Cvs Caremark Organizational Analysis

Organizational Analysis

Kathy Herman

MGT 230

10/15/2012

Steve Prough

Organizational Analysis

CVS Caremark is a pharmacy health care provider in the U.S. "They provide pharmacy services, which includes mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management and claims processing; and Retail Pharmacy, which sells prescription drugs and a range of general merchandise, including over-the-counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards and convenience foods. As of Dec. 31, 2011, CVS has approximately 7,300 CVS/pharmacy retail stores". (CVS Care mark, 2011)

CVS headquarters is in Woonsocket, R.I., with more than $107 billion in annual revenue and ranked 21st on Fortune 500 for 2011. Some notable facts about CVS they are the number one provider of prescriptions (totaling more than 1 billion prescriptions filled or managed annually), Retail-Based Medical Center Operator (more than 11 million Minute Clinic patient visits to date) and lastly Retail Loyalty Program(more than 69 million active Extra Care customers).

The acting CEO is Larry Merlo and acting Human Resources manager is Lisa Bisaccia, whom accepted the position on January 1, 2010. Her initiatives for CVS is to enhance compensation practices, restructure human resources processing functions, and successfully managing all human resources support for the retail businesses.

The type of information needed to make solid informed decisions about human resources for CVS is many. These decisions would have to be well executed and organized to positively affect the companies' mission, values and profits.

There are many decisions for HR in a company to remember and CVS is no exception. Human Resources Management is a comprehensive set of management activities and task concerned with developing and maintaining a qualified workforce that contribute to organizational effectiveness.(Denisi & Griffin, 2012) CVS would need information to comply with legal and social obligations, enhancing productivity and quality, promoting individual growth and facilitating organizational effectiveness.

For CVS's legal concern, not only do they have to follow federal and state guideline for employees, they have to follow federal guidelines for pharmaceuticals, legal requirements for their nurses, doctors and pharmacist. In addition CVS is expanding into global markets, and that opens them up to foreign legal requirements. Socially, CVS Caremark has a long-standing track record of sound corporate governance and stands firmly committed to acting with integrity and holding each other accountable for all aspects of their performance. In addition, they were named as one of the most reputable companies in the United States. CVS is also committed to being responsive, accountable and transparent to stakeholders and to operating in compliance with the laws and regulations governing their business.

Productivity and quality go hand in hand, and to have improved quality you almost always have improved productivity. It is also essential for a business to survive. Congruent with productivity and quality they have to invest in training and development and reward employees for increased productivity.

To make informed HR decisions at CVS, the company would have to have information concerning their labor force. Labor force is the most important factor for any business. Without properly trained and qualified applications any business can potentially face financial ruin. CVS has to forecast the supply of human resources available and this is important being they hire such a diverse range of professionals. They can look internally or externally for potential employees.

The next step for CVS would be to forecast their future needs and plan accordingly. This can be achieved by ascertaining what type of people are needed; essentially paralleling their labor needs with anticipated growth; stability or decline expected in the company. Additionally, the comparison of labor supply and demand would be needed, to ensure that when a strategy is implemented they are taking appropriate action. An example of how CVS rewards its employees is by giving awards. Each year, the company recognizes the best and brightest with the CVS Caremark Paragon Award. This award is the highest honor an employee can receive within the company. Additionally they give the Chairman's Awards which are reserved for members of the corporate and field leadership teams who have gone above and beyond to deliver outstanding results for CVS Caremark. (CVS Care mark, 2011)

Promoting individual growth and organizational effectiveness is also an essential step in Human Resources. This can range from training and job related development, to designing jobs that challenge their employees and provide personal satisfaction. This can be achieved through educational assistance programs and promoting employees internally. It is important to note that HR should know what skills the employees have and what skills they require in the future, so that it is beneficial to the company and the employer.

CVS employs pharmacists, pharmacy technicians, nurses, nurse practitioners, physician assistants and physicians,