Case Study 3 [PDF]

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Group work 1. Đinh Thị Huyền Oanh 2. Bùi Thị Mai Hương 3. Vũ Thị Khánh Huyền 4. Nguyễn Thị Diệu Hương Case 3 VIGNETTE 3.1 “Glue Technology” in Action 1. What is HR’s role in developing glue technology?  Developing glue technology is the process of integrating and connecting the capabilities of an organization progressively, to achieve its objectives. The concept of glue technology was introduced by Prof. Paul Evans in the year 1991. As firms grow and expand to new markets and diversify into several product lines, the organization structure gets complex. -In the 1990s, Teva undertook an internationalization strategy through acquisitions, HR  people at  Teva were the first to make contact with the acquired organizations. -  post-merger implementation focuses mainly on cultural integration, with specific attention to talent management, retention, and adaptation to local cultures=> Teva's vision - HR economic issues revolve around developing a working plan budget (focusing on planning, controlling, and compensation), alignment of HR worldwide working plans (with an emphasis on cost differentials), and monthly tracking of labor costs and number of employees. Teva has a track record of a variance between HR plan and actual of less than 1%. => While there is a focus on HR metrics at the global level, Teva’s corporate culture is strongly decentralized, focused on lateral services rather than functional silos and hierarchies, devoid of written policies, and embedded in a dynamic Israeli management style, "policy guidelines", =>Now they attribute much of Teva’s business success to the flexibility of the organizational structure. Another example of lateral services is the establishment of Shared Service Centers (SSC) as part of HR’s organizational structure.  They  are  intended  to  integrate  training  and  development  activities,  push  strategy-derived issues, and provide some of the “glue technology.” At the HR

professional level, the global HR team  (made  up  of  country  HR  managers)  meets  face-to-face regularly and  works virtually on lateral projects 2. What does it mean for Teva to be an Israeli global company? In functional organizations,  the culture is such that questions are directed to the responsible for the function.  At  Teva,  Israeli management asks the same question from everyone. Unlike in France or the U.S., where managers respect the domain of responsibility, Teva management crosses information from different sources to enrich the response. Remaining an Israeli company despite its rapid growth is very important to Teva. There may be a sense of loss in  Israel as the company grows from a  domestic company to a  major global company  What it means to be a  global  Israeli company is much clearer in Teva Israel than in the company’s operations around the world. From an  Israeli perspective,  Teva is the crown jewel of corporate success in a  competitive global business environment. About HR, they are the most advanced and a best practice to be emulated by other Israeli companies. Being a global Israel company is also part of the company’s strategic vision with important HR implications.