Pfizer-Pharmacia Merger case

Topics: Employment, Decision making, Organization Pages: 7 (1951 words) Published: November 2, 2014

Phizer-Pharmacia Merger
Contents

Introduction1
Analysis2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner?2 Pfizer as an ‘organizational citizen’2
Factors that should have been considered in Pfizer’s decision3 Applications of the theories, models, and concepts of organizational behaviour to a place of work3 Insights and recommendations5
References6
Introduction1
Analysis2
Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner?2 Pfizer as an ‘organizational citizen’2
Factors that should have been considered in Pfizer’s decision3 Applications of the theories, models, and concepts of organizational behaviour to a place of work4 Insights and recommendations5
References5

Introduction
An announcement of the acquisition of Pharmacia, Corp by Pfizer stated that this would “bring together two young, strong, broad and complementary product portfolios, enhanced research and development pipelines and outstanding sales and marketing organizations” (Stamper, 2005). From a business perspective, the merger was expected to make Pfizer the world's largest pharmaceutical company, would increase the company’s competitiveness, boost profit growth, and result in cost savings. It is obvious that this cost savings would come from reducing labor costs due to downsizing, and some employees would lose their jobs and their income. This would also lead to negative effects on the local businesses that provide products and services to these employees, and reduce the tax bases of the local communities. We do not know whether the overall outcome for the consumers wouldill be positive or not but we have to face the fact that many of the employees sait in fear of being let go. Analysis

Mr. McKinnell acted as required by the law: an employer must give notice if there is to be a mass layoff of local jobs. When the merger was announced the memo was sent as required by the federal Worker Adjustment Retraining and Notification Act (WARN). The process took long time. It is hard to quantify the impact that such uncertainty had on individual employees of companies. Employees were just waiting to hear the news. They were concerned about their future and a future of their families. They believed that the merger would have a negative consequence such as layoffs, but they did not know what exactly would happen and as the result they form negative feelings towards the merger and the company. It looks like the whole thing simply wore everyone down. Analysis

Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? Did Mr. McKinnell handle the Medicare situation and WARN memo in an ethical manner? I think Mr. McKinnell did not handle the Medicare situation and WARN memo in an ethical mannerhe did not. It appears that Wwhen the memo was sent, Pfizer they did not know what they were going to do and what the expected outcomes would be. If they knew they must lays off a number of people, close sites, and transfer projects, they should have prepared a plan, taken all things circumstances into consideration and not drag it out in over a long period of time. Their idea perhaps was that the projects could be transferred from closed sites to the surviving ones in a gradual fashion, and that some key people might want to transfer also, but it did not work well. Pfizer as an ‘organizational citizen’

What is your opinion about how Pfizer is acting as an ‘organizational citizen’? What have they done that has shown adequate or inadequate social responsibility? I my opinion Pfizer did not act as a good ‘organizational citizen’. The management did not make an effort to inform the employees, to assure them, to address their concerns despite the fact that the concerns were obvious for quite some time. They promised not to not pull out of “Discovery,” and then they did. In retrospect, this looks like they were misleading the workers. Concerning the community,...

References: Mediacorp Canada Inc. (2014). Canada’s Top 100 Employers. Retrieved October 17, 2014, from Canada’s Top 100 Employers web site: http://www.canadastop100.com/national/
Moihin, T. (2012, January 18). The Top 10 Trends in CSR for 2012. Forbes. Retrieved October 17, 2014, from Forbes web site: http://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/
Mediacorp Canada Inc. (2014). Canada’s Top 100 Employers. Retrieved October 17, 2014, from Canada’s Top 100 Employers web site: http://www.canadastop100.com/national/Stamper, C. (2005). Pfizer-Pharmacia Merger. Copyright © The McGraw-Hill Companies, Inc.
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