Pfizer Case Study: A New Kind of Structure
Pfizer is name after Geriatrician cousins Careless Pfizer and Charles Earth (originally from Litterbugs, Germany) who launched a chemicals equines, Charles Pfizer and Company, from a building at the intersection of Harrison Avenue and Bartlett Street in Williamsburg, Brooklyn in 1849.
There they produced an antiparticle called sanitation.
This was an immediate success, although it was the production of citric acid that really kickstand Pfizer growth in the sass. Pfizer continued to buy property to expand its lab and factory on the block bounded by Bartlett Street; Harrison Avenue; Gerry Street; and Flushing Avenue. Pfizer established its original administrative headquarters at 81 Maiden Lane in Manhattan. 011 to present In February 2011 it was announced that it was to close its research and development facility in Kent, which employs 2,400 people.
In April 2011 Pfizer agreed to sell its Capsules unit, the world’s largest maker of hard capsules, for about $2. 38 billion to the private equity firm KIRK ; Co. The cash will be used for a part of share buyback about $5 billion planned for 2011. In 2012, Pfizer acquired Lacer Corp..
, producer of Emergent-C. On September 4, 2012, the FDA approved a Pfizer pill for a rare type of leukemia. The medicine, called Obvious, treats chronic unloosens Eugenia (COM) a blood and bone marrow disease that usually affect older adults. Research Ana Development: Pitter’s research Ana development activities are organized into two principal groups: Pharmacy Therapeutics Research & Development Group focusing discovery of small molecules and related modalities; Bio therapeutics Research & Development Group focusing large-molecule research including vaccines. In 2007, Pfizer invested $8.
1 billion in research and development, the largest R&D investment in the pharmaceutical industry.
Pfizer has R&D facilities n the following locations: Groton, Connecticut; La Jolly, California (around 1,000 staff, focused on cancer drugs); South San Francisco, California; Cambridge, Massachusetts; Kalamazoo, Michigan; SST. Louis, Missouri; Sandwich, United Kingdom; Cambridge, United Kingdom. Pfizer is currently developing pipeline include dimension and attenuate.
4 Environmental record: According to the Environmental Protection Agency (EPA), Pfizer is among the top ten companies in America with the most numerous emissions sources.
A landfill and two wastewater lagoons in Leotard, Groton, Connecticut, are a source of groundwater pollution in the area. In June 2002, a chemical explosion at the Groton plant injured seven people and caused the evacuation of over 100 homes in the surrounding area. The EPA has suggested a remediation plan that includes environmental caps and redeveloping a portion of it in the future. This redevelopment will occur on the site which is located within a flood plain, something the EPA failed to address in their feasibility study released in early 2012.
The mayor of Bridgewater, the New Jersey Department of Environmental Protection, and other key community leaders also came out to endorse the plan without considering the mount of increased flooding that is going to take place if such a plan is implemented. Employment and Diversity: Pfizer received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report.
In 2007, Pfizer Canadian division was named one of Canada’s Top 100 Employers, as published in Manacle’s magazine, the only research-based pharmaceutical company to receive this honor. In 2008, there was controversy, including inquiries from members of Congress, around Pfizer practice of replacing US workers with H-1 b guest workers. 5 Pfizer is a well-known global pharmaceuticals company and their most of the work depends on research, developing strategies and innovate.
They were trying to find a new way of system, which makes their tasks more effective and efficient.
The company’s senior director of organizational effectiveness, Jordan Cohen found that the Harvard MBA stuff those were hired to develop strategies ; innovations; had to spent their valuable research time by Goggling ; making Powerboat’s. Through internal studies company find out that the average Pfizer employee were spending 20-40% of their individual working time on support work like creating documents, hyping notes, doing research, manipulating data, scheduling meetings and 60-80% on knowledge work like strategy, innovation, networking, collaborating, critical thinking.
These problems affected lower level to highest level of employees. That’s why Pfizer starting to find a solution of this problem to increase their efficiency and effectiveness.
