Preventing Another Madoff Reengineering The Secs Investigation Process Case Study Solution


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Preventing Another Madoff Reengineering The Secs Investigation Process Case Study Analysis

Background and Facts

Preventing Another Madoff Reengineering The Secs Investigation Process a workplace products store for small and moderate sized organisations has actually just recently been involved in planning for a merging with its competitor Residence Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in lawful complications presented by the government Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the near future. With obstacles in the kind of a prospective social modification and low worker spirits, the company requires a total reengineering initiative at the advertising division.

Problem Declaration

The prospective social adjustment at the advertising and marketing division of Preventing Another Madoff Reengineering The Secs Investigation Process is enhancing unpredictability in the working environment causing numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical choices considering that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's intervention in the process. Provided the truth that the store has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to impact efficiency or strategic objectives. Federal Profession Compensation's antitrust suit against the merging used up useful time of the organization's senior management suggesting that 'political' factors can have significant implications for a global organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide situation suggest that Preventing Another Madoff Reengineering The Secs Investigation Process is prospering in an environment where there is possible development of businesses. Fact that store clients are mainly looking for office products for home offices suggests that the market has a rising fad of entrepreneurs as well as home based companies.

Social factors: Social fads in the economic situation reveal that consumers are looking for convenience as well as appealing rates. Market research shows how the consumer for Preventing Another Madoff Reengineering The Secs Investigation Process does not have understanding regarding locating services which can supply a mix of comfort and also inexpensive.

Technical factors: Modern technology plays an essential duty in Preventing Another Madoff Reengineering The Secs Investigation Process's organisation approach especially as the organization is piloting Modern technology facilities which would use innovation sales and support in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits issues can be seen in Preventing Another Madoff Reengineering The Secs Investigation Process's case as highlighted in this area.

Worries about social adjustment: There is worry regarding a cultural adjustment that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel currently revealing unhappiness over this prospective step. This expected adjustment has actually created stress in the work environment which has actually been coupled with the previous stress and anxiety of preparing the company for a potential merger with House Deport.

Difficult Job Environment for Newcomers: There is scarcity of personnel that can match the difficult environment of a hectic organization. Not just does this result in problem in locating the best people, it puts stress and anxiety on brand-new hires as can not stand up to the pace and stress that the company anticipates them to birth.

Twin Coverage Lines: Newbies locate this business society cumbersome and hard to manage particularly as populated line connections are implied to be weak generally and also objective setup and also efficiency assessment is still done by the strong line manager. This suggests that beginners could lose quality concerning their particular roles and also purposes specifically as populated line reporting does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and proper for the job however the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Instability: Anxiety and also insecurity can be recognized as two major issues that Lewis would certainly be dealing with specifically as the merging has currently be terminated and 2 senior executives of the advertising department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a social adjustment but would certainly additionally have to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's monitoring design and its conflict with the advertising division's duty can additionally be seen as an OB challenge specifically as she has actually been made use of to handling issues in the operations department where employees are educated to focus on procedures and get them. The marketing division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow that concentrated much more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the advertising mix can be determined as one more OB issue. Although the marketing division does not share the exact same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation amongst each other either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as an additional OB issue which might require additional interest. The truth that the advertising and marketing sections in the advertising and marketing division are disconnected is preventing both departments from acquiring from each various other's experience as well as proficiency. Integration of advertising with retailing and also operations would become more difficult if the advertising department itself is degenerated which can be another possible OB issue.

