Glaxosmithkline Case Study

Great Essays
Register to read the introduction… The model has been used by the companies to gauge their performance in different aspects of change management. This framework provides a benchmark against the best practice not only in the industry but also across different industries. Therefore for the purpose of this report the model can be used to show how the under consideration change has affected the components of the model and furthermore, using it as the basis of this change management audit report. The impact of change on the organization and in particular on the R&D department is considered to be of competitive advantage for GlaxoSmithKline and can be represented on EFQM by using arrows in the following …show more content…
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

Related Documents

  • Decent Essays

    3-2-1 Reading and Response practice 1. Widespread pharma consideration program. 2. Expense paid on remedies. 3.…

    • 235 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    EGT1 Task 2

    • 731 Words
    • 3 Pages

    Part 1 A benefit is the desired result of a project that was created to meet a particular operational need. The whole point of benefits management is to make sure that your project provides clear benefits – as opposed to simply making sure the project is completed within specific time and resource limitations. In order to achieve the expectations, the project manager have to keep checking on the matters such as “Why does the organisation not know what benefits will be delivered and how to measure them?” “Have these costs been estimated?” “Has management approved the budget variance?”…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Discussion Board # 3 Reply 3 Johan Rivera Liberty University Perkins Thank you for investing time with the Wellcome- Glaxo and Ofra Sherman case. You provided relevant information about the situation Ofra Sherman faced and how she deals with it. In the introduction, you mentioned that changes in organizations are constantly happening whether is increasing job opportunities or decreasing salaries in order to implement new strategies that are going to benefit the organization as a whole. This was the case with Wellcome and Glaxo, however, they tried to incorporate changes without communicating a strategy for it. “As an enterprise looks to make a significant change within, it is important to have a plan of action which takes into account the definition…

    • 362 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Tiger Boots Case Study

    • 1050 Words
    • 5 Pages

    For the organizational change at Tiger Boots, I would recommend a planned approach using Kotter’s 8-step Model of Change. Kotter’s Model includes eight steps that serve as an effective framework to plan and executive organizational change. The Tiger Boots case reflects a goal of new market entry accompanied by a capacity change implementation. Tiger Boots has decided to enter a new market of lower-cost casual menswear but lacks the appropriate production capacity, marketing relationships, and a solid strategic plan, as there are many unanswered questions. The nature of the change is rather large scale, as it requires a restructuring of company operations to find new channels for capacity increases.…

    • 1050 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Lack of interest for Innovation and new ideas Making organizational changes to improve productivity and services for established and new customer base Engage current and new employees in goals and mission of the company by implementing departmental lunch/meetings for input and ideas Establish new HR performance and rating system for employees Increase sales and marketing leadership Maintain communication with employees and management staff to continue “family relationships” that strives to improve employee production, interests and growth with the company Making organizational changes to improve productivity and services for established and new customer base Engage current and new employees in goals and mission of the company by implementing departmental lunch/meetings for input and ideas Establish new HR performance and rating system for employees Increase sales and marketing leadership Maintain communication with employees and management staff to continue “family relationships” that strives to improve employee production, interests and growth with the company Continue company events that promote togetherness and trust within the organization Re-establish performance and pay scale…

    • 720 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Pharmasim Case Study

    • 285 Words
    • 2 Pages

    1. Allstar captured an additional 16.5% of the cold product segment of the market. Accordingly, their market share of manufacturer sales of the OTC Cold product market increased from 23.8% to 39.1%. 2. Allround OTC cold medication maintained the leadership position at period 10.…

    • 285 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    269). Assessing readiness for change means that an organization will determine if it is ready for change according to their core values and acknowledges if the organization is not ready, they can admit to attempting the change at a later time (Varkey & Antonio, 2010). When leaders establish a sense of urgency, they take ownership of the change and convince staff that change is necessary in order to move forward with success (Varkey & Antonio, 2010). According to Varkey and Antonio (2010), assembling the steering team is responsible for planning, coordinating, and monitoring the progress of…

