Background and Facts
Elliot Lebowitz a workplace supplies merchant for small as well as medium sized businesses has actually just recently been associated with planning for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly manager involved in legal complications presented by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the near future. With difficulties in the form of a potential cultural change and also low worker morale, the company is in need of a complete reengineering initiative at the advertising department.Trouble Declaration
The prospective social change at the advertising division of Elliot Lebowitz is enhancing unpredictability in the working environment resulting in different difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major function in influencing strategic choices because Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Payment's intervention in the process. Given the truth that the shop has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to affect performance or calculated objectives. Federal Profession Compensation's antitrust suit against the merger used up useful time of the company's elderly administration suggesting that 'political' factors can have major effects for an international business.
Economic Factors: Financial factors such as the emergence of local business in the worldwide situation recommend that Elliot Lebowitz is thriving in an atmosphere where there is potential growth of services. Along with this, reality that shop consumers are mostly seeking workplace materials for home offices recommends that the marketplace has an increasing trend of entrepreneurs as well as home based companies.
Social factors: Social patterns in the economic situation show that consumers are seeking benefit along with attractive prices. Marketing research demonstrates how the customer for Elliot Lebowitz does not have awareness about finding remedies which can provide a mix of benefit as well as low costs.
Technological factors: Modern technology plays an essential function in Elliot Lebowitz's company technique particularly as the company is piloting Modern technology centers which would certainly provide innovation sales as well as support in the kind of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).
OB Issues and also Symptoms.
Numerous underlying Organizational Habits issues can be seen in Elliot Lebowitz's case as highlighted in this area.
Worries regarding social modification: There is worry concerning a cultural modification that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with a lot of the team member already showing unhappiness over this potential move. This anticipated modification has produced tension in the office which has actually been combined with the past anxiety of preparing the firm for a potential merging with House Deport.
Stressful Work Environment for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this cause problem in locating the right individuals, it puts tension on new hires as can not stand up to the speed as well as pressure that the company expects them to bear.
Double Coverage Lines: Novices find this organizational society cumbersome and also challenging to handle especially as populated line connections are indicated to be weaker generally and also objective setup and efficiency evaluation is still done by the solid line supervisor. This indicates that beginners can lose clearness concerning their corresponding functions and also purposes particularly as populated line coverage does not maintain them in direct communication with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also ideal for the work however the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.
Worry & Work Insecurity: Concern as well as insecurity can be identified as two significant issues that Lewis would be handling particularly as the merging has now be cancelled and also two elderly execs of the marketing department would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining concerning a social change yet would certainly also have to prove herself in her brand-new duty.
Inappropriate Administration Design of Leader: Lewis's administration style and its incompatibility with the advertising and marketing department's function can additionally be seen as an OB obstacle particularly as she has been utilized to managing concerns in the operations division where employees are educated to concentrate on processes and also obtain them. The advertising department on the various other hand can be seen as a team of people that are used to being nurtured by Krasnow that focused a lot more on output than processes.
Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be determined as another OB worry. The advertising division does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix appropriation among one an additional either.
Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be recognized as one more OB problem which might require further focus. The truth that the advertising and marketing areas in the marketing department are disconnected is preventing both divisions from obtaining from each various other's experience and know-how. Combination of advertising with merchandising and also operations would become more difficult if the advertising and marketing division itself is disintegrated which can be another possible OB worry.
Elliot Lebowitz Analysis
Different concepts have been made use of to explain the circumstances to get further quality about the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that staffs are passive and also lazy, have little aspiration as well as withstand change. The hard version of this concept emphasized browbeating, limited controls, hazards as well as punishments. With time it creates low performance, refined sabotage and competition (Bargain, 2003). Although the situation at Elliot Lebowitz is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might ultimately cause a greater disposition of the management towards Concept X. Based on McGregor's advocated view, which he called Concept Y, the vital task of the management is to set up business problems to make sure that people can attain their own goals best by guiding their initiatives in the direction of organizational incentives. If individuals find no complete satisfaction in their work, the monitoring would have little selection but to rely upon theory X as well as outside control (Deal, 2003). Even while assessing Lewis's administration design, concept X may have been suitable in the procedures department to some extent yet the Advertising and marketing department would certainly need dependence on Theory Y to get the creative thinking as well as creativity from the groups.
