The Management System in Eli Lilly - Term Paper Example

The Management System in Eli Lilly 1. Introduction The concept of Management as studied in terms of business and corporate world, is concerned with the effective utilization of human resources with a view to attain desirable goals of the organization. These goals and aims are achieved through the four basic functions of management i.e., planning, organizing, leading and controlling which facilitates the managers or entrepreneurs in realizing their objectives. This essay discusses the various aspects of Management such as planning, organizing, leading and controlling as well as the management of the global environment with respect to a pharmaceutical company - Eli Lilly. 2. The Management System in Eli Lilly Eli Lilly is the 10th largest pharmaceutical company in the world founded in 1876 (Eli Lilly).

The company boasts of a history of excellent management and incomparable service in the field of science and medicine which is achievable only through an efficient framework of its managerial activities. The current goals of the company include setting up of effective environmental protection policies in a bid to reduce its carbon footprint, achieving due diligence of its huge network of suppliers and third party contractors, framing emergency response programs and policies to facilitate establishment of its environment management system among others. 2.1.

The Global Management Environment An international organization with a global presence requires diversity in its management strategies in order to adapt to the pressures, demands and challenges of an international market place. The company’s products are marketed in 143 countries, have research and development facilities in eight countries and conducts clinical trials in over 50 countries across the globe (Eli Lilly). Globalization has blurred the boundaries within which organizations operate and heightened the complexities of organizational management to a significant extent.

Thus it is inevitable that the management in such global organizations must adopt policies that seek to approach this complexity that engulfs multinational corporations in present times. Such complexities include dealing with conflicting goals according to the individual requirements of the target market, limitations of resources at hand, global standardization and response to global market needs etc (Steger, Maznevski, 2007, Pp.7). A recent example of managing such complexities in a global environment is the re-evaluation of the joint venture between Eli Lilly and the India based Ranbaxy Laboratories since the a change in governmental regulations for businesses in India is likely to occur which might contradict the strategic objectives of Eli Lilly (Ivey Publishing, 2008).

Surviving in a highly globalized management environment requires considerable efforts on the part of the management, since ultimately; at the center of any globalization effort are managers whose role is to help their management teams adjust to the complexity, adaptability, uncertainty, diversity and learning that global organizations face while competing on a global platform (Goman, 1994, Pp.35). 3. Basic Functions of Management Any organization irrespective of its size, nature of business or global presence aims to achieve their desired goals and objectives by setting up efficient management policies and adopting unique management concepts.

However, certain basic concepts such as Planning, Organizing, Leading and Controlling are common to all organizations which enable them to approach corporate obstacles by a series of planned tactical decisions. These basic concepts are discussed hereunder. 3.1 Planning Planning is the foundation stage of management which facilitates the organization to set predefined goals and the direction in which it is headed i.e, its short as well as long term goals. Planning typically involves setting up short as well as long term goals with a view to cover a time span equal to the life cycle of the product having the longest perceived life.

(Karger, 1991, Pp.5). The short term goals of Lilly are to reduce its environmental footprint and increase worker safety by 2010. Apart from these two basic goals it also plans to reduce energy consumption by one third compared to a 2003 baseline, reduce hazardous material purchases which is expected to eliminate the need to 6 million liters of water annually, totally eliminate ‘environmental events’ i.e., events or activities that cause serious impairment to aquatic, human or wild life, by 2010 and encourage awareness about motor vehicle safety (Eli Lilly).

Planning not only helps the organization to survive but also to excel and succeed (Krager, 1991, Pp.5). 3.2 Organizing Organizing is the next function of management which requires organizing of all the necessary resources that would help it to achieve its goals and objectives. This requires ensuring adequate work allocation amongst its various departments, harmonizing and co-coordinating effective and smooth communication among the employees, as well as assigning required resources. 3.3 Leading “No institution can possibly survive if it needs geniuses or supermen to manage it.

It must be organized in such a way as to be able to get along under a leadership composed of average human beings” – Peter Drucker Leaders and managers have the ability as well as responsibility to set goals, motivate employees and create worker satisfaction (Rigolosi, 2005, Pp.27). Hence it is imperative that they set attainable goals and provide adequate motivation and resources to its employees to help them achieve the desired goals. At Eli Lilly, the management ensures that it encourages good leadership practices.

Its employees have given examples of unprecedented leadership since several decades and helped steer the company through profound challenges and guiding it towards great heights through sheer determination, focus on innovation and transparency in communication. Leadership is not a mere term or concept nor is it derived from ‘assuming a position of authority’ (Nurmi, et al, 1997, Pp. 135). It is in fact representative of managerial foresight, motivating employees and a desire to lead the team towards its goals through teamwork and working hand in hand with all the other levels of management. 3.4.

Controlling Controlling requires the management to establish strict rules regarding the performance standards, devise preventive measures to combat obstacles caused on account of unforeseen events, and facilitate regular and periodic checks to ensure that the standards set by the management are being met in a manner which is in sync with its strategic policies and within the boundaries of its corporate ethics. 4. Conclusion Strategic management, in this rapidly changing global economy, has assumed new found significance which acts as a tool of devising appropriate plans and policies for achieving the desired goals and aims of the organization.

It is a critical element for facilitating growth and development of an organization. Management is of utmost significance to the entrepreneurs and CEOs of an organization since they are responsible for establishing a robust framework of policies for attaining the predetermined visions and missions. Profitability and growth can only be hoped to be achieved with effective management models and implementing change as and when needed. Contents 1. Introduction……………………………………………………………………………….2 2. The Management System in Eli Lilly………………………………………………….2 2.1 The Global Management Environment………………………………………….3 3. Basic Functions of Management……………………………………………………..4 3.

1 Planning…………………………………………………………………………….4 3.2 Organizing………………………………………………………………………….5 3.3 Leading…………………………………………………………………………….5 3.4 Controlling…………………………………………………………………………..6 4. Conclusion………………………………………………………………………………6 References……………………………………………………………………………….

7 References Steger U., Wolfgang A., Maznevski M., (2007). Managing Complexity in Global Organizations, John Wiley & Sons, Pp.7 Dhanaraj C., Beamish P. W., Celly N., (2008). Eli Lilly in India: Rethinking that Joint Venture Strategy, Ivey Publishing. Eli Lilly (2009). Governance and Management, viewed: 30th Jan, 2009 from: < http://www.lilly.com/responsibility/health/governance/> Goman C. K. (1994). Managing in a Global Organization: Keys to success in a changing world, Thomson Crisp Learning.

Rigolosi E. M. (2005). Management and Leadership in Nursing and Health Care: An experimental approach, Springer Publishing Company, Pp.27 Nurmi R. W., Darling J. R., Kaynak E. (1997). International Management Leadership, Howarth Press, Pp.135.