Background and Facts
Atlantida a workplace materials retailer for tiny and also average sized services has actually recently been associated with planning for a merging with its competitor House Deport, which has affected performance degrees in departmentswith the elderly supervisor associated with legal complications presented by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With difficulties in the kind of a prospective cultural modification and also reduced employee morale, the organization is in need of a full reengineering effort at the marketing division.Issue Statement
The prospective cultural change at the marketing division of Atlantida is raising uncertainty in the workplace bring about different challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major duty in influencing strategic choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's treatment at the same time. Given the reality that the shop has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may have the ability to impact performance or critical objectives. Federal Trade Compensation's antitrust suit against the merging occupied important time of the organization's elderly monitoring recommending that 'political' factors can have severe effects for an international business.
Economic Factors: Economic factors such as the emergence of small companies in the international scenario suggest that Atlantida is flourishing in an environment where there is potential growth of organisations. Along with this, truth that shop customers are mainly looking for office products for office suggests that the marketplace has an increasing pattern of business owners as well as home organisations.
Social factors: Social patterns in the economic situation reveal that consumers are looking for convenience along with eye-catching costs. Market research demonstrates how the client for Atlantida lacks recognition regarding finding remedies which can provide a mix of benefit as well as inexpensive.
Technological factors: Modern technology plays a vital function in Atlantida's organisation technique particularly as the organization is piloting Technology facilities which would supply innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).
OB Issues as well as Effects.
Numerous underlying Business Actions concerns can be seen in Atlantida's case as highlighted in this area.
Concerns about social change: There is apprehension about a cultural adjustment that would certainly occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member already revealing discontent over this prospective step. This expected adjustment has created stress in the workplace which has actually been combined with the previous anxiety of preparing the company for a possible merger with House Deport.
Difficult Task Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a busy company. Not just does this result in difficulty in finding the appropriate individuals, it places tension on brand-new hires as can not endure the pace as well as pressure that the organization expects them to birth.
Double Reporting Lines: Newbies discover this organizational society difficult as well as tough to deal with especially as populated line connections are implied to be weaker generally as well as unbiased setup as well as performance evaluation is still done by the strong line supervisor. This indicates that novices could shed quality about their particular roles as well as goals specifically as dotted line reporting does not maintain them in direct interaction with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been capable as well as ideal for the work yet the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.
Fear & Work Instability: Fear and insecurity can be identified as 2 significant issues that Lewis would be dealing with especially as the merging has currently be terminated and also two senior execs of the marketing department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social modification but would likewise have to prove herself in her new function.
Inappropriate Monitoring Style of Leader: Lewis's administration design and its conflict with the advertising and marketing division's duty can additionally be viewed as an OB challenge especially as she has been utilized to taking care of concerns in the procedures division where personnel are instructed to concentrate on procedures as well as get them right. The marketing division on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated more on output than procedures.
Interdepartmental Arguments: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allowance of the advertising mix can be recognized as one more OB issue. The advertising division does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix allowance amongst one another either.
Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be identified as an additional OB problem which can require more interest. The reality that the marketing and advertising sections in the advertising division are disconnected is stopping both departments from obtaining from each various other's experience and competence. Integration of marketing with retailing and operations would certainly become more difficult if the advertising and marketing division itself is broken down which can be one more prospective OB issue.
Atlantida Analysis
Numerous theories have actually been used to explain the conditions to obtain more clearness concerning the scenario at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are easy and careless, have little aspiration as well as resist adjustment. The scenario at Atlantida is not completely following Theory X, it can be seen that new hires are locating this environment rather difficult which might at some point lead to a greater inclination of the monitoring in the direction of Theory X. Also while assessing Lewis's administration design, theory X might have been ideal in the operations department to some extent but the Advertising and marketing department would need dependence on Theory Y in order to obtain the creative thinking and also originality from the teams.
Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing consistency in between the advertising and also marketing division is worried, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and also advertising division's work, there might be the exact same first separate which can lead to the second phase of 'storming' where the groups test one an additional.
