The Best WritersSMU284This case was written by Dr. Poornima Luthra and Christopher Dula at Singapore Management University. The case was prepared solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. Certain names and other identifying information may have been disguised to protect confidentiality. The case was developed in conjunction with the Singapore Human Capital Leadership Institute (HCLI). Copyright © 2014, Singapore Management University and Human Capital Leadership Institute Version: 2014-06-09SMU Classification: RestrictedINTERGENERATIONAL MANAGEMENT AT GLAXOSMITHKLINE IN ASIA PACIFICEach generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after it.George Orwell It was September 2013 and Kimberly Wong, an external consultant working with GlaxoSmithKline (GSK), a large multinational healthcare company, had just boarded a Singapore bound flight from Manila with her colleague. After taking their seats they began to discuss the long business trip they were returning from. The two had visited GSK offices throughout the region, conducting interviews and collecting detailed information to examine how well senior management was addressing gaps in GSK’s talent pool while tackling intergenerational workforce issues. Upon their return to Singapore they would be meeting with the vice president of human resources, Asia Pacific at GSK, to share their observations and analysis of the two issues they had investigated. Wong turned to her colleague:GSK has three different generations together in the workplace. This is a fairly new phenomenon since people are living longer than ever it does present some challenges. As a whole, each generation has a different set of characteristics and are at separate stages of their lifecycle. Each has a distinct outlook on life and its own set of expectations. There are certainly some commonalities but there are also genuine differences.From a managerial perspective, Wong wondered how best to motivate those in each generation while maintaining impartiality. In general, intergenerational tensions could easily arise through ill-conceived HR policies, inadequate HR tools or even the wrong leadership style. Diminished performance and higher attrition rates were very real consequences. Impressive economic expansion far outstripped stagnant population growth in key Asia Pacific countries, which had resulted in chronic talent shortages. This shortage was particularly acute for general management and other senior positions. Those with professional talent found themselves in quite a favourable position given the abundance of jobs available to them. Wong commented:This situation is compounded by the fact that Baby Boomers the oldest and largest generation in the workforce are beginning to retire. It’s a difficult void to fill. Promising younger talent is spoilt for choice in the job market. It’s not easy to retain them. It’s problematic when it comes to developing their [GSK’s] talent pool. They have recognised this at GSK and are working to improve their talent development programme.Wong saw the folly in over generalising attributes of an entire generation, especially in a region as incredibly diverse as the Asia Pacific. She also understood the importance of creating a coherent corporate HR strategy. Wong needed to know what management styles, HR policies and tools were best suited to GSK’s needs. Was there a way for GSK to better attract and develop talent by engaging their intergenerational workforce in the Asia Pacific? She would start by analysingAuthorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific2/14SMU Classification: Restrictedinterviews and intelligence gathered from GSK offices in Indonesia, Philippines, Singapore, Taiwan and Thailand. GlaxoSmithKline In 2013 GSK was a global healthcare company that operated in three business areas: pharmaceuticals, vaccines and consumer healthcare. Headquartered in the UK, GSK had offices in 115 countries and a manufacturing network that spanned 87 locations worldwide. The company directly employed 100,000 people. GSK was an ostensibly young company that was formed through the merger of two other companies, GlaxoWellcome plc and SmithKline Beecham plc, in January 2001. However, these two companies were considerably older with histories that dated back almost 400 years to 1715. The company researched and developed a large range of different products and medicines, in keeping with its mission to help millions of people around the world feel better and live longer, more productive lives. GSK endeavoured to achieve this mission through a strategy that diversified growth in their product portfolio and increased