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General Motors Pension Plan Case Study Solution

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General Motors Pension Plan Case Study Solution

Background and Facts

General Motors Pension Plan a workplace materials seller for tiny and average sized services has recently been associated with planning for a merger with its competitor Residence Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with lawful complications put forth by the government Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With obstacles in the form of a possible cultural modification as well as low staff member morale, the organization needs a full reengineering initiative at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising department of General Motors Pension Plan is boosting unpredictability in the workplace bring about numerous obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated choices because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Provided the reality that the shop has a global presence with branches in UK, USA, Canada and also Germany, political consider each of these nations may be able to impact performance or critical objectives. Federal Trade Payment's antitrust fit versus the merging occupied valuable time of the organization's senior monitoring suggesting that 'political' factors can have serious ramifications for a worldwide business.

Economic Factors: Economic factors such as the development of small companies in the international circumstance recommend that General Motors Pension Plan is thriving in a setting where there is prospective growth of services. Reality that shop clients are mainly looking for workplace supplies for house offices recommends that the market has a climbing trend of entrepreneurs as well as home based services.

Social factors: Social fads in the economic situation reveal that consumers are seeking benefit as well as attractive rates. Market research demonstrates how the customer for General Motors Pension Plan does not have understanding regarding locating options which can offer a combination of comfort and also affordable.

Technological factors: Innovation plays an essential duty in General Motors Pension Plan's company technique especially as the company is piloting Modern technology facilities which would supply modern technology sales and also assistance in the form of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Actions concerns can be seen in General Motors Pension Plan's case as highlighted in this area.

Uneasiness concerning social change: There is concern regarding a social adjustment that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with a lot of the personnel already revealing unhappiness over this possible move. This predicted adjustment has actually developed tension in the workplace which has actually been combined with the past stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of personnel that can match the stressful setting of a hectic organization. Not only does this cause trouble in finding the ideal individuals, it places stress on new hires as can not endure the rate and stress that the organization anticipates them to bear.

Twin Reporting Lines: Newbies locate this organizational culture cumbersome and tough to cope with especially as populated line relationships are indicated to be weaker generally and objective setting as well as performance analysis is still done by the strong line manager. This suggests that newcomers might lose clarity concerning their respective roles and objectives especially as dotted line reporting does not maintain them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the last would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and proper for the task however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Worry and instability can be determined as two major worries that Lewis would certainly be handling especially as the merger has actually now be cancelled and also two senior executives of the advertising department would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would not simply supervise of brining about a social modification but would certainly also have to prove herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style as well as its incompatibility with the marketing department's role can also be viewed as an OB challenge especially as she has actually been utilized to taking care of concerns in the operations department where employees are educated to focus on processes and also get them right. The marketing department on the other hand can be viewed as a group of people who are used to being nurtured by Krasnow who focused extra on result than processes.

Interdepartmental Disputes: Interdepartmental disputes between three divisions, advertising, merchandizing as well as procedures respectively over the allotment of the advertising and marketing mix can be identified as one more OB concern. The advertising department does not share the same vision as the other two divisions regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and operations departments do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be determined as an additional OB issue which might need more focus. The fact that the marketing and advertising sections in the advertising division are disconnected is avoiding both departments from acquiring from each other's experience and also expertise. Integration of marketing with merchandising as well as operations would come to be more difficult if the advertising division itself is degenerated which can be an additional potential OB issue.

General Motors Pension Plan Analysis

Various concepts have been used to clarify the conditions to obtain further clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are easy as well as lazy, have little ambition and also stand up to adjustment. The scenario at General Motors Pension Plan is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may at some point lead to a better inclination of the administration towards Theory X. Even while analyzing Lewis's administration style, theory X may have been appropriate in the operations division to some degree but the Advertising and marketing division would require dependence on Concept Y in order to obtain the creative thinking and also originality from the teams.

Tuckman's Synergy Concept: As for Lewis's issue about bringing harmony in between the advertising and marketing department is concerned, this would at first bring about conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the initial stage of group development, individuals may not bond, as they are busy finding their place in the team. By incorporating the advertising and marketing division's job, there may be the same preliminary detach which could bring about the 2nd phase of 'storming' where the groups test each other. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would certainly collaborate to share suggestions prior to the group can bring about synergy in the fourth stage 'performing'.

When individuals are presented with change, they go into stage one and so there might be feelings like despair, uncertainty, stress, rage, fear, denial as well as disorientation.The circumstance at the marketing department of General Motors Pension Plan is comparable so Lewis can obtain comfortable with the idea that it is not remarkable behavior. It is throughout this phase that Lewis will certainly have to offer assistance to the department so that they can find a sense of instructions. It can be seen just how Krasnow has actually currently made this change simpler by making Lewis get involved in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the significance of 'safety needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure and out of threat' is at the 2nd degree of needs. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety' requires met.

SWOT Analysis for General Motors Pension Plan Case Study



Ramification of Analysis.

The OB analysis has taken a look at various concepts to understand how to manage the present circumstance handy. The following 3 choices have actually been proposed to help Lewis deal with the business difficulties in the advertising and marketing division. Each of these alternatives has actually been recommended for easing the shift needed to bring the advertising division in accordance with the demands of the market and for making the social change that would certainly comply with once the existing leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Procedures.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house advertising firm of General Motors Pension Plan is already strength for the company in regards to conserving up on overheads related to advertising and promo. Because no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising function, this is a desirable possibility for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising together with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The benefit of this strategy is that it will certainly integrate both features while minimizing the requirement for hiring an additional source for advertising. Lewis would certainly be heading the advertising and marketing division as well as in any case her replacement would be needed for the existing function that she is carrying out. The disadvantage of this alternative is that outside hiring may cause animosity from inner workers that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Provided the affordable pressures as well as high quality job called for from the advertising agency, it is recommended that Lewis needs to enable the production device to be a different feature from the advertising system. Because the majority of advertising agencies had these two features as separate units, it makes even more feeling to comply with the norm. Both functions might be able to focus on their core activates much more successfully. The negative aspect of this strategy would certainly be that extra expenses would have to be birthed for setting up separate production features. A production head might have to be worked with which might boost expenses for the organization.

Integration of Advertising with Workflows: Given that Lewis is currently taking treatment of the marketing and also procedures divisions all at once; it makes sense to incorporate the 2 features since she has been effectively taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising division suggests that these 2 departments would be culturally diverse.

Referral.



An analysis of the three choices indicates that integration of advertising and marketing and operations would not be a viable action because of the huge differences between both divisions despite the fact that currently Lewis is handling both. While separation of the production feature may have been a beneficial relocation for the advertising department, the reality that it would suggest putting a third feature under Lewis's wing suggests this ought to be prevented also. The combination of the advertising and marketing department is the most effective alternative in terms of obtaining the optimal arise from the department. An action plan for this alternative is discussed below.

Activity Strategy.
Recommendation
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will be employed to take Lewis's place as SVP of advertising and marketing.

Production function will continue to be part of advertising and marketing under advertising and marketing function.

Lewis will certainly separate herself from procedures.

A democratic management style with worker empowerment will be used in advertising and marketing division.

Open door policy and focus on cross departmental communication will be aimed at eliminating discord.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would certainly follow which would certainly separate the production function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will certainly be separated by positioning it under an SVP production.