GlaxoSmithKline Pharmaceuticals Ltd.: Reinventing Incentives and Performance

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GlaxoSmithKline Pharmaceuticals Ltd.: Reinventing Incentives and Performance

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Publication Date:
October 07, 2019

Source:
Ivey Publishing

In 2015, GlaxoSmithKline (GSK) moved from target-driven sales, to a no-sales target regime. This change involved the sales incentives plan and performance measurement parameters of the front line medical sales force of the company. The executive director of Human Resources knew that challenges lay ahead in managing the company’s employees and reinvigorating the values of the organization. He was hoping to shift the focus of the sales force to ethical behaviour, dissemination of scientific knowledge among doctors, and customer and patient care. Many people were adapting to the new system while a few resisted, and some left the organization. Though management anticipated this turn of events and accepted the employee turnover, the director knew that more work needed to be done to make the new system more acceptable and functional. How should he address the subjectivity of the system, simplify it for his salesforce, and address the concerns of his managers? Would the new system motivate performance? Could he convince his employees of the potential benefits of the process- and competence-based pay system at GSK?

Hema Bajaj is affiliated with NMIMS University. Manjari Srivastava is affiliated with NMIMS University.

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

GlaxoSmithKline Pharmaceuticals Ltd.: Reinventing Incentives and Performance

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