Compensation At Level 3 Communications Case Study Solution


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Compensation At Level 3 Communications Case Study Solution

Background and Facts

Compensation At Level 3 Communications an office supplies seller for little and also average sized services has lately been associated with preparing for a merger with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly manager involved in legal problems presented by the federal Profession Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With obstacles in the form of a possible cultural adjustment and reduced employee morale, the organization wants a complete reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the advertising division of Compensation At Level 3 Communications is raising unpredictability in the workplace leading to numerous obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic decisions considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the fact that the store has an international existence with branches in UK, USA, Canada and also Germany, political factors in each of these nations may be able to affect performance or strategic goals. Federal Profession Compensation's antitrust match versus the merger took up beneficial time of the company's elderly management suggesting that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the international circumstance recommend that Compensation At Level 3 Communications is thriving in an atmosphere where there is prospective growth of organisations. In addition to this, fact that shop consumers are primarily seeking office products for home offices suggests that the marketplace has a rising pattern of entrepreneurs and home based organisations.

Social factors: Social trends in the economy show that consumers are seeking benefit in addition to eye-catching rates. Marketing research shows how the client for Compensation At Level 3 Communications lacks awareness about locating remedies which can supply a mix of ease and also low costs.

Technological factors: Technology plays a vital function in Compensation At Level 3 Communications's business method particularly as the company is piloting Modern technology facilities which would certainly provide technology sales and assistance in the type of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior problems can be seen in Compensation At Level 3 Communications's case as highlighted in this area.

Worries about cultural adjustment: There is apprehension about a social change that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with a lot of the personnel currently showing unhappiness over this possible step. This anticipated adjustment has developed anxiety in the workplace which has actually been paired with the past stress and anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of personnel that can match the difficult atmosphere of a busy company. Not only does this bring about difficulty in locating the appropriate individuals, it places tension on brand-new hires as can not hold up against the speed and pressure that the organization expects them to birth.

Twin Reporting Lines: Newcomers locate this organizational culture difficult and also difficult to manage specifically as dotted line connections are meant to be weaker in general and also unbiased setup and efficiency examination is still done by the solid line supervisor. This means that novices can shed clarity concerning their corresponding functions and goals especially as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would take Krasnow's placement came as an impact to her morale. Lewis may have been capable as well as proper for the job however the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Instability: Fear and instability can be determined as 2 major worries that Lewis would be handling particularly as the merging has currently be terminated and 2 senior execs of the marketing department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural adjustment but would also need to prove herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its conflict with the marketing department's function can additionally be seen as an OB challenge especially as she has actually been used to managing issues in the procedures division where personnel are instructed to focus on procedures and get them. The advertising and marketing department on the various other hand can be seen as a group of people who are used to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and also procedures respectively over the appropriation of the advertising and marketing mix can be recognized as one more OB issue. The marketing division does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not agree over the advertising mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be determined as one more OB problem which could require more interest. The truth that the advertising and marketing sections in the advertising and marketing division are detached is avoiding both departments from gaining from each other's experience and also proficiency. Integration of advertising and marketing with retailing and also operations would certainly end up being harder if the advertising and marketing department itself is broken down which can be an additional potential OB worry.

Compensation At Level 3 Communications Analysis

Numerous concepts have actually been used to clarify the circumstances to obtain further clearness about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive and also careless, have little aspiration and stand up to adjustment. The scenario at Compensation At Level 3 Communications is not entirely complying with Theory X, it can be seen that brand-new hires are finding this setting instead demanding which may eventually lead to a higher disposition of the monitoring towards Theory X. Even while analyzing Lewis's management style, theory X might have been suitable in the procedures division to some degree but the Advertising division would certainly require dependence on Theory Y in order to obtain the creativity and also originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem regarding bringing consistency in between the marketing and advertising division is worried, this would originally bring about contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the first phase of group growth, individuals might not bond, as they are hectic finding their place in the group. By incorporating the marketing and advertising division's work, there might be the same preliminary detach which can cause the 2nd phase of 'storming' where the teams test each other. It is only throughout the 3rd phase or 'norming' when they would certainly come together to share suggestions prior to the group can bring about synergy in the 4th phase 'performing'.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), individuals are quite uncomfortable with modification, which is noticeable by the circumstance at Compensation At Level 3 Communications The situation can be viewed as a normal course of life if is studied based on Bridge's concept where he describes that people experience three phases of change when they experience change. 'End, shedding and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they enter stage one and so there might be feelings like sadness, uncertainty, frustration, temper, fear, denial and also disorientation.The circumstance at the advertising division of Compensation At Level 3 Communications is similar so Lewis can obtain comfortable with the idea that it is not amazing habits. In the 2nd phase, there may be a requirement to link the gap between the brand-new as well as old culture so Lewis may have to encounter this experience once Krasnow leaves. There may be reduced morale and low productivity at this stage which need to not be taken as a trouble. It is throughout this stage that Lewis will certainly have to offer advice to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis get involved in the department a year before his real separation. According to Bridges' Version, phase three will cause visibility to discovering, High power and dedication as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the relevance of 'safety and security requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel protected and out of danger' is at the 2nd degree of demands. Before an employee can be made to create psychologically, he needs to have his 'Physical 'and 'Safety' requires fulfilled.

SWOT Analysis for Compensation At Level 3 Communications Case Study

Ramification of Analysis.

The OB analysis has actually checked out different concepts to recognize just how to manage the existing scenario available. The complying with three options have actually been proposed to aid Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these options has actually been proposed for reducing the change needed to bring the advertising department in accordance with the demands of the market and for making the cultural adjustment that would follow once the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and Production functions. Integration of Advertising with Procedures.

Analysis of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house marketing firm of Compensation At Level 3 Communications is already strength for the company in regards to saving up on expenses connected to advertising and marketing and also promo. Given that no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the marketing feature, this is a desirable opportunity for integrating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has competence in business-to-business marketing together with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this technique is that it will certainly integrate both functions while reducing the need for hiring an additional source for advertising and marketing. Lewis would be heading the marketing department as well as in any type of case her replacement would be required for the current function that she is executing. The disadvantage of this option is that outside hiring may produce animosity from internal employees that might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Given the competitive stress and high top quality job required from the advertising firm, it is advised that Lewis ought to permit the production device to be a different function from the marketing unit. Because most marketing firms had these 2 functions as different units, it makes more feeling to follow the norm.

Integration of Marketing with Operations: Given that Lewis is currently taking care of the advertising and marketing and operations departments all at once; it makes feeling to integrate the two features considering that she has been successfully taking care of both ends. The truth that Lewis has to adapt her monitoring style for the advertising department suggests that these 2 departments would be culturally diverse.


An examination of the three alternatives shows that integration of advertising and operations would not be a feasible step because of the huge differences between both divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing feature may have been a desirable action for the marketing department, the reality that it would imply putting a 3rd feature under Lewis's wing suggests this ought to be prevented. The integration of the marketing department is the best alternative in terms of obtaining the optimum arise from the division. An activity plan for this choice is talked about listed below.

Activity Plan.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Manufacturing function will stay component of advertising under advertising function.

Lewis will divide herself from operations.

A democratic management style with employee empowerment will certainly be utilized in marketing department.

Open door policy and also emphasis on cross department interaction will certainly be targeted at removing discord.

Backup plan.

If the combination does not exercise as prepared, a contingency plan would certainly adhere to which would separate the manufacturing function from the marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will most definitely be divided by positioning it under an SVP production.