General Motors Pension Plan Case Study Analysis


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Background and Facts

General Motors Pension Plan a workplace materials seller for little and also average sized businesses has just recently been associated with preparing for a merger with its competitor House Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager associated with lawful problems put forth by the federal Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the near future. With obstacles in the kind of a possible cultural adjustment as well as low employee spirits, the organization wants a total reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of General Motors Pension Plan is increasing uncertainty 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 duty in affecting calculated decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's treatment at the same time. Provided the reality that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to impact efficiency or strategic objectives. Federal Profession Payment's antitrust fit versus the merger occupied useful time of the organization's elderly monitoring suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Financial factors such as the appearance of small businesses in the international circumstance recommend that General Motors Pension Plan is prospering in an atmosphere where there is potential growth of organisations. Along with this, truth that store clients are mainly seeking workplace materials for home offices recommends that the market has a climbing pattern of entrepreneurs and also online organisations.

Social factors: Social patterns in the economy reveal that clients are looking for convenience in addition to appealing rates. Market research shows how the consumer for General Motors Pension Plan does not have understanding about discovering options which can provide a combination of benefit and inexpensive.

Technological factors: Modern technology plays a vital role in General Motors Pension Plan's service strategy specifically as the organization is piloting Modern technology centers which would certainly offer innovation sales and also support in the form of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions problems can be seen in General Motors Pension Plan's case as highlighted in this section.

Worries about social modification: There is worry concerning a social modification that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the personnel currently showing discontent over this prospective action. This expected adjustment has produced tension in the work environment which has actually been coupled with the past anxiety of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of personnel that can match the stressful setting of a hectic company. Not only does this result in problem in locating the appropriate people, it places anxiety on brand-new hires as can not hold up against the pace and also stress that the organization anticipates them to bear.

Twin Coverage Lines: Beginners locate this organizational culture troublesome as well as challenging to manage specifically as populated line partnerships are indicated to be weak generally as well as unbiased setting and also efficiency examination is still done by the solid line manager. This indicates that newcomers might lose clearness concerning their particular duties and also goals particularly as populated 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 rather than Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and proper for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Insecurity: Anxiety and insecurity can be recognized as two significant problems that Lewis would be dealing with specifically as the merger has currently be cancelled and also two senior execs of the marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders that would not simply be in charge of brining concerning a social adjustment but would certainly likewise need to confirm herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's administration style as well as its incompatibility with the marketing division's function can also be viewed as an OB challenge especially as she has actually been utilized to dealing with issues in the procedures division where workers are taught to focus on procedures and get them right. The marketing department on the other hand can be seen as a group of people who are utilized to being supported by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 divisions, marketing, merchandizing and operations specifically over the allowance of the marketing mix can be determined as an additional OB issue. The marketing division does not share the same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix appropriation amongst one another either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be identified as an additional OB issue which could need further attention. The truth that the advertising and marketing areas in the advertising division are separated is stopping both departments from acquiring from each other's experience and competence. Assimilation of marketing with retailing and also operations would certainly end up being harder if the advertising division itself is disintegrated which can be one more prospective OB concern.

General Motors Pension Plan Analysis

Different theories have been made use of to explain the scenarios to obtain further clarity about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are passive and also careless, have little ambition and resist modification. The circumstance at General Motors Pension Plan is not completely following Concept X, it can be seen that brand-new hires are discovering this environment instead stressful which may eventually lead to a better disposition of the management in the direction of Concept X. Even while examining Lewis's management design, concept X might have been appropriate in the procedures department to some degree but the Advertising and marketing division would call for dependence on Theory Y in order to obtain the imagination and originality from the groups.

Tuckman's Team effort Concept: As much as Lewis's worry regarding bringing consistency in between the advertising and advertising and marketing division is concerned, this would originally lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. By combining the advertising as well as advertising and marketing division's work, there might be the same preliminary separate which might lead to the second stage of 'storming' where the groups test one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are fairly unpleasant with change, which is noticeable by the situation at General Motors Pension Plan The situation can be viewed as a regular training course of life if is studied based on Bridge's concept where he explains that individuals experience 3 stages of change when they experience adjustment. 'Ending, losing and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with change, they enter phase one therefore there might be feelings like despair, uncertainty, disappointment, anger, concern, rejection and also disorientation.The situation at the marketing department of General Motors Pension Plan is comparable so Lewis can get comfy with the idea that it is not extraordinary behavior. In the second stage, there may be a requirement to link the space in between the brand-new and also old society so Lewis may have to encounter this challenge once Krasnow leaves. There may be reduced morale and low performance at this phase which must not be taken as a problem. It is during this phase that Lewis will certainly need to provide support to the division to make sure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the division a year before his real separation. As per Bridges' Design, phase three will bring about visibility to knowing, High energy as well as dedication as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem related to insecurity at the work environment has actually been activated to start with by the adjustment in monitoring and also second of all by the fact that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the importance of 'safety and security needs as being a reduced level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and out of danger' goes to the 2nd level of needs. Prior to an employee can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety and security' needs satisfied. This suggests that unless the employees are made to really feel secure concerning their present employment status in General Motors Pension Plan they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for General Motors Pension Plan Case Study

Implication of Analysis.

The OB analysis has actually looked at various concepts to comprehend how to manage the current circumstance available. The complying with three alternatives have been proposed to assist Lewis deal with the business challenges in the advertising division. Each of these options has been suggested for alleviating the transition needed to bring the advertising division in accordance with the requirements of the market and for making the social adjustment that would certainly adhere to once the present leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Production features. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising along with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising as well as advertising and marketing functions.

The benefit of this technique is that it will incorporate the two functions while decreasing the demand for working with an additional resource for marketing. Lewis would be heading the advertising department and in any kind of case her replacement would certainly be needed for the present function that she is doing. The disadvantage of this alternative is that exterior hiring might produce animosity from interior workers who may be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable pressures and also excellent quality job called for from the ad agency, it is recommended that Lewis should enable the production device to be a different function from the marketing unit. Because a lot of ad agency had these two functions as different systems, it makes more feeling to follow the standard. Both functions may be able to concentrate on their core activates extra efficiently. The negative aspect of this method would certainly be that extra prices would have to be borne for establishing up different manufacturing features. A production head might have to be employed which might increase overheads for the organization.

Assimilation of Marketing with Procedures: Considering that Lewis is already dealing with the advertising as well as operations departments simultaneously; it makes sense to incorporate both functions considering that she has been effectively looking after both ends. The truth that the two divisions currently have significant differences over allowance of resources recommends that this combination might be able to bring about consistency specifically as Lewis would be heading both ends.However there are numerous negative aspects of this action especially as it would put too much problem over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising division recommends that these 2 departments would be culturally varied. Lewis might not be able to use one type of management design to both departments which can result in inefficiency in either one of the 2 features.


An examination of the three alternatives shows that integration of advertising as well as procedures would not be a possible move as a result of the substantial distinctions in between both divisions despite the fact that currently Lewis is managing both. While separation of the production function may have been a positive relocation for the marketing department, the truth that it would indicate placing a 3rd feature under Lewis's wing means this should be stayed clear of as well. The integration of the advertising department is the very best option in regards to obtaining the optimal results from the division. An action prepare for this choice is gone over listed below.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will continue to be part of advertising and marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in advertising and marketing department.

Open up door plan and emphasis on cross department interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a contingency plan would follow which would certainly separate the manufacturing feature from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.