Background and Facts
Hayman Capital Management an office supplies merchant for little and also average sized organisations has actually lately been involved in planning for a merging with its rival Home Deport, which has actually influenced efficiency degrees in departmentswith the senior manager involved in legal problems presented by the federal Trade Commission. With the Marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the kind of a potential cultural adjustment as well as low employee spirits, the organization wants a complete reengineering effort at the advertising department.Issue Declaration
The prospective social change at the marketing division of Hayman Capital Management is boosting uncertainty in the working environment resulting in different challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant duty in influencing critical decisions considering that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention while doing so. Offered the fact that the store has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may be able to impact performance or calculated objectives. Federal Profession Compensation's antitrust fit against the merging took up valuable time of the organization's senior management recommending that 'political' factors can have severe ramifications for an international company.
Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation suggest that Hayman Capital Management is flourishing in an environment where there is prospective growth of businesses. Truth that store customers are mostly looking for workplace supplies for home offices suggests that the market has an increasing fad of business owners and home based businesses.
Social factors: Social trends in the economic climate show that consumers are seeking comfort in addition to attractive costs. Marketing research shows how the client for Hayman Capital Management lacks recognition about locating options which can use a combination of comfort and affordable.
Technological factors: Innovation plays an essential function in Hayman Capital Management's organisation technique especially as the organization is piloting Technology centers which would certainly supply modern technology sales and support in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).
OB Issues and also Effects.
A number of underlying Organizational Behavior concerns can be seen in Hayman Capital Management's case as highlighted in this area.
Concerns concerning social modification: There is concern about a cultural change that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with most of the employee already revealing unhappiness over this potential action. This anticipated modification has actually developed tension in the office which has been combined with the previous stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Demanding Task Setting for Newcomers: There is scarcity of employees that can match the difficult environment of a hectic company. Not just does this result in difficulty in locating the right individuals, it places stress on new hires as can not stand up to the pace and pressure that the organization expects them to bear.
Double Coverage Lines: Novices locate this organizational culture cumbersome and tough to manage particularly as populated line connections are indicated to be weak as a whole and also objective setup and performance analysis is still done by the strong line manager. This means that novices could shed clearness about their corresponding roles as well as goals particularly as dotted line coverage does not maintain them in straight communication with the solid line supervisors.
Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified as well as proper for the task however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.
Fear & Task Instability: Fear and insecurity can be determined as 2 significant worries that Lewis would certainly be dealing with specifically as the merger has currently be terminated and also 2 elderly executives of the marketing department would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would not simply supervise of brining about a social change but would additionally have to confirm herself in her new role.
Inappropriate Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising division's function can additionally be seen as an OB obstacle especially as she has been made use of to managing problems in the procedures division where personnel are shown to concentrate on processes and also obtain them. The advertising department on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow who concentrated much more on output than processes.
Interdepartmental Arguments: Interdepartmental arguments in between three departments, advertising, merchandizing as well as procedures specifically over the appropriation of the marketing mix can be recognized as another OB issue. The advertising department does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation amongst one another either.
Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be determined as another OB problem which might require further focus. The reality that the advertising and marketing areas in the marketing department are separated is preventing both divisions from gaining from each various other's experience as well as experience. Combination of marketing with retailing and also operations would certainly come to be harder if the advertising department itself is disintegrated which can be one more potential OB worry.
Hayman Capital Management Analysis
Numerous concepts have been made use of to explain the situations to get further clearness concerning the scenario available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are passive as well as careless, have little ambition as well as stand up to modification. The scenario at Hayman Capital Management is not totally following Theory X, it can be seen that new hires are finding this atmosphere instead stressful which may ultimately lead to a greater disposition of the administration in the direction of Concept X. Even while assessing Lewis's monitoring style, concept X may have been ideal in the procedures division to some level however the Advertising division would certainly call for dependence on Concept Y in order to get the creative thinking and originality from the groups.
