Background and FactsFortress Investment Group a workplace materials seller for small and also moderate sized businesses has just recently been associated with preparing for a merging with its rival House Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor involved in lawful complications put forth by the government Profession Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the type of a possible cultural modification and reduced worker morale, the company needs a complete reengineering initiative at the marketing division.
The prospective social modification at the marketing department of Fortress Investment Group is increasing unpredictability in the workplace bring about various difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis
Political Factors: Political factors play a major duty in influencing critical decisions because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Offered the truth that the shop has a global existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may have the ability to affect efficiency or tactical goals. Federal Trade Commission's antitrust suit versus the merger used up beneficial time of the organization's senior management recommending that 'political' factors can have serious ramifications for a global company.
Economic Factors: Financial factors such as the introduction of local business in the global scenario suggest that Fortress Investment Group is thriving in an atmosphere where there is possible growth of services. In addition to this, truth that store consumers are primarily trying to find workplace products for home offices suggests that the marketplace has a rising trend of entrepreneurs as well as online organisations.
Social factors: Social patterns in the economic climate reveal that clients are searching for comfort in addition to attractive rates. Marketing research shows how the client for Fortress Investment Group does not have understanding regarding locating solutions which can use a mix of benefit and affordable.
Technical factors: Modern technology plays an essential function in Fortress Investment Group's service approach specifically as the organization is piloting Innovation centers which would certainly offer technology sales as well as support in the type of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).
OB Issues and Symptoms.
Several underlying Organizational Behavior concerns can be seen in Fortress Investment Group's case as highlighted in this section.
Apprehensions concerning cultural change: There is worry concerning a social adjustment that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with most of the team member currently revealing unhappiness over this possible action. This predicted change has created tension in the office which has actually been combined with the previous stress of preparing the firm for a possible merger with House Deport.
Difficult Work Environment for Newcomers: There is shortage of personnel that can match the stressful environment of a fast-paced organization. Not only does this cause problem in finding the appropriate individuals, it places stress and anxiety on new hires as can not withstand the rate as well as pressure that the company expects them to birth.
Double Reporting Lines: Newbies find this business society difficult and also challenging to manage especially as populated line partnerships are meant to be weak as a whole and unbiased setting and also efficiency examination is still done by the strong line supervisor. This indicates that beginners might lose quality regarding their respective roles and objectives particularly as populated line reporting does not maintain them in direct communication with the solid line supervisors.
Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been qualified as well as ideal for the task yet the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.
Worry & Job Instability: Worry and also instability can be recognized as two significant issues that Lewis would be managing particularly as the merging has actually now be terminated as well as two elderly executives of the advertising department would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders that would not simply be in charge of brining about a social change yet would likewise have to show herself in her new role.
Incompatible Management Design of Leader: Lewis's management style and also its conflict with the advertising department's duty can additionally be seen as an OB obstacle especially as she has actually been made use of to dealing with concerns in the procedures division where personnel are instructed to concentrate on procedures and also obtain them. The advertising division on the other hand can be seen as a team of people that are made use of to being nurtured by Krasnow that concentrated more on outcome than processes.
Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, advertising, merchandizing and procedures respectively over the allotment of the marketing mix can be determined as an additional OB issue. Although the advertising and marketing department does not share the same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allowance among each other either.
Fragmentation in Advertising Department: Disintegration in between the advertising and marketing divisions can be identified as another OB concern which could need additional interest. The fact that the advertising and marketing sections in the advertising and marketing department are separated is preventing both divisions from getting from each other's experience and proficiency. Combination of marketing with retailing and operations would end up being harder if the marketing division itself is broken down which can be an additional possible OB issue.
