Contemporary Management: DeWaal BioHealth Case Study Report

This report analyzes the merger of DeWaal Pharmaceuticals and BioHealth Labs, examining the integration issues that arise in mergers and acquisitions, particularly within the pharmaceutical industry. It applies conflict theory to understand the challenges in decision-making, such as the conflict between executives regarding plant closures and business strategies. The report further explores human resource management using Elton Mayo's Human Resources Theory, focusing on personal attention, labor motivation, employee characteristics, a healthy work environment, and the complexity of human behavior. It also proposes strategic implementations for conflict resolution, including ignoring irrelevant conflicts, addressing value-based conflicts, negotiating around conflicts, and mediating through serious conflicts. The report concludes by providing recommendations for integrating the top management structure, focusing on effective communication and strategic planning. This detailed analysis provides a comprehensive understanding of the management challenges and solutions associated with mergers and acquisitions in the pharmaceutical sector.

Running head: CONTEMPORARY MANAGEMENT
Contemporary Management
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Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................3
Question 3..................................................................................................................................5
Question 4..................................................................................................................................7
Question 5..................................................................................................................................9
References................................................................................................................................11

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Question 1
As examined with the help of the case study named as Who Goes, Who Stays? The
merger between two Pharmaceuticals Company have been analysed (Schuler & Jackson,
2001). The two companies were named as DeWaal Pharmaceuticals and BioHealth Labs. In
this connection, it was investigated that there are several integration issues that sum up in the
ideology of mergers and acquisitions. The same can be critically explained by the limitations
of the conflict theory in the process of mergers and acquisitions (Friedman et al., 2016). The
concerned theory states that the mergers and acquisitions of firms in the sector of the
contemporary global economy are subjected to financial diligence as well as the human factor
that is involved as the primary source of both the merger and the conflicts in the alliance. The
issues that arise because of the decision making process of which company should acquire
who is analysed with the help of the conflict theory. In this concern, the main conflicting
reason that is at stake in the case of the two concerned Pharmaceuticals Company was
examined as the trouble of decision between Steve and Bruce to that with Kaspar and
Christian, about shifting their companies abroad and close the plant of operations in
Indonesia. In this connection, Steve had a plan to close the DeWaal plant in Indonesia, which
had become redundant and hold the BioHealth business in the region of Shanghai. In addition
to this, Steve believed that it would be beneficial and imperative to build and maintain a
business operation plant in China and also that he was ready to offer the operations of the
DeWaal Company to someone interested in the context of receiving few benefits out of the
same. In lieu of this, the other business person named as Kaspar broke up into a broad grin
and rejecting the offer made by Steve, claimed that the people running the plant at Indonesia
are outstandingly working on the same and they will not agree to the closure as the same
would impact their job and daily earnings. Thus, there was a huge conflict that aroused in the
decision-making process of merging and acquisitions of the company in different regions of

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India and China. Therefore, relating the same to the conflict theory of mergers and
acquisition, it can be clearly investigated that the incompatibility in the business culture and
interests led to the conflict and the unpreparedness of the shifting of the company because of
the lack of adequate planning and prior competency level. Thus, the ideology of the conflict
theory states that the organisation deciding to merge should attain the methodology of
integration and understanding between the parties involved in the same.
Question 2
Based on the examination of the case study under discussion, the given report tends to
analyse that the involved parties in the merger and acquisition of the pharmaceutical firms
were processing to work out with the integration of the same in regard with the organisational
structure and the re-structure of the top level management and staffing. It was examined that
they were not able to cope-up with the selection decision of the human resource structure that
is meant to carry out the workings of the concerned merged organisation. In this connection,
the Human Resources Theory by Elton Mayo suggests the process to apply for the work out
of the structure of the organisation (Sheer, 2017). The same would help the parties connected
with the merger and acquisition to choose their decisions wisely regarding the structuring of
the firm. The mentioned theory interprets the specified factors that would help in the
attainment of the staffing purpose initiated by the parties. The same is explained as below.
Personal Attention
The parties involved in the management of the employees should pay prior personal
attention to the needs and desires of the existing as well as the new employees that are to be
recruited in the business structure (Rahim, 2017). This makes the group of the employees feel
wanted in the business organisation and also makes them think that they are an essential part
of the organisation. When paid personal attention, the voices of the employees regarding their

