Implementing Change: of Drugs Inc - Case Study Example

Case Study: Drugs Inc Section One: Introduction Drugs Inc is a subsidiary of large pharmaceutical company that manufactures a large number of medicines. It inspires to be a world player in the international economy. For this reason, it also invests heavily in research and development (R&D) (1). However, in recent years, the business has not been performing well. They have been apparently beaten up by the competition(1). Overseas manufacturers are able to supply medicine more cheaply. However, after critically analyzing the case we find that Drugs Inc. has its own internal problem like diversity management, human resource management and managing culture. Drugs Inc.’s board of directors consists of all senior male staff. Moreover, there are only four females who work in the lower management as clerks. Drugs Inc. also has a workforce that represents twelve different nationalities(1). These facts demonstrate that Drugs Inc. experiences problems in managing diversity. Drugs Inc. also seems to have low productive employees. This may be because of low motivation, job dissatisfaction, or unclear work requirements. Drug Inc. plans to bring about a change in their organization by cutting their workforce, and setting up their business on the internet to reduce costs. The actions that Drug Inc plan to implement may seem to reduce cost but they may further lower employee motivation, or increase job dissatisfaction. For this reason, I have selected some articles through which I’ll suggest what will be the best course of action for Drugs Inc. The first article that I have selected is ‘leading the diverse workforce: Profit, prospects and progress’ by McCuiston et al. The article talks about how businesses can ensure their readiness to effectively align business strategies with today's demographic and market realities to achieve growth, profitability, and sustainability. It recognizes the need to acknowledge the existence of women in the workplace(5). The second article I have selected is ‘improving IT through diversity’ by Agatha Gilmore. The article discusses the concept of improving information technology (IT) through diversity of workforce. According to the author, the implementation of IT diversity and inclusion of practices have been included as a bottom-line strategy for many businesses (3). The third article I have selected is ‘overcoming resistence’ by Howard Guttman. The article provides suggestions from business leaders on how to manage high performance change in their organizations. Grant Reid, global president of Mars Drinks, suggests reassuring those affected by change (4). Frank Verwiel, chief executive officer of Axcan Pharma, reminds managers to provide enough time for organization members to understand change strategies (4). Brian Camastral, regional president of Latin America for Mars, Inc. suggests providing incentives for individual and team performance in managing change (4). Section Two: Analysis According to McCuiston et al, the gender problem faced by Drug Inc. isn't just an image problem (5). Their research suggests that it can have real implications for company performance. The advantage of gender diversity is that besides helping the company to fill shortfalls of talent, gender diversity can allow them to attract and retain it and to meet other business goals. One European Commission study showed that 58 percent of the companies with diversity programs reported higher productivity as a result of improved employee motivation and efficiency, and 62 percent said that the programs helped attract and retain highly talented people (5). Drug Inc faces a gender diversity problem because it only has four female workers (1). Not only this but the female workers work as clerks in the administration; this implies that Drug Inc. has glass barriers in its organization. The limited amount of female workers also implies that there might be issues of sexual harassment. The authors suggest a few reasons for the lack of women in the company. First, there's a fear of difference (5). As humans, we like and are more comfortable around those who are very similar to us. But that shouldn't mean that a candidate must have the same background as the hiring manager in order to succeed in the interview process. Still, if a hiring manager hasn't spent much time around people with backgrounds different from his or hers, he or she might be hesitant to consider those candidates. He or she may have preconceived ideas that aren't necessarily accurate. Second, there's a dated hiring paradigm of looking at candidates only from certain schools (5). Sometimes companies get in the habit of only recruiting at a particular school in their geographic region. And if most of the student body consists of people from a particular background, that really limits the diversity of the potential new hires Drug Inc. second problem is the vast amount of diversity existing in its organization. It workforce contains people from twelve different countries (1) . This may lead to differences in opinions which make management difficult. People from different background have different personalities and behaviors that may not be in line with the goals of the business. There may also be a difference in communication. Agatha Gilmore gives important suggestions as to how to improve your information technology through diversity. According to her, diversity was one of the big business buzzwords of the early nineties, but many major industries have a long way to go toward achieving the lofty goals set out in those days (3). Pharma is no exception. She also states that the adoption of computers into every aspect of the pharmaceutical industry is enormous (3). Not only does it have diversity in its workforce, but Drug Inc. would also be required to sell in a diverse market. Therefore, it should be aware of the culture and demands of the different markets it plans to supply in (3). Gilmore thinks this is important as the consumer shouldn’t be offended in any way. Drugs Inc. plans to set up their business on the internet, and layoff some of its workers (1). It also plans to change permanent employees to temporary employees which would change the pay scale. This change in the organization would be confronted by resistance which needs to be tackled by Drugs Inc. otherwise it would lead to job