BTEC Higher National Diploma (HND) Business (RQF) HRM
How HRM Practices Support GSK's Organisational Success
This report examines how human resource management supports organisational performance at GSK. It explores recruitment, retention, training, rewards, and employee relations. Through PESTLE analysis, it evaluates internal and external influences on HR decisions. Students seeking assignment help in UK can use these insights to explore leadership, organisational development, performance management, and the strengths and weaknesses of GSK's HRM practices.
Introduction
This report features an essay that is prepared for the benefit of newly hired employees at GSK (GlaxoSmithKline plc), to help them understand the strategic merits of HRM (Human Resource Management). This will cover the impact of HRM in driving business success at GSK, and how HRM functions under recruitment and retention of talented employees for strategic business success. Throughout the essay, the main areas of HRM will be clearly outlined about their contributions to sustained business performance, among other critical understandings such as the weaknesses and strengths of HRM towards enabling the achievement of such organisational performance outcomes. It will also analyse the internal and external influences on HRM decision-making and demonstrate practical examples of applied HRM practices at GSK.
Discussion on main functional areas of HRM
The main functional areas of HRM, both theoretical and their application at GSK, are best discussed across individual functional areas (Guest, 2021).
HR planning: HR planning as a function is about ensuring the workforce is staffed with the best possible pool of talented personnel, about current needs, labour market supply, and forecasted needs ahead of future developments (Chakraborty and Biswas, 2019). As a strategic function enabling sustainable performance, HR planning helps buffer against shortages or surpluses of labour. For example, 72% of UK firms struggle to overcome skill gaps in emerging business areas of digital practices like AI (Artificial Intelligence) and Cybersecurity (HRD Connect, 2024). At GSK, proactive actions like hiring an "AI Risk Manager" help the organisation use AI responsibly, ensuring the AI Risk Manager prevents errors from unchecked AI use like false data interpretation (Green, 2024). This directly helps promote sustainable business, as ethical AI use is necessary for GSK's pharmaceutical business to avoid formulating wrong products, getting fined by regulators or endangering customers (Zhang and Zhang, 2023). These risks are avoided by such thoughtfulness of HR planning.
Workforce recruitment, selection and retention: These sub-functions depend on each other for the successful execution of HRM. Recruitment and selection practices identify and hire the correct talented individuals to fill the changing job roles, vacancies and new openings at an organisation (Hamza et al., 2021). Retention is engaged in keeping the employees satisfied in a manner that sustains their employment with the company in the long term (Tullar et al., 2016). In modern HRM, this implies many areas of focus to truly satisfy employees who hail from diverse backgrounds individually. For example, 57% of surveyed employees are likely to leave a company if it is not inclusive of women (Marquis, 2023). 51% of UK HR managers also admitted to employee retention being their âtop worryâ (Jones, 2024).
This observation immediately highlights that recruitment and selection can be flawlessly designed, and yet fail to support sustainable organisational performance if retention-blockage factors like lack of inclusion are present in the organisation's internal climate. GSK ranks in the top 10% of companies in retaining talented employees, where 80% of employees are excited to go to work (Comparably, 2024). As one of the leading UK companies and global pharmaceutical companies, GSK has used its resources and leadership to ensure talented people are hired and retained to contribute to the business sustainably.
Employee training and development: After being hired, HR managers are responsible for their training and development to help employees reach their full potential professionally. This is also done to close the gaps for enabling a better person-job fit; through training, employees learn specific skills and improve their job performance accordingly (Sylva et al., 2019). For example, 81% of UK companies lack digital skills training despite the prevalence of digital transformation in present times (Hornstein, 2022).
This is a comparatively short-term approach since development is the long-term approach to nurture employees in expectation of future responsibilities. This can range from personal growth initiatives, like upskilling to become resilient in the changing labour market, to being prepared under a senior mentor for a future position of seniority in the organisation. At GSK, training itself is crucial to ensure employee conduct meets safety, performance or company policies related to the preparation of pharmaceutical drugs (Saleem and Malik, 2022).
GSK secures its position by offering a multitude of support mechanisms to this end; employees can work under coaching and mentoring for career development, and also avail of apprenticeships for hands-on training and skills development (CambridgeSpark, 2021). GSK also offers diverse graduate programmes for developing skills, such as DigitalTechGP and DataScienceGP (GSK, 2023). Furthermore, the GSK Academy programme offers workshops and seminars to employees that are updated annually for relevance to their careers (CambridgeSpark, 2024). This is an excellent example of a company securing training and development for new apprenticeships as well as more seasoned seminars and workshops.
