Managing the DeWaal Pharmaceutical and BioHealth Labs Merger

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Contemporary Business
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Executive summary:
The DeWaal Pharmaceutical and BioHealth Labs get the announcement about the merger 2
months ago which invent various types of issues. The announcement still has the pending
approval because both companies face the major issue such as there are only 65 jobs in the
merger but they have the 120 efficient employees in the management team. The companies get
the rumors that 4 management team members get the new job offer and 8 employees left the job
from the Bio-Health company which is the major loose for the company. The report provides a
solution to resolve it and manage the hiring according to the requirement.
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Table of Contents
Executive summary:........................................................................................................................2
Introduction:....................................................................................................................................4
Conflicting values are at stake in the case.......................................................................................5
Recommendation to the conflicting values......................................................................................7
Process that applied the integration, particularly with regard to structure and top management....9
Recommendation of the integration in the top structure...............................................................11
Usefulness of the management and organisational theories..........................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14
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Introduction:
The report is all about the merger of the two companies such as DeWaal Pharmaceutical and
BioHealth Labs which have efficient employees in the management team but merging company
have only 65 jobs vacant. The CEO of the BioHealth Labs is Steve Lindell and Kaspar van de
Velde is the Chairman of the DeWaal Pharmaceutical Company. Both the companies have the
120 efficient employees and it is not easy to appoint all the employees which are the major
conflict reason. On the other hand, the report provides the study that stock price of the Bio-
Health labs falling into the 20% and both the firms have the different cultures which give the fire
to the conflict. The report provides the learning that the main focus of the integration is technical
aid, cultural aspect, process steps and technology for the successful merging of both the
companies. Alternatively, the report provides an effective management theory to manage the
hiring of efficient employees and resolve the other issues in the appropriate manner.
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Conflicting values are at stake in the case
This is the kind of process which happens due to actual incompatible belief and perceived system
that provides the study that each the people have meaningful lives and provides their equal
contribution. These values provide the learning that what is bad or good and apart from this, this
also provides the knowledge that what is wrong or right in the perspective of the merger of the
two companies. On the other hand, the conflict values make the impact on the decision of the
merger companies and it identifies the time which invests in the two different cultural
companies. The conflict value provides the study that the company should set a goal that what is
most important in merging the two firms and how to attain it with the appropriate manner.
The theory X and Theory Y: The theory X and Theory Y is invented by the Douglas McGregor
which provides the types of human behavior in the workplace and the effects which makes a
direct impact to the merger of the companies. This management theory provides aid to identify
the satisfaction level of the employees in both companies (Prottas & Nummelin, 2018). Most of
the people work for the money and most of them feel the work as the burden which segregates
the nature of the human in two types. On the other hand, both companies have different cultural
values which become the main reason for the conflict because each the employee wants to
implement their traditional culture in the workplace.
Alternatively, the X type of employees is the kind of person who does not like their work or feels
a burden for each task. These types of employees unnecessary create the conflict in the
workplace to distract others from their work. The X employees get jealous form the Y employees
because they used to do work and get the reward from their managers.
Types of X employees and their behavior in the workplace:
 They used to dislike their work and feel that the work is a burden for them.
 This type of employees avoids the responsibility and depends on the direction like
feeding with the spoon.
 They always need a force to deliver good work in the workplace or create an issue in the
submission of the final task.
 They get jealous of the other efficient employees (O’Connor, 2015).
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Types of Y employees and their behavior in the workplace:
 Y type of employees always ready to attempt the work and have a positive attitude
towards the organisation.
 The employees are trustworthy and easy to make a good relationship with the manager.
 They are self-motivated and understand their responsibilities.
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Recommendation to the conflicting values
According to the study of the above mention conflicting values, there is two types of person in
the organisation which directly and indirectly give the impact on the workplace so it is essential
to adapt only positive attitude and remove the negativity for the workplace. The theory X and
Theory Y provides the two types of employees in the workplace such as hard workers and dislike
a working person so it is essential for the merger organisation to appoint only efficient and hard
workers in the workplace.
So, it is essential for the DeWaal Pharmaceutical and BioHealth Labs to analyze these types of
employees and decide that which employee is good for the merged company. The merger
company hires only those employees who easy to adjust in the different culture and focused on
the work (Harinck & Druckman, 2017). On the other hand, the firm needs to identify the
employee’s priorities and give them an offer to join the new firm with the reward benefits. So, it
is essential for the high authority of the companies identify the workers which provide their
efficient performance in the workplace so they should appoint in the new firm in the priority.
There are some points which need to be noted by the merger firm so that reduce the negative
impact of the conflict which is mention underneath:
 The firm must appoint only those employees who passed each requirement which
accomplish the task on time with full of responsibility.
 Those employees who planned to leave the job, the higher authority organise a meeting
and understand the requirements of the efficient employees.
 The company firstly fire those employees who distract others for not to join the merger
company or take an action so that hardworking person stayed in the firm (Stark & Farner, 2015).
 When the firm listens about any rumor then it is essential to talk to their talented
employees first so that resolve the doubt and create a trust factor in the between the employees
and managers.
 The DeWaal Pharmaceutical and BioHealth Labs need to reward their hard-working
employees on their effective performance so that they get satisfied with the firm and continue the
relationship in the future changes.
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 The firm should listen about the issue which faced by the individual employee and
provides the instant solution so that employees maintain the quality of the work and loyal for the
organisation.