dissatisfaction, low motivation. This would result in low productivity which the company cannot afford as it is already facing a tough competition from oversea pharmaceutical companies. The change that Dugs Inc. plan to implement is organizational change that comes from the top management. There will also be a change in the culture, values and mission of the organization. To make this change productive, Drugs Inc. should incorporate the top management in the change management. According to Guttman, the board of directors should identify champion to lead the change (4). Drugs Inc. should also recognize that many of its employees may not be familiar with the technology that it’s bringing in. Therefore, Guttman suggests that change should be brought in slowly and through communication (4). It would be illogical to have a consensus on whether to cut pays or not because the employees would naturally go against the decision. However, Drugs Inc. should realize that communicating to the employees is very important otherwise it would lead to strikes and lower productivity. Section Three: Recommendations I would suggest that Drugs Inc. should keep the following points when implementing change: 1. Implement the Change Slowly and Steadily Change should be brought about slowly and steadily, otherwise the employees could fall into a state of what is called ‘Future Shock’ (4). Employees should have sufficient time to absorb and understand the change that is being implemented in the organization 2. Be Reassuring In times of change people fear change (4). It might be difficult for people to vision the new tomorrow that the company promises. Managing the fear of change should be a top priority for Drugs Inc. the company should listen to question and reassure the employees. The company should explain what is going to change and what their role would be in going forward. 3. Rethink HR HR policies can inadvertently hold women back. Internal processes for identifying high-potential employees, for example, often focus on managers between the ages of 28 and 35. Broadening the parameters to include years of employment at a company — thus taking into account time spent on maternity leave, which sometimes lasts as long as two years in Australia — can ensure that the evaluation processes don't overlook qualified women (2). 4. Measurement and Accountability Explicit diversity indicators allow companies to monitor their progress and to define priorities for action. Frequently used indicators include the proportion of women in a company's business units at each level of employment, the pay levels and attrition rates of men and women in comparable positions, and the ratio of women promoted to women eligible for promotion. Companies seem to promote and retain women most successfully when senior executives monitor those indicators and incorporate them into regular reviews (2). 5. Tie-In Self Interest People are more apt to change when there are incentives to do so and disincentives for clinging in to old habits. Drugs Inc. should let the employees know how they would be rewarded, and how a casual and flexible pay scale system would help them. For example, they could stress the fact that the people who work harder may be rewarded more and there would be less free riding (4). 6. Reward Constructive Behaviors One rather obvious, and quite successful, mechanism for facilitating organizational change is rewarding people for behaving in the desired fashion. Changing organizational operations may necessitate changing the kinds of behaviors that need to be rewarded by the organization. This is especially critical when an organization is in the transition period of introducing the change. For example, employees who are required to learn to use new equipment should be praised for their successful efforts. Feedback on how well they are doing not only provides a great deal of useful assurance to uncertain employees, but also helps shape the desired behavior. (5) 7. Create a "Learning Organization." Like it or not, all organizations change and some do so more effectively than others. Those organizations that have developed the capacity to adapt and change continuously are known as learning organizations. In learning organizations, people set aside old ways of thinking, freely share ideas with others, form a vision of the organization, and work together on a plan for achieving that vision. Examples of learning organizations include Yahoo, General Electric, and Motorola. (4) 8. Involve Employees in the Change Efforts It is well established that people who participate in making a decision are more strongly committed to the outcomes of that decision than those who are not involved. Accordingly, employees who are involved in responding to unplanned change, or who are made part of the team charged with planning a needed organizational change, may be expected to have very little resistance to change. Organizational changes that are "sprung" on the work force with little or no warning might be expected to encounter resistance simply as a knee-jerk reaction until employees have had a chance to assess how the change affects them. In contrast, employees who are involved in the change process are better able to understand the need for change, and are therefore less likely to resist it. (3) Conclusion To make itself productive and the world’s best pharmaceutical company in the world, Drugs Inc. should make talent a strategic priority and think about the ways they can promote and leverage diversity to make their workforce of tomorrow richer, stronger and even more capable. They should also manage the change steadily, and communicate to the employees their roles and objectives in the future. Bibliography 1. Wood, J, Zeffane, R, Fromholtz, M & Fitzgerald, J 2006, Organisational Behaviour: core concepts and applications, John Wiley and Sons, Milton. 2. Desvaux, Devillard-Hoellinger, Meaney. A business case for women. McKinsey Quarterly; 2008 Issue 4, p26-33, 8p 3. Gilmore, Agatha. Improving It through Diversity. Certification Magazine; Nov2008, Vol. 10 Issue 11, p3-3, 2/3p 4. Guttman, Howard M. Overcoming Resistance. Leadership Excellence; May2008, Vol. 25 Issue 5, p11-11, 1p 5. McCuiston, Wooldridge, Pierce. Leading the diverse workforce: Profit, prospects and progress. Leadership & Organization Development Journal (2007), Vol 25, issue 5, pg 73-92 Read More