RUNNING HEAD DISCIUSSION BOARD 2
David E. Brown
Liberty University
BMAL 504-D02 Leading Organizational Change
Dr. Ken Brumfield
July 26, 2020
Author’s Note
David E. Brown
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to David E. Brown
Email: dbrown240@liberty.edu
RUNNING HEAD DISCIUSSION BOARD 2
What did Glaxo-Wellcome do? What should they have done?
It is abundantly clear that Glaxo aggressively acquired in what some might refer to as a
hostile take-over. The corporate take-over of Wellcome was extremely aggressive and the
intention was not at all to be cooperative or gentle in the acquisition. There was an opportunity
for the merger to occur and little to no time was wasted it what would eventually be perceived as
a successful merger to two companies. The way in which employees of the company learned
about the merger was an example of poor and even sloppy execution. It was clear, what was
going on created confusion for most if not all employees. It is vital when an organization is about
to undergo significant change such as that of merging with another company, that communication
be both clear and consistent. For a corporate merger or acquisition to be successful, there must be
a synergy that allows the newly formed company or the acquired company to exist as one in a
way that produces positive outcomes. “Companies mainly go for M&A to have synergy gain
through the combined firm. The practical implication is that managers can know M&A as a
financial and investment decision is worthy or not to achieve their M&A goals and then reassess
and redefine their strategic alternatives to achieve growth.” (Leespa & Mishra 2016). These types
of ventures can and often do cause a great deal of stress for employees. The lack of
communication, if it exists can wreak havoc on what should be a smooth transition. As believers,
we can take comfort in the word of God, knowing that he is the same now and always regardless
of our circumstances. God is the Sovereign of the universe, existing supremely above all else.
God is spirit (John 4:24), existing in a different realm from that of humans, as we are flesh. Our
understanding and perception of God, therefore, are based on God’s revelation to us through His
written Word, the Bible. We need not fear change in this life or the next because of the living
God being a kind and caring Father.
RUNNING HEAD DISCIUSSION BOARD 2
There are and will be situations where employee may struggle with uncertainty associated with
this kind of change. Often this can be the reason for failures as it relates to mergers and
acquisitions. If an employee feels their livelihood to be at risk, this can often contribute to
integration failures. “Cartwright and Cooper (1993) indicated that beyond financial performance,
there was no question that acquisitions had a great impact on the workers involved. Careers were
sometimes shattered, normal job patterns disrupted, and future security endangered. The threat of
a takeover might even have a negative impact on the morale and productivity of the targeted
workforce. Ambiguous expectations and feelings of job security might induce employees to seek
work elsewhere or to reduce commitment and to withdraw somewhat from their job as changes
unfold. (Stavros 2016). Employees of the acquired company were justified in feeling their jobs
were potentially at risk. There was little to no clear communication or direction as it related to
what was next or how the new company would move forward. Communication by management
may have helped to give the employees a sense of relief regarding what would happen soon. A
much better job could have been done to ensure a successful transition. Appropriate information
sharing that would provide clear direction about the future should have been a priority for
leadership. This aspect of the merger makes me think of how our God has given us a hope for the
future despite the difficulties we may face in this life. “For I know the plans I have for you,
declares the Lord, plans for welfare and not for evil, to give you a future and a hope.” (Jeremiah
29:11KJV). Even the God of the Universe provides a clear path for what the future holds for us.
Even more so as flawed human beings should we seek to be transparent, honest, and clear
regarding our intentions for one-another.
RUNNING HEAD DISCIUSSION BOARD 2
Did Ofra Sherman do the right thing? What would you have done?
Ofra Sherman was involved in almost every aspect of Wellness Israel. She managed
operations and other areas for five years and was heavily involve in most if not all of operations.
Sherman attempted to remain in each of the three companies. She tried to gather all the relevant
information she could as it pertained to the resentment that was prevalent. T would appear,
based on the information provide Sherman made sincere and honest efforts for her and for the
team members. The one thing I may have suggested or done in a different way would have been
to act sooner than she did. Had she made the same efforts a lot sooner the impact could have had
greater positive results. It is my belief, many of the fears and misunderstanding could have been
avoided had she acted earlier to try and determine what transpired and what was really
happening. If the employees had been talked too and given a more positive outlook as to what
was in the future for the company it may have addressed, even resolved some fear and even
misconceptions.
What was Ofra Sherman’s predicament? How did she get into it?
Ofra Sherman was placed in an almost untenable situation as a direct result of the merger
and acquisition. It created a major distraction for her and her team. She was never given clear
and specific direction as far as the expectations and goals. Having to maneuver between two
companies created an enormous distraction for her team. Sherman’s lack of clear direction made
her group in Promedico doubt her intentions and desired outcomes. It was not even clear to her
what her chain of command was and who she reported to. For all intents and purposes, she was
employed by one company, she was responsible for two companies and her compensation came
from yet another. Ofra had a difficult time trying to understand the risks for her and her team
members. Her involvement with Wellcome Isral only made things more convoluted.
RUNNING HEAD DISCIUSSION BOARD 2
Clearly mergers and acquisitions can be very traumatic events that can negatively impact trust,
satisfaction, and productivity among the members of an organization. Sherman made good
efforts to remain neutral while attempting to motivate her team members, however her insecurity
about what would be next was understandable.
How do you evaluate her actions as described in the case?
I believe the circumstances surrounding the merger and acquisition was a massive undertaking
for Ofra Sherman. There were many aspects of what occurred that she was not clear on and she
was not equipped to handle the poor and mismanaged transition. I believe she had every
intention of trying to do what was right and fair for everyone involved. Her efforts and the
character she exhibited are laudable. She was determined to develop a way to help her team
transition to Glaxo in the event a move would have been necessary. I can understand and
sympathize with the fact that she wanted to remain employed She was not just concerned with
her position, she made efforts to ensure her team members would have a future as well. I believe
she acted just as a leader should, being transparent, showing empathy and concern for others.
Our best example of leadership in evident in Jesus Christ. Jesus displayed all aspects of positive
leadership in both his obedience to the Father and his display of love, compassion, and concern
for those deemed less than worthy. Jesus made it noticeably clear as he began his ministry, there
was a higher power.
Jesus placed himself under the care of John the Baptist for baptism. This showed that Jesus was
going to teach his followers, he also demonstrated submission does not mean weakness.
Jesus displayed the first example of what true servanthood is about. A leader such as no other
ever was or will be.
RUNNING HEAD DISCIUSSION BOARD 2
References:
Asrar-ul-Haq, Muhammad. & Anwar, Sadia. (2018). The many faces of leadership: Proposing
research agenda through a review of literature Retrieved from
https://www.sciencedirect.com/science/article/pii/S2314721017300798
Dorling, J. (2017). Impact of psychological capital on the resistance to change during post-
merger integration: A theoretical model. Journal of Organizational Change Management,
https://doi-org.ezproxy.liberty.edu/10.1108/JOCM-11-2015-0199
Georgiades, Stavros. (2016) The Impact of an Acquisition on the Employees of the Acquired
Company. Retrieved from https://www.researchgate.net/publication/326518299
Leespa, Nm & Mishra, Chandra (2016). Theory and practice of mergers and acquisitions;
Empirical evidence from Indian cases. Retrieved from
https://www.researchgate.net/publication/306351409_Theory_and_Practice_of_Mergers_
and_Acquisitions_Empirical_Evidence_from_Indian_Cases
Jick, T. D., & Peiperl, M. A. (2011). Managing change: cases and concepts. New York, NY:
McGraw-Hill/Irwin.
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