investment in high-growth areas like the Asia Pacific. Efforts were also made to continually simplify their operating model through more efficient operations and reduced complexity, while still sustaining a robust R&D pipeline of high-value products. In 2012 GSK reported spending £4 billion (US$6.6 billion) on research and innovation.1 In that same year the company also reported a total group turnover of £26.4 billion (US$43.43 billion) and a total operating profit of £7.4 billion (US$12.7 billion).2 GSK in Asia Pacific Asia Pacific operations performed strongly despite global business volatility in the 2010s. Sales were particularly impressive in the vaccine and pharmaceutical divisions. The structure of the company’s workforce reflected its greater emphasis on high-growth markets. By 2013, GSK employed more than 36,000 people in emerging markets, mostly in Asia Pacific. In total, 42% of all company employees were located outside the US and Europe. The generational composition of GSK’s employees appeared similar across countries in Asia Pacific. Hafizah Hassan (Generation X), a director at GSK Singapore, said during the interviews, “I would say about 70% of the people reporting under me are Gen Y (Generation Y) and the rest are Gen X (Generation X).” Her counterpart, Victor Hsieng in Taiwan observed, “Generation X and Y occupy 80% of the organisation.” Talent Shortage in Asia Pacific Many countries in Asia Pacific were experiencing declining birth rates and in many places these rates had fallen below replacement levels. With few exceptions, net migration in most countries1 US$1 = £0.60 (2013 annualised) 2 Ibid.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific3/14SMU Classification: Restrictedwithin the region had come to a halt. Scarcity in skilled labour had caused significant wage inflation. Many businesses expected the situation to worsen.3 Wong said:The pharmaceutical industry requires high levels of very specific skills. Talent poaching from GSK’s competitors is a serious concern.The global market size for pharmaceuticals was expected to reach US$1.1 trillion by 2014.4 Overall demand for healthcare was also expected to grow as populations throughout the world became increasingly geriatric. This posed an interesting dilemma to the pharmaceutical industry, in that the industry was experiencing greater demand for their products, but was at the same time constrained by a tight labour market. Securing the right talent while meeting such rising demand would only exacerbate the competition for talent faced by GSK (refer to Exhibit 1 for key demographics and economic indicators in the Asia Pacific). Generation Y Gen Y were those born between 1981 and 2001. Most members of this cohort were children of the Baby Boomers the most populous generation to date who were born between 1946 and 1960. But, Gen Y, sometimes referred to as the echo-boom, was also considerable in size though not as large in number as their parents. By 2013 the eldest of the Gen Y cohort was 32 years old, already well represented in the workforce and beginning to take on more leadership roles. Although it was accepted that not everyone born into the same generation would hold the same values and beliefs, let alone have the same character qualities, some generalisations could be made about the characteristic attributes of a particular generation. There was a reason for this. It was believed that people were most impressionable during the first ten years of their life. By age 20, one’s value-forming stage was complete, after which, individuals tended only to process life experiences through a value-system that was already set. What created the generational identity then, was the set of shared experiences that took place in a cohort’s more formative years.5 These sets of shared experiences no doubt differed drastically across cultural geographies. What unified the global Gen Y were the megatrends persisting through their developmental years, the most influential of which was the radical change brought on by information and communications technologies. Commonly known as ‘digital natives’, Gen Y was the first generation to grow up with electronic media and highly personalised entertainment. Broadly speaking, this generation was technologically savvy and education oriented. Computers, mobile phones and the Internet had conditioned them to expect constant up-to-date news and events, on-demand interactive entertainment, and instant, continuous feedback on performance.6 There3 Peter Sheahan,“Generation Y in Asia,” eSpeakers.com. http://worldwide.streamer.espeakers.com/assets/9/8099/30062.pdf, accessed December 2013. 