Case Study Critique of
Pfizer Incorporated and Intel Corporation
Pfizer is the world’s largest pharmaceutical company, with a workforce of 82,000. The company grew rapidly in the 1990s through sales, along with the acquisition of Warner-Lambert and Pharmacia. After the acquisitions of the other companies, Pfizer’s HR department experienced problems because the three separate HR departments did not combine into one department. They operated with different policies, which created chaos. Intel Corporation was founded in 1968 and is the world’s largest semiconductor company and known for inventing the microprocessor in 1971. The company produces a variety of communications and computing products. They expanded at a fast rate, which created problems for the HR department. The department was not ready for so many changes and their quality of service decline to both internal and external customers.
The Pfizer HR department faced many challenges, which resulted from combining three large companies into one. They had different practices and a very different view on how the HR department should function. There was a lack of conformity, which resulted in chaos. They had an oversized HR department, which was unable to provide quality service. They lacked creativity and innovative ideas because they traditionally chose to promote from within the organization. In addition, the organization had too many changes in leadership. The HR department went through four different leaders since 2000, along with a new CEO and other significant changes in senior management. The Intel HR department was unable to keep with the company’s quick growth. They had a difficult time keeping up with employee expectations. After scrutinizing their processes, they found their systems were highly customized and not very well integrated. They provided poor quality service, at a high cost, to their internal customers. In addition, the HR organizational culture was more reactive and lacking fundamentals.
INTERNAL AND EXTERNAL INFLUENCES
Pfizer’s internal influences included the three HR departments, which combined but still operated separately. They had several different systems performing the same functions. It was costly and inefficient for the organization. The external influences included the changing marketplace, the loss of patent protection for products, and a challenging external environment. Intel had both internal and external influences. They experienced such rapid growth, that the HR department had a difficult time keeping up with the changes. This resulted in a drop in stock prices, which affected the stakeholders of the organization. Both internal and external customers were dissatisfied. In addition, the organization started to experience pressure from the competition and decline in stock prices.
CRITICAL PHASES IN TRANSFORMATION
For Pfizer, the first phase was the most critical because the history and problems of the company had to be assessed, in order to come up with a plan. An outline was created, which provided the steps the organization needed to take in order to meet organizational goals and become competitive. They needed to create a well-defined HR strategy that aligned to the business strategy. The first phase provided a well-defined plan, which allowed for the other phases to follow. For Intel, the first phase was also the most crucial of all the phases. It allowed the organization to review past mistakes and history. They were able to come up with a plan, based on lessons learned. The plan addressed strengths and weakness of the organization, which is important in the planning process.
For Pfizer, HR transformation has resulted in more organized, less chaotic HR department. They combined three HR departments into one, along with the different operating systems and...
References: Intel: General Company Information. (n.d.). Retrieved November 16, 2012, from http://www.intel.com/
Ulrich, D., Brockbank, W., Younger, J., Allen, J., & Nyman, M. (2010).
HR Transformation, building human resources from the outside in. McGraw-Hill Professional.
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