Organization behavior analysis of Merck Company Inc Essay Example

Organization behavior analysis of Merck Company Inc Essay Example Organization behavior analysis of Merck Company Inc Essay Organization behavior analysis of Merck Company Inc Essay Introduction Organization behaviour analysis refers to the systematic attack in analyzing and application of human behaviour as persons or groups within an organisation their behaviour and the consequence this behaviour impacts on the organisation and its ends. It is the analysis of single and group behaviour within an organisation. It enhances better relationships to accomplish human aims, organisations aims and societal aims. The organisation s values ends and civilization are all linked in such a manner that there is integrating between the employees personal ends and the organisation s ends. Organizational behaviour analyses relationships between variables ( McKenna, 2001 ) . The construct of organisational behaviour is based on the theory that the environment dictates the human behaviour ( Duncan, 1982 ) . It covers a broad scope of subjects that include human behaviour, alteration, leading and public presentation. It involves analysing behaviour from an single degree, a group degree and an organisational degree, where the three are someway incorporate. The analyses consequences to more efficient and effectual organisations. The company: Merck Company Inc. Organization behaviour includes analysing behaviour that consequences from external environmental forces. A amalgamation and possible ballad offs are factors that would hold an impact on Merck s employees behaviours and this behaviour would hold an impact on the organisations productiveness. This essay will turn to these subjects in relation to the alterations in Merck s A ; Co. after the company merged with Schering-Plough and during the company s restructuring plan, which involves extinguishing 15 per centum of the employees located globally ( Schepp, 2010 ) . Merck is one of the largest pharmaceutical public companies in the universe. The chief merchandises include medical specialties, vaccinums, biological therapies, consumer and animate being merchandises. The company has its caput office in New Jersey and operates in 140 states located worldwide. The company is listed in the New York Stock Exchange. Merck late merged with Schering-Plough Company. One of the effects of the amal gamation was lying off of about 15 per centum of the new company s employees. The issue Harmonizing to Appelbaum directors should take into consideration organisation s behaviour during and after a amalgamation. Many amalgamation and acquisition failures can be attributed to miss of proper organisational behaviour analysis. One of the negative effects on employees behaviour during and after a amalgamation is that it can take to insecurity and uncertainness among employees ( Appelbaum, 2000 ) . During a amalgamation the direction should turn to the impact it would hold on the employees and offer support and encouragement to the employees, analysing attitudes, values and people s behaviours and how they are affected by the environment. The organisation will necessitate to analyse planning, forming, taking and commanding. Analyze occupation maps, allotment of resources, and work flow processs. Train the employees to stay focussed and reassuring them of their occupation security will assist in making stableness and continuance. Control refers to the direction s subjective and nonsubjective appraisal of the success of ends. The direction should recognize that there is a demand to turn to fright for alteration. Appelbaum et Al. ( 2000 ) recommends three attacks in turn toing organisation behaviour during a amalgamation, communicating, corporate civilization and alteration. Communication During the alteration procedure, it is really of import for the direction to retain unfastened communicating with the employees. This will be really helpful in retaining the company s civilization. Lack of proper communicating to the employees during a amalgamation may take to rumours which may take down employees morale as they become preoccupied with their ain single involvements. Communication will assist in bridging the spread between the person s involvements and the organisations involvements during the meeting procedure. This will help in integrating of the two organisational civilizations, in this instance Merck s and Schering-Plough Company. Merck s direction achieved this through publicising the company s concern scheme in the 2009-2010 Corporate Responsibility Review study ( Merck, 2010 ) . The program included consolidative, incorporating and fostering civilization. The scheme included pass oning the advancement to the employees and other stakeholders ( Merck A ; Co Inc. ) . One of the ways that communicating can be effectual is through repeat of information though different signifiers of media ( Appelbaum, et al. , 2000 ) . The demand for smooth integrating of the amalgamation between the two companies was communicated through assorted studies in the Merck s web site. These studies include the Code of Conduct and the 2009-2010 corporate administration studies. The messages of honestness, transparence and unfastened communicating are reflected in most of the company s policies, demoing the acce nt the company has on unfastened communicating. Organizational Culture When two companies merge, there are possibilities of cultural mutual exclusiveness. This may ensue to struggles. An organizations civilization can be recognized through artefacts such as the company Son, the company values and norms and through basic implicit in premises. It encompasses informal and formal procedures of doing determination in the organisation. This includes the power hierarchy and how employees who are in different places interact with each other. At Merck there is common regard for employees and they are encouraged to develop their accomplishments and they are hence committed to high public presentation. This means that they can be trusted to do determinations without needfully holding to wait for their supervisors consent. The company allows for some inclusion in the determination devising procedure, though employees in difference are to describe their grudges to their supervisors before they go to everyone else. Thus Merck pattern democratic leading manner ( Miner, 2007 ) . In add-on to this, employees should hold person to confide in about their concerns for a amalgamation. At Merck company direction, anyone with a difference on any issue should describe it to the parts Human Resources representative. The company besides has Merck Office of moralss where those who may be afraid of their ain supervisors and human resource representatives should take their questions and concerns. In add-on to this the company has a codification of behavior that acts as a guideline to anyone with any sort of duty in the company including employees and the managers. The codification of behavior includes ethical inquiries and the procedure one should utilize in determination devising. This shows openness and giving employees duty to do determinations. This consequences to happy employees who are more productive. A company that is in the post-merger state of affairs should hold a civilization that is clearly defined. There should be common land for the two companies after which a new civilization will be developed. Merck Co. Inc. is in presently in the post-merger phase. The direction has developed a program that would guarantee a smooth integrating of the two