Fortress Investment Group Analysis
Different theories have been utilized to explain the circumstances to get further clearness regarding the situation at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that subordinates are passive and careless, have little ambition as well as withstand modification. The hard version of this theory highlighted browbeating, tight controls, risks and also punishments. In time it creates reduced productivity, refined sabotage and also competition (Deal, 2003). Although the situation at Fortress Investment Group is not completely following Theory X, it can be seen that new hires are discovering this setting rather difficult which might ultimately bring about a greater inclination of the administration in the direction of Concept X. Based on McGregor's promoted view, which he called Theory Y, the necessary job of the management is to arrange organizational problems to make sure that people can achieve their own objectives best by directing their efforts towards organizational rewards. If people locate no complete satisfaction in their job, the monitoring would certainly have little choice however to depend on theory X and also outside control (Offer, 2003). Also while analyzing Lewis's administration style, concept X may have appropriated in the procedures department to some extent yet the Marketing department would call for reliance on Theory Y to get the creative thinking and also originality from the teams.
Tuckman's Teamwork Concept: Regarding Lewis's concern about bringing harmony between the marketing and advertising department is concerned, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the preliminary phase of group growth, people might not bond, as they are busy locating their place in the team. By combining the marketing and advertising department's work, there may be the same initial separate which could result in the second phase of 'storming' where the teams challenge one another. Nevertheless, it is only throughout the 3rd phase or 'norming' when they would certainly collaborate to share concepts prior to the team can cause synergy in the 4th stage 'executing'.
When individuals are offered with modification, they go into phase one and also so there may be emotions like unhappiness, uncertainty, stress, rage, anxiety, rejection and disorientation.The circumstance at the advertising department of Fortress Investment Group is comparable so Lewis can get comfortable with the idea that it is not extraordinary habits. It is during this stage that Lewis will have to give advice to the department so that they can discover a sense of instructions. It can be seen exactly how Krasnow has currently made this shift easier by making Lewis obtain involved in the department a year before his actual departure.
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the value of 'safety and security needs as being a lower level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and secure and also out of risk' is at the second level of requirements. Prior to a worker can be made to create emotionally, he requires to have his 'Physical 'and also 'Safety and security' requires met.
SWOT Analysis for Fortress Investment Group Case Study
Implication of Analysis.
The OB analysis has looked at numerous theories to understand exactly how to manage the present circumstance available. The adhering to three choices have been suggested to assist Lewis manage the business difficulties in the advertising and marketing department. Each of these choices has actually been proposed for relieving the transition needed to bring the advertising division according to the demands of the market and for making the social adjustment that would comply with once the existing leader leaves.
Combination of advertising and marketing functions. Separating Adverting as well as Production features. Assimilation of Marketing with Procedures.
Analysis of Alternatives.
Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising along with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing and advertising and marketing functions.
The advantage of this method is that it will incorporate the two functions while decreasing the need for employing an extra resource for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as in any case her substitute would certainly be needed for the current role that she is doing. The disadvantage of this option is that external hiring may cause bitterness from interior workers who might be eying the placement of EVP after Lewis takes over Krasnow's setting.
Separating Adverting as well as Manufacturing: Given the affordable pressures and high top quality work called for from the marketing company, it is suggested that Lewis ought to permit the manufacturing system to be a different feature from the marketing system. Considering that the majority of marketing firms had these 2 functions as different systems, it makes even more feeling to comply with the standard.
Integration of Advertising And Marketing with Procedures: Considering that Lewis is already taking treatment of the advertising and procedures departments simultaneously; it makes feeling to incorporate the two features given that she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her administration style for the advertising and marketing division recommends that these two departments would be culturally diverse.
An examination of the 3 choices shows that combination of marketing as well as procedures would not be a possible action because of the huge distinctions in between the two divisions although that currently Lewis is dealing with both. While splitting up of the production feature might have been a positive relocation for the marketing division, the truth that it would suggest placing a third feature under Lewis's wing means this ought to be prevented. The integration of the advertising department is the very best option in terms of obtaining the optimum arise from the division. An action prepare for this alternative is gone over below.
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.
Advertising and Marketing features would be combined.
Judith Shapiro will certainly be employed to take Lewis's area as SVP of advertising and marketing.
Production feature will stay component of advertising and marketing under advertising function.
Lewis will separate herself from operations.
A democratic management design with staff member empowerment will be made use of in advertising and marketing division.
Open door plan and focus on cross department interaction will certainly be targeted at eliminating discord.
If the assimilation does not exercise as planned, a contingency strategy would comply with which would separate the manufacturing feature from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will most definitely be divided by placing it under an SVP manufacturing.