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Organization behavior examination of Merck Company Inc


Organization behavior evaluation identifies the systematic approach in studying and application of human behavior as individuals or categories within an firm their tendencies and the effect this behavior impacts on the business and its goals. It is the analysis of individual and group tendencies within an company. It improves better relationships to achieve human objectives, organizations aims and social aims. The organization's values goals and culture are all linked so that there surely is integration between your employees' personal goals and the organization's goals. Organizational action analyses relationships between parameters (McKenna, 2001). The concept of organizational behavior is dependant on the theory that the surroundings dictates the human habit (Duncan, 1982). It protects a variety of topics which include human habit, change, leadership and performance. It requires analyzing patterns from an individual level, a group level and an organizational level, where in fact the three are somehow integrated. The analyses results to more efficient and effective organizations.

The company: Merck Company Inc.

Organization behavior includes analyzing tendencies that results from exterior environmental causes. A merger and possible lay offs are factors that would impact on Merck's employees behaviors and this behavior could have an impact on the organizations productivity. This article will dwelling address these topics with regards to the changes in Merck's & Co. after the company merged with Schering-Plough and during the company's restructuring program, that involves reducing 15 percent of the employees located internationally (Schepp, 2010). Merck is one of the greatest pharmaceutical general population companies on the globe. The primary products include drugs, vaccines, biological treatments, consumer and pet animal products. The company has its hq in NJ and functions in 140 countries located worldwide. The business is posted in the New York Stock Exchange. Merck recently merged with Schering-Plough Company. One of the effects of the merger was lying off of about 15 percent of the new company's employees.

The issue

According to Appelbaum professionals should take into consideration organization's behavior after and during a merger. Many merger and acquisition failures can be related to insufficient proper organizational patterns analysis. One of the negative effects on employees' habit during and after a merger is the fact that it can result in insecurity and uncertainty among employees (Appelbaum, 2000). During a merger the management should treat the impact it would have on the employees and provide support and encouragement to the employees, studying attitudes, worth and people's behaviors and how they are affected by the surroundings.

The organization will need to analyze planning, managing, leading and handling. Analyze job functions, allocation of resources, and work circulation procedures. Teach the employees to remain centered and reassuring them of the job security will help in creating stableness and continuation. Control refers to the management's subjective and objective analysis of the success of goals. The management should recognize that there's a need to address fear for change. Appelbaum et al. (2000) recommends three techniques in addressing business behavior during a merger, communication, corporate culture and change.


During the change process, it is very important for the management to sustain wide open communication with the employees. This will likely be very useful in retaining the business's culture. Lack of proper communication to the employees during a merger may lead to rumors which might lower employees' morale as they become preoccupied using their own individual hobbies. Communication can help in bridging the gap between the individual's passions and the organizations hobbies through the merging process.

This will assist in integration of the two organizational cultures, in this case Merck's and Schering-Plough Company. Merck's management achieved this through publicizing the business's business strategy in the 2009-2010 Corporate Responsibility Review survey (Merck, 2010). The plan included unifying, integrating and fostering culture. The strategy included conversing the improvement to the employees and other stakeholders (Merck &Co Inc. ). A great way that communication can be effective is through repetition of information though different forms of marketing (Appelbaum, et al. , 2000). The need for simple integration of the merger between the two companies was communicated through various accounts in the Merck's website. These information include the Code of Do and the 2009-2010 corporate governance reports. The announcements of credibility, transparency and open communication are shown in the majority of the company's regulations, showing the emphasis the company has on open up communication.

Organizational Culture

When two companies combine, there are likelihood of cultural incompatibility. This may result to issues. An organizations culture can be acknowledged through artifacts like the company logos, the company worth and norms and through basic root assumptions. It includes informal and formal procedures of making decision in the business. This includes the energy hierarchy and exactly how employees who are in several positions interact with one another. At Merck there is mutual admiration for employees and they're encouraged to build up their skills and they are therefore committed to high performance.

This means that they can be respected to make decisions without necessarily having to await their supervisors consent. The business allows for some addition in your choice making process, though employees in dispute are to article their grievances with their supervisors before each goes to everybody else. Thus Merck practice democratic leadership style (Miner, 2007). Furthermore, employees must have you to definitely confide in about their concerns for a merger. At Merck company management, anyone with a dispute on any concern should record it to the areas Human Resources representative.

The company also has Merck Office of ethics where those who may hesitate of their own supervisors and individuals resource associates should take their concerns and concerns. Furthermore the company has a code of carry out that serves as a guide to a person with almost any responsibility in the company including employees and the directors. The code of do includes ethical questions and the process one should utilization in decision making. This shows openness and supplying employees responsibility to make decisions. This results to happy employees who tend to be productive.

A company that is in the post-merger situation should have a culture that is evidently defined. There should be common ground for the two companies and a fresh culture will be developed. Merck Co. Inc. is in currently in the post-merger level. The management has developed a plan that could ensure a easy integration of both cultures. That is stipulated in the company's business momentum which includes unifying both ethnicities, integrating them and cultivating the new culture.

