History Of Roches Pharmaceutical Company Commerce Essay

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Roche a well known pharmaceutical company has been distributing its products for over a hundred years. The company was founded by Fritz Hoffmann who was dedicated to the thought that "branded pharmaceuticals belonged to the future". The company was named after its founder and his wife Adéle La Roche the company first started in Basil, Switzerland originally named F. Hoffmann-La Roche & Co. and has managed to remain the leader in its field for the past decades. In 1905 Roches founders started one of the early forms of corporate internationalization where they expanded to the United States. The company's internationalization wasn't considered a profitable move up till 1922 which was about 15 years after their major and risky move. The founder of the company managed to keep successful all those years by keeping the customers needs in mind and providing them products that they need. Some of the company's developments over the years are as follows:

Roche Diagnostics becomes  #1 diagnostics company in the U.S.

10-year, $135 million Indianapolis expansion announced.

Roche Diagnostics Corporation sales top nearly $1.9 billion


Roche celebrates 100 years in the U.S. and earns a place on Fortune magazine's "The 100 Best Places to Work for in 2005" listing.

Roches obligations aren't directed only towards there customers, the people who buy and use their products they are also largely committed to their investors. They make sure that their investors are updated and up to date by providing a constant communication channel between themselves and their investors. The company does manage to conduct annual general meetings, annual and semiannual reports and investor updates. Being a big pharmaceutical company it has managed to keep up the corporate responsibility it has put good prices, kept stakeholders engaged in the company, ethically responsible.

Organizational culture:

Organizational culture can be defined as a system a way to understand human's behavior in the organization. The organizational culture has many aspects and each aspect can be seen as an important environmental condition. 

There is also the culture of a group which is known as shared assumptions that the group learned to solve its external problems and internal ones.

The elements of organizational culture may include: the values, the expected behaviors, stories about the group, the feelings between the members of the group and how they interact with each other and finally the stories about the history of the group.

One of the most important conditions of the organizational culture is agreeing on the objectives, the group have to set down objectives clearly at the beginning of the organization as everyone is involved in setting the goals of this organization. They also have to apply cultural changes on their organization. Although cultural change to any organization is a hard step and its not easy but it's a must on any organization. Cultural changes take longer time in big organizations.

If any organization wants to be successful the employees have to understand what's organizational culture as its essential to understand how the organizational culture if they want to make changes of how work is done, to affect organization's standing in its industry, understanding the culture and changing it as well can mean the difference between attracting the good employees and driving away good employees with environment that doesn't encourage them.

Roche has always been famous for the family atmosphere between the employees inside. It's a small/ medium sized organization where most of the employees have been with the company for a long time and usually the new comers are being made at home once they join. This makes it more of a friendly environment unlike the very big organizations.

The organizations culture mainly is made up from traditions customs and the ways of getting things done throughout the organization. The culture of the organization can be treated as a separate person with its own life. Just as every human needs food and water and other basic needs to carry on the culture needs to be provided with highly skilled individuals that are able to perform the jobs efficiently, top managers that are able to take risky decisions such as Roches manager who took the highly risky decision of internationalization, and socialization which is the adaption process.

After the organizational culture is formed it will be learnt by the employees. This will be by either stories (previous actions of the top managers, employees who broke the rules and employees who made mistakes in the past… etc.), also rituals help in the reinforcement of the culture (these can be such as certain chants or as in Roche having monthly dinner with the top managers), and the language that is used between the employees and themselves (this is such as certain terminology used amongst the employees this helps them feel much more a part of the organization. Employees are always encouraged to speak their minds, express their opinions openly and mostly what could be the best advantage for working at Roche is that everyone feels they work for their own business.

The basic guide of building a positive organizational culture as we all know is by building employee strengths, giving out rewards to our employees instead of constant punishment and emphasizing growth. This is what Roche tries to achieve with its employees. Roche strives to make sure they have the right people on board; this is done through careful hiring and selection procedures using their global recruitment guidelines. After employees are hired, they are given the necessary classroom and "on the job" trainings and most importantly Roche pays attention to integrating them within the organization so that they can start working in their comfort zones.

Roche works on adding "Supervisor" and "Senior" roles in its organization. Right now the company has 1st and 2nd line managers and the rest are employees. For them to have a more balanced environment we think that they need more roles between the employees and the 2nd line managers to allow room for more promotions, and to make the employees that they are close to management giving them a moral boost.

Roches organizational culture in our opinion is a very good one. They try to make the organization feel more like family instead of a boring routine job.

Organizational culture and understanding it is really important for any organization but its also complex, it can also be one of the most important ways to manage any change in the organization.  

Leadership and trust:

Leadership and trust are two concepts that are considered extremely important by Roche. They are almost in every step taken in the organization, starting from recruiting the employees to achieving the organization's goals. Roche aims for high standards of performance and responsibility in everything it does, and for that it attempts to select and develop employees with professional leadership style to be able to motivate people to perform highly.