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feedback and demands are heard too, and thus the same leverage a great sense of achieving
the own freedom to the employees (Mone & London, 2018). This will help the parties
concerned in the human resource management to let their employees remain pleased by their
assistance whenever requested, and thus the same would motivate the employees to work
with greater zeal and effectiveness. The ideology of personal attention would stimulate the
group of employees to work harder and better together and pay all their attention towards the
achievement of the desired goals and objectives of the organisation (Strauss, 2017). As
critically stated in the ideology of the theory that the needs and demands of the workers are
often related to their sentiments and emotional aspects. Thus, fulfilling the same provides the
employees with a sense of accomplishment that they should continue their work in the same
organisation and stay focused on the desired goals and objectives.
Labour Motivation
As stated by Kobersy et al., (2016), the fact that the personal attention is the first stage
of the motivational theory leads to the effectiveness of the performance level of the
employees, the efficiency of the same lies in the motivation of the labour workforce. In this
connection, the theory suggests that the concerned parties of the pharmaceutical company
should focus on switching their term workers to permanent employees and the same would
positively contribute to the motivation of the labour workforce concerning the satisfaction
and fulfillment of their demands and desires.
Characteristics
As described by Crane & Matten (2016), the components of characteristics are a
definitive approach towards the management of the employee. The behavioural attributes of
the employee are placed ideologically on the fact that the organisation helps them to maintain
their individual characteristics of personality development, along with the achievement of the

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organisational goals and desires. This, in turn, will help the concerned management sector of
the pharmaceuticals company to retain its employees in the long term of the business.
Soft side
According to the viewpoint of Hatch (2018), it is critically stated that the procedure
through which the employees in an organisation is not highly influenced by the rules and
norms that are imposed by the management. However, the same is known to be affected by
the way the administration of an organisation treats its employee as well as maintains a
healthy working environment for the same. Thus, the given report tends to state that the
concerned parties of the pharmaceutical firm should leverage their effort to maintain an
unbiased and healthy working environment for the employees.
Complex humanity
Based on the examination of the study, it was underlined that human behaviour and
psychology is more of a complex nature than a smooth and solved one. Specifically, the
demands and desires of an employee are persistent on the daily needs the same wishes to
fulfill. Concerning this perspective of behaviour of the employees, the concerned parties
should manifest itself to associate training and development program to their employees. The
same would help them to manage the complexity in the behaviour of the old as well as the
new employees. Therefore, the integration of the management of human resources would be
effectively sustained by the company.
Question 3
As implied by Adams et al., (2016), leadership management in the modern era of
business prospect is shifting towards more complexity and challenges. In this connection, it
was examined that the increase in the diverse demands, as well as the specific needs of all the
connected stakeholders and the parties connected to the business, are required to be met on a

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timely basis. With regards to this, the given report tends to suggest the strategical implements
that would help in resolving the conflicts that lie between the concerned parties of the
pharmaceutical company. The same is specified as below.
 Ignore the conflict- As opined by Argyris (2017), there are several conflicts in an
organisation that are not vital concerning the working structure of the same. In this
connection, the management sometimes needs to ignore the irrelevant disputes that
arise due to the negligent behaviour of the parties involved in the working structure of
the business. Take for example that the delivery of the medicines turned out to be few
minutes late than expected and no prior concern was raised on the same by the
customers, but the employees related to the value chain supply of the organisation
exaggerated the same, all but the management needs to do is ignore the conflict.
 Address the conflict- The conflicts which arise out of the negligence of the values
that were to be followed by the parties connected to the working structure of the
organisation needs to be adequately addressed by the management (Ellis, 2018).
Concerning the plans and processes of an organisation, the conflict in the values of
the same arises when the decisions and actions taken by the concerned parties are of a
compromising nature. In this context, establishing a meaningful and efficient
discussion with the help of the board meetings should be undermined by the
management of the organisation. For example, sincerely apologising for the mistake
done by one individual will help in addressing the conflict and fix the chaos that
would come in between the partners in the organisation.
 Negotiate around the conflict- As stated by Blau (2017), it often happens that
conflict is more critical and complex as well as involves the number of parties than
what it was thought of initially. In this case, ideally following the reason behind the
conflict, the concerned parties should focus on resolving the conflict in a healthy and

