Background and Facts
Continental Airlines I an office products seller for small and moderate sized companies has actually recently been associated with planning for a merger with its rival Home Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in legal issues presented by the government Trade Commission. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With difficulties in the form of a potential social modification and low employee morale, the company requires a total reengineering initiative at the marketing department.Issue Statement
The possible cultural modification at the advertising and marketing division of Continental Airlines I is raising uncertainty in the workplace leading to various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major duty in influencing tactical decisions considering that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the reality that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may be able to impact efficiency or calculated goals. Federal Profession Payment's antitrust match against the merger used up useful time of the company's senior administration suggesting that 'political' factors can have serious effects for an international organisation.
Economic Factors: Economic factors such as the development of small companies in the worldwide situation suggest that Continental Airlines I is prospering in a setting where there is prospective development of companies. Fact that shop clients are primarily looking for workplace products for house offices recommends that the market has an increasing fad of business owners and also house based companies.
Social factors: Social trends in the economic climate show that clients are seeking benefit along with eye-catching rates. Market research demonstrates how the customer for Continental Airlines I lacks awareness about discovering options which can supply a mix of comfort and affordable.
Technological factors: Innovation plays a vital role in Continental Airlines I's business strategy especially as the organization is piloting Innovation centers which would certainly supply innovation sales and also support in the form of memory upgrades, outer installations. (Summary of BUG in appendix 2).
OB Issues and Symptoms.
Several underlying Organizational Actions problems can be seen in Continental Airlines I's case as highlighted in this section.
Uneasiness concerning cultural change: There is uneasiness regarding a cultural change that would happen once Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with a lot of the personnel currently showing discontent over this possible relocation. This predicted modification has produced anxiety in the office which has been coupled with the past anxiety of preparing the company for a prospective merging with Residence Deport.
Demanding Job Atmosphere for Newcomers: There is lack of personnel that can match the demanding atmosphere of a fast-paced company. Not just does this result in difficulty in locating the best people, it places anxiety on new hires as can not endure the rate and pressure that the organization expects them to bear.
Twin Reporting Lines: Beginners discover this business society troublesome and also hard to cope with particularly as populated line partnerships are implied to be weaker as a whole as well as unbiased setting and efficiency analysis is still done by the strong line manager. This implies that novices can shed clearness regarding their corresponding duties and also objectives specifically as dotted line coverage does not keep them in direct interaction with the strong line supervisors.
Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been qualified as well as suitable for the job yet the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.
Concern & Work Instability: Concern and also insecurity can be determined as 2 major problems that Lewis would certainly be taking care of particularly as the merger has actually now be cancelled as well as 2 elderly execs of the marketing division would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social adjustment however would certainly additionally have to verify herself in her brand-new role.
Inappropriate Management Style of Leader: Lewis's monitoring design and its conflict with the marketing division's duty can additionally be viewed as an OB challenge particularly as she has actually been utilized to managing issues in the operations department where personnel are educated to concentrate on procedures as well as obtain them right. The advertising and marketing department on the various other hand can be viewed as a team of people that are used to being nurtured by Krasnow who focused extra on result than processes.
Interdepartmental Differences: Interdepartmental disputes between three departments, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as one more OB worry. The advertising division does not share the exact same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix allowance amongst one an additional either.
Disintegration in Advertising And Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as another OB concern which might require more focus. The truth that the marketing and advertising sections in the marketing division are detached is stopping both departments from obtaining from each various other's experience as well as know-how. Integration of advertising and marketing with retailing and also procedures would certainly come to be harder if the advertising and marketing division itself is broken down which can be one more possible OB problem.
Continental Airlines I Analysis
Various theories have actually been made use of to explain the circumstances to obtain further clearness about the circumstance available.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy and lazy, have little passion and also resist adjustment. The tough variation of this theory emphasized browbeating, tight controls, threats and also penalties. In time it generates reduced productivity, subtle sabotage as well as competition (Offer, 2003). The circumstance at Continental Airlines I is not entirely following Concept X, it can be seen that new hires are finding this setting instead stressful which may at some point lead to a higher inclination of the monitoring in the direction of Theory X. As per McGregor's supported sight, which he called Concept Y, the necessary job of the management is to organize business conditions so that individuals can achieve their own objectives best by guiding their initiatives in the direction of organizational benefits. If people discover no complete satisfaction in their job, the administration would certainly have little choice but to rely upon concept X and also outside control (Offer, 2003). Also while assessing Lewis's management style, concept X may have been suitable in the operations division somewhat but the Advertising division would certainly require reliance on Concept Y in order to get the creativity and creativity from the teams.