4 Rinu Chacko, “Top 10 World’s Largest Pharmaceutical Companies 2013,” List Dose, June 2013, http://listdose.com/top-10-worlds-largest-pharmaceutical-companies-2013/, accessed December 2013. 5 The Ken Blanchard Companies, “The Next Generation of Workers,” 2009, http://www.kenblanchard.com/img/pub/Blanchard_Next_Generation_of_Workers.pdf, accessed December 2013. 6 Svetlana Holt, Joan Marques & Danielle Way, “Bracing for the Millennial Workforce: Looking for Ways to Inspire Generation Y,” Journal of Leadership, Accountability and Ethics vol 9 (6), 2012, http://www.na-businesspress.com/JLAE/MarquesJ_Web9_6_.pdf, accessed December 2013.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific4/14SMU Classification: Restrictedwas little patience for latency. They tended to be civic minded, embraced diversity, learned quickly and preferred informality.7 In the workforce they were known to be creative, multi-tasking and hard-working, but demanded flexibility while requiring supervision. They were often more concerned about finding their dream job instead of job security. Furthermore, they were a highly optimistic and confident generation, many of whom expected success and a rapid rise up the corporate ladder.8 Wong cautioned:No one should be promoted above his or her capacity. GSK needs to consider alternative means for Gen Y to feel like they are moving forward.Gen Y in Asia Pacific There were roughly 660 million people in Asia Pacific born into Gen Y. They were a large and significant segment of society. Though this region was an extremely diverse place, certain shared experiences uniquely shaped their generational identity: technological interconnectedness, and also unprecedented economic growth and prosperity.9 Although not all in Gen Y might have benefited directly from such prosperity, it was however true that Gen Y had benefited from the opportunities created as a result of prosperity. Much of the Gen Y cohort had had the luxury of choosing from multiple disciplines, professions and career opportunities that their predecessors did not have access to. Wong added:I think many people in older generations see Gen Y as sheltered and overprotected. This is especially true in many parts of Asia, where younger generations never experienced the same kind of hardship that those in older generations endured and worked hard to overcome.Not all places in Asia Pacific shared equally in the benefits of such impressive economic expansion. There were still considerable socio-economic, demographic and political differences throughout the region. However, they were all faced with a common talent shortage. Like their global counterparts, Gen Y in Asia Pacific grew up in a time-compressed society.10 They expected things to happen fast and were used to being constantly stimulated. They thrived in a participative environment and wanted their opinions to be heard. Gen Y had a tendency to dislike rigid corporate hierarchy and questioned autocratic decision-making. For example, the average company tenure of a person in the Asia Pacific Gen Y cohort was only 18 months.11 Wong’s interviews at various GSK offices across the region revealed many commonalities among Generation Y employees. Michelle Ong, a Gen Y sales representative at GSK Singapore said this of herself:I would say I’m outspoken. And I’m pretty much a team player. I believe very much in teamwork, and that everyone contributes, not just one person. People want to be recognised for their efforts, especially when they put in hard work.Ong commented on the expectations of Gen Y: 7 The Ken Blanchard Companies, “The Next Generation of Workers,” 2009, http://www.kenblanchard.com/img/pub/Blanchard_Next_Generation_of_Workers.pdf, accessed December 2013. 8 Ibid. 9 Peter Sheahan,“Generation Y in Asia,” eSpeakers.com, http://worldwide.streamer.espeakers.com/assets/9/8099/30062.pdf, accessed December 2013. 10 Ibid. 11 Ibid.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific5/14SMU Classification: RestrictedPeople want to be recognised for their efforts. Especially if you put in your hard work, you want to be recognised. And that people see it and say ‘Hey! You did a good job!’ And my boss has been doing that as and when. Even if I don’t hit my sales figures, she sees me putting in hard work. She’ll let me know that she appreciates me as an employee and as a colleague, as a friend. So she actually goes beyond just being about work, talking about work. She asks me about my personal life… You can talk to her as a friend. And she will joke with you. I mean she doesn’t feel like a boss when you need her to be a friend. And she guides you when you need her to.Victor Hsieng, in Taiwan, also reported:Gen Y can be aggressive when speaking up about ideas. When it comes to instruction, they want to know the big scope, nothing too detailed, and they want their own space. Concerning this generation, particularly in Taiwan’s operations, there are a lot of events we conduct on weekends. If we don’t communicate early on to request them [Gen Y employees] to join these kinds of events for our customers, they will say, “Sorry Boss. I already have something on my schedule during these specific events.” We need to give them more clear communication and instructions. For Gen Y to be honest everyone wants to be the leader as soon as possible. That’s a challenge, because those with good potential, who have some strong capabilities, think they are ready for a leadership position. But from our [Gen X] perspective, they may still have some big gaps.Aini Salim, a Gen Y line manager at GSK Indonesia, said:In terms of differences, I think Gen Y is more results oriented and friendly towards new technology, but we want things fast. Generation X is more patient, more detailed. They are also results oriented, but pay more attention to the process.Gen Y in GSK and AttritionIn addition to the general Gen Y attributes, Gen Y in GSK appeared to have their own unique qualities and viewpoints. Michelle Ong commented on her decision to move to GSK and her expectations of the organisation:The reason for my move is actually that I wanted to expand my portfolio. And being GSK is… I mean everybody knows GSK… I am looking out for the structure of development for the employee, what developmental plan they have and what staff benefits are there. And the things that you do maybe after you get married and you have a kid. So I actually like that [at GSK].Many organisations, including GSK, throughout Asia-Pacific wrestled with growing rates of attrition coming from the Gen Y cohort. The director in Singapore, Hafizah Hassan, said:Gen Y is very ambitious. They know what they want. They expect milestones to happen quickly. Everything is very contracted. Gen Y seems to be a lot more active in seeking where they want to be, and they’re upfront about it. I think they need to be more patient, and not rushing all the time.Aini Salim, in Indonesia elaborated:Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific6/14SMU Classification: RestrictedI think compensation is just as important to Gen X as Gen Y. The difference is Gen X may value job security more, and since Gen Y is young, they are more willing to continue trying to find better career options.Maria Santos, the Gen Y manager in the Philippines further added:I can’t say if Gen Y has higher attrition rates or not sales tend to have higher attrition rates anyway. And since younger employees dominate Sales, it’s going to be Gen Y by default. But Gen Y can’t stay doing the same thing for long. Routine work de-motivates them.The Baby Boomers and Generation X The Baby Boomer generation was sometimes categorised into two cohorts given the sheer size of their numbers and the momentous societal changes taking place during their formative years.12 They were the parents of both Gen Y and many of those in Gen X, although some Gen X could equally be considered the children of the Silent Generation, born between 1922 and 1945. Despite the disjointed nature of the Baby Boomer cohort, they shared many commonalities. Baby Boomers were praised for being an extraordinarily hard-working and competitive generation that dominated the workforce for years.13 On the whole this generation was largely narcissistic, valued face-to-face time with senior management and sought to be rewarded by titles.14 They were very loyal to their companies but often left work and family life unbalanced as witnessed by their high divorce rates.15 Wong noted:Baby Boomers can be critical of younger generations often dismissing Gen X as lazy and Gen Y as too coddled. They expect them to bide their time and earn their advancement through the corporate hierarchy through hard work, as they did.This was an idealistic but disillusioned generation possibly attributable to the turbulent years of the 1960s and 70s. They worked best in defined structures. Job security, recognition and integrity were very important to them. Overall Baby Boomers had exceptionally strong qualities in the workplace; they were good team players and highly dependable. They wanted their knowledge and experience to be appreciated, especially as they began to leave the workforce. As Baby Boomers retired, they took with them decades of accumulated knowledge, experience and management practice. By 2012 approximately 60% of the workforce in Asia Pacific was composed of Gen X and Gen Y; by 2030 Gen Y would constitute 75% of the global workforce.16 Wong said:Across industries, current HR strategies concerning recruitment and retention are inadequate for filling the positions left by retiring Baby Boomers.12 Howard Schuman & Jacqueline Scott, “Generations and Collective Memories,” American Sociological Review, Vol. 54 (3), June 1989, http://isites.harvard.edu/fs/docs/icb.topic96263.files/generations_memories.pdf, accessed December 2013. 