Roche concentrates on giving training programmes to its employees on leadership. Those programmes include coaching, and that is a well-known method that highly relies on asking questions and indirectly guiding employees towards the right path. As a part of leadership in Roche, the managers are required to carefully supervise and monitor their subordinates' behavior, to make sure that they are trained correctly and fulfill Roche's safety and health requirements.

As a part of the managers' job concerning leadership, they must make sure that the employees that report to them get all the advice they need. When leading their employees, the managers must be motivational and influence and inspire those employees, letting them accomplish their jobs enthusiastically.  Managers use several kinds of approaches to inspire their subordinates. In Roche, the most popular two techniques are coaching and setting a role model.

When a manager coaches his subordinates he indirectly guides them to reach the objective they are aiming for. As for setting a role model, it is also called "Walk the Talk", it is a technique by which the manager act in a highly professional and result oriented manner to encourage the employees to act like him. As any other organization's perspectives, Roche also believes that being a manager is totally different than being a leader.

Being a manager is just instructing and telling the employees what to do, while leading is instructing the employees in an inspirational and motivational way. After training the managers to lead, and after being officially leading mangers, Roche doesn't stop guiding them, but it continues to monitor and support their leading skills. Roche also helps to develop any manager that needs any kind of help to lead properly.

According to trust, it is the most important factor in sustaining any successful relationship. In order for an employee to accept guidance from his manager, he needs to trust him and believe in his capabilities. Same goes for a manager, to be able to empower and delegate to his subordinates, he needs to trust they are keen about achieving their targets and are up to the assigned responsibilities. For that, Roche strongly tries to perfectly form a culture of mutual trust to encourage the exchange of views from different levels in the organization. Roche believes that by being aware of trustworthiness among the employees, help to protect the employees' interests and rights, and the organization itself.  

Therefore, Roche encourages its employees to speak up if there anything wrong occurred, and ask for advice whenever it's needed.  Employees are expected to behave morally and to respect the organization's values. Trust is one of the main aspects of Roche's values and principles. Roche doesn't only focus on trust among employees, but also between the organization and the customers. One of the organization's goals is to maintain a strongly trusted atmosphere, which means to keep its promises to its customers, and to give them as they expect from the organization.

Conclusively, Roche depends to a large extent on leadership and trust because they lead to strong relationships among the members of the organization. Those relationships are the reason behind the loyalty and commitment of the members to the organization, which causes high performance and productivity. In Roche's values and principles, leadership and trust are included. We think that leadership and trust are two variables that definitely complete each others. Roche is absolutely right about considering them as top priorities. Without including them in most of their steps, we don't think that the organization will be as successful as it is today.  

Motivation in Roche:

There is a very thin line between motivation and manipulation. A large part of motivation depends on trust. Managers shouldn't monitor each employees move counting every minute he goes to lunch and spends in the restroom. If so the employee will feel demotivated and untrusted. To motivate our employees we need to give them three basic things: "honesty, money and clear direction". This way the employee can secure himself and understand what he is working toward. But there are other key motivating factors which may vary from one person to another are such as: money competition achievement pace social contact recognition growth and autonomy.

Many managers do not have the resources to motivate their employees by monetary means while some believe that monetary rewards aren't long lasting motivators and are just short term. Many studies have shown that recognition is a more effective motivator than money. As by giving employees money they will start expecting it and not feel that it is a reward any longer. Non monetary motivation can be as simple as a manager telling his employees" well done" or "thank you". This is considered as praise other motivators that don't cost money are such as development promoting from with in and creating informal leadership roles and good communication. By using these factors employees will feel more engaged.

By using these methods the company will gain that first off it won't have to spend a dime to motivate employees. Second off the company assures itself that its employees are willing to do the job and wont consider that the company has a duty to give them motivators such as money (as monetary motivators can quickly be considered by the employees as an obligation from the business towards them quickly turning a supposedly motivate factor into an expectation, leading the employees to take for e.g. money bonuses without increasing productivity). So non Monterey motivators assure the business long term effects.

Employees needs differ according to their personalities. The key for motivation is for each manager to be aware of the individual needs of each of his subordinates. This would truly keep the manager from exploiting his employees and give them the feeling that they are just tools being used to achieve a much more important goal. For some people, compensation related recognition is the main motivator (which even though doesn't cost the company a cent managers don't use), for others personal recognition and positive feedback from their managers is rewarding and for others public praise is a great source for motivation. However, there are general methods for recognition managed by the HR department, for example:

Achievement awards: Annual competition for sales achievements per business unit where the best achievers in each area are announced honored by the general management and recognized by symbolic awards from the company.

Lunch with the GM: top performers are chosen on a monthly basis and they are invited to have lunch with the General Manager

In my opinion these are truly effective ways that would get the employees to work harder so that they will be able to meet up for lunch with the GM. these non monetary motivators will have long term effects on the pharmaceutical company, keeping the employees constantly motivated and providing their full effort.