Together, these conditions are all “global talent challenges”. Linking HR policies and practices with global talent challenges: those Download full-text PDF. ePub. WU. Institutional Repository. Günter Stahl and Ingmar Björkman and Elaine Farndale and Shad S. Six principles of effective global talent management. Global Talent Management at Novartis of Managing Global Workforce DOC PPT TXT PDF XLS. 百度文库 · 教育专区 · 高等教育 · 管理学 Case study materials of managing global workforce .. 12 Swanson, K.C., “Coping with China's Talent Shortage,”, November 14, , downloaded from.

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CASE STUDY 2 Global Talent Management at Novartis Talent management is the process whereby a company hires, trains and retain employees within the. Sorry, this document isn't available for viewing at this time. In the meantime, you can download the document by clicking the 'Download' button above. Global Talent Management at Novartis. case study. Jordan Siegel. Save; Share. Save; Share. Format. PDF Hardcopy Black & White.

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Expatriate selection: Evaluating the discriminant, convergent, and predictive validity of five measures of interpersonal and intercultural competence. Journal of Leadership and Organization Studies, 11, 46— It was easier to build a company culture when its employees came up through the ranks with shared values and experiences.

Also, it was often less expensive to promote from within than to outbid an outside competitor for someone already holding a comparable 2 downloadd by Jing Zhang cindyblcu vip. Vasella recognized that in order to manage talent successfully, the company needed to pay people well, but he also knew that pay was not enough to motivate people. The money has to be all right; but you encourage commitment and excellence through other things.

If the money is not all right, of course, you give a disincentive and people feel unfairly treated. Yet for the next six years, a minority of Novartis divisions and country businesses went their own way and adopted various grading scales according to local culture and customs.

Starting in , Novartis senior management chose to create one uniform system for all Novartis employees around the world. From onward, the entire company adopted the two-dimension scale that had been introduced in , with one dimension focusing on business objectives and the other focusing on values and behaviors consistent with Novartis norms. These values and behaviors included the following:? In January of each year, each employee met with her manager to set personal objectives for the year.

Then in July, the manager met with her direct reports to discuss interim progress toward each 3 downloadd by Jing Zhang cindyblcu vip. Toward the end of the year, the manager met with her direct reports again, and each of the direct reports provided a peer review of their coworkers. The manager incorporated that information into her own assessment and assigned a performance rating to each of her direct reports.

Nearly every Novartis employee around the world—nearly , people—received a performance rating, including most research scientists. Employees saw their compensation closely connected to company performance and to their individual rating.


Performance management is good for identifying and managing lower-performing people. By nature, the high performers are going to try the hardest things and may fail in the attempt.

The motivation for the normal distribution was to encourage managers to honestly differentiate performance and talent variations, to ensure that rewards were distributed fairly across the entire organization.

To raise the ability of managers to discern talent differences, the company encouraged managers to compare the performance of their direct reports to employees with similar positions across the Novartis organization. One of the questions the company had faced was whether to require or simply encourage—and if so, how much to encourage—the use of the normal distribution.

Some managers in some locations had assigned the lowest rating to associates already planning to voluntarily leave the organization. Still, the company believed that the company had rapidly instilled a culture over the years in which honesty and candor were the norm, and where managers were increasingly trained and prepared to have difficult conversations when necessary.

Ensuring Uniformity of System Worldwide To assess the results of its performance measurement, the company had conducted anonymous, online surveys around the world.

Novartis senior managers acknowledged that this acceptance was aided by the fact that the 4 downloadd by Jing Zhang cindyblcu vip. Novartis had coupled its performance measurement system with a strong form of incentive pay-forperformance component that was used uniformly around the world.

Six principles of effective global talent management

Most jobs at Novartis had a base salary and target incentive that was set according to market data. The payout factor for business performance reflected the achievement of both shortterm and long-term performance targets, including revenue growth, economic value creation operating net income, earnings per share, and economic value added , market share growth, and ongoing efforts to optimize organizational effectiveness and productivity.

The payout factor was set differently based on divisions pharmaceutical, generics, etc. What this meant was that some employees were getting nearly double their base salary in the form of annual bonuses—allowing them to place high in the top quartile of pay for their position and geographic location—whereas lower performers were getting no salary increase or bonus.

This had proven an adjustment for those Novartis associates accustomed to regular, seniority-based salary increases or high, automatic raises in countries with historical high rates of inflation. 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. We aim to ensure that these values are continuously built into our business through standardizing and globalizing some of our key people processes, particularly performance management.