13 The Ken Blanchard Companies, “The Next Generation of Workers,” 2009, http://www.kenblanchard.com/img/pub/Blanchard_Next_Generation_of_Workers.pdf, accessed December 2013. 14 Svetlana Holt, Joan Marques & Danielle Way. Bracing for the Millennial Workforce: Looking for Ways to Inspire Generation Y. Journal of Leadership, Accountability and Ethics vol. 9(6). 2012. Retrieved from: http://www.na-businesspress.com/JLAE/MarquesJ_Web9_6_.pdf, accessed December 2013. 15 Susan Gregory Thomas, “The Divorce Generation,” The Wall Street Journal, July 2011, http://online.wsj.com/news/articles/SB10001424052702303544604576430341393583056, accessed December 2013. 16 Jeanne Meister, “Three Reasons You Need to Adopt a Millennial Mindset Regardless of Your Age,” Forbes, October 2012, http://www.forbes.com/sites/jeannemeister/2012/10/05/millennialmindse/, accessed December 2013.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific7/14SMU Classification: RestrictedGeneration X Unlike the Baby Boomers, who often had trouble assimilating new technology, Gen X openly embraced such change. They were born between 1961 and 1980 and were a much smaller percentage of the workforce than the Baby Boomers, and would soon be eclipsed by Gen Y. This was a highly self-reliant, often entrepreneurial, pragmatic yet cynical generation. 17 Work-life balance was important and they were typically family-oriented. Gen X embraced alternative lifestyles. Wong commented:In the workplace, Gen X doesn’t really care about hours on the job, just that the work gets done. I think what really sets Gen X apart from the Baby Boomers is that they rely much less on structure.Gen X was sometimes referred to as latchkey children, meaning they often returned to empty homes after school. They tended to watch television more than play outside with other children, which perhaps helped explain the introverted characteristic of this generation.18 Gen X changed jobs frequently, and valued autonomy and flexible work hours. They made heavy use of technology to produce the maximum amount of work in the least amount of time. As the Baby Boomers retired, Gen X and older segments of the Gen Y cohort would have to fill senior level and leadership roles. Wong reiterated:I think it’s important to remember that there is no clean break between generations, groups within cohorts born on the cusp of generations share characteristics of both. We can talk about characteristics of a group of people in terms of averages. But individuals are much more nuanced, subtle and complex.The Intergenerational Workforce Intergenerational tension increased as the age gap between the ages of employees in the workplace widened. In 2013, Wong observed that the GSK workforce spanned three or more generations, which could add to the complexity of many human resources issues. This could be especially problematic when younger employees managed older employees. But when communication was handled the right way, significant benefit could be achieved through supervisors managing employees older than themselves. There were, in fact, many advantages to a well-run multigenerational workplace, such as: talent attraction, improved creativity and innovation, reduced turnover and greater competitive advantage.19 Hafizah Hassan, the director in Singapore, said:They always say it’s a challenge working with Gen Y, but I don’t really find it a challenge. It’s actually very exciting to work with these enthusiastic, forward thinking and creative people. Maybe the challenge is more from a project perspective. And it’s not that they’re reckless, just overzealous, it’s an attitude.17 Svetlana Holt, Joan Marques & Danielle Way, “Bracing for the Millennial Workforce: Looking for Ways to Inspire Generation Y,” Journal of Leadership, Accountability and Ethics vol. 9(6), 2012, http://www.na-businesspress.com/JLAE/MarquesJ_Web9_6_.pdf, accessed December 2013. 18 Ibid. 19 Cindy Tan, “The Aging Workforce in Singapore: Managing Intergenerational Issues of Generation Y and the Baby Boomers at the Workplace,” The Civil Service College, Singapore, October 2012, https://www.cscollege.gov.sg/Knowledge/Pages/The-Aging-Workforce-in-Singapore-Managing-Intergenerational-Issues-of-Generation-Y-and-Baby-Boomers-at-the-Workplace.aspx, accessed December 2013.