Leadership, Strategy, and Change in Human Resources- GlaxoSmithKline

Assignment Questions

Individual Coursework

Summary of the Article:

…..While some of the work likely to be resistant to AI will remain high paying, much of the work which cannot be replaced by robots, and for which there is a growing demand – such as in health care and social services – is relatively undervalued in the current market.

The future of work will not only require different types of training, it may also require different ways of valuing the work that can only be done by humans to ensure what Chester calls “a sense of equality” in the ultimate job, productivity and wage dividend that will come from technology.

please click on link below for complete article:

https://www.theguardian.com/business/grogonomics/2018/jul/18/with-changes-ineducation-and-fair-wages-technology-can-be-a-workers-friend

Your Assignment:

You are required to answer the given tasks with reference to the article given above. You should support your views with further research and examples along with theories and models studied in class.

Task-1:

Critically analyse and evaluate the impact and implication(s) of Artificial Intelligence (AI) on Strategic Human Resources Management within a global organization of your choice within any competitive sector. Your analysis should reflect on HR functions and HR policy formulation within a business context. (50 marks)

Task-2:

Utilising your evaluation and analysis from Task 1, apply Kurt Lewin’s Force Field Analysis to recommend an effective change management strategy to senior managers within the UK health sector. Your recommendation should make use of a relevant change management model.

Executive Summary:

The report shows the potential impact of emerging technologies like Artificial Intelligence in GlaxoSmithKline and its industry and the UK Healthcare industry. The disruptive technology of Artificial Intelligence in drug discovery and its impact on human resource functions is shown in detail. The innovative nature of Artificial intelligence and its implementation in UK Healthcare shows how the healthcare industry needs to be prepared for it. The resulting changes and their potential impact on the world of work are also explained. The use of the Lewin’s Change Management Model is shown to explain how health care organisations can better adapt to the changes.

Introduction:

Emerging technologies are going to have a major impact on the world of work in the future. Emerging technologies are the innovations which have the potential to transform an existing industry or create a new industry. In the context of Human Resource Management, the technology which is being currently developed or is going to be developed in the coming ten years and is expected to alter the operations of the business is considered as emerging technology. The emerging technology has a high degree of uncertainty, unpredictable costs associated with it and the organisations do not have an idea of the value and scale of its effect which makes it threatening for them.

The potential of the Artificial intelligence in the industries shows that the healthcare industry is the one who is going to be reaping some major benefits from the artificial intelligence through their enhanced product quality, increased productivity and risen consumption. Health care is also set on helping the diagnostic by analysing and identifying the small variation of the healthcare data of patients and comparing it with similar patients. It can lead to potential pandemics and tracking of the diseases early on in the stages and containing their pace. It can cause better and efficient imaging diagnostics in the pathology and radiology fields (Williams, 2017). However, this also conveys some concerns over the replacement of specialist’s jobs as well.

Task 1:

1.1.               Artificial Intelligence Impact on HRM

Some of the big trends which the world has been witnessing are coming from the origins of technology. Technology and the pace of change in this technology are accelerating the way many people do their jobs. The environment has become highly unpredictable for the employer and the employee. The world of work is going to be impacted by technology in ways which have not been fully understood. The world of work has to understand and start preparing for this change to better adapt to future change (PWC, 2014). Emerging technologies are going to have the most impact on the world of work. In the context of Human Resource Management, the technology which is being currently developed or is going to be developed in the coming ten years and is expected to alter the operations of the business is considered as the emerging technology (Day, Schoemaker and Gunther, 2004).

Artificial Intelligence is the segment of computer programs which is developed for the completion of tasks that would otherwise require human intelligence to work. Human Resource Management is the function which helps businesses to achieve their strategic and operational objectives. The HRM implements its functions for the achievement of these strategic and operational objectives. The introduction of Artificial Intelligence is disrupting the strategic and operational objectives of many companies.

The use of Artificial Intelligence for HRM has many decisive implications. The engagement with Human Resource technology would mean the use of technology for hiring, attracting, and retaining and maintaining human resources. It can be also for the optimising of human resource management functions and supporting of the HR administration. The HR Information system is for instance used for the creation, compilation, and maintenance of employee records. It is further used for talent management, decision making enhancement, forecasting and HR planning. While artificial intelligence can improve the quality, speed, and cost of the available services and goods, it also displaces the worker jobs (Day, Schoemaker and Gunther, 2004). This potential of artificial intelligence challenging our traditional norms of doing business and practising HR has started to be witnessed in many industries. However, it’s not all doom and gloom, the changes in the fair wages and education of the workforce can make the technology to be better for the world of work (Jericho, 2018).

