Step 1: Assess the Company’s Human Resources Competitive Position
Leveraging the work completed in the Individual Assignments for Units 2 and 3, assess the company’s human resources competitive position. Be sure to evaluate the company’s position within the industry and among its comparator group.
Step 2: Identify and Evaluate Human Resources Risks and Opportunities
Leveraging the work completed in the Individual Assignment for Units 1–3, identify and evaluate the company’s human resources risks and opportunities. At least 3 risks and 3 opportunities should be included in your evaluation.
Step 3: Assessment of the Company’s Human Resources Competitive Position
Based on analysis of information obtained in Steps 1–3, prepare a professionally written report assessing the assessment of the company’s human resources competitive position, risks, and opportunities suitable for presentation to the senior executives of the company. Your report should present the information listed below. The body of the report should be 6–8 pages excluding title, references page(s), and any appendices.
1. Industry Competitive Position
2. Comparator Group Competitive Position
3. Human Resources Risks (minimum of 3)
4. Human Resources Opportunities (minimum of 3)
5. Overall Assessment of the Company’s Human Resources Competitive Position
Strategy Implementation AmerisourceBergen Corporation
Human resource has become one of the most important departments in any organization. Despite the fact that most individuals view human resource department aactivities and roles as a set of discrete activities, it has a duty and obligation to develop individuals to the desired level to ensure that they achieve predetermined objectives and goals. One of the competitive advantages that a company can have is acquiring the best talents and individuals in the labor market. With the increasing awareness of the need to have a transparent and accountable human resource, AmerisourceBergen Corporation has grown to be one of the largest and most effective companies in the united states as well as the global platform. The human resource department of the company makes sure that all the needs and want of the company employees are prioritized for them to feel motivated and hence remain in the company for long. The company growth and expansion began with the company which was initially known as the Bergen Brunswig merged with AmeriSource back in 2001 to create AmerisourceBergen Corporation (AmeriSourceBergen Corporation, n.d). AmerisourceBergen Corporation has heavily invested both wholesale and retail drug distribution services in an attempt to reduce the expenses of producing and distributing drugs while at the same time improving the patient outcome and experience. Additionally, the company also distributes generic medication and over the counter drugs and health care supplier throughout America and abroad. This assignment will attempt to assess AmerisourceBergen Corporation human resource competitive position.
Industry competitive position
Health and drug distribution services in the United States are one of the important industries in the United States owing to the increasing need to maintain good and high health standards. Therefore, AmerisourceBergen Corporation has come in and taken the largest market share in the industry, despite facing strong competition from the likes of Mckesson Corporation, Cardinal Health, Inc. and Express Scripts Holding Company. Statistics show that AmerisourceBergen Corporation generates more than $ 80 billion in sales as a result of selling brand-name drugs, generics, over-the-counter drugs as well as diverse medical services to a diverse customer. Additionally, the company reported a total profit of more than $ 8 billion in its first quarter of the 2013 financial year, making it one of the best and the largest pharmaceutical companies not only in the United States but at the global level (Grant & Cengage Learning (Firm), 2007). The main company competitors such as the Mckesson Corporation deliver prescriptions and generic drugs to more than 40,000 retail and institutional pharmacies throughout the country. Statistics show that AmerisourceBergen Corporation occupies 172.96% of total revenue, 142.88 percent of total income and 7.9 percent of market share. On the other hand, Mckesson Corporation has a total of 96.92% of the total market revenue, 85.21 percent of the total industry income and 10.45% of market share. These statistics are a clear indication that the pharmaceutical industry is competitive, thus prompting individual companies to improve the quality of their products and services (Turgut, n.d.,).
Comparator Group Competitive Position
AmerisourceBergen Corporation is currently one of the largest companies in the United States, particularly after the merging and acquisition. The human resource at the company largely focuses on putting the needs and wants of the employee’s first and as a result has developed to be one of the best-performing companies not only in the united states but worldwide. This makes it the best among comparator groups such as Mckesson Corporation and Health, Inc. as well as providing a platform where they can give superior and best quality products and services. One of the best practices about the company in regards to its performance is the benefits and compensation (Pereiro, 2014). For example, the organization provides health care insurance, which covers for the entire workforce and their families such as medical plans and prescription such strategy helps to keep the employees happy and thus inspiring and motivating staff to give their best to the company. Additionally, unlike its comparator competitors, AmerisourceBergen Corporation has a successful leadership team under the guidance of the chief executive officer making it possible for the employee to enjoy precision at the highest level of management. Moreover, the company has shown high strength when it comes to strategic vision, creativity and leadership which gives the company a competitive edge over their competitors. The company strategy of embracing diversity by providing equal opportunities for employment irrespective of people’s race, color or religion (Turgut, n.d). Moreover, the company policy of providing a comprehensive working environment where all staff and stakeholders are acknowledged for their unique talents and abilities and contribution to the success and growth of the company.
Human resource risks
Every business decision has a degree of risk that is associated with it. However, concerning human resource, an organization may incur losses due to the loss of personnel and employees in the course of business operations, deterioration of the morale as well as the inadequate development of human resources. Therefore, it is the duty of the human resource of the company to make sure that all the risks associated with the human resource of the company are identified, analyzed, prioritized and treated (Huajun, Guangyu, Hongying, & Taonan, 2008).
