Read the case below and answer all the questions that follow. Pfizer's Martin Mackay's Use of Power and Politics To Increase Performance Pfizer is one of the largest global pharmaceutical companies in the world. Its researchers and scientists have innovated some of the most successful medicine in the world such as its cholesterol reducer Lipitor. However lately its new medicines were not successful and the bosses were worried. One manager, John Mackay believed that he knew how to make Pfizer successful again. Mackay created a detailed plan for changing Pfizer's organisational sturcture and culture to change the way its managers made decisions and to make sure the company's resources, its talents and money would be put to their best use. Mackay was soon promoted as the head of Research and Development.As a result of mergers with other pharmaceutical companies, Pfizer had grown over time. Its organisational structure grew taller and taller and the size of its headquarters staff grew. With more managers and levels in the hierarchy, there was a greater need for committees to integrate across their activities. During meetings managers fought to promote the development of medicine that they had the most interest in and to secure the resources they needed to develop them. Mackay felt that too many managers and too many committees resulted in too much conflict between managers who were actively lobbying other managers and the CEO to promote the interests of their own product groups and the company's performance was suffering as a result. Although Pfizer's success depended on innovation, this conflict had resulted in Pfzer developing a bureaucratic culture that slowed down decision making and made it more difficult to identify promising new medicine. Mackay's plan to change this situation involved slashing the number of management layers between top managers and scientists from 14 to 7 that resulted in the layoff of thousands of Pfizer's managers. He also abolished the product development committees which he believed were slowing down the dscision making process of transforming innovative ideas into successful medicines. After streamlining the hierarchy of authority, he focussed his efforts in reducing the number of bureaucratic rules scientists had to follow. Mackay eliminated every kind of report that were unnecessary and also those which slowed down the innovation process. Mackay's efforts caused massive upheavals in the company as managers fought to keep their jobs and scientists fought to protect the medicines they were developing. However, Mackay pushed his plans through with the support of the CEO who defended his efforts to create a new Research and Development product development process that empowered Pfizer's scientists and resulted in a culture that emphasised innovation and entrepreneurship. The scientists were happy with the new structure and the development of medicines speeded up. (Source: adapted from J.M George and G. R Jones, "Understanding and Managing Organisational Behaviour', 6th Ed, (2012) pg 398, Pearson Intemational Edition, USA) You are advised to read Unit 3 , section 3.2 and 3.3 before you attempt the questions. Question 1 Explain the source of Martin Mackay's organisational power. (20 marks) Question 2 Evaluate how Pfizer's organisation structure and culture affected its decision-making process. (40 marks) Question 3 Examine the cause(s) of the political behaviour of the managers and scientists in Pfizer. (40 marks) End of Assignment 2 Questions