 Both firms provide the paid long-leaves to the talented employees so that call back to
them when the firm get to settle down and ready for the working.
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The process that applied the integration, particularly with regard to structure and top
management
The merger of the DeWaal Pharmaceutical and BioHealth Labs provides the aid that it is
essential to develop the new and effective management team to grow the business in the
competitive market. There are two main people who play the main role to successfully establish
the merger of the two firms and set the management in an effective manner such as Steve and
Kasper. Both the organisation gives aid to merge the organisation and appoint the employees
according to education and capacity (Edward, 2017). There are 120 people but only 65 job
profile for the senior manager so that both companies must only hire an efficient and talented
person in the newly merged firm. It decided in the merger of both companies that CFO, COO,
and Head of R & D must come from the Steve party. Apart from this, the head of the human
resource, global marketing manager and operation director is come from the Kaspar party to
attain the objectives in the appropriate manner.
On the other hand, the common decision of both companies provides the study that only efficient
employees appoint in the merged firm and the procedure of the hiring is the effect so that the
employees maintain the interest in the workplace. The selection process of the employees
decides by the Steve who includes the IQ test and emotional intelligence to identify only relevant
employee for the merged firm. Apart from this, Christian Myer decides to take time to select the
employees who believe in the long run. So, it is identified that only high IQ with emotional
intelligent employee get selected in the firm and those who have no quality, they must fire by the
company.
Management by Henri Fayol: The management theory according to the Henri Fayol provides
the study that there is some factors which need to be available in the successful merging of the
companies which is mention underneath:
 Division of work: It is essential for the merger company to appoint only those employees
who believe to attain the objectives in the effective manner.
 Authorities and responsibilities: The employee must be responsible for their job profile
and accomplish the task before the deadline.
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 Discipline: During the hiring process the Steve must analyse the disciple level in the
employee and identify the trust worthy factor to appoint in the merger firm (Edward, 2017).
 Unity of command: The head of HR such as Christian Meyer provides the information to
the employees in the one direction so that each one of them understands the information easily.
 Unity of direction: The HR head and the other main authority provide the direction in
one way so that each employee gives their effort in the one direction to attain the objectives.
 Subordination: The employee who recruits in the firm must give their individual
objectives on the secondary level and firstly achieve the organisation objectives.
 Remuneration: The manager must satisfy their efficient employees with the reward
process or increase the pay scale according to the capacity.
 Centralization: The merger firm must have a limited amount of higher authority to
manage the work in the firm and commonly provides the effort in one direction.
 Scalar chain: The relationship between the manager and subordinate must be accurate
and make a clear communication so that attain the objectives easily.
 Order: Steve party provides the accurate and straightforward order to their HR head so
that hiring must be accomplished successfully.
 Equity: The organization treats them every employee equally so that every efficient
employee feels satisfy and give their effective performance in each task (Winston, 2018).
 Stability of Tenure of Personnel: The Steve must try to reduce the employee turnover
through provide the reward to the talented employees and give the confirmation that merger firm
gives their career better opportunity.
 Initiative: The Christian Meyer find the capacity in the employees to take the initiative in
the various situation so that the firm easy to resolve the issues.
 Esprit de Corps: Christian Meyer also identifies the teamwork quality in the employees
and tests the communication skills so that attain the objectives of the new firm.
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Recommendation of the integration in the top structure
The suggestion provides to the study that Christian Meyer provides the information to the
employees in the one direction so that each one of them understands the information easily. On
the other hand, the relationship between the manager and subordinate must be accurate and make
a clear communication so that attain the objectives easily (Van Cayseele & Vanormelingen,
2018). The manager must satisfy their efficient employees with the reward process or increase
the pay scale according to the capacity. The manager knows how to segregate the work in
according to the capacity of the employee so that attain the objectives in the appropriate manner.
Kaspar and Steve need to prepare the effective selection process in the merger firms with the
performance in the individual company so that identify the hardworking employees. On the other
hand, the firm split in the 50-50 part so that each the efficient employee gets appointed in the
newly merged firm. The Christian Meyer must segregate the interview level in the 2-4 level such
as firstly identify the IQ and emotional intelligence and then identify the communication level to
easily accomplish the objectives (Burghardt & Helm, 2015). After the appointment, the firm
should provide the cross-cultural training to each employee to understand the value of the
culture. On the other hand, both the firms organise a common meeting to introduce about their
cultures with each other so that everyone gets familiar with it. Both companies commonly decide
the working criteria for their upcoming firm so that employees get to satisfy and maintain the
quality of the work on the merged firm.
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Usefulness of the management and organisational theories
Human relations theory is the kind of management which provides aid to understand the basic
need of the case and provides information about the behaviour of the employees in the corporate
sector. This management theory provides aid to understand the behaviour of the employees when
they heard that the company get merged with the other organisation (Collings, et. al., 2018).
Most of the people think that now organisation getting down or they face the difficulty to
understand the other culture of the business. That is why they feel unsafe and leave the place for
the better opportunity so it is essential for the higher authority of the organisation such as Steve
and Kaspar to reward their efficient employees to stay in the merged firm.
On the other hand, this theory provides aid to analyse the behaviour of the higher authority
because this is the main element which gives aid to understand the merging process and appoint
the efficient employee in the firm (Ferguson, 2018). There are two main people who play the
main role to successfully establish the merger of the two firms and set the management in an
effective manner such as Steve and Kasper. This theory also helpful to manage the new merging
firm in the competitive market with the aid of appointing only talented and efficient employee.
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