Harnischfeger Corp Case Study Analysis


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Harnischfeger Corp Case Study Analysis

Background and Facts

Harnischfeger Corp an office supplies seller for little and also medium sized businesses has recently been involved in planning for a merger with its rival Home Deport, which has impacted performance degrees in departmentswith the senior manager involved in lawful complications put forth by the government Profession Compensation. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With obstacles in the kind of a potential cultural adjustment as well as reduced employee morale, the organization needs a full reengineering initiative at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural modification at the marketing department of Harnischfeger Corp is increasing uncertainty in the workplace resulting in different challenges 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 role in impacting critical choices since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Commission's intervention in the process. Offered the truth that the shop has a global visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might have the ability to impact performance or strategic goals. Federal Profession Compensation's antitrust match against the merger took up important time of the company's elderly management recommending that 'political' factors can have major effects for an international company.

Economic Factors: Economic factors such as the development of small businesses in the worldwide scenario suggest that Harnischfeger Corp is thriving in an atmosphere where there is prospective growth of companies. Truth that shop consumers are mainly looking for office supplies for home workplaces suggests that the market has a climbing trend of entrepreneurs and house based organisations.

Social factors: Social trends in the economic situation show that customers are searching for benefit as well as eye-catching prices. Marketing research demonstrates how the consumer for Harnischfeger Corp lacks awareness regarding locating options which can use a combination of comfort as well as affordable.

Technical factors: Technology plays an important duty in Harnischfeger Corp's organisation method particularly as the company is piloting Modern technology facilities which would offer technology sales and also assistance in the form of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits issues can be seen in Harnischfeger Corp's case as highlighted in this area.

Concerns about social modification: There is worry concerning a social adjustment that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising with the majority of the employee currently revealing discontent over this prospective step. This predicted change has produced anxiety in the workplace which has actually been paired with the previous stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of employees that can match the demanding setting of a fast-paced company. Not only does this cause difficulty in discovering the appropriate people, it puts anxiety on brand-new hires as can not endure the pace and also stress that the company anticipates them to birth.

Dual Reporting Lines: Newbies locate this organizational culture difficult as well as challenging to manage specifically as dotted line partnerships are meant to be weaker in general as well as objective setup and efficiency analysis is still done by the strong line manager. This implies that beginners could shed clarity about their corresponding roles and also purposes especially as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and also proper for the work but the fact that Kransnow's departure would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Concern and insecurity can be determined as 2 major problems that Lewis would be handling specifically as the merging has now be cancelled and 2 elderly execs of the advertising division would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would not simply supervise of brining concerning a social adjustment yet would likewise need to prove herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's monitoring design and its conflict with the advertising and marketing division's function can also be seen as an OB obstacle specifically as she has actually been used to handling concerns in the procedures department where workers are shown to concentrate on procedures and also get them. The marketing department on the other hand can be seen as a team of people who are utilized to being nurtured by Krasnow who concentrated extra on output than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three departments, advertising, merchandizing and also operations respectively over the allowance of the advertising and marketing mix can be identified as another OB concern. The marketing division does not share the same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allotment among one an additional either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising divisions can be determined as one more OB issue which might require additional attention. The truth that the advertising and marketing sections in the advertising department are disconnected is stopping both divisions from getting from each other's experience and know-how. Assimilation of advertising and marketing with merchandising as well as operations would end up being harder if the advertising and marketing division itself is broken down which can be one more prospective OB problem.

Harnischfeger Corp Analysis

Numerous theories have actually been made use of to discuss the circumstances to get more clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are easy and also lazy, have little passion and also withstand modification. The difficult variation of this concept emphasized coercion, limited controls, threats and penalties. In time it creates reduced performance, subtle sabotage as well as competition (Bargain, 2003). Although the scenario at Harnischfeger Corp is not totally complying with Theory X, it can be seen that brand-new hires are locating this environment instead difficult which may at some point lead to a greater inclination of the monitoring towards Concept X. Based on McGregor's promoted sight, which he called Concept Y, the necessary job of the monitoring is to arrange business conditions to ensure that individuals can accomplish their very own goals best by directing their efforts in the direction of organizational incentives. If individuals discover no fulfillment in their work, the monitoring would have little selection however to depend on theory X and also external control (Offer, 2003). Even while analyzing Lewis's administration design, theory X may have been suitable in the operations division somewhat but the Advertising and marketing department would require reliance on Concept Y in order to get the creativity and also creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's issue about bringing consistency between the marketing and marketing department is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and also advertising and marketing division's job, there may be the very same preliminary separate which could lead to the second stage of 'storming' where the groups test one another.

When people are offered with modification, they go into phase one as well as so there may be feelings like despair, unpredictability, aggravation, rage, anxiety, rejection and disorientation.The scenario at the advertising division of Harnischfeger Corp is comparable so Lewis can obtain comfortable with the idea that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide support to the department so that they can find a sense of instructions. It can be seen how Krasnow has currently made this change much easier by making Lewis obtain involved in the division a year before his real departure.
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to insecurity at the work environment has actually been caused to start with by the change in monitoring as well as second of all by the fact that the merging will certainly no more be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the value of 'protection requires as being a lower level need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure and unharmed' goes to the 2nd degree of demands. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'and 'Security' needs fulfilled. This shows that unless the employees are made to feel safe and secure regarding their present employment standing in Harnischfeger Corp they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Harnischfeger Corp Case Study

Implication of Analysis.

The OB analysis has considered numerous theories to recognize exactly how to manage the present circumstance available. The complying with three choices have actually been suggested to aid Lewis deal with the organizational challenges in the advertising and marketing department. Each of these options has actually been suggested for reducing the shift needed to bring the advertising and marketing division in accordance with the requirements of the market and also for making the cultural change that would certainly follow as soon as the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing company of Harnischfeger Corp is already strength for the company in terms of saving up on overheads related to advertising as well as promotion. Because no new employment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a desirable chance for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this method is that it will incorporate both functions while minimizing the requirement for employing an additional resource for advertising. Lewis would certainly be heading the marketing department and in any case her substitute would be required for the current function that she is carrying out. The downside of this choice is that outside hiring might cause bitterness from internal employees who may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Given the affordable pressures as well as high quality work called for from the marketing agency, it is suggested that Lewis needs to allow the manufacturing device to be a separate feature from the advertising and marketing system. Considering that the majority of advertising companies had these 2 features as separate systems, it makes even more sense to comply with the standard.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is currently caring for the advertising and marketing and also operations departments concurrently; it makes good sense to integrate both functions because she has been efficiently looking after both ends. The reality that both departments already have major differences over allowance of resources suggests that this assimilation may have the ability to bring about consistency specifically as Lewis would certainly be heading both ends.However there are various negative aspects of this relocation particularly as it would place way too much concern over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the marketing division recommends that these 2 departments would be culturally varied. In addition to this, Lewis might not have the ability to use one type of management design to both departments which can lead to inefficiency in either among the two features.


An evaluation of the three choices shows that integration of advertising and procedures would certainly not be a practical relocation due to the substantial distinctions between the 2 divisions regardless of the truth that currently Lewis is taking care of both. While splitting up of the production function may have been a desirable move for the advertising and marketing department, the truth that it would certainly imply positioning a third function under Lewis's wing means this ought to be prevented.

Activity Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production feature will certainly stay component of advertising and marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous leadership design with worker empowerment will be used in marketing department.

Open up door plan and emphasis on cross departmental communication will be targeted at getting rid of disharmony.

Contingency plan.

If the integration does not exercise as intended, a contingency plan would certainly follow which would certainly separate the production feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP production.