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Outsourcing advantages and disadvantages
Outsourcing advantages and disadvantages
Concepts of organizational change
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Case Study Analysis: New Kind of Structure
Today’s companies are looking for an edge that keeps them competitive. Pfizer has done just that with what they are calling PfizerWorks. The process allows for employees to “shift tedious and time-consuming tasks to one of two Indian service-outsourcing firms” (Robbins, DeCenzo, Coulter, 2015). Pfizer is not the first company to outsource their work to help reduce costs and improve efficiencies. The unique thing about this program is that they do it with tasks that take up time allowing for their employees to work on tasks that they were hired to do. You can look at it as the Indian companies are sent out to buy the groceries allowing for the Pfizer employees (the cooks) to make the food. This paper will examine how Pfizer employee are more productive, how this would work in other organizations, the global aspect or impact on the organizational culture and how this approach would work in my business.
PfizerWork Structure
Pfizer’s idea of removing these tedious and extremely time consuming items and placing them with another company is a genius move in so many ways. They have been able to reduce costs and improve the bottom line by giving these tasks to people that are making a lot less than the Pfizer employees. Efficiently speaking, this allows the Pfizer employee to focus on the tasks that they were hired to do. Why have someone doing a job that cost $5 an hour when you are paying them $20? This question now has an answer – you don’t. Hadley Baldwin (2015) provided four improvements needed for success as a leader today. They were embracing collaboration, knowing your business better, following the money and thinking about you and your team. PfizerWorks addresses all of t...
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...e culture in the company has already started to shift as the American branches are no longer looked at as lone wolfs but because we are now all on a similar structure we are looked at as one large company.
Conclusion
PfizerWorks seems to be a model of efficiency and effectiveness as seen by the responses since its implementation. The idea of outsourcing is not new, but in the manner that Pfizer is using it, it can be looked at as unique. The program shows that a blend can be made between mechanistic and organic organizational structures, allowing for the bureaucratic parts and low centralization from both structures. These types of ideas and structures are what all types of businesses need to continue to be competitive in today’s environment. As seen in the example of my company, this type of structure can also lead to improved, stronger organizational culture.
WellStar Health Systems is currently the preeminent and largest health care provider in Metro Atlanta. WellStar Health Systems is a not-for-profit institution that is composed of 5 hospitals and an abundance of physician groups. Physician specialty groups included within WellStar are: ENT, Psychiatry, Endocrinology, Pulmonary Medicine, Infectious Disease, General Surgery, Rehabilitation, Pathology, and Rheumatology. WellStar’s organizational design is composed of internal and external factors that define the organization’s size, organizational structure, and processes. Internal and external factors are the basis for influencing managerial conclusions in decision-making. These factors vary from organization to organization and are the rationale for understanding WellStar’s strengths, weaknesses, opportunities, and threats. Understanding these variables is a necessity for the sake of WellStar’s survival
They are able to do so this through leveraging internal resources, capabilities and core competencies while capitalizing on external factors. Both tangible resources including Extracare card rewards program and pharmacy benefit management services (PBM), as well as intangible resources such as innovation in technology.
The organization is creating an effective system that would enhance employees’ growth and help them meet the needs of the workforce. To achieve better healthcare, the organization is developing innovative ways of recruiting skilled personnel. In a bid to build value for its employees, Banner Health System is presenting them with opportunities that build their expertise. Employees have an opportunity to transfer between different Banner facilities and still manage to retain their seniority and benefits. The organization is leveraging employee skills and creativity via the President’s Grant Program. The program offers funding to employees who have innovative ideas that are beneficial to the heath system. The focus of the program includes improving teamwork, leadership development, continuous, learning as well as innovation in all locations. As the organization grows, it looks forward to offer employees discounts on health coverage and other insurance
Gershon, H., & Pattakos, A., (2004). Creating market opportunities: Innovation is key. Journal of Healthcare Management, 49(1), 9-11.