Inappropriate working and safety environment
Employees as the most important assets of a company have a right to a safe working condition that ensures that their safety and well-being is prioritized. Therefore, it is crucial for the company administrators to make sure that the company employees are safe and motivated to give their best to the company. Workplace safety emphasizes on the working schedules of the employees to make sure that they do not arrive early and leave late on the company premises. Some of the policies and practices that can be implemented in the company to make sure that the employees are safe from danger and discrimination to include anti-discrimination policies as well as employee protection policies. Workplace harassment includes physical contact, verbal comments or even nonverbal actions that might offensive and inappropriate to the company employees (Huajun, Guangyu, Hongying, & Taonan, 2008). Moreover, lighting, ventilation and desk installation for remote workers must meet safe working requirements.
Loss of employee morale
Employees are most significant to the company particularly when the employees significantly contribute to the attainment of the organizational objectives. Therefore, the company should make sure that employees are motivated and inspired to give their best to the company. Lack of employee morale can substantially lead to loss considering that they cannot meet customer deadline while at the same time cannot guarantee high-quality products and services. However, to improve and boost the morale of the employees, the human resource management of the company should focus on offering a competitive compensation package to make sure that the more they work, the more they earn. Additionally, the company should provide competitive benefits, subsidize employee education and training while at the same time offer rewards for the job well done while punishing bad behavior.
Inadequate development of human resources
With the recent development in technology, it is increasingly becoming important for the company to make sure that the employees are fully educated, trained and developed to make sure that they play an important role in the achievement of the organizational objectives and goals. Thus, it is the role of the human resource management to design appropriate and necessary training and development programs to make sure that they are up to date and are aware of the changes in the skills and market. Research shows that well-developed employees are effective and efficient and can improve the performance of the company in general. Therefore, there is a high probability that well-developed workforce can contribute to the growth and expansion the company (Mahbub ul Haq Human Development Centre, 2013).
Human Resources Opportunities
In the current global market, especially in a competitive and hostile as well as the unpredictable business environment, it is important for the human resource manager and department to be the core contributors to the designing and formulation of strategy development. Some of the important human resource opportunities that the company can seek to exploit includes:
Anticipating and planning for the human capital of tomorrow – with the rampant and unpredictable innovations and inventions in technology, it is important for the company to anticipate and plan the needs of the future company needs. This can be achieved through confidently and assertively finding solutions to business issues with line leaders and defining the subsequent human capital implications (Mahbub ul Haq Human Development Centre, 2013). All human capital policies and practices should be connected to millennial goals and objectives.
Securing a steady, reliable pipeline for skilled employees and tomorrow’s leader – as the war to secure top talents in the market continues in the global labor market today, it is the duty of the human resource management of the company to make sure that they match the emerging markets with the employees skills and knowledge to make sure that they get the best of the best. A support function mindset makes sure that the company administrators fully support the training and development of the employees through a proper and effective employee selection and recruitment policies.
Develop strategies to motivate employees to give their best to the company – the human resource department of the company should make sure that the company heavily invests in the employees to create and develop an engaged workforce that can assist in driving the financial performance of the company to the highest level possible. Research shows that engaged employees have a better chance of staying and contributing to the success and growth of an organization (Daft & Marcic, 2014). Employee motivations may take different forms, and it is the duty of the company to find the best policy and practice to motivate their employees.
Overall Assessment of the Company’s Human Resources Competitive Position
The company has strived to create the safest and most appropriate environment for the employees to thrive and work. As a result, the company has introduced a competitive pay package and benefits where employees are compensated based on their input to the success of the company. Additionally, the company has heavily invested in talent identification and management, which helps the company to attract, recruit, train and develop employees who later significantly contribute to the company. Furthermore, the company is committed to offering equal opportunities to all its employees, thus making it one of the best performing organizations in the industry. From the above-detailed research, it is correct to say that the human resource of the company is one of the best in the country.
AmeriSourceBergen Corporation. (n.d.). Annual report. Valley Forge, PA: AmeriSourceBergen Corp.
Daft, R. L., & Marcic, D. (2014). Building management skills: An action-first approach. Mason, OH: South-Western Cengage Learning.
Grant, T., & Cengage Learning (Firm). (2007). International directory of company histories: Volume 12. Chicago: St. James Press.
Huajun, L., Guangyu, Z., Hongying, W., & Taonan, F. (2008). Study on Human Resource Risks in Expatriate Management. 2008 International Conference on Computer Science and Software Engineering. doi:10.1109/csse.2008.61
Mahbub ul Haq Human Development Centre. (2013). Human development in South Asia 2013: Water for human development.
Pereiro, L. E. (2014). AmerisourceBergen: The Brazilian Acquisition. SSRN Electronic Journal. doi:10.2139/ssrn.2492344
Turgut, G. (n.d.). AmerisourceBergen. Encyclopedia of Business in Today’s World. doi:10.4135/9781412964289.n30