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific8/14SMU Classification: RestrictedI think managers just need to listen to Gen Y when they voice stuff out. Actually listen to what they are saying. Some managers just see it as complaining, and we all complain. But you really need to listen to what they are complaining about, because there might be something underneath all that that you really want to fix.There were many flashpoints for workplace conflict that could arise through intergenerational tension (refer to Exhibit 2, 3 & 4 for age preferences of supervisors by generation, ranked motivational factors by generation and a map of potential clash points between generations). Maria Santos, a Gen Y line manager at GSK Philippines recalled:The direct-report-to-boss relationship is a little more evident with Gen X managers, in the sense that interactions tend to be more serious, more professional, from what I notice with Gen Y managers. When I first started managing Gen X employees, they really tested my competence and sized me up; they would challenge me. There was a lot of proving I had to do, but over the years I built credibility.Aini Salim, the Gen Y manager in Indonesia talked about her experiences as well:I joined GSK in 2010 right after pharmacy school. I moved up pretty quick starting as business development staff and into a management role. Older employees saw themselves as more senior than me and they do have a lot more experience in the field. I tell them that I have a different background from them, and that we can both learn a lot from each other.Intergenerational Conflict In Asia Pacific, 50% of employees reported having had severe intergenerational conflicts in the workplace. These conflicts typically originated through differing expectations about reward and recognition. Solutions, however, usually required a certain amount of dynamism and open communication that was typically difficult for organisations based in hierarchal societies, such as those in the Asia Pacific, to achieve. This was especially true when it came to restructuring the traditional corporate ladder into a flatter more generationally diverse workplace (refer to Exhibit 5 & 6 for a chart on workplace intergenerational conflict by country and for a generational breakdown of how well different generations perceive their job expectations being fulfilled).20 Wong said:GSK has history that dates back hundreds of years. They are a bit more conservative. These über-contemporary offices seen in Silicon Valley don’t really fit their corporate culture.Hafizah Hassan added:We are, I think, still conservative. We have this image of our company, and that is one of excellence. But the work culture here is intensive, and because we work in the matrix, we need to attend a lot of meetings. That takes up hours, which means there’s not a lot of opportunity to work from home.However, Victor Hsieng mentioned changes in GSK’s corporate culture taking place in Taiwan:We’re moving from a top-down management style. For the younger generation, we need to involve them, engage them into our discussions. They want to be part of the decision-making.20 Kelly Services, “Understanding and Leveraging Generational Diversity for Organizational Success,” http://www.kellyservices.com.sg/SG/Knowledge-Hub/Understanding-and-Leveraging-Generational-Diversity-for-Organizational-Success/#.Uqgq62QW1CU, accessed December 2013.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific9/14SMU Classification: RestrictedHere in Taiwan we use the Gemba process where we get feedback, opinions and comments about company policy from the younger generation in the field.21 We get some suggestions. Ideas go to the leadership team, and they use it to come up with solutions. This is very different from when I joined 20 years ago. We even have discussion workshops for the leadership team about how to work with the younger generation. We’ve identified the need to communicate more frequently and transparently. The younger generation wants to know, and they want quick responses from managers.Talent Development at GSK GSK’s approach to recruitment and development was focused on hard skills and key behaviours, such as innovative thinking, trust building and leadership ability. This was largely facilitated through GSK’s Talent Development Strategy, which was specifically tailored for employees at various levels of the organisation’s hierarchy. The objective of the programme was to ensure that GSK’s talent