Rewards and compensation: This function is both independent and an enabler of workforce recruitment and retention. By offering competitive salaries, companies motivate existing employees and attract top talent through job advertisements and other recruitment channels (Adeosun and Ohiani, 2020). Rewards are broader in scope, as they can be monetary or non-monetary like receiving workplace recognition for personal contributions (Aguinis et al., 2013).
In the UK, 26% of salaries have outpaced the inflation rate 2021-2023, at which time inflation was also trending higher from global factors (Jones, 2024). This indicates how employees, organisations and HR managers have to stay attuned to labour market changes, to ensure the workforce skillset is competitive for sustainable organisational performance. At GSK, the base salary is boosted with annual bonuses, employee recognition programmes, and benefits like healthcare and childcare support (GSK, 2024). Such benefits help employees sustain their personal lives, thereby being more capably present for the long term in their workplace roles (Brazier, 2021).
For senior executives, compensation is also tied to sustainable organisational performance targets like a 10% bonus annually for diversity, equity and workplace inclusion (GSK, 2023). This ties executive compensation to creating an inclusive workplace environment, which ties back to findings on how workplace inclusion is key for retaining employees. This observation shows how GSK has achieved its competitive position as an employer: 50% of GSK employees will not leave the company if offered âslightly more moneyâ, and 33% will also not leave if offered a â20% raise at a different companyâ (Comparably, 2024).
Industrial relations and dispute resolution: This function involves managing the relationship between employees and the organisation as an employer. At the outset, it is important to note that the UK has the Trade Union and Labour Relations (Consolidation) Act 1992, related to labour relations and empowering employees in negotiation conducts like organised strikes (Legislation.gov.uk, 2024). At GSK, nearly 1,000 employees across diverse roles like engineers and warehouse workers organised a strike in 2022 with the backing of labour union âUniteâ (Kansteiner, 2022). The employees negotiated to change the proffered pay rise of 2.75% to 4.5% plus one weekâs pay i.e. 2% base salary in full as a reward, which the union said was more in line with the inflation rate of 9% (Kansteiner, 2022).
The speed of this resolution is understood by GSK's position on Human Rights, where it includes "the right to collectively bargain" (GSK, 2024). This instance shows how industrial relations must be managed to ensure the continuity of sustainable organisation performance in tandem with external changes like inflation. Without this mechanism for dispute resolution, the loss of striking employees would have affected the organisationâs business performance since the strike included employees from diverse roles across the company.
Grievance handling: This function is a policy-led practice that establishes workplace practices, like standardising the grievance-raising procedure, to gather facts on the grievance issue through extensive documentation and records (Raju, 2015). This description underlines numerous responsibilities of HRM practitioners, such as maintaining cordial relations among employees by documenting grievances to ensure the truth is being represented.
Without such policies and processes in place, employees, managers and other internal members can engage in 'office politics' like spreading rumours (Muiruri, 2023). This can disintegrate workplace harmony and bottleneck workforce performance, due to unresolved issues and a lack of grievance-handling practices to escalate their concerns. Similar to its excellence in other functions, GSK fulfils this function by having âSpeak Up Integrity channelsâ in place that can be used by employees and external stakeholders like suppliers as well (GSK, 2020). The Ethics and Compliance department at GSK investigates such allegations and takes measures accordingly (GSK, 2020).
As these are internal matters, it is best interpreted that GSK is successful in this function from its retention score of 79/100, and top-place position against global rivals like Sanofi and Pfizer (Comparably, 2024).
Supporting organisational change: HR functions are particularly important here and are only enabled by having other functions in place to support organisational change. Previous functions like training and development, or HR planning come into relevance here as these are used in assessing the readiness of the workforce to participate in change (Komm et al., 2021). Such changes, like restructuring the organisation, can require changing employee roles, adapting to new legal and regulatory compliances, or changing the workforce through downsizing as well.
Supporting employees in such instances becomes essential for maintaining cordial industrial relations, as it is a transitory stage in their careers (Dlouhy and Casper, 2020). At GSK, the company enabled its HR practitioners by collaborating with PwC to âre-imagine the entire employee experienceâ by upgrading the core HR system to âWorkdayâ and supporting HR functions with âService Nowâ technologies (PwC, 2023). This enabled HRM at GSK to strategically assist in the restructuring that saw GSK separate its pharmaceuticals business from the consumer healthcare business (GSK, 2023). This underlines the importance, and benefits of using digital technologies plus collaborating with experts like PwC, as HR operations were spread across 70 global markets and included management responsibilities of over 100,000 employees (PwC, 2023).
