Background and Facts
Congoleum Corp Abridged a workplace supplies store for little and also moderate sized businesses has lately been involved in preparing for a merger with its rival Residence Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor involved in legal problems put forth by the federal Trade Compensation. With the Marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the kind of a possible social change as well as reduced employee spirits, the company requires a complete reengineering effort at the advertising division.Trouble Statement
The potential cultural change at the marketing department of Congoleum Corp Abridged is raising uncertainty in the working environment leading to different challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a major role in impacting critical choices considering that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention while doing so. Offered the reality that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might have the ability to affect efficiency or tactical goals. Federal Profession Commission's antitrust fit versus the merging took up important time of the company's elderly monitoring suggesting that 'political' factors can have severe implications for an international business.
Economic Factors: Economic factors such as the emergence of small businesses in the international situation recommend that Congoleum Corp Abridged is flourishing in an environment where there is potential growth of organisations. In addition to this, reality that shop consumers are mainly seeking office materials for office suggests that the marketplace has a rising trend of entrepreneurs and also home based services.
Social factors: Social fads in the economy reveal that consumers are looking for convenience in addition to attractive prices. Market research shows how the customer for Congoleum Corp Abridged does not have awareness regarding finding services which can use a combination of ease and also inexpensive.
Technological factors: Technology plays a vital function in Congoleum Corp Abridged's organisation method particularly as the organization is piloting Innovation centers which would certainly offer technology sales and also assistance in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).
OB Issues and Symptoms.
A number of underlying Organizational Actions problems can be seen in Congoleum Corp Abridged's case as highlighted in this section.
Uneasiness about cultural modification: There is apprehension concerning a cultural modification that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the team member currently showing unhappiness over this possible relocation. This predicted adjustment has actually created stress and anxiety in the office which has been paired with the past anxiety of preparing the firm for a prospective merger with House Deport.
Stressful Task Environment for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a busy organization. Not only does this result in trouble in locating the right individuals, it puts anxiety on brand-new hires as can not hold up against the speed and also pressure that the organization anticipates them to birth.
Double Reporting Lines: Newcomers discover this business culture cumbersome as well as tough to deal with especially as populated line connections are implied to be weaker in general and also unbiased setting and also performance analysis is still done by the solid line manager. This indicates that newcomers could lose quality concerning their respective functions and goals specifically as populated line coverage does not maintain them in direct communication with the solid line managers.
Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been speculated that the last would take Krasnow's position came as a blow to her spirits. Lewis might have been capable as well as proper for the task however the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.
Anxiety & Work Insecurity: Fear and also instability can be identified as 2 significant concerns that Lewis would certainly be dealing with especially as the merger has actually now be terminated and also 2 elderly executives of the advertising department would be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social modification however would certainly likewise have to prove herself in her new function.
Inappropriate Management Design of Leader: Lewis's monitoring design and also its incompatibility with the advertising and marketing department's duty can additionally be seen as an OB challenge especially as she has actually been utilized to dealing with issues in the procedures division where workers are educated to concentrate on procedures and also get them. The advertising department on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that focused more on outcome than processes.
Interdepartmental Disputes: Interdepartmental disagreements in between three divisions, marketing, merchandizing and procedures specifically over the appropriation of the advertising mix can be recognized as another OB worry. Although the marketing department does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix appropriation among one another either.
Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as another OB problem which could need further attention. The truth that the marketing and advertising areas in the advertising department are detached is protecting against both departments from getting from each various other's experience as well as knowledge. Combination of advertising with merchandising and procedures would certainly end up being harder if the advertising department itself is disintegrated which can be an additional prospective OB problem.
Congoleum Corp Abridged Analysis
Different concepts have actually been made use of to describe the conditions to obtain more clarity regarding the scenario available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are passive as well as careless, have little passion and also stand up to modification. The circumstance at Congoleum Corp Abridged is not completely complying with Theory X, it can be seen that brand-new hires are finding this setting rather difficult which may at some point lead to a higher inclination of the administration towards Theory X. Even while assessing Lewis's management design, theory X might have been suitable in the procedures department to some level however the Advertising division would call for reliance on Theory Y in order to get the creative thinking and originality from the groups.