Integrated systems have a huge interest in developing and aiding ideas that provides care at a lesser expense. Therefore, they are usually the first ones to implement innovations that will ultimately change the overall health care system. Kaiser Permanente, Geisinger Health System, and HealthPartners are the nation’s highest leading performers when it pertains to quality and expense. Effective and successful unsettling innovations within the health care system will give further care at a lesser expense than we can even envision. “Many of today’s great, integrated systems were once disruptive innovators but they now provide more for less only by present standards.” Sequentially, their most recent organizational models and expense structures
The first social problem surrounding the health care system in the United States is the growing problem with pharmaceutical companies. The industry averages a 17% profit margin and it has been booming for decades, but the industry is being heavily led by a core group of companies (Dr. Pratt). “In 1992 the top 10 companies accounted for roughly one-third of global pharmaceutical revenue, after a period of consolidation, by 2001 the top 10 accounted for nearly half.”( Leon-Guerrero, Zentgraf, 172). These companies hold a large majority of the market share and make most of their money off patented drugs. This growing core of companies that are dominating the market are causing more problems rather than solving them. These companies are all about making as much money as they can and it shows through the salaries of the executives of these companies (Dr. Pratt). The pharmaceutical industry should have their number one priority be to the users of their products rather than profit gains.
In the course of an average day, you and your colleagues will work closely with any number of outside vendors who provide things like brand name medications, diagnostic equipment, software solutions, and more. But it's important that these relationships don't influence members of the organization to advocate one treatment or procedure over another. You may be asked to play an active role in monitoring staff and creating policies to prevent outside relationships from inappropriately affecting the manner in which care is delivered.
The company shows a flat organization in which there are few layers of management but has broad span of control. According to the chart, the company develops a decentralized authority in the level of their management due to which they focus more on adapting to what customer wants based on decision making from the lower level managers who are more familiar in the local conditions. This type of authority allows them to understand customers such as patients’ needs in order to develop strategies to fulfill this requirement According to Figure 1, they primarily focus more on the health care system and invested in about $7.5 billion dollars in research and development to create a strong product portfolio. The culture of this organization demonstrates a formal organization in order to guide the lines of authority as well as the responsibility for the company. According to Johnson and Johnson Credo statement, their main focus is towards the responsibilities of the doctors, nurses, and patients as well as their employees. They also state their growing responsibilities toward the shareholders and to the communities in order to research and develop new innovations in towards civic improvement to the communities. This entails that they fully care for their customers and employees in which its shows in
Previously, Pfizer, would determine what kind of talent they would need for the next 10 years and work to develop that talent from within its current workforce. Due to the highly competitive market, this strategy will no longer meet Pfizer’s needs. The evolution of small bio-tech companies that can produce new drugs much quicker than global giants like Pfizer, means the company must stay ahead by having more new drugs available for the market. The flexibility of the market, particularly how quickly it changes, has forced Pfizer to seek individuals who have multiple competencies. Retreating from their past practice of grooming, they allow for employees to blossom at what they are good at, creating a more flexible
Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well as the opportunities and threats that it faces, its strategic priorities and the acquisition strategy that it might follow.
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
...rofitable; however, in the last year Pfizer has continued to grow at a rate far surpassing their competition.
Pfizer Inc. is a large pharmaceutical company that engages in the discovery of new technologies, the manufacture of prescription and "over the counter" (OTC) medicines, as well as the marketing of such products. It operates in three distinct segments that include Human Health, Consumer Healthcare, and Animal Health. For fiscal year 2004, the company generated approximately $53 billion in revenue that contributed to over $11 billion in net income.(Pfizer, 2004)
We first began our analysis of Novartis by evaluating the company’s strategic direction. Novartis’ mission statement is to care and to cure. They are a company that wants to discover, develop, and successfully market innovative products to prevent and cure disease, to ease suffering, and to enhance the quality of life. Novartis also hopes to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest their money, their time, and their ideas in their company. Like most companies in the industry, Novartis’ vision is to become the best pharmaceutical company through the achievement of sustainable and profitable growth. Novartis has a performance oriented culture and top down leadership style. By having a performance oriented culture the business pushes creativity and free thinking while focusing ...
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)