, and were motivated to work hard for large gains in compensation contingent on high performance, aligning with company’s talent management strategy. (Jordan Siegel, 2008)
1. The GTM system at Novartis Companies all around the world are facing the challenge of managing talent pipeline. (Günter K. Stahl, 2012) The GTM system at Novartis is built based on three central tasks and responsibilities for the company and every manager: talent identification, the use of systematic talent development, and strong pay for performance principle. (Jordan Siegel, 2008) For “talent identification”, Novartis prefers development talent for leadership positions from within and insists moving individuals to their desired positions before they were solicited from the outside; for “systematic talent development”, CEO Vasella implemented a far-reaching and globally standardized incentive system with two branches: one is for rating performance system and another is for assessing human potential. For “pay-for-performance”, Novartis adopted a compensation system paying mix with market-level base pay and large proportion of incentive pay which is highly associated with their performance. Over the years, the company had instilled a culture in which employees had no sense of entitlement, and were motivated to work hard for large gains in compensation contingent on high performance, aligning with company’s talent management strategy. (Jordan Siegel, 2008)
References: 1. Wiki, Novartis: http://en.wikipedia.org/wiki/Novartis 2. The Novartis Mission: http://www.novartis.com/about-novartis/our-mission/index.shtml 3. Günter K. Stahl, 2012: Günter K. Stahl, Ingmar Björkman, Elaine Farndale, Shad S. Morris, Jaap Paauwe, Philip Stiles, Jonathan Trevor and Patrick Wright (2012). Six Principles of Effective Global Talent Management. MITSloan Management Review, VOL. 53, NO.2. 4. Jordan Siegel, 2008: Global Talent Management at Novartis. Harvard Business School Publishing. 5. Schuler, Jackson and Tarique, 2010: Randall S. Schuler, Susan E. Jackson and Ibraiz Tarique (2010). Global Talent Management Initiatives for Global Talent Challenges. 11th International Human Resource Management Conference, Aston University, Birmingham, England, June 9-12, 2010. 6. Susan E Jackson, 2012: Susan E Jackson, Randall S Schuler, Steve Werner (2012). Managing Human Resources 11th edition 7. Novartis.com: http://www.novartis.com/careers/compensation-benefits/index.shtml 8. Millar, 2006: Roderick Millar (2006). A Conversation with Lucy Hughes, Novartis- -Employee Engagement. IEDP.