Organizational Behaviour

Topics: Employment, Emotion, Job satisfaction Pages: 7 (2221 words) Published: April 9, 2014
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What are the main issues in the case?
The Pfizer-Pharmacia Merger case demonstrates how a company must understand its corporate social responsibility. In this case, the company was unable to serve its stakeholders and put them first before shareholders or customers. By not using this view of CSR, the company’s employees became dissatisfied with their jobs which led to continuance commitment.

Why did the problems/ issues occur?
Corporate Social Responsibility:
This is the view in which stakeholders, the town and employees, are put before shareholders. When using this view the company is going above and beyond to benefit society and the environment, not just to gain profit. A company should be trying to gain profits and be sustainable in the marketplace, but also improve society. In this case, the company did not do this and focused more on their financial goals. For Example, the Pfizer-Pharmacia merger caused much stress for the employees as they were told that there would be a huge job loss in their community. This made the employees feel that they were not put first and led poor employee job satisfaction.

Continuance Commitment:
Having an identity with an organization contributes to each employee’s self-concept of their social self as they have an attachment to the company. In this case, the town’s employees have a high affective commitment to Pharmacia and thus, see their social self as a Pharmacia employee. When the merger occurs many of the employees are unhappy and want to leave. Continuance commitment occurs when an employee feels unhappy and remains in their job because it is too costly to leave. These employees have nowhere else to work and are therefore sticking it out and now have continuance commitment. Splitting up the “Discovery” site and naming Kalamazoo the primary drug-safety evaluation site made many employees upset. Pfizer said they did these changes because of local commitment and organizational citizenship, believing that the community would see it as a reward. However, their commitment was to Pharmacia, not Pfizer. All Pfizer did was cause confusion and stress in their community. The employees feel as though they have lost some of their identity with the company because they have lost discovery, clinical development, and sales and marketing. They did not want anything to be changed or moved, they liked things just the way they were. Now the employees feel trapped and have continuance commitment because they have nowhere else to go. These continuance commitments lead to employee job dissatisfaction and stress. Low openness to experience:

An individual from this area would be expected to have a low openness to experience personality trait since the employees in the area are opposed to change and new ideas for the town. For example, the news of the merger immediately causes everyone to be against it and unable to see how it could cause positive changes. This also exhibits a value of high uncertainty avoidance in the employees, meaning that they feel threatened by the unknown, in this case a merger.

Another problem in this case is the amount of human capital in one area. Human capital is defined as the

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knowledge, abilities, and skills that workers have in a company. Kalamazoo has great human capital for Pharmacia as they have several functioning sites in the area. However, the employees believe that because they have the best skills in the area they should be able to stay together. One employee said: “Our skills are better than that of those who retained their jobs elsewhere.” The employees fail to see that relocating their jobs would allow for their knowledge to be shared and make a stronger company. The ability to recognize the value of new information to the company and use it is called absorptive capacity. This mixture of human capital, continuance commitment,...
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