Tuckman's Team effort Theory: As much as Lewis's problem regarding bringing consistency in between the advertising as well as marketing division is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and advertising division's work, there may be the exact same preliminary separate which can lead to the second phase of 'storming' where the groups challenge one another.
Bridges' Change Model: According To William Bridge's theory (appendix 4), individuals are quite uncomfortable with adjustment, which is evident by the scenario at Hayman Capital Management The circumstance can be viewed as a typical course of life if is researched according to Bridge's theory where he explains that people experience 3 phases of change when they experience change. 'End, losing and Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people exist with change, they go into stage one therefore there might be feelings like despair, unpredictability, aggravation, anger, fear, rejection and also disorientation.The situation at the advertising department of Hayman Capital Management is similar so Lewis can obtain comfy with the idea that it is not phenomenal actions. In the second phase, there might be a demand to bridge the space between the new and also old culture so Lewis might have to encounter this ordeal when Krasnow leaves. There may be reduced morale and also reduced efficiency at this phase which should not be taken as a setback. It is during this phase that Lewis will certainly have to give guidance to the division to make sure that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis get associated with the division a year prior to his actual departure. Based on Bridges' Version, phase 3 will certainly bring about visibility to learning, High energy as well as dedication as individuals will embrace the adjustment (Bridges, 2004).
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the value of 'security needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure and out of threat' is at the 2nd degree of needs. Prior to an employee can be made to create psychologically, he requires to have his 'Physical 'as well as 'Safety and security' requires fulfilled.
SWOT Analysis for Hayman Capital Management Case Study
Implication of Analysis.
The OB analysis has actually taken a look at different concepts to comprehend how to cope with the present scenario at hand. The adhering to three alternatives have been proposed to assist Lewis manage the organizational challenges in the advertising and marketing department. Each of these choices has actually been suggested for relieving the transition needed to bring the marketing department in accordance with the needs of the market and for making the social change that would adhere to once the current leader leaves.
Combination of marketing and advertising features. Dividing Adverting and Production functions. Integration of Advertising with Procedures.
Examination of Alternatives.
Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both marketing as well as marketing functions.
The advantage of this strategy is that it will integrate the two features while decreasing the need for hiring an additional resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing department and also in any type of case her substitute would certainly be required for the existing function that she is carrying out. The negative aspect of this alternative is that exterior hiring might bring about resentment from inner workers who might be considering the position of EVP after Lewis takes control of Krasnow's placement.
Dividing Adverting and also Manufacturing: Offered the competitive pressures as well as high top quality work required from the advertising and marketing firm, it is advised that Lewis needs to enable the manufacturing system to be a separate function from the marketing device. Considering that the majority of marketing firms had these two features as separate devices, it makes even more sense to adhere to the standard.
Assimilation of Marketing with Workflows: Given that Lewis is currently taking care of the advertising and marketing as well as operations divisions concurrently; it makes feeling to integrate the two features considering that she has been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing division recommends that these two divisions would be culturally varied.
Suggestion.
An assessment of the 3 options indicates that integration of advertising and marketing and procedures would certainly not be a possible relocation due to the vast distinctions between the 2 divisions in spite of the reality that presently Lewis is handling both. While splitting up of the production function may have been a positive move for the marketing division, the reality that it would certainly indicate placing a third feature under Lewis's wing indicates this should be stayed clear of.
Activity Strategy.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.
Advertising and Marketing functions would certainly be merged.
Judith Shapiro will be employed to take Lewis's location as SVP of advertising and marketing.
Manufacturing function will continue to be part of marketing under marketing feature.
Lewis will certainly divide herself from operations.
A democratic management style with employee empowerment will be utilized in advertising division.
Open door plan and also focus on cross department interaction will be targeted at eliminating disharmony.
Contingency strategy.
If the integration does not exercise as planned, a contingency strategy would certainly comply with which would certainly separate the manufacturing function from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will definitely be divided by placing it under an SVP production.