1.2.               Artificial Intelligence in GlaxoSmithKline

1.2.1.   GlaxoSmithKline:

The chosen company is operating in consumer healthcare, pharmaceutical and vaccines business. It is operating internationally in the US, Europe and in other regions of the world (GSK, 2017). The company is considered among the top 15 pharmaceutical companies regarding market capitalisation. In the UK, the company is considered the largest pharmaceutical company by value (GSK, 2017).

1.2.2.   Use of AI for Drug Discovery and Process Improvement

GlaxoSmithKline has been recently implemented a new platform which is simplifying, integrating, and unlocking the data all across the research division for driving innovation in its pharmaceutical space (Romero, 2018). This new platform is going to reinvent the way drug discovery would be made. With the use of artificial intelligence, advanced algorithms have enabled the understanding and use of speech, learning of complex skills and identification of visual patterns (Romero, 2018). The company has initiated collaboration with British company Excientia for the use of artificial intelligence in the identification of drug tests. The British company is given the target of identifying molecules which would have the potential to treat 10 diseases (Hill, 2017).

1.2.3.   Impact of AI in the Pharmaceutical Industry:

GlaxoSmithKline has been investing in artificial intelligence to improve drug discovery by collaborating with Cloud pharmaceuticals. The leading drug companies are turning towards artificial intelligence for improving their process of finding new medicines. GlaxoSmithKline has unveiled a $43 million investment in this field (Hirschler, 2017). The aim is to develop improved machine learning systems and modern supercomputers for predicting how likely the molecules would behave and makeup for a useful drug by saving costs and time of the testing (Idrus, 2017). The AI systems have been playing a major role in the tech areas of facial recognition and driverless cars. Pharmaceutical companies now also realise the potential of emerging technology like Artificial intelligence and Robotics. If the technology proves to be beneficial, mergers could be seen in AI companies and pharmaceuticals (Hirschler, 2017). Using robots to test millions of compounds and generating several leads has been done in the past as well, but the inefficiencies in the research process have made it fail. The companies have yet to prove how it brings a new molecule from the screen of the computer to lab to hospitals and lastly in the markets (Hirschler, 2017).

1.2.4.   AI Impact GlaxoSmithKline HRM:

This innovative technology would enable pharmaceutical companies to improve their drug discovery efforts. It would mean improved efficiency for the pharmaceutical companies and the patients as well (Hirschler, 2017). However, it can also mean that there would be a replacement of jobs in the field of drug discovery. Furthermore, it would also mean that the company needs to familiarise its human resources with the new drug discovery process. It would need communication of the new process, training and development of the skills needed to use artificial intelligence for their support.

1.2.5.   Recommendation to GlaxoSmithKline:

The business in pharmaceutical companies is mostly involved in the prediction and discovery of the drugs and treatment results regarding use of AI. The use of AI by Pharma companies has not been much public which is often done to secure the patents in the industry. The human resource of the organisation is therefore needed to make their scientists sign nondisclosure agreements (Jesus, 2018). The company also needed to train its professionals and tightly guard their identity as well. GlaxoSmithKline is advised on communicating the process of integration to its employees effectively. The employees should also be trained with the new process of drug discovery (Jesus, 2018).

Task 2:

2.0 Artificial Intelligence in UK Health Care Sector

2.1 Artificial Intelligence Impact on UK Health Care Sector

The unprecedented rise in the data of the healthcare patient data has caused the industry to struggle with the practical use of this data. Artificial Intelligence along with its intelligence inferences through which it draws vast chunks of data shows the possible solution for this problem. Robotics and smart devices are making inroads in the healthcare industry through these mediums. 63% of the healthcare executives all around the world have already invested in the technology of Artificial intelligence while 74% are planning on doing so in future (Jesus, 2018).

2.2 Use of AI for Drug Discovery, Data analytics and Process Improvement

GlaxoSmithKline is using artificial intelligence for the improvement of the drug discovery process. However, this is just one of the many ways the pharmaceutical Company can use artificial intelligence for its process enhancement and operational efficiency. There are several other ways through which the pharmaceutical and healthcare industry can use Artificial intelligence (CBINSIGHTS, 2018).