Pfizer build a new kind of structure by using Microsoft Outlook where Pfizer can connect with different outsourcing company worker by email. Using this facility they could able to connect with any worker of other outsourcing company round world and get cost specification for their requested work.
By using this process the time spent on analysis of data has been reduce, also have many financial benefits and employees also get rid of their boring documentation work. 6 Question 1: Describe and evaluate what Pfizer is doing? Answer To the Question No. – 1 Pfizer is the world’s largest research-based pharmaceuticals firm and also a welkin pharmaceutical company.
So their most of the work depends on research, developing strategies and innovate. They were trying to find a new way of system which makes their work more effective and efficient.
Pfizer find out that their worker spends more time on business research and data analysis to the creation of documents and other routine support like Goggling and making power points and also spending so much time on menial tasks rather than knowledge work. The average Pfizer employee was spending 20 percent to 40 percent of his or her time on supporting work (creating documents, typing notes, doing research, manipulating data, scheduling meetings) and only 60 percent to 80 percent on knowledge work (strategy, innovation, networking, collaborating, critical thinking).
That’s why Pfizer effectiveness. Pfizer build a new kind of structure by using Microsoft outlook where tenet connecting to a outsourcing company winner Pettier can connect wilt n Deterrent worker by email where they can connect with any worker around world and get cost specification for their requested work.
By using this process the time spent on analysis of data has been reduce, also have many financial benefits and employees also get rid of their boring work. Question 2: What Structural implication-good and bad- does this approach have? (Think in term of the six organizational design elements).
Answer To the Question No. 2 This approach “office of future concept” (it means Pfizer make a new concept of future office where they can connect their all offices around the world with each other and where each staff can communicate, share information with other) by Pfizer is good decision taken by Pfizer Senior director. This organizational structure also follows the six organizational design elements. As we know, six organizational design elements are: 1.
2. 3. 4. 5. 6.
Division of Work Differentiations Hierarchy Development Authority, Responsibility and Delegation Centralization vs..
Decentralization Coordination Division of Work: Division of the work means divide a Job into different part. When a job is broken down into a number of steps, and a separate individual leading to work completes each step specialization is called division of work. In the new organization structure Pfizer Page 7 also divide their work into different part and also reduces the work load of their employees by specialization. Differentiations: For different specialization Pfizer facilitated by putting specialists together in departments under the direction of a manager.
These departments are typically based on the work functions performed, he product or service offered, the target customer or client, the geographic territory covered, or the process used to turn inputs into outputs. In new organizational structure Pfizer also departmental through different geographic area. For example: an employee of Pfizer can take any kind of information through one country employee to another country. Hierarchy Development: In Pfizer for the new organizational structure hierarchy development is also followed.
In this structure a single worker have to request to its upper level and after he or she receives the permissions or he can start to assign a team to complete the work. Here they also have to follow a hierarchy level from upper side to downs.
Authority, Responsibility and Delegation: In the new organizational structure of Pfizer the Authority, Responsibility and Delegation of each employees is also been decide and the authority of level is higher than the lowest level workers and also responsibility is also high for the upper level and low for the lower level.
Centralization vs.. Decentralization: Pfizer also choose the amount of centralization or decentralization that will allow them to best implement Nell echelons Ana conclave organizational goals. In new organizational structure Pfizer also decentralized more rather than centralized like by using Microsoft outlook employee can connect with another employee of the organization of different geographic place.
Coordination: Coordination is the process of integrating the activities of separate departments in order to pursue organizational goals effectively.
In new organizational structure Pfizer employee can easily coordinate with each other even though they are indifferent place with the help of OF (office of future) concept t means (Pfizer make a new concept of future office where they can connect their all offices around the world with each other and where any staff of the office can communicate, share information with another staff from one office to another office around the world) they can easily coordinate their work.
