Global Staffing Strategies

Abstract

In the following essay the literature presented will outline and describe a comprehensive staffing strategy for a recently expanded company. The purpose of the strategy is to diagnose the status of the current HR operations of the overseas organization. The industry in which the organization operates will be discussed, in addition to the challenges that may present themselves as a result of the acquisition. The various methods for recruitment to sustain staffing needs are a topic that will address if human resources personnel overseas are capable of executing on their own.

After the initial agreement on all mergers and acquisitions has been completed, many factors have to be taken into careful consideration to ensure the organization is equipped to thrive within its industry. Executives are faced with decisions that will impact shareholders, financial assets, and reputation. Of the many post acquisition tasks to grasp, coordination of human resources and staffing are of immediate concern. An efficient staffing strategy is imperative to maintain organizational effectiveness when another organization is acquired. “You must implement new recruiting and hiring practices system wide, or you run the risk of being charged with biased, inconsistent patterns of decision making (Dreher, 2001).”

In order to manage the restructuring process which will combine practices and ideas from both organizations, new concepts have to be presented that will contrast to those already present. In December of 2006 Johnson & Johnson announced the acquisition of United Kingdom based Pfizer and all its entities. Widely known for the contributions in the pharmaceutical field, Pfizer has become a reputable organization with the healthcare industry. On the basis that Johnson & Johnson has been for decades a dominant healthcare force within the US, seeking out such a company as Pfizer for acquisition proved to be an intangible decision. With the two organizations now acting as one, careful diagnosis of Pfizer human resource operations by way of an audit are underway.

Looking into the United Kingdom where Pfizer is based provides information for what management will expect in the latter years of this acquisition.

“As a share of GDP, UK spending on healthcare, which was well below the EU average in the late 1990s, has now largely caught up with regional levels, following sharp rises in government spending aimed at improving the UK's dilapidated health infrastructure, increasing the number of doctors and nursing staff and reducing waiting lists (Viewswire, 2007).”

With the healthcare spending gradually increasing in the UK, Johnson’s acquisition proved to transpire at a very pivotal time. In recent years the healthcare infrastructure was not sufficient or attractive enough to draw investors or buyers in from other countries. Increasing spending power for healthcare firms in the country will benefit the US due to breakthroughs in technology which lead to new products and increased revenue. The total healthcare sector on spending is set to exceed $254 billion by then end of 2011 (Viewswire, 2007). Across the globe, the healthcare industry is rapidly expanding in areas of research, treatment, and education. The increased spending in the health field of the UK is reminiscent of a worldwide trend that is taking place is other continents as well.

“Despite the projected increase in government spending, the private sector will play an increasingly prominent role in the health sector. Until recently, the role of the private sector had been broadly limited to two spheres: the building of new hospitals under the Private Finance Initiative and the provision of health services outside the National Health Service (ViewsWire, 2007).”

Johnson & Johnson will not only benefit from the increased government spending in the UK, but as well from the growing prominence of the private sector. The independent organizations that establish themselves will look to garnish the services of Pfizer and others in the industry. With the projected outlook, other US owned healthcare companies may attempt explore any remaining acquisition or merger options.

Affiliates of both human resource organizations will incur challenges as they face preparation for one obsolete staffing strategy. “People need to be shown that changes to HRM practices will ultimately work to their advantage. They need to believe that they will be effective in the work roles called for in the new organization (Dreher, 2001).” Employee motivation on the side of the acquired company will be dismal, in order to cease any growing concerns of the staff management must instill job security and a sense of belonging for employees. “When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members (Noe, 2004).” The human resource management protocol has to provide solid evidence that will make employees confident of their organization. This will alleviate any concerns that the acquisition was not in the best interest for both the organizations.

One of the main differences between Johnson & Johnson and Pfizer is the location, which means each functions on a different currency. The US functions on the dollar and the UK with that of the pound. The difference in currencies may cause delays in transferring money necessary to fund staffing protocols. Executives from both countries will not encounter a language barrier as both countries speak English which will eliminate the need for translation.

The government in European countries plays a role in human resources functions that will adversely affect the strategy of the organization. “Laws of the host country also have a significant effect on managing human resources, and they are especially important in deciding whether to locate operations overseas (Dreher, 2001).” In contrast to the US, many European countries like the UK will have direct laws that impact staffing.

“In Europe, managers often must comply with HR decisions made at the national level through industry wide agreements or employers and union associations. Governments also tend to dictate funds to be spent on training and even which employees are to receive the training (Dreher, 2001).”

As a human resource manager staffing tasks can become quite cumbersome with the government dictating which individuals will receive funds for training and which will not. This can result in the