Page: 2/2 Q.2. Read the case study carefully and answer the questions below. Case Study: The employees of Karachi Pharmaceuticals are worried a lot with the news that the company is going to be merged with Lahore Pharmaceuticals. All of them are worried about what would happen to their jobs and other benefits as a result of the proposed merger. There are all kinds of rumors regarding layoffs and reduction in pay and benefits. Lahore Pharmaceuticals is a leading firm with operations spread around the globe. Karachi Pharmaceuticals had a stronghold in marketing and distribution in Pakistan, and so, it is considered to be a merger of equals. Amid all the confusion, Mr. Ahmed, the CEO of Karachi pharmaceuticals addressed the employees about the reason for the decision, and advantages to the firm if the merger is completed. He felt, as a result of the merger, the firm would be able to explore various areas of research and development. But the employees have only one question in their mind, what would be the impact of this merger on their jobs and their pay packages. To their relief CEO made it clear that a benefits team would be formed and that would be from the representatives of both the companies. He requested the employees to be patient as it would take some time to clearly decide and bring in an effective benefit plan As per the CEOs statement a benefits team was formed. The team was headed by the Director HR of the merged company. He stated that since it is a merger of equals, they had to develop something that would be the best for the new company, even if it is time-consuming. The team felt that the best way to go about it is to merge the best of both the company's benefit plans or create a new benefit program that would reflect the culture of the new company is trying to nurture. The head also stated that their aim is not just to design a new benefit plan, but also to make sure that all the employees are knowledgeable and comfortable about the changes in its benefit program. Before concluding the meeting, the Director HR made it clear to the team that the people are of paramount importance to them and if the benefits program may not help in retain them, then the merger would serve no purpose. Questions: 1. The benefits team has to devise'a benefit program that would satisfy the employees of both the firms. Can you suggest some steps for the benefit team to function it effectively? 2. Why they are taking more time to create a new benefit plan? What should be the action plan of the HR team