Tuckman's Teamwork Theory: As much as Lewis's concern regarding bringing consistency between the advertising and marketing and marketing department is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and also advertising department's job, there might be the very same initial separate which can lead to the second phase of 'storming' where the teams test one an additional.
Bridges' Transition Design: As per William Bridge's concept (appendix 4), people are quite awkward with change, which is obvious by the circumstance at Elliot Lebowitz The circumstance can be viewed as a regular program of life if is researched according to Bridge's concept where he explains that individuals experience three phases of change when they experience modification. 'Closing, shedding as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they enter phase one and so there might be emotions like sadness, uncertainty, aggravation, anger, fear, rejection and disorientation.The circumstance at the marketing department of Elliot Lebowitz is comparable so Lewis can get comfortable with the concept that it is not remarkable actions. In the second stage, there might be a demand to connect the void between the brand-new and also old society so Lewis may have to encounter this challenge as soon as Krasnow leaves. There may be low morale and also reduced efficiency at this stage which should not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to provide guidance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has actually currently made this shift easier by making Lewis get involved in the department a year prior to his real departure. Based on Bridges' Version, stage three will produce openness to learning, High power and also commitment as people will certainly embrace the change (Bridges, 2004).
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'security requires as being a reduced level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure and also out of threat' is at the second level of demands. Before a staff member can be made to develop emotionally, he requires to have his 'Physiological 'and 'Safety' requires met.
SWOT Analysis for Elliot Lebowitz Case Study
Implication of Analysis.
The OB analysis has considered numerous concepts to understand exactly how to manage the present circumstance available. The following three options have actually been recommended to help Lewis manage the organizational challenges in the marketing division. Each of these alternatives has actually been suggested for reducing the shift required to bring the advertising and marketing department in line with the needs of the marketplace as well as for making the social change that would adhere to as soon as the existing leader leaves.
Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Procedures.
Assessment of Alternatives.
Assimilation of Advertising & Advertising Functions: The internal marketing agency of Elliot Lebowitz is currently stamina for the company in terms of saving up on expenses connected to marketing and also promo. Considering that no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the marketing feature, this is a positive opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing together with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.
The advantage of this approach is that it will incorporate both features while minimizing the demand for working with an additional source for advertising and marketing. Along with this, Lewis would be heading the marketing division as well as regardless her replacement would certainly be required for the existing duty that she is executing. The negative aspect of this option is that exterior hiring might cause bitterness from inner personnel that may be considering the position of EVP after Lewis takes control of Krasnow's setting.
Dividing Adverting and Manufacturing: Given the competitive stress and high quality work called for from the advertising company, it is suggested that Lewis must enable the manufacturing unit to be a separate feature from the advertising system. Given that the majority of marketing companies had these 2 features as separate systems, it makes more feeling to adhere to the norm.
Integration of Advertising And Marketing with Workflows: Given that Lewis is already looking after the advertising and procedures departments simultaneously; it makes good sense to integrate the two functions given that she has actually been efficiently dealing with both ends. The reality that the two departments already have major differences over allowance of resources suggests that this integration may be able to produce consistency specifically as Lewis would certainly be heading both ends.However there are different downsides of this relocation particularly as it would put way too much problem over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the marketing division suggests that these two departments would certainly be culturally varied. Along with this, Lewis may not be able to use one sort of management style to both divisions which can cause inadequacy in either among the two features.
Referral.
An assessment of the 3 options suggests that combination of advertising and procedures would not be a viable action as a result of the substantial distinctions in between the two departments despite the fact that currently Lewis is managing both. While splitting up of the manufacturing function may have been a beneficial action for the marketing department, the truth that it would mean putting a third function under Lewis's wing indicates this ought to be avoided. The combination of the advertising division is the most effective choice in regards to getting the ideal results from the division. An activity plan for this choice is gone over listed below.
Action Strategy.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.
Marketing and advertising functions would be merged.
Judith Shapiro will certainly be worked with to take Lewis's area as SVP of advertising and marketing.
Manufacturing function will certainly continue to be component of advertising under advertising feature.
Lewis will certainly divide herself from procedures.
A democratic leadership style with employee empowerment will certainly be utilized in advertising and marketing division.
Open up door plan as well as emphasis on cross department interaction will certainly be targeted at removing disharmony.
Contingency strategy.
If the combination does not work out as intended, a backup plan would comply with which would separate the manufacturing feature from the marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will absolutely be divided by placing it under an SVP manufacturing.