The starting point is global values, global leadership practices, and global people processes. In collectivist cultures, such as several of the Confucian-influenced Asian societies, Novartis managers noted that the system had faced some resistance from employees who were not eager to 5 downloadd by Jing Zhang cindyblcu vip.

In Japan, under the previous fivepoint performance scale before , the Japanese organization had adapted to local conditions by recalibrating the scale to avoid putting most of the organization in the middle of the normal distribution.

Performance Appraisal

Unions tended to demand equal pay for the same job, and unions tended to want senior-based salary increases and other protections for older workers. Yet an incentive pay-for-performance system, by definition, was about giving higher compensation for higher performance and lower compensation for lower performance for the same job, and about raising the performance of the lower performers, or pushing them out of the organization if they could not raise their performance.

In Turkey, the company in successfully negotiated with its union to install the complete Novartis incentive pay-for-performance program for its unionized workforce in Turkey.

This was the first time the Turkish union had accepted such terms, but the head of HR for Turkey, Senay Kizilkaya, explained: We showed them that they would have the opportunity to get more if they raised performance.

We showed them that their base wages were high compared with the international competition, so the trade union understood and accepted that we could not continue with these base salaries. So now they have accepted. But [workers] have the opportunity to earn far more in total compensation with the bonus system.

They need to be believers in the process, and good communicators and coaches of people to improve their performance. They should utilize the performance management system tools to help support them in this task, and they should be open and transparent [about giving] feedback on an ongoing basis.

If they do this right and with consistency, then the impact on pay and benefits as an output of this process will not be a surprise to their associates. This group of 14, included all front-line managers and above, as well as high-potential individual contributors, and designated critical positions within all Novartis divisions, regions, countries, functions, and business units.

As described in Exhibit 3, high-potential contributors were defined as those with potential for rapid or near-term growth to a key leadership position within Novartis, or the potential to rapidly progress through increasingly higher levels of leadership. But in order to retain talent in competitive emerging markets, it is extremely important for companies to deliver on the promises made to their local employees.

For this, companies need to create a culture that stays true to its brand promise and supports employee development and employee empowerment through commitment to meritocracy, payfor-performance, organizational transparency and custom career planning.

Thus, global companies need to tailor their talent management strategy specific to individual regions in order to build a competitive and loyal workforce. It requires getting to know the region, country, labor conditions and cultural nuances, and leveraging their global talent expertise in a constructive way.

Does Novartis have the right performance measurement system? Novartis views performance management as central to their global talent management activities for innovation. Their performance measurement system grades employees and matches their compensation to business objectives and values and behaviors which results in a nine-box performance rating grid.

The performance rating has a large impact on an employees compensation and thus, Novartiss performance management system is very effective in instilling a culture in which employees are motivated to work hard for large gains in compensation based on high performance. The system also fosters trust in the organization by being open about employees performance. It also fosters and facilitates innovation by the combination of performance management and compensation. In most cases, the system is also effective in providing unbiased performance review as the manager uses inputs from an employees peers and other functional managers for assigning a performance rating.

The talent ratings for managers are also very effective in devising employee action plans and identifying potential candidates for top executive positions.

Although the performance measurement system is largely successful, there are areas where improvements or changes could be made to make it more effective worldwide. Even though there are biannual reviews to set personal objectives and check interim progress, there should be flexibility to modify employee goals in accordance with any changes in business objectives.

The normal distribution curve suggested to differentiate employee performance should be used differently across global sites as international markets especially emerging markets have a different set of challenges related to employee attraction and retention. In emerging markets, performance management is a critical component of employee retention strategy.

It is used to encourage open and tough feedback to local employees to create an authentic and trust-based culture based on meritocracy.

Thus, emerging markets should be able to adjust skew in the distribution in order to encourage the development of local talent.

The uniformity of the system worldwide could be a deterrent in employee development because of different cultures perceiving performance ratings in different ways. Novartis can adapt their standardized performance system to the local culture in order to encourage employee acceptance thereby leading to better results in terms of employee performance.

If you were put in charge of the China operation, what changes would you make to deal with the turnover problem?But [workers] have the opportunity to earn far more in total compensation with the bonus system. Most companies in our sample have introduced global performance standards, supported by global leadership competency profiles and standardized performance appraisal tools and processes.

In situations where the company did an acquisition, the question was, under what timetable should the Novartis incentive system be introduced, especially when there was resistance from the acquired firm.

Make the year you become part of our global success story. Expatriate selection: Evaluating the discriminant, convergent, and predictive validity of five measures of interpersonal and intercultural competence. There should also be continuity over time.

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