Besides supporting strategic goals of sustainable business performance through actions like restructuring, it also equips HRM with new technologies for competitive readiness through digital transformation. This analysis also shows how organisational change was supported with human resource skills and knowledge development; âover 50 PwC professionalsâ were involved in supporting the digital transformation of GSKâs HR globally (PwC, 2023). This puts GSK at an advantage, as 68% of British companies are investing in digital HR tools while lacking the training mechanism to enable worker participation (Faragher, 2023).
The collaboration with PwC gave both technology and training from PwC professionals to GSK, which helped understand how transformation-related threats like 'technostress' were avoided (Kumar, 2024).
Having covered these performance areas of HRM and their direct contribution to enabling sustained organisational performance, the effects of changing organisational requirements like maintaining diversity or digital transformation were also linked to the HRM functions. The contributions of HRM towards recruitment and retention of talent in the achievement of business objectives can be further reflected to emphasise key findings.
Firstly, GSKâs diverse recruitment activities include online recruitment, through the âWorld of GSKâ online assessment (GSK, 2023). However, this introduced a negative aspect to recruitment, as it allowed fraudulent persons to pose as GSK recruiters online and steal personal information from would-be candidates (GSK, 2024). GSK safeguards itself against this threat by stating its online recruitment process clearly, saying that candidates are ânever required to make payment during a recruitment processâ (GSK, 2024). This knowledge protects would-be candidates as fraudulent persons will look to ask for payments as part of the scam.
Secondly, GSKâs strategic reason for retention is found in the pharmaceutical business practice where new medicines are put through clinical trials for safety tests and regulatory clearance. The company uses emerging technologies like AI and data platforms for new drug discovery, therefore this requires retaining skilled employees who can work with AI responsibly (GSK, 2024). AI skills are in short supply, as evidenced by UK job postings on AI growing 3.6 times over relative job postings (PwC, 2024). Therefore, retaining skilled employees like AI researchers becomes a matter of sustaining competitive advantage in the pharmaceutical business. Furthermore, other GSK employees like marketers are encouraged to be agile and âfail fastâ to test new ideas and âtreat everything as a learning exerciseâ (WBR Insights, 2024). By retaining seasoned employees, their ability to innovate from a 'fail fast' philosophy also helps GSK avoid bad ideas that retained employees can perceive better than new hires without the same experience (Awawdeh et al., 2024).
External Influences on HRM decision-making and organisational development
PESTLE analysis
Political factors: Recent changes in the immigration policy have been sustained by the transition of government leadership from former PM Rishi Sunak to current PM Keir Starmer. The intention to cap immigration visas by Sunak was expressed before the recent elections (France24, 2024). Presently, the Labour government aims to use policy measures to reduce net migration (BBC News, 2024). This can affect HRM decision-making practices regarding the inflow of talent from international pipelines; countries like India have represented major contributors to high-skilled jobs in the UK, and therefore provisions must be made to diversify recruitment pipelines to maintain workforce composition (FernĂĄndez-Reino and Rienzo, 2024).
Economic factors: GSK maintains its growth momentum against a disruptive UK economy in recent years, driven by the successful business performance of £5.3 billion in profits in 2023 (Statista, 2024). Therefore, it can afford to hire new talent and diversify the workforce roles and positions to match labour market changes such as increasing demand for AI-experienced researchers and other professionals. The ongoing digital transformation of the pharmaceutical industry indicates strong employment growth will be sustained for high-demand, low-supply specialised roles like AI technicians, while less specialised roles may face redundancy due to such possible outcomes like automation of jobs (Hötte et al., 2023).
Social factors: The ageing demographic change shows over 32.6% of the workforce is composed of senior workers aged above 50 (CIPD, 2024). This figure was 21% in the early 1990s, indicating a rapid transformation of workforce demographics by age (CIPD, 2024). While economically wealthy nations like the UK have relied on immigration to compensate for demographic changes like this, recent political developments indicate immigration will be reduced to ensure opportunities for resident workers. This presents a complex dynamic of job scarcity, ageing, immigration and the economy, particularly since the UK economy is not very diverse and relies largely on services over manufacturing (Aucott and Southall, 2022). For GSK, this is less threatening as the company has diverse pharmaceutical divisions with a global workforce. Therefore, it can balance employee counts in its subsidiaries across other markets.
