Advice Pool - Business

Before relocating to a foreign country or culture, it is customary for the professional or executive to go through some orientation to learn how to behave and what to expect (i.e., the dos and don’ts of survival). For this purpose, many organizations employ the Power Di

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

stance Index (PDI) developed by Geert Hofstede (1991) as one of the five factors to measure the hierarchical relationships between subordinates and leaders such as respect for authority, in different cultures (i.e., countries). (The other four are Uncertainty Avoidance

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

Index, Individualism, Masculinity, and Long-term Orientation).

People that have tried to survive in new cultures understand how difficult or scary the acculturation process can be without proper orientation. As we all know, organizations have their unique and entrenche

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

cultures which can be as foreign as traveling in a strange land. Unfortunately, it is rare to receive the orientation prior to joining the new organization, unless one is fortunate enough to know a trusted individual within the organization prior to signing on. In most

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

of the cases, new comer receives his/her orientation after joining the new organization. The experience may be just as traumatic as living in a foreign culture. It would be helpful if a public database exists with objective cultural ratings of organizations (i.e., publ

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

c, private, government agencies, universities, etc.) similar to the PDIs. In selecting a place of employment, the potential employee could use the PDI rating. The employer could also use it as an effective recruitment tool.

The Power Distance Index and Uncertainty Avoi

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

dance Index: In his research, Hofstede concluded that countries with autocratic leaders tend to have very high PDIs. On a scale of 10 to 110, Malaysia has a score of 104, Panama—95, The Philippines—94, China—80, and Saudi Arabia—80. France has a rating of 68, higher tha

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

n Turkey—66, and Iran and Taiwan at 58. The US scores 40 in the index, higher than Costa Rica, Germany, and UK with 35. Countries with low PDIs include Norway and Sweden—31, Denmark—18, and Austria—11. The Uncertainty Avoidance Index (UAI) is similar to a measure of an

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

organization’s policy (rigid or flexible). A high UAI applies to countries that have laws to cover all unexpected situations. Also, in the event that none of the laws on the book applies to a specific situation, there is always a set of laws from which one must be enfor

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ced. Portugal has a PDI of 63 but a UAI of 104. Germany has a UAI of 65 compared to the US with 46, and UK with 35.

The PDI can be viewed as an organizational leadership style (autocratic or participative) and the UAI as the organizational policy, rigid and all encompa

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

sing or flexible. In relocating from a low PDI country to a high PDI country, the professional should understand the expectations of the new employees. The leader is expected to provide detailed instructions on tasks since the subordinates expect the leader to lead, whi

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

le the reverse is most likely the case when moving from a high PDI to a low PDI, and as a result, the autocratic professional or executive may not succeed.

The PDI and the Organization: The concept of PDI can be applied to rate organizations within a country. It is fea

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

sible to rate the Military, Law Enforcement Agencies, and Sweat Shops as possessing very high PDIs. Civilian employees moving from corporations with low PDIs need to be aware of what to expect. The same is true for retired Military Officers transitioning from the Milita

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

y to civilian organizations. In a recent discussion with a Colonel (name intentionally withheld) at the US Military Academy during the last annual workshop on Information Security, I asked if the orientation given to retiring military officers include the need to unders

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

tand that they may be transitioning from a high PDI to a moderate or low PDI organization. The response was “not much”. My curiosity was based on my experience at the MITRE Corporation where a large number of military officers had to go through some growing pains when t

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

he civilian professionals would not simply take orders without questions.

Low Power Distance Organizations just as with low power distance cultures are characterized by leadership styles that empower subordinates and treat them with respect. These characteristics are e

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ident in Good to Great (Jim Collins, 2001) companies, such as Kimberly-Clark, General Electric, Walgreens, and Gillette. On the other hand, high power distance organizations have cultures where the leadership styles are more authoritarian, with little regard for any ini

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

tiatives from subordinates. In such organizations, subordinates work for these leaders out of fear and are ready to jump ship as soon as the opportunity presents itself. A retrospective review of the leadership styles of companies such as Enron Inc., WorldCom, and Tyco

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

nc. shows very high PDIs.

Try reflecting on the possible PDI for your company. Do you feel at home or in a foreign land? The ability of the members of any organization to work effectively together has a significant impact on the well being of the members, productivity,

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

and survival of the organization. In conclusion, the culture of an organization should be weighed along with the compensation and benefits when considering a move to the new culture. Organizations may wish to develop PDIs to retain current employees and for recruitment

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Advice Pool - Develop Your Organization's Power Distance Index to Attract and Retain Employees

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