Bridges' Change Version: As per William Bridge's theory (appendix 4), individuals are quite awkward with adjustment, which is apparent by the situation at Atlantida The circumstance can be viewed as a typical course of life if is examined based on Bridge's concept where he describes that individuals undergo three phases of shift when they experience adjustment. 'Ending, losing and Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they go into stage one and so there may be feelings like sadness, uncertainty, stress, rage, concern, denial and also disorientation.The circumstance at the advertising and marketing department of Atlantida is comparable so Lewis can get comfy with the concept that it is not phenomenal actions. In the second stage, there might be a need to connect the gap in between the new and also old culture so Lewis may have to face this experience when Krasnow leaves. There might be reduced morale and reduced productivity at this stage which should not be taken as an obstacle. It is throughout this phase that Lewis will certainly have to give assistance to the division to make sure that they can find an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get associated with the division a year prior to his real separation. As per Bridges' Model, phase three will certainly bring about visibility to knowing, High power and also commitment as individuals will embrace the adjustment (Bridges, 2004).
Maslow's Demand power structure: The OB problem related to instability at the work environment has actually been caused first of all by the modification in administration and also secondly by the reality that the merging will no longer be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'safety requires as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and untouched' goes to the 2nd degree of requirements. Before a worker can be made to establish mentally, he requires to have his 'Physiological 'and also 'Security' needs met. This shows that unless the personnel are made to really feel secure about their present employment standing in Atlantida they might not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Atlantida Case Study
Effects of Analysis.
The OB analysis has actually looked at various concepts to understand exactly how to handle the present situation available. The following three alternatives have actually been proposed to help Lewis handle the organizational challenges in the advertising and marketing department. Each of these alternatives has actually been proposed for relieving the transition needed to bring the advertising and marketing division according to the needs of the market and for making the cultural modification that would adhere to when the existing leader leaves.
Integration of advertising and marketing functions. Separating Adverting as well as Production features. Assimilation of Marketing with Workflow.
Analysis of Alternatives.
Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with company as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing functions.
The benefit of this method is that it will incorporate the two features while minimizing the requirement for hiring an added source for advertising. Lewis would certainly be heading the advertising division and in any kind of case her substitute would be needed for the current function that she is executing. The drawback of this option is that external hiring may cause animosity from interior employees who may be considering the placement of EVP after Lewis takes over Krasnow's position.
Separating Adverting as well as Production: Given the affordable stress and high top quality work called for from the advertising and marketing agency, it is suggested that Lewis needs to allow the manufacturing device to be a separate function from the advertising unit. Because a lot of advertising companies had these 2 functions as different units, it makes more feeling to adhere to the standard.
Integration of Advertising And Marketing with Operations: Because Lewis is currently caring for the advertising and marketing and operations divisions all at once; it makes sense to incorporate the two features because she has actually been successfully looking after both ends. The fact that both departments already have major differences over allotment of sources recommends that this integration might be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are numerous drawbacks of this move especially as it would certainly place way too much burden over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the advertising division suggests that these two divisions would be culturally diverse. Lewis might not be able to apply one type of management style to both departments which could result in inadequacy in either one of the two features.
Suggestion.
An evaluation of the 3 choices indicates that assimilation of marketing as well as procedures would not be a viable relocation due to the huge differences between the 2 divisions despite the truth that presently Lewis is dealing with both. While separation of the production function might have been a positive move for the marketing division, the truth that it would certainly imply positioning a third function under Lewis's wing indicates this must be stayed clear of.
Action Plan.
Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising features would certainly be merged.
Judith Shapiro will be worked with to take Lewis's area as SVP of advertising and marketing.
Production function will certainly continue to be component of advertising under advertising function.
Lewis will divide herself from operations.
A democratic leadership style with worker empowerment will certainly be made use of in marketing department.
Open door plan and also focus on cross department communication will be targeted at getting rid of discord.
Backup strategy.
If the combination does not work out as prepared, a backup plan would certainly comply with which would divide the production function from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.