The data is what is fuelling artificial intelligence in the healthcare delivery industry. The unstructured data is residing mostly outside the databases of the organisation in the form of lab reports and electronic health records. The potential of tapping into this data can make healthcare more cost effective and efficient for the patient (Ragh and Raghupathi, 2014).

AI and its technologies are now used and are expected to be used in the healthcare industry in the detection of diseases, delivery of healthcare service, management of chronic diseases, and drug discovery (Nuffield Council on Bioethics, 2018). Technology has the potential to help with many of the health challenges. However, the AI would be limited in its efficiency to the available data and the lack of the AI to possess similar human characteristics like compassion (Nuffield Council on Bioethics, 2018). The ethical issues raised by the AI are also to be considered as the AI would be using the healthcare data more broadly. The challenge would be to make the AI use in the healthcare industry more efficient and compatible with the public interest while also driving innovation in the industry (Nuffield Council on Bioethics, 2018).

2.3 Impact on UK Health Sector & HRM:

The leaders of this industry and GlaxoSmithKline need to better prepare for the healthcare and Pharma profession to be partnered with, supported by and in future may be replaced by artificial intelligence and robotics systems.

Furthermore, Artificial Intelligence has the potential of transforming the role of doctors and accompanying staff by revolutionising the medical practice (Loh, 2018). The doctors in the leadership role need to be aware of the changes that AI is bringing in the healthcare industry. It requires the leaders in the healthcare industry to be aware of these changes to better adapt to the changes in the future. AI has been efficient in diagnosing the medical conditions of humans (Loh, 2018). The prediction of suicide attempts is likely better done by the AI than by humans. The strength of the AI is its ability to use the large dataset and then identify patterns which are helpful in identifying the medical condition. It is putting AI in direct competition with the doctors and specialists which are involved in the diagnostics like in radiology and pathology (Walker, 2018). The challenge posed by AI is that no one knows the legal liability and the consideration for negligence when an error would occur. It is one area which the companies should consider looking into (Loh, 2018).

2.4 Lewin’s Forces Field analysis for Change Management:

The leaders should use the Lewin’s Forces Field analysis to identify the areas in the environment in which change is required. The restraining and the driving forces of the environment would influence the implementation of the change program. The FFA is an effective management tool for the transformation of groups and organisations (Russell and Russell, 2006). It helps in balancing the driving and restraining forces of change management. The Lewin’s showed that Change occurs in three stages. The first stage is unfreezing, while the second step in moving and the last step are refreezing the change.

In the Unfreezing step, the organisation can take the change management initiative that would help in directing the individuals at their organisation to desire the change. The motivation for change would be needed to make them open about the initiative and be prepared for the change (Hao and Yazdanifard, 2015). It can be done by communicating the benefits of the change; the compelling reason for the change and the challenges of losing out if the change is not adopted. The organisation can make health professionals realise that artificial intelligence is going to partner them in the drug discovery practices in the future. It would call them to know that they should be better prepared to work with AI in the future (Hao and Yazdanifard, 2015).

The next step of Moving calls for the organisation to support its professionals and make them confident that the change will improve their current situation. The moving phase would call for professionals to train themselves in artificial intelligence and data management systems (Russell and Russell, 2006).

The last step is freezing which ensures that the new behaviour pattern is reinforced. It calls for healthcare organisations to work on developing policies and routine operations to include Artificial intelligence. The engagement of the professionals with AI in daily routine would reinforce the new change (Day, Schoemaker and Gunther, 2004).

Summary and Conclusion:

The Change Management is a process which is difficult for any organisation. Moreover, in an uncertain situation where the span, scale, and frequency of change are unknown, the management of the strategic position of the business and its future goals is challenging. However, the only way forward is to accept the change and work for its adaptation. Technology is the driver of change in many industries and is responsible for throwing challenges in the world of work as well. The emerging technologies and their influence on replacing the jobs in industries are evident more clearly now. The drug discovery technology with the use of artificial intelligence by GlaxoSmithKline is discussed in the report in which it shows how disruptive this can be for the healthcare industry. For the Human Resource, it would mean changes in the skills development of the drug discovery departments. Later on, the UK Health sector and the impact of artificial intelligence on this segment are also analysed. The analysis shows that there is the possibility of professionals to not only work with Artificial Intelligence shortly but also get replaced by it. The use of the Lewin’s Change Model is used for the organisation to manage change in its organization.