This new organizational structure brings good prospects to the Pfizer Company and it also maintain by the six organizational design elements, which made a good implication. 8 Question 3: Do you think arrangement would work for other types of Organizations? Why or Why not? Answer To the Question No. 3 Pfizer is a global pharmaceuticals company.
They sell their products all over the world and its need lots of documentations, researching, typing notes, manipulating data, scheduling data, scheduling meetings etc.
When a manager will do all these things he/she can’t concentrate on knowledge work like strategy, innovation, networking, collaborating and critical thinking. For this reason Jordan Cohen find out a solution and create a button on Microsoft Outlook where an employee can click on that button and connect to an outsourcing company who can do their required works by a specific amount of none. I think it’s a very innovative solution by which a company can get much more financial benefits as its saving time to analysis the data and employees are able to concentrate on their knowledge work.
By this method Pfizer financial benefits are impressive. I think this innovative solution is only suitable for larger companies who are doing their businesses all over the world.
It can be pharmaceuticals business or any other. Because they are doing businesses globally and they have high resources, financial backup etc. So they can think about these kinds of innovative solutions to revive more time to their employees for concentrate on knowledge work, which will be more effective for the company in future. So I think if they use this method they can be successful like Pfizer pharmaceuticals.
Question 4: What role do you think organizational structure plays in an organization’s efficiency and effectiveness? Explain.
Answer to the question No. – 4 Organizational structure means the way of arranging the works and people within the organization to perform the organizations different activities and attain the goal of an organization. When an organization is mall in a size it does not need a formal structure but for a big organization a formal structure Is essential Decease It needs to control can AT tenet works Ana activities through a organizational structure.
A good manger should consider organizational structure as an important part of organizations activities. Hero she should design an organizational structure that allows employees to effectively and efficiently do their work. An organizational structure plays an important role in the organization to work more efficiently and effectively.
By selecting a good organizational structure for an organization can be increase the efficiency and effectiveness rate of an organization. Organizational structure can play a great role in organizations efficiency and effectiveness in many ways like – 1 .
A good organizational structure can increase the effectiveness of communication within the organization. Any employee within the organization can get his or her required information before taking a decision and they can also communicate with other people inside or outside the organization. By establishing an organizational structure it makes easy gather information or different communication process within the organization. Thus it also can increase the effectiveness of organizations works or activities.
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A good organizational structure can also increase the management process of an organization and can make the management work more efficient and more effective. While organizational structures create in the organization it shows the formation of the organization for example: by organizational structure it can build in a chain of command that empowers employees to greater productivity. Organizational structure facilitates communication and provides a clear set of procedures to create or make process improvements. . Organizational structure determines the goals of an organization and shows the purpose and function of the organization.
So its shows the clear sets of goals of an organization, which increase the effectiveness of the organizations work. 4. Using Organizational structure for a long term can reduce the cost of different activities and also increase the experience of the employees in the organization which make organizations work more effective and efficient. 5.
Main purpose of the organization structure is reduce the time of different activities in an organization through a structure working process and also cut different dispensable cost of the organization, which increases the efficiency, and effectiveness of an organization. Organizational structure plays an important role in an organization’s effectiveness and efficiency.
This can be increase by building a good organizational structure that suits the organizations. 0 A New Klan AT structure This case analysis shows that how a renowned pharmaceuticals company whose focus is developing strategies, innovation, and research turned into a profit making company by using a new kind of structure within the organization which is outsourcing. Outsourcing is an arrangement in which one company provides services or another company that could also be or usually have been provided in-house. Outsourcing is a trend that is becoming more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business.
In some cases, the entire information management of a company is outsourced, including planning and business analysis as well as the installation, management, and servicing of the network and workstations. Jordan Cohen, the senior director of effectiveness in Pfizer Company realized that through outsourcing the most of the Pfizer employees who are highly qualified can incinerate on their core knowledge work which is developing strategies, innovation, networking, critical thinking instead wasting time on goggling, making power points slides, typing note, scheduling notes.