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effective manner. It can be stated that the major thing that matters is to stay
significantly focused on the conflict problem and not the people involved in the same.
This is because the same would help to negotiate and solve the conflict in an unbiased
manner. Therefore, the people involved in the conflict would be satisfied with the
revolving nature of the same. For example, the demand of a customer to receive the
medicines in an emergency from the concerned pharmaceutical company, the
company, in this case, should analyse the potentiality and loyalty of the customer
towards their organisation and negotiate the conflict accordingly.
 Mediate through the conflict- When working in a productive organisational
structure which involves a higher number of employees, there are significant chances
that the conflict turns out to be a serious one and therefore needs immediate and
drastic actions for the same. These serious conflicts may be related to the financial
implications and activities as well as the bruised egos of the people connected to the
working structure of the organisation. In this critical situation, the organisation
requires a strong and effective mediator between the people in conflict. This is
because the mediator is not personally involved in the conflict and will not get hyper
while listening to the same. In this connection, the mediator will listen to the conflict
in a well-behaved manner and relate the same with thoughtful questions that would
help in resolving the conflict.
Question 4
As discussed by Berman et al., (2019), there are several plans and procedures that the
senior executives and Human Resource people of an organisation can follow in order to
integrate the regards and structure of the top management of the organisation. In this
connection, the given report tends to state the recommendations that would be helpful to the

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two senior executives concerned to the pharmaceuticals company as well as their Human
Resource people to integrate the top structure of the same.
Effective and efficient leadership
As critically opined by Brunsson & Olsen (2018), any business organisation in the
concern of managing it stop level of management structure needs to be accountable to the
effective and efficient ideology of leadership. With regards to this methodology, the
concerned mentors of the pharmaceutical company should follow the terminologies of being
a leader that handles all the strategic plans and processes of the business structure. The
leaders should be responsible enough to carry up the activities that help the organisation to
achieve its desired goals and objectives. This is only possible when the leaders effectively
communicate with their team members and delegate the tasks and authorities the members
are accountable to. This will, in turn, help the concerned parties to manage the top structure
of the organisation dealing with the delegation of the authorities.
Effectively managed research and development team
In order that a business organisation effectively achieves its desired goals and
objectives, the same needs to acquire an effective and efficient team of research and
development people. The same is accountable for the concerned pharmaceutical company.
The company needs to understand the fact that their research and development team needs to
be enthusiastic enough to study the frequent changes in the business market structure of the
pharmaceutical industry. This, in turn, will help the concerned industry to maintain its
paradigm and competency level as compared to the intense rivalry companies existing in their
similar market.
Recruiting skilled labour talent

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As discussed by Drucker (2018), any productive business organisation is known by
the effectiveness and the efficiency of its employees. In this connection, it can be critically
stated that the concerned pharmaceutical company and their HR people should have their
primary focus on recruiting the best as well as the talent level of employees. HR should not
be biased or encourage any unethical means of recruiting the employees in the
pharmaceutical company. Effectively implementing the recruitment process would help the
company to retain a key talented workforce in their working structure, and therefore, the
integration with regards to the top structure of the concerned company would be managed.
Question 5
The two theories used in the given report significantly named as the conflict theory
and the Human Relations Theory by Elton Mayo that depicts the conflicting values at stake
and the integration of the top management staffing, respectively. In this concern, the report
tends to demonstrate the usefulness of the mentioned theories and practices.
Conflict Theory
 It helps in the analysis and prediction about the future conflicts that may occur in the
business consideration.
 It helps in the development of the social phenomena of the business market.
 It helps in the specification of the deterministic properties that are required to be set in
a business entity.
 It permits the people connected to the working structure of the organisation to observe
the state of affairs and consequences of the conflicts.
 It also helps in the analysis of the conflicts, which are both irrelevant and relevant in
nature.
Human Relations Theory by Elton Mayo

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 It helps in the analysis of the public relations that relates to the corporate social
responsibility of the organisation.
 It helps in maintaining the relationship between the different levels of management
working in the organisation.
 It helps in motivating the employees to work harder with their greatest zeal and
enthusiasm.
 It helps the top level managers to understand the importance of appraising and
training their employees.