Background and FactsAtlantida an office products retailer for little and medium sized businesses has lately been associated with planning for a merging with its competitor Home Deport, which has actually impacted effectiveness degrees in departmentswith the elderly manager involved in legal difficulties put forth by the government Profession Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With difficulties in the form of a prospective social adjustment and low employee morale, the company needs a complete reengineering initiative at the advertising department.
The possible cultural change at the marketing division of Atlantida is enhancing uncertainty in the workplace leading to various challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis
Political Factors: Political factors play a major function in affecting critical decisions because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's treatment while doing so. Offered the reality that the store has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might have the ability to impact performance or calculated goals. Federal Profession Compensation's antitrust suit against the merging used up valuable time of the organization's elderly management recommending that 'political' factors can have significant implications for an international service.
Economic Factors: Economic factors such as the development of small businesses in the international situation recommend that Atlantida is prospering in an atmosphere where there is possible growth of businesses. Reality that store customers are mainly looking for workplace materials for residence workplaces suggests that the market has a rising pattern of entrepreneurs and also residence based services.
Social factors: Social patterns in the economy reveal that consumers are trying to find comfort along with eye-catching costs. Marketing research demonstrates how the customer for Atlantida lacks awareness concerning locating remedies which can use a mix of convenience as well as affordable.
Technical factors: Innovation plays a vital role in Atlantida's business strategy especially as the organization is piloting Technology centers which would use innovation sales as well as support in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).
OB Issues as well as Symptoms.
Several underlying Organizational Habits concerns can be seen in Atlantida's case as highlighted in this area.
Concerns concerning cultural change: There is concern regarding a cultural change that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the staff members currently revealing unhappiness over this prospective relocation. This predicted modification has created tension in the office which has actually been paired with the past tension of preparing the company for a prospective merging with Home Deport.
Difficult Work Setting for Newcomers: There is shortage of personnel that can match the difficult atmosphere of a busy company. Not only does this bring about problem in discovering the right people, it places stress on new hires as can not stand up to the pace and also stress that the company expects them to birth.
Twin Coverage Lines: Novices discover this organizational society cumbersome and also tough to cope with especially as dotted line connections are indicated to be weaker generally and also objective setup and also performance evaluation is still done by the strong line manager. This means that beginners might lose quality about their particular duties as well as purposes specifically as populated line reporting does not maintain them in straight communication with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and also suitable for the job yet the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.
Concern & Job Insecurity: Worry as well as instability can be identified as 2 major concerns that Lewis would be dealing with specifically as the merging has actually now be terminated and two senior executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would not simply supervise of brining concerning a cultural adjustment however would certainly also need to prove herself in her new function.
Incompatible Management Design of Leader: Lewis's administration style and also its conflict with the advertising and marketing division's role can also be viewed as an OB challenge specifically as she has been utilized to managing concerns in the operations department where personnel are taught to focus on procedures as well as obtain them right. The advertising and marketing department on the other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow who concentrated extra on outcome than processes.
Interdepartmental Disagreements: Interdepartmental disagreements in between three departments, marketing, merchandizing as well as operations specifically over the allowance of the marketing mix can be identified as an additional OB problem. The advertising and marketing division does not share the very same vision as the other 2 divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation amongst one another either.
Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be identified as one more OB issue which can require further attention. The truth that the advertising and marketing sections in the marketing department are detached is avoiding both divisions from obtaining from each various other's experience and knowledge. Combination of advertising and marketing with retailing as well as procedures would certainly become harder if the advertising department itself is broken down which can be an additional potential OB concern.
Different concepts have actually been used to explain the situations to get further clarity about the situation handy.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are passive and lazy, have little ambition as well as stand up to modification. The difficult version of this theory stressed threat, tight controls, hazards as well as penalties. With time it creates low productivity, subtle sabotage and also rivalry (Offer, 2003). The circumstance at Atlantida is not totally complying with Theory X, it can be seen that new hires are discovering this environment instead difficult which may ultimately lead to a greater disposition of the monitoring towards Concept X. Based on McGregor's supported sight, which he called Concept Y, the necessary task of the administration is to organize business problems so that individuals can achieve their very own objectives best by guiding their initiatives towards organizational benefits. If individuals locate no fulfillment in their work, the monitoring would have little selection yet to rely upon theory X and exterior control (Offer, 2003). Even while evaluating Lewis's management design, concept X might have been suitable in the procedures department somewhat but the Advertising department would certainly call for reliance on Theory Y to get the creative thinking and also originality from the groups.