civilizations. This is stipulated in the company s concern impulse which includes uniting the two civilizations, incorporating them and cultivating the new civilization. An organizations civilization can be determined from the company s mission statements, and in its values, moralss and criterions which all form portion of organisation behaviour. The company s values are based on moralss and unity. Merck s mission statement reads To supply advanced, typical merchandises and services that save and improve lives and fulfill client demand, to be recognized as a great topographic point to work and to supply investors with a superior rate of return ( Merck Co. Inc. , 2010 ) . This mission statement shows the importance at which the organisation values the employees part to the growing of the house. This should be a beginning of inspiration for the employees who remained at Merck s company after the amalgamation. The same importance is reflected in the company s moralss and criterions statements. On moralss and criterions, Merck s company has a main conformity office to guarantee that Merck s company complies with all the ordinances as required globally. The conformity officer besides ensures that the company patterns ethical concern patterns and besides safeguarding the person s privateness. This safeguarding of the person s privateness shows the regard the company has on the person. This can move as a motivational factor for the employees. The employee feels appreciated, therefore becomes more productive which improves the employee s public presentation. A company that has effectual corporate administration is in most instances transparent in all its projects. Corporate administration besides involves appreciating that the people in an organisation are the most of import assets in that organisation ( Blair, 1995 ) . Merck s company has an effectual corporate administration construction. The Chief Executive Officer ( CEO ) is appointed by the Board and it is the Board that besides determines his wage. The Chairman is responsible for the Board. There is an audit commission which is accessible to all. In add-on to this the company has whistle blowers protection policies. These facts are turn outing of transparence. As such the employees should hold assurance in the company and adjust to the civilization of the new company. Changes A amalgamation leads to several alterations in the organisation. Once an employee joins an organisation, she/he, there is a psychological demand is developed. In bend the organisation has outlooks from this employee. Thus a psychological contract Begins and a menace to interrupt it may be lay waste toing to the organisation and to the employees. On the Individual degree, organisational behaviour analyses perceptual experiences, acquisition, creativeness, motive, personality, public presentation and moralss. Individual s beginnings of motive do vary from single to single, some by inducements, economic benefits, congratulations or merely satisfaction from making a occupation good. It involves placing what motivates each single employee. Organization behaviour analysis besides involves the survey of single behaviour towards some external forces and the effects this has on the organisation. It besides involves of factors which most of the clip would be holding negative effects on public presentation. A major alteration, such as a amalgamation threatens to interrupt the psychological contract, whereby the employee becomes afraid of the unknown and develops feelings of weakness. This affects the employee s public presentation degree. The Merck and Schering-Plough amalgamation had an even more helplessness consequence as the CEO had announced possible layoffs for 15 per centum of the employees. These proclamations of possible loss of employees may do anxiousness and fright. If non addressed this could ensue to down employees who are aggressive and therefore an addition in unsolved struggles. To avoid these effects of alteration, unfastened communicating on the grounds for the amalgamation should be communicated from which the employees should be made to understand the new alterations. There should be no surprise for the employees and they should cognize who and how they would be affected. To extinguish this consequence of surprise, Merck s direction included the intelligence on possible puting off of senior and in-between degree directors, 40 per centum of which would be in the US. The fright can besides be eliminated by affecting the employees to do them experience that they are portion of the procedure. The direction should besides supply employees with ends that are long term. This creates assurance with their employer as they feel secure in their places. This engagement was highlighted in the so CEO s, Mr. Clark s address after the amalgamation. Clark said that for the amalgamation to be successful, the company relied on the employees passion, innovativeness and com mittedness. Harmonizing to Appelbaum and company, ( 2000 ) staff lay offs have the same consequence as amalgamations, depression, anxiousness and weakness. Directors should supply as much information as is possible to cut down rumours and their effects. In add-on to this the directors should promote group treatments. On the group degree, organisation behaviour involves analyzing of the group kineticss, intra-group and inter-group struggles and integrity, interpersonal communicating, leading, webs and group functions. In Merck Co. Inc. planetary constituency groups and employee resource groups are two of the schemes that the company uses to implement diverseness scheme. The planetary constituency groups represent persons from different geographical parts and with different civilizations, faith and professions. They work together towards the same end, the success of the organisation. The employee resource groups are made of voluntary employees who web together and work as squads. These squads offer educational and cultural resources, every bit good as being contacts to other employees. These groupings help in understanding persons while they play an of import function in developing diverseness scheme. These groups played an of import function in back uping each other during the amalgamation as the groups would run into and discourse issues that were of concern to them. Employees must be made to experience that they have regained control of their single end. Decision Organizational behaviour analysis aids in placing the person and group behaviour with the purpose of utilizing the consequences to better on public presentation. The analysis will be used to place an person s different demands and different methods of working and executing a undertaking. This information is used in supplying individualized resources that will assist each person to be more productive. This information will besides be of high importance in guaranting a smooth alteration procedure as the direction devices on ways to help employees digest the amalgamation alterations with assurance. There should be new defined ends for the new company every bit good as new policies, new civilization. These new policies plus any other alterations should be communicated to the employees. The information rayed to the employees should be honest, as employees will be more appreciative if they know the impact the amalgamation has on them. The ballad off information should be provided with sensitiveness otherwise it may hold serious reverberations. Employees feelings should be considered in the whole procedure. This will assist in the success of the amalgamation.