Essays on Global Talent Management at Novartis Assignment

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The paper "Global Talent Management at Novartis" Is a wonderful example of a Management Assignment. According to the case, employees go to work because of believing in what the company does and for wanting to be associated with its success (Cadsby, 2007). However, Brown et al (2003) assert that commitment and success have to be encouraged through other means other than money. Employees around the world working for a multinational company may be motivated in one universal way to exert maximum effort and be accountable for their results (Strack et al, 2008).

For instance, in 1996 Novartis came up with a system for management of employee performance where employees were graded and their compensation matched according to business results and adherence to laid down behaviors and values. In 2002, a universal system applicable to all employees around the world was created. The previous two-dimensional system was adopted with a focus on objectives for the business and behaviors and values consistent with the norms of the company. At the beginning of each year, individual employees and managers meet for personal objectives to be set and in July as well as at the end of the year the manager meets again for direct reports progress to discuss the performance of individual employees.

Information gathered is being used in assessing and a rating performance of employees and this performance is reviewed further and approved. Employee compensation is closely connected to the company performance and individual rating, and pay for performance system of the company has been embraced by employees. According to Brown et al (2003), most employees work hard with the thought of getting paid according to the amount of work done.

This form of motivation used by Novartis is similar to several other multinational companies. Assessment of employee performance is a strategy that is used in exerting maximum effort and for accountability for results (Gatsby, 2007). Providing employees with feedback on assessment and counseling them on better ways of performing their duties and responsibilities ensures better performance that is motivational for employees. On the contrary, this is not satisfactory especially in situations where employees work interdependently and are unable to control their performance. Also, this mode of motivating employees has a disadvantage in situations where employees are forced to adhere to contractual terms that limit their creativity in the achievement of high performance at work (Strack et al, 2008).

In addition, different countries have different cultures and universal motivational strategies may not be applicable unless changed to fit particular cultures (Wu, 2008). Employees who are unable to cope with these challenges will often decide to look for employment elsewhere. Therefore, addressing these challenges would lead to the success of universal ways used by multinational companies in motivating their employees.   Evaluate the potential effectiveness of Novartis's standardized system for performance measurement around the world. In applying standardized systems for performance around the world, Novartis faced numerous challenges especially in collectivist cultures, environments that are represented by strong unions and countries with high inflation history (Brown et al, 2003).

Some managers from the company complained of behaviors and values of the company being too complex and in contradiction with local culture for business as well as internally contradicting itself. The system also faced resistance from poorly performing employees.

The case demonstrates that the system was resisted in countries such as Japan with an argument that rating most of the employees as average performers was demotivating for employees who always achieved an average performance. However, the same has been effective in some countries such as China where the performance of a good percentage of employees with the lowest ratings was raised. Further, in Switzerland, manufacturing unions worked with the company in awarding higher performance with higher compensation and vice versa for lower performance (Gatsby, 2007). In Turkey, the company negotiated with unions for installation of pay for performance system and the terms were accepted by the Turkish unions.

References

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Cadsby, B 2007, Sorting and Incentive Effects of Pay for Performance: An Experimental Investigation, Academy of Management Journal, vol. 50 no. 2, pp. 387- 405. Doi: 10.5465/AMJ.2007.24634448

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