Introduction

            This is case study on ‘Multico’ which is a multinational and it’s well established in the pharmaceutical industry. This company had been following a particular human resources strategy but their approach failed eventually since turnover jumped to almost fifty percent as a result. The management was too sure of their strategy and its consequences whereas, the effect was totally the opposite. The administration assumed their strategy was perfect and the employees are satisfied whereas, this approach had wreaked havoc at all levels of this multinational.

Multico has 70,000 employees world-wide and it is generally a risk-averse and stable company. The management style is centralized and they have a well balanced human resource department that runs performance appraisals which eventually decides the employee’s compensation. The case study is based on ‘DrugDiv’ which is a small but profitable operation of Multico which is serving a niche market. This strategic business unit is mainly involved research, development, manufacture and the sale of branded products. This SBU employs 100 people in theUKandIrelandout of which 70 are sales representatives further subdivided according to six regions with a manager for every distinct region. The case study is focuses on the human resources strategy as implemented in DrugDiv since this strategy was a failure and had dire repercussions in terms of reduced sales and a high turnover.

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