Tuckman's Synergy Concept: As much as Lewis's concern concerning bringing consistency in between the marketing as well as advertising division is worried, this would initially lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and marketing and also marketing department's job, there might be the exact same initial detach which can lead to the second stage of 'storming' where the teams challenge one another.
When people are provided with change, they enter stage one as well as so there may be feelings like despair, unpredictability, irritation, anger, worry, denial and also disorientation.The circumstance at the marketing department of Congoleum Corp Abridged is comparable so Lewis can obtain comfy with the idea that it is not amazing habits. It is during this phase that Lewis will certainly have to provide guidance to the division so that they can locate a sense of instructions. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis obtain involved in the department a year prior to his real separation.
Maslow's Demand power structure: The OB problem pertaining to instability at the work environment has been triggered firstly by the change in management and also secondly by the fact that the merger will certainly no more be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the importance of 'safety and security requires as being a reduced degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and safe' goes to the second degree of demands. Before an employee can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety' needs fulfilled. This shows that unless the employees are made to really feel safe and secure regarding their current work standing in Congoleum Corp Abridged they may not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Congoleum Corp Abridged Case Study
Effects of Analysis.
The OB analysis has looked at numerous theories to understand how to deal with the present situation handy. The complying with three choices have been proposed to assist Lewis deal with the organizational challenges in the advertising and marketing division. Each of these choices has actually been proposed for easing the change needed to bring the marketing division in accordance with the demands of the marketplace as well as for making the social modification that would certainly adhere to as soon as the present leader leaves.
Combination of marketing and advertising functions. Dividing Adverting and Manufacturing features. Combination of Advertising And Marketing with Operations.
Evaluation of Alternatives.
Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising and marketing company of Congoleum Corp Abridged is currently toughness for the company in terms of conserving up on overheads related to marketing as well as promotion. Considering that no new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing feature, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing in addition to company and also retail 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 features.
The advantage of this approach is that it will certainly integrate the two functions while lowering the requirement for working with an extra resource for marketing. Along with this, Lewis would be heading the advertising and marketing department and also regardless her substitute would be needed for the existing duty that she is doing. The downside of this option is that outside hiring might cause bitterness from interior workers that might be considering the placement of EVP after Lewis takes control of Krasnow's position.
Dividing Adverting and Production: Provided the competitive stress and also premium quality job required from the advertising agency, it is recommended that Lewis must enable the manufacturing system to be a different function from the advertising and marketing system. Since most ad agency had these 2 features as separate systems, it makes more sense to follow the standard. Both features might be able to concentrate on their core activates much more effectively. The negative aspect of this method would be that extra prices would have to be borne for setting up different manufacturing features. A production head may have to be worked with which might enhance overheads for the company.
Integration of Advertising with Operations: Since Lewis is already taking treatment of the advertising and marketing and procedures divisions all at once; it makes feeling to incorporate the two functions since she has actually been efficiently taking care of both ends. The fact that Lewis has to adjust her monitoring style for the advertising department suggests that these two divisions would certainly be culturally varied.
Suggestion.
An evaluation of the 3 options suggests that assimilation of advertising and marketing and also procedures would not be a viable relocation due to the huge distinctions in between the 2 divisions despite the fact that currently Lewis is dealing with both. While separation of the production feature might have been a favorable step for the advertising and marketing division, the reality that it would certainly mean placing a third function under Lewis's wing implies this should be stayed clear of.
Activity Strategy.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.
Marketing and advertising functions would certainly be combined.
Judith Shapiro will be employed to take Lewis's location as SVP of advertising and marketing.
Manufacturing function will certainly remain part of marketing under marketing feature.
Lewis will certainly divide herself from procedures.
A democratic management design with employee empowerment will certainly be utilized in advertising and marketing department.
Open door plan and also focus on cross departmental interaction will certainly be targeted at eliminating discord.
Contingency strategy.
If the integration does not exercise as prepared, a backup plan would certainly adhere to which would separate the production feature from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will most definitely be separated by putting it under an SVP manufacturing.