Tuckman's Synergy Theory: Regarding Lewis's problem regarding bringing harmony between the marketing and advertising department is concerned, this would at first cause conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the preliminary stage of team advancement, individuals may not bond, as they are active discovering their place in the group. By incorporating the marketing and advertising division's work, there may coincide preliminary disconnect which could bring about the 2nd phase of 'storming' where the teams challenge each other. It is just during the 3rd phase or 'norming' when they would come together to share suggestions before the team can bring around harmony in the 4th stage 'carrying out'.
Bridges' Shift Design: According To William Bridge's concept (appendix 4), individuals are rather uneasy with change, which is obvious by the circumstance at Continental Airlines I The situation can be viewed as a normal program of life if is researched as per Bridge's concept where he describes that people go through 3 stages of transition when they experience modification. 'Closing, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there might be emotions like despair, unpredictability, stress, rage, fear, rejection and also disorientation.The situation at the advertising department of Continental Airlines I is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. In the second stage, there may be a demand to link the void in between the brand-new and old culture so Lewis might need to encounter this experience once Krasnow leaves. There may be low morale and also reduced productivity at this stage which must not be taken as a trouble. It is during this phase that Lewis will certainly need to offer advice to the department so that they can locate an orientation. It can be seen how Krasnow has currently made this transition easier by making Lewis obtain associated with the division a year prior to his real separation. As per Bridges' Model, phase 3 will produce openness to learning, High power as well as dedication as individuals will embrace the change (Bridges, 2004).
Maslow's Need hierarchy: The OB problem pertaining to insecurity at the office has been caused firstly by the modification in administration and second of all by the truth that the merger will certainly no more be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the relevance of 'security needs as being a reduced level demand of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel protected and untouched' goes to the 2nd degree of needs. Prior to a worker can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' needs fulfilled. This indicates that unless the personnel are made to feel protected concerning their present work standing in Continental Airlines I they may not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Continental Airlines I Case Study
Effects of Analysis.
The OB analysis has actually checked out various theories to understand exactly how to cope with the present scenario handy. The following 3 alternatives have actually been proposed to aid Lewis take care of the business difficulties in the advertising department. Each of these alternatives has actually been recommended for easing the shift needed to bring the marketing department in line with the needs of the market and also for making the social change that would comply with when the present leader leaves.
Integration of marketing and advertising features. Separating Adverting and also Manufacturing features. Combination of Advertising with Workflow.
Analysis of Alternatives.
Integration of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising and marketing company of Continental Airlines I is currently toughness for the organization in regards to saving up on overheads related to advertising and promotion. Because no new recruitment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising and marketing feature, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business marketing together with agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.
The benefit of this strategy is that it will incorporate both features while lowering the need for working with an additional resource for marketing. Lewis would certainly be heading the advertising division as well as in any type of case her substitute would certainly be required for the current function that she is doing. The negative aspect of this alternative is that external hiring might bring about resentment from inner workers who might be eying the position of EVP after Lewis takes over Krasnow's position.
Dividing Adverting as well as Manufacturing: Given the competitive pressures as well as high quality work required from the ad agency, it is recommended that Lewis ought to permit the manufacturing device to be a different function from the advertising and marketing unit. Considering that a lot of advertising agencies had these two functions as different devices, it makes even more sense to follow the norm. Both functions may be able to focus on their core turns on a lot more successfully. However, the downside of this technique would be that additional expenses would certainly need to be birthed for setting up separate production features. A production head may have to be worked with which could raise expenses for the organization.
Combination of Advertising And Marketing with Procedures: Because Lewis is currently caring for the advertising and also operations departments all at once; it makes sense to incorporate both features since she has actually been efficiently caring for both ends. The fact that both departments already have significant differences over allotment of resources suggests that this combination might have the ability to produce consistency especially as Lewis would be heading both ends.However there are numerous negative aspects of this relocation especially as it would put way too much problem over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the advertising department suggests that these two divisions would be culturally diverse. Lewis may not be able to apply one kind of management style to both divisions which can result in inefficiency in either one of the two functions.
Recommendation.
An analysis of the three alternatives indicates that integration of marketing and also operations would certainly not be a feasible move as a result of the substantial differences in between the two divisions although that currently Lewis is handling both. While splitting up of the production feature might have been a beneficial move for the marketing division, the reality that it would certainly imply placing a 3rd feature under Lewis's wing means this need to be prevented as well. The assimilation of the marketing division is the most effective choice in regards to getting the optimum arise from the division. An action plan for this choice is discussed below.
Activity Plan.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.
Advertising and Marketing functions would be merged.
Judith Shapiro will be employed to take Lewis's place as SVP of advertising and marketing.
Manufacturing function will certainly remain component of advertising under advertising feature.
Lewis will certainly separate herself from procedures.
A democratic leadership style with staff member empowerment will be used in marketing department.
Open up door policy and also focus on cross department communication will be targeted at removing dissonance.
Contingency strategy.
If the combination does not exercise as planned, a backup strategy would certainly follow which would certainly separate the production function from the advertising and marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be divided by putting it under an SVP production.