Tuckman's Synergy Theory: As far as Lewis's worry about bringing consistency in between the advertising and marketing department is worried, this would initially cause clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the preliminary stage of group growth, individuals might not bond, as they are busy discovering their location in the team. By combining the marketing and advertising division's work, there may coincide initial separate which can lead to the 2nd stage of 'storming' where the groups test each other. It is just throughout the 3rd stage or 'norming' when they would come with each other to share ideas prior to the group can bring around harmony in the fourth phase 'carrying out'.
Bridges' Shift Model: Based On William Bridge's theory (appendix 4), individuals are quite unpleasant with change, which is noticeable by the situation at Atlantida The circumstance can be seen as a regular program of life if is researched as per Bridge's theory where he clarifies that people undergo three phases of change when they experience change. 'Closing, losing and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there may be emotions like unhappiness, unpredictability, irritation, anger, anxiety, denial and disorientation.The circumstance at the advertising department of Atlantida is similar so Lewis can get comfy with the suggestion that it is not phenomenal habits. In the 2nd phase, there may be a need to connect the gap between the new and also old society so Lewis might need to encounter this ordeal once Krasnow leaves. There might be low morale and low productivity at this phase which must not be taken as an obstacle. It is throughout this phase that Lewis will have to provide guidance to the division to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this transition easier by making Lewis get involved in the department a year before his actual separation. Based on Bridges' Design, phase three will certainly bring about visibility to understanding, High power and also dedication as people will certainly welcome the change (Bridges, 2004).
Maslow's Demand pecking order: The OB problem related to insecurity at the work environment has been activated first of all by the modification in management and secondly by the fact that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has reviews the significance of 'security needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected as well as untouched' is at the second level of needs. Before a staff member can be made to create mentally, he needs to have his 'Physical 'and 'Safety' requires satisfied. This shows that unless the workers are made to really feel protected regarding their current employment condition in Atlantida they may not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Atlantida Case Study
Effects of Analysis.
The OB analysis has checked out numerous theories to comprehend exactly how to deal with the existing scenario available. The following 3 options have been proposed to assist Lewis take care of the business obstacles in the advertising and marketing division. Each of these choices has been proposed for alleviating the change required to bring the advertising and marketing department according to the demands of the marketplace as well as for making the social adjustment that would certainly comply with when the present leader leaves.
Integration of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Marketing with Procedures.
Examination of Alternatives.
Assimilation of Advertising And Marketing & Marketing Functions: The in-house advertising firm of Atlantida is already toughness for the company in terms of conserving up on expenses related to advertising and marketing as well as promo. Since no new employment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising and marketing function, this is a favorable chance for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business advertising along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.
The benefit of this approach is that it will certainly incorporate the two features while minimizing the need for employing an additional resource for advertising and marketing. Lewis would be heading the marketing division and also in any case her substitute would certainly be required for the current role that she is carrying out. The disadvantage of this choice is that external hiring might bring about resentment from interior personnel that might be looking at the placement of EVP after Lewis takes over Krasnow's position.
Dividing Adverting and also Manufacturing: Offered the competitive pressures and also premium quality job needed from the ad agency, it is advised that Lewis ought to allow the production device to be a different feature from the advertising unit. Because the majority of ad agency had these 2 features as separate systems, it makes more feeling to adhere to the standard. Both functions may be able to focus on their core triggers much more effectively. Nevertheless, the negative aspect of this approach would certainly be that additional costs would need to be birthed for setting up separate manufacturing features. A production head might have to be hired which could raise overheads for the company.
Combination of Marketing with Workflows: Given that Lewis is already taking treatment of the marketing and procedures departments all at once; it makes feeling to incorporate the two functions considering that she has been effectively taking care of both ends. The reality that Lewis has to adapt her management style for the advertising and marketing department recommends that these 2 departments would certainly be culturally varied.
An assessment of the 3 alternatives shows that assimilation of advertising and marketing and also procedures would certainly not be a feasible action due to the substantial distinctions in between the 2 departments regardless of the fact that currently Lewis is managing both. While splitting up of the production feature may have been a favorable action for the advertising and marketing department, the reality that it would imply positioning a third feature under Lewis's wing indicates this must be avoided.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.
Marketing and advertising features would be combined.
Judith Shapiro will certainly be hired to take Lewis's location as SVP of advertising and marketing.
Manufacturing feature will stay component of advertising and marketing under advertising and marketing function.
Lewis will divide herself from procedures.
A democratic leadership design with worker empowerment will certainly be made use of in advertising department.
Open door plan as well as emphasis on cross departmental communication will be aimed at eliminating dissonance.
If the combination does not work out as intended, a contingency strategy would adhere to which would divide the production feature from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will certainly be separated by placing it under an SVP production.