needs were consistently met through appropriately skilled and highly motivated employees. Talent was divided into three pools, each with its own, targeted approach. There were formal training programmes for entry level recruits as well as other formalised training sessions and workshops that employees received throughout their tenure at GSK. However, these programmes were only a small part of the company’s learning and development strategy. Rather, GSK followed a 70-20-10 model, where 70% development occurred through lessons learned on tough jobs, 20% happened though feedback from peers and supervisors and only 10% through formal training. Hassan, the director in Singapore explained:HR drives talent development; they lead it. Managers are made aware of development programmes and are trained on how to use the different platforms.For the 20% part, one example would be a mentoring programme, or a coaching programme. If I find high potential in one of my staff, and it’s just a behaviour that needs to be developed because they’re basically new, I could try and find a programme to cover that gap. For the 10% part we have different kinds of immersion programmes. When you see emerging leaders on your team, you kind of expose them to how GSK works as an organisation, and how you work through the matrix of that because that’s the difficult part of handling it. We have a robust developmental programme if it’s done properly. I think it really depends on the manager.For employees in the early entry pool, the focus was on giving opportunities to understand various aspects of the business through job rotations. As employees moved up to the management and general management team pools, the focus shifted from developing leadership potential and skills to leading business and enterprise. Michelle Ong, the Gen Y sales representative at GSK Singapore clarified: 21 Gemba, also known as Genba, is a Lean management technique where managers make greater effort to immerse themselves in the day-to-day work of staff in order to more intuitively understand actual processes and work conditions happening throughout an organisation.Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific10/14SMU Classification: RestrictedThe way I understand it, is there are two programmes. One is management training and the other is the usual route where you come up from being a sales rep and move slowly up the ranks. You express your interest in advancing, and every year there is a review. You may then get put into management training. What I heard is that they’ll put you in different roles for at least one to two years. And will shift you around from say, Sales to Marketing to HR. For new sales reps there’s a training programme. So when you come in you have product training, sales skills training, all of that it’s standard. When I came in I didn’t have a mentor because I had prior sales experience, so unless you’re totally new, they don’t assign one.As part of its talent development, GSK had a standard Performance and Development Plan (PDP) for each employee to monitor, evaluate and assist their career progress. Employees wrote their own PDP, which was then reviewed by their manager every six months. Management was able to use the PDP to capture key employee deliverables identified by the employee’s role, as well as aspects of behavioural development. Potential candidates for leadership roles could be identified and further developed based on how an employee’s own behavioural aspects were aligned with high performance behavioural clusters identified by GSK. It could also be used to show where employees needed to improve in order reach their own career aspirations. Wong said:GSK’s leadership framework is basically divided into four areas: innovative thinking, engaging and developing others, leading people, and achieving excellence. Our biggest talent gap is on the innovative thinking side.However, not every employee was satisfied with the framework. Michelle Ong shared her frustration:Every half a year we do the PDP. But I feel we don’t have enough time to sit down and really talk because it’s all so rushed. Maybe my concerns aren’t being met? I had been here for one and a half years and wanted to move up to the next rank.Room for Improvement With attrition rates being higher than expected amongst Gen Y in early 2013, Kimberly Wong pondered on what more GSK’s HR team could do to meet the talent demands of GSK and to ensure retention of the highly mobile Gen Y across Asia. Was there a way for GSK to better attract and develop talent by engaging their intergenerational workforce in the Asia