Technological factors: Contemporary innovations in drug design and research rely extensively on digital technologies. This represents a permanent shift towards continuous digital transformation of the ways of working at GSK, which invested ÂŁ6.2 billion in Research & Development during 2023 itself (GSK, 2023). The commercial application of technologies like AI is coupled with other technological upgrades, and GSK already uses smart robots, machine learning and AI together in smart manufacturing hubs like Upper Merion in the US. The HRM function also uses AI solutions and other technologies for managing the global workforce, such as the recent collaboration with PwC. Therefore, as a technologically mature company, such changes are not disrupting GSK as it can afford to upgrade its technology from HRM to manufacturing to research as well.
Legal factors: GSK follows data privacy and safety regulations such as the UKâs Data Protection Act 2018 or the broader EU General Data Protection Regulation 2016 (Hoofnagle et al., 2019). While the previous UK government proposed an AI (Regulation) Bill, it was scrapped (Pakenham-Walsh, 2024). Therefore, GSK relies on internal ethical principles for using such emerging technologies in its business activities.
Environmental factors: HR practitioners involved in training and development can engage employees to become aware and participative in waste reduction, such as innovating lower carbon footprint products or using green energy to use high-power AI facilities and computers. This contributes to overall climate change initiatives active in the UK, such as the net zero 2050 target which GSK intends to meet by 2045 in its value chain (Nasir, 2024).
Internal Influences on HRM decision-making and organisational development
Leadership styles, culture and motivational strategies
Firstly, CEO Emma Walmsley follows an authentic leadership style, characterised by her transparent executive behaviour and commitment to talent development while promoting a culture of integrity and accountability. For example, after becoming CEO, Emma Walmsley focused on patient-centric solutions at GSK. This was demonstrated by GSK joining âunprecedented vaccine collaborationâ with Sanofi to develop vaccines against COVID-19 rapidly (GSK, 2020). This is indicating how GSK was able to help patients and become commercially successful ethically through the agreement to collaborate instead of trying to work in-house to maintain exclusivity (Al-Khalaf, 2023). Walsley also promotes internal collaboration through Research & Development. Walmsleyâs leadership has also led GSK to embrace digital transformation more actively, ensuring GSK can adapt to new transitions driven by various possibilities from the ongoing digital transformation and growth of productivity potential in technologies like AI.
Secondly, the GSK culture aligns with the leadership of CEO Emma Walmsley as it exemplifies being âaccountable for impactâ, being driven by helping patients and having a multi-stakeholder view of "patients, shareholders and GSK people" (GSK, 2022). This balances ambition, accountability and talent development, and is also codified in the GSK Code of Commitment exploring these themes (GSK, 2022). From this position, it appears GSK uses the AMO model of ability-motivation-opportunity to motivate employees in a novel way (Bos-Nehles et al., 2023). The ability of employees is enhanced by various internal training and development programmes, while motivation is present in monetary rewards like bonuses and non-monetary benefits like childcare and healthcare provisions for employees (Bos-Nehles et al., 2023). Thus, the opportunity to grow in an individual employeeâs career is unlocked, as the personal life is safeguarded with benefits and the professional life benefits by workshops, mentorship, and leadership training (Litano and Major, 2015).
Organisational development and employee learning approaches
GSK enables organisational development from multiple directions that support employee learning as well. This can be summarised concisely as follows to describe all the directions presently active at GSK for this context.
Firstly, the GSK Data Academy enables upskilling of employees located in England. Apprenticeships are offered for key skills and roles like Data Analyst that senior scientists can access to increase their skills (CambridgeSpark, 2024). This is supported by the line managers as well, ensuring the best outcomes are driven by the combined approach for learning and development to enable outcomes like "effective communication of data to stakeholders through data visualisation platforms" (CambridgeSpark, 2024).
Secondly, GSK organises conferences like the London Tech Week 2024 event to connect with industry leaders, and inspire community participation for innovation in healthcare (GSK, 2024). It features senior leaders from GSK like the Vice President of AI/Ml and the Chief Technology Officers, ensuring senior executives are sharing knowledge and inspiring organisational development through such conferences held yearly (GSK, 2024).
Thirdly, programmes like the GSK IMPACT Awards Development Programme feature organisational development workshops under âleadership workshopsâ to nurture and develop leadership talent internally (The Kingâs Fund, 2024). This is useful for developing employee learning in particular as it helps transition them to leadership or executive-type roles, and is supported by The Kingâs Fund as well (The Kingâs Fund, 2024).