Bibliography:

CBINSIGHTS (2018) The Future Of Clinical Trials: How AI & Big Tech Could Make Drug Development Cheaper, Faster, & More Effective, 7 August, [Online], Available: https://www.cbinsights.com/research/clinical-trials-ai-tech-disruption/ [18 December 2018].

Day, G., Schoemaker, P.J.H. and Gunther, R.E. (2004) Wharton on Managing Emerging Technologies, 2nd edition, New Jersey: John Wiley & Sons.

GSK (2017) GSK Quick Facts, 27 March, [Online], Available: https://www.gsk.com/media/3646/gsk-quick-facts.pdf [18 December 2018].

Hao, M.J. and Yazdanifard, R. (2015) ‘How Effective Leadership can Facilitate Change in Organizations through Improvement and Innovation’, Global Journal of Management and Business Research: Administration and Management, vol. 15, no. 9, pp. 1-6.

Hill, R. (2017) Megacorp GSK inks AI drug development deal with Brit firm, 3 July, [Online], Available: https://www.theregister.co.uk/2017/07/03/gsk_signs_ai_deal_british_firm/ [3 July 2018].

Hirschler, B. (2017) Big pharma turns to AI to speed drug discovery, GSK signs deal, 2 July, [Online], Available: https://www.reuters.com/article/us-pharmaceuticals-ai-gsk/big-pharma-turns-to-ai-to-speed-drug-discovery-gsk-signs-deal-idUSKBN19N003 [17 December 2018].

Idrus, A.A. (2017) GlaxoSmithKline, Exscientia ink AI-based drug discovery deal worth up to $42M, 5 July, [Online], Available: https://www.fiercebiotech.com/medtech/gsk-exscientia-ink-ai-based-drug-discovery-deal-worth-up-to-42m [18 December 2018].

Jericho, G. (2018) With changes in education and fair wages, technology can be a worker’s friend, 18 July, [Online], Available: https://www.theguardian.com/business/grogonomics/2018/jul/18/with-changes-in-education-and-fair-wages-technology-can-be-a-workers-friend [18 December 2018].

Jesus, A.D. (2018) Artificial Intelligence in the Pharmaceutical Industry – An Overview of Innovations, 29 November, [Online], Available: https://emerj.com/ai-sector-overviews/artificial-intelligence-for-pharmacies-an-overview-of-innovations/ [18 December 2018].

Loh, E. (2018) ‘Medicine and the rise of the robots: a qualitative review of recent advances of artificial intelligence in health’, BMJ Leader, vol. 2, no. 6.

Nuffield Council on Bioethics (2018) Artificial intelligence (AI) in healthcare and research, 17 May, [Online], Available: http://nuffieldbioethics.org/wp-content/uploads/Artificial-Intelligence-AI-in-healthcare-and-research.pdf [17 December 2018].

PWC (2014) The future of work – three visions of tomorrow, 22 October, [Online], Available: https://www.youtube.com/watch?v=k6lcfTD2AYI [17 December 2018].

Ragh, W. and Raghupathi, V. (2014) ‘Big data analytics in healthcare: promise and potential’, Health Information Science and systems, vol. 2, no. 3, pp. 3-2501.

Romero, A. (2018) Artificial Intelligence in Healthcare Will Drive Next Wave of Digital Innovation, [Online], Available: https://innovation.gsk.com/product-healthcare/blog/artificial-intelligence-healthcare-drive-next-wave-digital-innovation [17 December 2018].

Russell, J.L. and Russell, L. (2006) Change Basics, American Society for Training and Development.

Walker, J. (2018) Machine Learning Drug Discovery Applications – Pfizer, Roche, GSK, and More, 12 December, [Online], Available: https://emerj.com/ai-sector-overviews/machine-learning-drug-discovery-applications-pfizer-roche-gsk/ [18 December 2018].

Williams, B. (2017) Enabling better healthcare with artificial intelligence, 28 August, [Online], Available: https://usblogs.pwc.com/emerging-technology/ai-in-healthcare/ [17 December 2018].

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