Transforming Human Resources at Novartis: The HRIS
Instructor: Linda C. Isenhour
1. Choose the top internal and top external issues from your SWOT and identify linkages, if any, to Novartis’ HR & corporate strategies. Defend your perspective with a brief rationale. Write new organizational or HR strategic goals, as required. Ans.
Outline of the situation and primary points/issues presented in the case: 1.
Significant priority of the company was to implement a firm wide HRIS that would convert many of transaction-based HR core processes to an internet-based system. 2.
HRIS project was an integral part of Novartis long term strategy for improving overall HR service delivery to the organization that would result in a full HR transformation. 3.
Success of the global HRIS within the company lay in the organization acceptance of this new way of doing business. 4.
Management team was aware that they needed a more fundamental transformation in the role of HR within the company- a shift from functional expert and transaction processor to strategic partner and change agent. 5.
HR management team knew that they were embarking on a transformation that was far more than simply a technical challenge, but they were not completely sure that they understood what this might detail. SWOT for Novartis:
Novartis was a world leader in the research and development of products to protect and improve health and well-being. •
Overall success of Novartis rested on its intellectual capital. •
Committed to focus on R&D and result driven organization. Weakness:
Highly fragmented market
Gap in the infrastructure priority was the lack of a global HR information system. •
Existing IT system within the company was not so adequate. Opportunities:
High growth rate of market
Increasing competition in pharmaceutical industry- make critical decisions quickly. •
Rapid growth of below the line and direct to consumer advertising SWOT for HR Novartis:
Novartis values and behaviors, paid off for Novartis with a history of strong financial performance. •
The number of innovative HR programs such as OTR, FAR etc along with other new programs included MBA recruitment, share options for key associates, contributed to the strength of Novartis HR. •
Identifying and developing talent –most important priorities of Novartis. Weakness:
A gap in the infrastructure priority was the lack of a global HR information system. •
Managers in the company were unable to figure out quickly how many HR associates were working at Novartis. •
Lack of number of associates within the company to fill the leadership position. •
The existing IT systems within Novartis were not up to mark. •
Centralization or standardization of HR data.
No consistent standards
No consolidated database
Difficult in supporting in the businesses in identifying, moving, and tracking talent. •
Multiple fragmented systems
Exposure to many small vendors with non integrated niche application •
Exposure to legal/regulatory non-compliance
Employees are feeling stretched because of initial post merger integration. Opportunity:
Global standardization of key HR programs and policies.
Shifting of HR role from functional expert and transaction processor to strategic partner and change agent after implementation of HRIS system. •
Resistance from line managers to their new role.
The top internal issue is little centralization or standardization of HR data. The company operated in 140 different countries. Due to lack of HRIS in the company, the company has many loop holes such as no consistent standards, no consolidated database, and no ability to provide data in form to reflect their matrix structure whereas has difficulty in supporting the business in identifying, moving and tracking talent etc. As well as with changing workforce, the managers in the company were unable to quickly...
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