Preventing Another Madoff Reengineering The Secs Investigation Process Analysis

Different concepts have been made use of to describe the scenarios to get further quality concerning the situation at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive and lazy, have little aspiration as well as resist change. The hard version of this theory emphasized browbeating, limited controls, risks as well as punishments. Over time it generates low productivity, subtle sabotage as well as rivalry (Offer, 2003). The situation at Preventing Another Madoff Reengineering The Secs Investigation Process is not completely adhering to Theory X, it can be seen that brand-new hires are discovering this setting rather demanding which may ultimately lead to a better disposition of the management in the direction of Theory X. Based on McGregor's supported sight, which he called Theory Y, the vital job of the management is to prepare organizational conditions to make sure that people can attain their very own goals best by guiding their initiatives in the direction of organizational benefits. If individuals discover no satisfaction in their work, the administration would certainly have little selection however to rely upon theory X and also exterior control (Offer, 2003). Also while assessing Lewis's management style, theory X may have been suitable in the operations department to some extent however the Marketing division would certainly need dependence on Theory Y to get the creativity as well as creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's worry concerning bringing harmony in between the advertising and marketing department is worried, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the preliminary stage of team development, people might not bond, as they are active finding their location in the team. By integrating the advertising and marketing division's work, there might coincide preliminary disconnect which could result in the second phase of 'storming' where the groups challenge each other. It is only throughout the third stage or 'norming' when they would come together to share concepts before the group can bring about harmony in the fourth stage 'doing'.

When people are provided with adjustment, they get in stage one and also so there might be feelings like despair, uncertainty, disappointment, rage, worry, rejection and disorientation.The scenario at the advertising and marketing department of Preventing Another Madoff Reengineering The Secs Investigation Process is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. It is during this stage that Lewis will have to provide advice to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get entailed in the division a year before his actual separation.

Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the value of 'safety and security requires as being a lower level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure and out of threat' is at the second level of requirements. Prior to an employee can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Preventing Another Madoff Reengineering The Secs Investigation Process Case Study

Effects of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend exactly how to cope with the existing situation at hand. The complying with three options have been proposed to assist Lewis deal with the organizational challenges in the marketing division. Each of these choices has actually been proposed for relieving the shift needed to bring the marketing division according to the demands of the marketplace and also for making the cultural change that would certainly adhere to once the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production features. Combination of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business marketing along with company and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing as well as advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate the two functions while reducing the demand for employing an extra source for marketing. Lewis would certainly be heading the advertising and marketing division and also in any type of case her substitute would certainly be needed for the existing function that she is executing. The negative aspect of this choice is that outside hiring may bring about animosity from interior personnel who may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the affordable stress and also excellent quality job needed from the ad agency, it is suggested that Lewis needs to allow the production unit to be a separate function from the advertising and marketing device. Since a lot of ad agency had these 2 features as separate units, it makes even more sense to adhere to the norm. Along with this, both features might have the ability to concentrate on their core activates much more effectively. The disadvantage of this strategy would be that additional prices would have to be borne for setting up different manufacturing features. In addition to this, a manufacturing head may have to be worked with which might raise overheads for the company.

Assimilation of Advertising with Procedures: Because Lewis is currently taking treatment of the advertising and marketing as well as procedures departments at the same time; it makes feeling to incorporate the two features since she has actually been effectively taking treatment of both ends. The fact that Lewis has to adjust her administration design for the advertising department recommends that these 2 divisions would be culturally diverse.


An evaluation of the 3 alternatives suggests that integration of advertising and procedures would certainly not be a viable relocation because of the large distinctions between the two departments although that presently Lewis is dealing with both. While splitting up of the production feature might have been a desirable move for the marketing division, the truth that it would certainly mean positioning a third function under Lewis's wing indicates this must be prevented. The combination of the advertising and marketing department is the very best choice in regards to obtaining the optimum results from the department. An activity plan for this alternative is discussed below.

Action Plan.

Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

Judith Shapiro will be hired to take Lewis's place as SVP of marketing and advertising.

Production function will stay part of advertising under marketing feature.

Lewis will divide herself from procedures.

A democratic leadership style with employee empowerment will certainly be made use of in advertising department.

Open up door plan as well as focus on cross department communication will certainly be aimed at removing dissonance.

Backup strategy.

If the integration does not exercise as intended, a contingency strategy would certainly comply with which would separate the manufacturing function from the advertising and marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will most definitely be divided by putting it under an SVP production.