An organizations culture can be determined from the company's mission assertions, and in its ideals, ethics and requirements which all form part of organization behavior. The business's values derive from ethics and integrity. Merck's objective assertion reads "To provide progressive, distinctive products and services that save and improve lives and meet customer need, to be recognized as a great spot to work and also to provide shareholders with an excellent rate of come back" (Merck Co. Inc. , 2010). This quest statement shows the importance at which the business prices the employees' contribution to the growth of the company.

This should be considered a source of inspiration for the employees who continued to be at Merck's company after the merger. A similar importance is mirrored in the company's ethics and standards statements. On ethics and requirements, Merck's company has a key conformity office to ensure that Merck's company complies with all the polices as required internationally. The compliance officer also ensures that the company techniques ethical business routines and also safeguarding the individual's privacy. This safeguarding of the individual's privateness shows the value the company has on the individual. This can act as a motivational factor for the employees. The staff feels treasured, thus becomes more profitable which boosts the employee's performance.

A company that has effective corporate and business governance is in most cases transparent in every its undertakings. Commercial governance also entails appreciating that the individuals in an business are the main assets for the reason that business (Blair, 1995). Merck's company has an effective corporate governance composition. The Chief Professional Official (CEO) is appointed by the Table which is the Table that also decides his remuneration. The Chairman is accountable for the Table. There can be an audit committee which is obtainable to all. In addition to this the business has whistle blowers safety policies. These fact is demonstrating of transparency. Therefore the employees should have confidence in the company and modify to the culture of the new company.


A merger leads to several changes in the business. Once a worker joins a business, she/he, there's a emotional need is developed. In turn the business has expectations out of this employee. Thus a subconscious contract begins and a danger to break it might be devastating to the organization also to the employees. On the average person level, organizational behavior analyses perceptions, learning, imagination, determination, personality, performance and ethics. Individual's sources of motivation do vary from individual to individual, some by incentives, economic benefits, compliment or just satisfaction from doing a job well. It includes identifying what motivates every individual employee.

Organization behavior analysis also involves the analysis of individual habit towards some exterior forces and the consequences it has on the organization. It also consists of of factors which the majority of the time would be having negative effects on performance. A major change, like a merger threatens to break the mental contract, whereby the worker becomes scared of the unidentified and develops thoughts of helplessness. This affects the employee's performance level. The Merck and Schering-Plough merger had a far more helplessness impact as the CEO got announced possible layoffs for 15 percent of the employees. These announcements of possible loss of employees may cause anxiety and fear. If not dealt with this could result to frustrated employees who are extreme and thus a rise in unresolved conflicts.

To avoid these ramifications of change, open communication on the reason why for the merger should be communicated from which the employees should be made to understand the new changes. There should be no surprise for the employees plus they should know who and exactly how they might be affected. To eliminate this effect of delight, Merck's management included the news on possible laying from older and middle level managers, 40 percent of which would maintain the US. Worries can be eliminated by relating to the employees to make them feel that they are part of the process. The management should also provide employees with goals that are long lasting. This creates self confidence with their workplace as they feel secure in their positions. This involvement was highlighted in the then CEO's, Mr. Clark's conversation following the merger. Clark said that for the merger to be successful, the business relied on the employees' passion, innovativeness and dedication.

According to Appelbaum and company, (2000) staff lay offs have the same effect as mergers, depression, stress and anxiety and helplessness. Managers should provide the maximum amount of information as is possible to reduce rumours and their results. Furthermore the professionals should encourage group conversations. Around the group level, firm behavior involves studying of the group dynamics, intra-group and inter-group conflicts and unity, interpersonal communication, leadership, systems and group roles. In Merck Co. Inc. global constituency categories and employee resource categories are two of the strategies that the company uses to apply diversity strategy. The global constituency groupings represent people from different geographical locations and with different ethnicities, religion and professions.

They work together on the same goal, the success of the business. The employee learning resource groups are made of volunteer employees who networking together and are teams. These clubs offer educational and social resources, as well to be connections to other employees. These groupings help in understanding individuals while they play an important role in developing diversity strategy. These groupings performed an important role in helping each other through the merger as the groupings would meet and discuss issues that were of concern to them. Employees must be produced to believe that they have regained control of their individual goal.


Organizational behavior examination assists in figuring out the individual and group behavior with the aim of using the results to improve on performance. The examination will be utilized to identify an individual's different needs and different methods of working and accomplishing a task. This information is employed in providing personal resources that will assist each individual to become more productive. These details may also be of high importance in guaranteeing a smooth change process as the management devices on ways to aid employees undergo the merger changes confidently.

There should be new identified goals for the new company as well as new guidelines, new culture. These new plans plus another changes should be communicated to the employees. The info rayed to the employees should be genuine, as employees could be more appreciative if indeed they know the impact the merger has on them. The lay off information should discover sensitivity otherwise it may have serious repercussions. Employees' thoughts is highly recommended in the whole process. This will help in the success of the merger.

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