Applied HRM practices
Recruitment and selection in practice
The effectiveness of HR policies and procedures as an orientation tool affects job opportunities. In that regard, workplace hygiene-related issues are similar to HR best practices and are also affected by, for example, supervisor relations and workplace safety and health. Moreover, by open-door management, where employees' grievances, problems, and concerns are heard, HR procedures become the basis for that direct line of communication to solve any issue that a worker may face while accomplishing his or her tasks. The sources of knowledge regarding organisational behaviour, including feedback and two-way communication, enable GSK to critically scrutinise employee performance (Rasool et al., 2019).
Performance management
This will ensure that managers' rights, responsibilities, and influence are not divided and that employee performance management takes place in a harmonious environment. GSK will do this by rating each employee collectively using 360-degree feedback reports and a self-assessment questionnaire (Whalley, 2009). The self-evaluation questionnaire is a method that allows an individual to examine their strengths and weaknesses in terms of performance, ensuring that the objective assessment will be in line with the evaluation reviewed by their performance managers.
Workers will assess themselves in terms of their capacity to deliver jobs reliably, their ability to come up with 'creative solutions to practical problems' and their skill for being 'practically resourceful' (Arefin et al., 2019). When applied to this self-assessment questionnaire, the 360-degree review approach compels employees to rate their peers based on their unique strengths, weaknesses, and notable contributions that separate them from other workers as high-performance workers. At the end of the process, employees are rated by their output-the fruit of their professional work at work. This level embraces total performance management because the two sessions involve discussing and seeking input from the employees.
The former session deals with expectations on productivity and performance increase in the employees through giving areas that require improvement in the employee's work. In the second session, compensation and benefits considering compensation and probable promotions are dealt with in the case of an employee (Wang et al., 2021). This strategy therefore emphasizes the need to address push and pull factors in the context of employee motivation as related to performance management. The push and pull components can be referred to as intrinsic and extrinsic sources of motivation and may be used by managers to identify the sources of incentive that they must satisfy during performance assessments (Wang et al., 2021).
Employee involvement in training and development would have to be boosted without getting distracted by such extrinsic motivational factors tied to cash incentives because intrinsically motivated individuals will prove to be more prone to treat commitments to training and development as more serious.
Employee relationship
The satisfaction of AMO variables in an employee's involvement at work directly supports performance management. Employees have the intrinsic ability to apply their knowledge and skills to accomplish their job roles (Ding and Liu, 2022). This growth has a direct implication on employee welfare since it enhances self-esteem and perceptions of job security since employees can deliver their competencies at work. Intrinsic and extrinsic motivational factors contribute to their drive to carry out their job responsibilities; internal motivation is derived from strategies like job satisfaction (Ding and Liu, 2022). Other extrinsic motivational factors rely on external rewards, that is, tangible job bonuses. Meeting all of these criteria ensures the highest level of employee involvement because different individuals have different amounts of intrinsic and extrinsic drivers.
Evaluating strengths and weaknesses of HRM practices and documents
Strengths: The job advertisement is strongly defined with what GSK is looking for among prospective candidates. Clearly defining the requirements and transparently showing the company's culture helps to attract top-talent candidates, as they can interpret the job requirements to see if they fit within their career ambitions and expectations. For recruitment and selection, this unlocks employer branding as a competitive advantage, by showcasing the company's position as a valuable employer supportive of employee development and inclusive workplace engagement. Communicating the job requirements helps drive sustainable organisational practices by avoiding missing out on top talent due to a lack of clear communication in the recruitment documentation itself.
Weaknesses: Employee relationship development is challenging to target for a total transformation, as employees can face burnout in different roles at GSK. From the 'Comparably' rankings, entry-level employees can face retention issues, and it is likely a lack of cultural fit that makes such employees struggle to retain themselves with the company. However, regarding other employees, the employee relationship strategy proposed covers intrinsic and extrinsic bases and demonstrates wider inclusion of diverse employee benefits for engagement improvements.
Conclusion
In summary, GSK has a diverse and well-planned strategy for recruitment and retention, covering employee needs and professional career path adjustments from new apprentices to seasoned hires and senior members. As a large organisation, employees can be retained with lateral career moves from identified programmes like the Future Leaders Programme. Moreover, the company's willingness to invite external experts to help HR transformation like PwC demonstrated how advantages like digital transformation were met while avoiding disadvantages like lack of training mechanisms for using new technologies. Ultimately, the companyâs strong position in rankings like retention percentage demonstrates how it has successfully used HR functions to sustain organisational performance.
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