Background and Facts
International Rivers Network And The Bujagali Dam Project B an office products retailer for little as well as medium sized services has actually lately been involved in planning for a merger with its competitor Home Deport, which has influenced efficiency levels in departmentswith the senior manager involved in lawful difficulties put forth by the federal Profession Compensation. With the Advertising Head putting forward 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 obstacles in the type of a prospective cultural adjustment as well as reduced worker spirits, the organization wants a full reengineering initiative at the advertising and marketing department.Problem Declaration
The possible social adjustment at the advertising and marketing division of International Rivers Network And The Bujagali Dam Project B is increasing uncertainty in the workplace leading to numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant duty in affecting strategic decisions given that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Profession Payment's intervention while doing so. Offered the truth that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may be able to affect performance or tactical objectives. Federal Trade Payment's antitrust match against the merging used up valuable time of the company's senior management suggesting that 'political' factors can have serious effects for an international service.
Economic Factors: Financial factors such as the emergence of small businesses in the global situation suggest that International Rivers Network And The Bujagali Dam Project B is flourishing in an atmosphere where there is possible development of services. Fact that store clients are primarily looking for workplace products for home offices recommends that the market has an increasing pattern of entrepreneurs and also home based companies.
Social factors: Social trends in the economic situation show that consumers are looking for comfort in addition to appealing prices. Marketing research demonstrates how the consumer for International Rivers Network And The Bujagali Dam Project B does not have recognition regarding locating solutions which can provide a mix of comfort and also inexpensive.
Technical factors: Technology plays a vital function in International Rivers Network And The Bujagali Dam Project B's organisation technique specifically as the organization is piloting Modern technology centers which would supply innovation sales as well as support in the form of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).
OB Issues as well as Effects.
A number of underlying Organizational Actions issues can be seen in International Rivers Network And The Bujagali Dam Project B's case as highlighted in this section.
Concerns concerning social modification: There is concern concerning a cultural modification that would take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the employee already showing unhappiness over this possible relocation. This expected change has actually produced tension in the office which has actually been coupled with the previous anxiety of preparing the firm for a possible merging with Residence Deport.
Difficult Work Environment for Newcomers: There is scarcity of workers that can match the demanding setting of a hectic organization. Not only does this result in problem in finding the ideal people, it puts anxiety on new hires as can not stand up to the rate as well as pressure that the organization expects them to birth.
Double Reporting Lines: Newcomers find this business culture cumbersome and tough to cope with specifically as dotted line partnerships are indicated to be weak in general and unbiased setup and also performance assessment is still done by the strong line manager. This indicates that newcomers might lose quality concerning their particular functions and objectives specifically as dotted line reporting does not keep them in direct interaction with the strong line managers.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's setting came as an impact to her morale. Lewis might have been capable and suitable for the work but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.
Worry & Task Instability: Worry and also insecurity can be recognized as 2 significant problems that Lewis would certainly be dealing with specifically as the merging has actually now be cancelled and two elderly executives of the advertising and marketing division would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would not just supervise of brining regarding a cultural change yet would certainly additionally need to prove herself in her brand-new duty.
Inappropriate Management Style of Leader: Lewis's management style and its incompatibility with the advertising division's role can likewise be seen as an OB obstacle particularly as she has been used to dealing with issues in the operations division where workers are instructed to focus on processes and obtain them right. The advertising department on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow that focused a lot more on output than procedures.
Interdepartmental Disagreements: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and also procedures specifically over the allotment of the advertising and marketing mix can be recognized as one more OB problem. The advertising and marketing division does not share the exact same vision as the other two departments concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix allotment amongst one another either.
Fragmentation in Marketing Division: Fragmentation between the advertising and marketing departments can be identified as one more OB issue which can require additional attention. The truth that the advertising and marketing areas in the advertising and marketing department are disconnected is preventing both divisions from acquiring from each various other's experience as well as experience. Combination of marketing with retailing and operations would end up being harder if the advertising division itself is degenerated which can be another possible OB problem.
