Employees first saw the merger of Galxo and Wellcome in 1995 and then of GlaxoSmithKline in 2000. Scientists working at the R&D development have reported that these mergers were constraining forces in their work as they had budgeting issues during the pre-merger, due diligence and post-merger periods. Their motivation levels became very low after the announcement for the change into CEDDs (Financial Times, 2003). They had an impression that they were being treated like sales department by raising competition within themselves (Financial Times, Oct 24, 2002). This drop in the motivation of the employees can be seen as what is known as 'Denial Stage' in the Kubler-Ross Transition model. This model along with the emotional states of the undergoing staff is illustrated as follows:
Therefore according to this curve, GSK needed an approach that allows a smooth transition from denial to acceptance in a short time frame. The processes at GSK also needed to be changed to cater for this new CEDDs based R&D department as there could be possible knowledge management issues among the centers and also they had to fight for their budgeting needs. These issues in the enablers' part of the EFQM would lead to the GSK's unsatisfied employees and customers that in the long term will project in weak pipeline which is one of the key performance indicator for GSK.
Although the action …show more content…
This was the new mission statement in 2000 after the merger of the companies. This statement really captures the spirit and intentions of the organization.
STEP 3 : ENSURE THAT THE DEPARTMENT HAS THE CAPACITY FOR CHANGE
It was established by the senior management of the company that if the department and the people do not have the necessary capacity for the change then this change will create anxiety and frustration. It was realized that people were though momentarily in the denial phase they still want to change but do not have wherewithal to do so.
The support was of more than 50% for the change therefore the strategies undertaken by the company for each stakeholder were valid and provided the capacity for change undertaken by the company.
Providing the capacity to change in an organization must be achieved at both the individual and group level. As the new system of CEDDs would have autonomous teams therefore to emphasis at the group level is very important, but at the departmental level, it needs to create the appropriate capabilities for the department to change. This means two