    • 620 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Their primary goal was to build a high-performance culture at every level. With that in mind, they decided on a few priorities for the redesign. First, they made structural changes to free up the leaders’ time and better support them. Second, they had to change decision rights so that the right approvals were happening in the right places. Next came incentives; they had to change the way that they motivated and rewarded people, to emphasize employee engagement and customer satisfaction.…

    • 1401 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    The curve “outlines where one should begin changing and where it becomes obvious that one needs to change” (Cawsey et al., 2012, p.42). At point B is the best time to introduce the change into the organization (Cawsey et al., 2012, p.42). At this point change can still be implemented successfully. However, if the organization is hesitant and avoids any changes and reaches point A, it may be too late for an organization to be successful (Cawsey et al., 2012, p.42). Therefore change must be implemented at an earlier phase in order for the organization to succeed.…

    • 964 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Sustaining change to any process is determined by stakeholders, management and employees within the organizational framework. Theses process are vital when implementing innovative technology which requires planning and focus between all parties involved. The behavior of individuals is the key component in truly adopting change, and it becomes the integral aspect of the sustaining phase of the cycle of change. The differences between stated change goals and current change status highlight the ultimate goal that change management provides.…

    • 888 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Notably, the change could lead to loss of customers if not carried out carefully by informed players. Frequent monitoring and evaluation of the implementation process is needed to ensure that the merging and the splitting of the said departments meet the objectives of the firm. As such, monitoring this change process is essential to the success of the initiative. There are various methods and techniques the management can use to monitor the change process.…

    • 1460 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Reflecting on the problems I experienced with patient handover, I understand that nurses need to make changes to the traditional method of handover, to better facilitate the recipient’s understanding and thereby, making handover safer and more effective. Change management has been defined as ‘’ the process of continually renewing an organization’s structure, and capabilities to serve the ever-changing needs of external and internal customers ‘’ (Moran and Brightman, 2001. p. 111). The Transtheoretical Model of Change (Prochaska and diClimente, 1988) shows that, for the majority of individuals, behaviour change occurs steadily over time, with the person proceeding from being dispassionate, oblivious, or reluctant to make a change (precontemplation),…

    • 359 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    Module 1: Managing Organization Change
Brittany Harris 
 MGT 351- Organizational Innovation and Change Colorado State University – Global Campus Dr. Jacqueline Gilliard
July 17, 2016 In order to keep up with the fast paced world, organizations and individuals need to be able to effectively adapt to change (Ng Choi, & Rashad 2015). Change is constant, and must be managed in a way that will ensure the benefits of change are achieved. Most people resist change because of uncertainty and loss of control, but there are many beneficial lesson that can be learned by individuals and organizations through life’s uncertainty. My change involves me transitioning from a full-time fashion stylist to an elementary…

    • 819 Words
    • 4 Pages
    Great Essays
  • Great Essays

    esentation analyses the events leading up to the 2004 merger between the pharmaceutical companies Sanofi-Synthelabo and Aventis. It reveals the social, commercial and political complexities and challenges of a merger process in which the defence of French national interests and regional capabilities competed with traditional ‘commercial’ narratives before the deal was closed. presentation critically evaluates the competing criteria adopted by government and industry to justify different merger scenarios and considers the implications for pharmaceutical innovation, industry consolidation and M&A theory The American economy greatest market for the pharmaceutical industry in 2004 the tax cuts and the lower interest rates stimulated expansion…

    • 1499 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Good skills in communicating change contribute to the process and outcome of organizational change in terms of resistance problems (Paton and McCalman, 2008). Leaders need to communicate and create a context for the change, which is accord with the first step of establishing a sense of urgency of Kotter’s (1996) eight-step model. The critical element of this phase is for leader to gather as much information about external environment as possible (Burke, 2011) to obtain insight into the reason why such change is important and needed. Specifically, Carp and Perez should firstly make effort to master information such as changing technology in the industry and what competitors such as Canon, Epson are up to, etc., then to evaluate those information and set up short-term goal, before jumping into the change process too quickly. It is the leader’s responsibility to prepare for organization change as thoroughly as possible, to determine how to respond to the external environment change and how to build a more effective alignment for the corporation (Burke, 2011).…

    • 1079 Words
    • 4 Pages
    Improved Essays