International Rivers Network And The Bujagali Dam Project B Analysis
Various theories have been used to clarify the situations to obtain further quality about the scenario at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are passive as well as careless, have little passion and stand up to modification. The hard variation of this theory emphasized threat, tight controls, threats and penalties. Over time it creates low efficiency, refined sabotage and also competition (Offer, 2003). Although the scenario at International Rivers Network And The Bujagali Dam Project B is not totally following Concept X, it can be seen that new hires are discovering this atmosphere rather stressful which may ultimately lead to a better disposition of the management towards Theory X. As per McGregor's supported view, which he called Concept Y, the necessary job of the monitoring is to prepare organizational problems so that individuals can accomplish their own objectives best by directing their initiatives in the direction of business rewards. If individuals locate no contentment in their work, the monitoring would certainly have little option however to rely on concept X as well as external control (Offer, 2003). Even while evaluating Lewis's management style, concept X may have been suitable in the operations department somewhat but the Advertising and marketing department would need dependence on Concept Y so as to get the imagination and also originality from the groups.
Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing harmony between the advertising and also advertising and marketing division is concerned, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing as well as advertising and marketing division's work, there might be the same first detach which might lead to the 2nd phase of 'storming' where the groups challenge one an additional.
When people are presented with change, they go into stage one and so there may be emotions like despair, uncertainty, irritation, rage, concern, rejection and also disorientation.The circumstance at the marketing department of International Rivers Network And The Bujagali Dam Project B is similar so Lewis can get comfortable with the concept that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to give support to the division so that they can find a sense of direction. It can be seen how Krasnow has already made this transition simpler by making Lewis obtain involved in the department a year prior to his real separation.
Maslow's Requirement hierarchy: The OB concern pertaining to instability at the workplace has been activated first of all by the adjustment in monitoring and also secondly by the reality that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'protection requires as being a lower degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe and secure as well as out of danger' goes to the 2nd degree of demands. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'and 'Security' needs fulfilled. This shows that unless the personnel are made to really feel safe and secure regarding their existing employment status in International Rivers Network And The Bujagali Dam Project B they may not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for International Rivers Network And The Bujagali Dam Project B Case Study
Implication of Analysis.
The OB analysis has considered different concepts to understand how to handle the existing situation handy. The following 3 choices have been proposed to assist Lewis handle the organizational challenges in the marketing department. Each of these options has been recommended for reducing the shift required to bring the advertising department according to the demands of the marketplace and also for making the social modification that would comply with once the present leader leaves.
Integration of advertising and marketing functions. Dividing Adverting and Production features. Combination of Marketing with Workflow.
Evaluation of Alternatives.
Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has expertise in business-to-business advertising along with agency and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing as well as advertising features.
The advantage of this strategy is that it will integrate both features while reducing the need for employing an extra resource for advertising. In addition to this, Lewis would be heading the marketing division as well as all the same her replacement would be needed for the existing function that she is carrying out. The negative aspect of this choice is that exterior hiring may cause bitterness from interior workers who may be looking at the position of EVP after Lewis takes over Krasnow's setting.
Dividing Adverting as well as Production: Given the competitive pressures and top quality job called for from the ad agency, it is suggested that Lewis ought to permit the production unit to be a separate feature from the advertising unit. Because a lot of ad agency had these 2 features as separate devices, it makes even more sense to comply with the norm. In addition to this, both functions might be able to concentrate on their core activates much more successfully. However, the downside of this technique would be that additional expenses would have to be birthed for establishing different manufacturing functions. A manufacturing head may have to be employed which might raise expenses for the company.
Integration of Advertising with Workflows: Considering that Lewis is already taking care of the marketing and procedures departments simultaneously; it makes feeling to integrate the 2 features since she has been efficiently taking care of both ends. The reality that Lewis has to adapt her monitoring style for the advertising and marketing division suggests that these 2 divisions would certainly be culturally varied.
Recommendation.
An assessment of the three choices suggests that assimilation of advertising and marketing as well as procedures would certainly not be a viable relocation due to the vast differences in between the 2 departments despite the truth that presently Lewis is handling both. While separation of the manufacturing function may have been a positive step for the marketing department, the truth that it would mean placing a third function under Lewis's wing means this should be avoided.
Action Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.
Advertising and Marketing functions would be combined.
Judith Shapiro will certainly be hired to take Lewis's location as SVP of advertising and marketing.
Manufacturing function will certainly continue to be component of advertising under marketing feature.
Lewis will separate herself from procedures.
A democratic leadership style with worker empowerment will certainly be utilized in advertising and marketing department.
Open up door plan and emphasis on cross department interaction will certainly be focused on getting rid of discord.
Backup plan.
If the integration does not work out as prepared, a contingency plan would adhere to which would separate the manufacturing function from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing feature will most definitely be divided by positioning it under an SVP production.