Strategic Global Hr at Teva Pharmaceuticals

Case study

Strategic Global HR at Teva Pharmaceuticals

Student: Miloš Milovanović

Situation analysis

Teva is international pharmaceutical company based in Israel that became one of the world’s leading pharmaceutical companies. Teva is undisputed leader in the global generic industry, by developing a franchise in selected innovative products originating from Israeli science.

Teva’s strategic goals incudes following:

• To keep profitable growth,
• Industry and market leadership
• and globalization.

Implementation of the strategic objectives resulting double increase of sales every four years and double profit in shorter period of time will lays foundations for Teva’s sustainability, reduces the risks factors associated with Teva and the pharmaceutical industry, as listed in company 2002 Annual Report. Since 1990s Teva has aquatinted 19 companies all over the world. Gratitude for Teva’s success belongs to Mr. Haim Bejamini (vice president of Human Resources) who took over personnel department and develop it into a strategic global HR organization supporting aggressive internationalization and growth through acquisition objectives.

Decision moment

Teva’s HR strategical efforts are directed towards succession processes. Company has to make the key decision and appoint new vice president HR organizations once when Mr. Bejamini retired. The decision is not just about recruiting the replacement, it has strategic effect, as HR organization plays key role in Teva’s inspirations to become the largest pharmaceutical company in the world and still remain its character as a global Israeli company. Additionally, one of the key task of Mr. Benjamini, was to integrate Israeli company values in the new company global structure.

Issues

• Key issue: There is an apparent clash between the Teva culture and the process of succession planning. Good succession planning demands central coordination, which does not really exist at Teva. The decentralized way of management contradicts certain actions, such as taking a manager from a certain division and placing that manager in another division for developmental purposes. Succession planning is not part of the Teva culture. Although, Tev’s has program aiming to development younger and senior managements it lacks HR for core management positions. This means that finding replacement for Core management such as Haim Banjamin (vice president of human resources). One of the reasons for such situation is the fact that company HQ is based in Israel, a country often perceived as unsafe. This made Teva’s employees reluctant to reallocate to Israel and progress within the company.

• Secondary issue: Teva has experienced challenge to integrate acquired company - challenge in creating the sense of the belonging of acquired companies to Teva company (employees noted that they fell stronger sense of belonging towards their initial company rather than toward Teva).

Alternative courses of action & analysis

Having in mind that decision might have direct implications I would recommend the recruitment of one of the internal Senior HR staff member for future VP HR of Teva company. Alternatives / candidates for the VP HR position should be assessed through strategic, power and cultural lens. In table below I have discussed possible alternatives for the VP HR position, based on three criteria (Multicultural skills, Experience as Senior HR, and readiness to move in Israel.