Pacific?Authorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific11/14SMU Classification: RestrictedEXHIBIT 1: KEY DEMOGRAPHICS AND ECONOMIC INDICATORS, 2013 EST. Indonesia Philippines Singapore Taiwan Thailand Population 251,160,124 105,720,644 5,460,302 23,299,716 67,448,120 GDP (PPP) US$1.237T US$431.3B US$331.9B US$918.3B US$662.6B Unemployment rate 6.1% 7% 1.9% 4.2% 0.7% Age structure0-14 years 26.60% 34% 13.6% 14.3 19.2 15-24 17.1 19.1 18.20 13.7 15.1 25-54 42.2 36.8 50.10 47.7 45.6 55-64 7.6 5.7 9.9 12.7 10.4 65+ 6.4 4.4 8.1 11.6 9.8Median age 28.9 years 23.3 years 33.6 years 38.7 years 35.1 years Population growth rate 0.99% 1.84% 1.96% 0.27% 0.52% Education expenditure 3% GDP 2.7% GDP 3.3% GDP 3.8% GDP School life expectancy 13 years 11 years 12 years Literacy 92.80% 95.40% 95.9% 96.1% 93.5% Urbanisation 50.70% 48.8% 100% 34.1%Source: CIA World Factbook, https://www.cia.gov/library/publications/the-world-factbook/wfbExt/region_eas.html, accessed December 2013.EXHIBIT 2: SUPERVISOR PREFERENCES OF GEN Y AND BABY BOOMERS, SINGAPORE Generation Y14% 0%52%34%Same ageOlder employeesYounger employeesAny ageAuthorizedfor use onlyby xushan liin BUAD 301Spring2022Coursepackat CaliforniaState UniversityFullerton from 1/22/2022to 5/21/2022.Use outside theseparametersis acopyright violation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific12/14SMU Classification: RestrictedBaby BoomersSource: Cindy Tan, The Aging Workforce in Singapore: Managing Intergenerational Issues of Generation Y and the Baby Boomers at the Workplace, The Civil Service College, Singapore. October 2012, https://www.cscollege.gov.sg/, accessed December 2013.EXHIBIT 3: RANKED MOTIVATIONAL FACTORS, SINGAPORE, 2008 Rank Generation Y Generation X Baby Boomers Less than 30 years 30-39 years 40-49 years Over 50 years 1Meaningful and interesting workFinancial rewards Financial rewards Financial rewards2Financial rewards Work-life balance Work-life balance Work-life balance3Work-life balance Meaningful and interesting workBenefits Benefits4Respectful and friendly co-workersPromotions and upward progressionMeaningful and interesting workMeaningful and interesting work5 Promotions and upward progressionRespectful and friendly co-workersRespectful and friendly co-workersAutonomy and freedom at work6Training and learning opportunitiesBenefits Autonomy and freedom at workRespectful and friendly co-workers7 Autonomy and freedom at workAutonomy and freedom at workPromotions and upward progressionPromotions and upward progression8 Benefits Training and learning opportunitiesTraining and learning opportunitiesTraining and learning opportunitiesSource: Cindy Tan, The Aging Workforce in Singapore: Managing Intergenerational Issues of Generation Y and the Baby Boomers at the Workplace, The Civil Service College, Singapore, October 2012, https://www.cscollege.gov.sg, accessed December 2013.17%8%33%42%Same ageOlder employeesYounger employeesAny ageAuthorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific13/14SMU Classification: RestrictedEXHIBIT 4: MAP OF POTENTIAL INTERGENERATIONAL CLASH POINTSSource: The Ken Blanchard Companies, “The Next Generation of Workers,” 2009, http://www.kenblanchard.com/img/pub/Blanchard_Next_Generation_of_Workers.pdf, accessed December 2013.EXHIBIT 5: INTERGENERATIONAL WORKPLACE CONFLICT BY COUNTRY % Employees in Asia Pacific reporting intergenerational workplace conflictSource: Kelly Services, “Understanding and Leveraging Generational Diversity for Organizational Success,” http://www.kellyservices.com.sg, accessed December 2013.0%10%20%30%40%50%60%70%80%90%100%Thailand China Indonesia Malaysia Singapore Hong KongReporting conflict Believe generational differences existView of authority Loyalty and jobsecurityJob, career and retirementDiversity and changeRelationshipTechnologyManagementMotivation, rewards and recognitionWork ethics and work-life balancePotential clash points Baby BoomersGeneration XGeneration YAuthorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.SMU-14-0019 Intergenerational Management at GlaxoSmithKline in Asia Pacific14/14SMU Classification: RestrictedEXHIBIT 6: % EMPLOYEES THAT FEEL CURRENT EMPLOYER MANAGES AND REWARDS IN WAYS THAT MEET EXPECTATIONS% NoSource: Kelly Services, “Understanding and Leveraging Generational Diversity for Organizational Success,” http://www.kellyservices.com.sg, accessed December 2013.0% 10% 20% 30% 40% 50% 60% 70%Baby BoomersGeneration XGeneration YAuthorized for useonly byxushanli inBUAD301Spring 2022 Coursepack atCalifornia StateUniversityFullertonfrom1/22/2022 to5/21/2022.Useoutsidethese parameters isa copyrightviolation.
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