Background and FactsInvestment Technology Group a workplace materials seller for tiny and also moderate sized organisations has lately been associated with preparing for a merger with its rival Home Deport, which has actually affected efficiency levels in departmentswith the elderly manager involved in legal difficulties put forth by the federal Trade Commission. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the type of a prospective social change and also low staff member morale, the organization requires a complete reengineering initiative at the marketing division.
The prospective cultural modification at the advertising and marketing department of Investment Technology Group is enhancing uncertainty in the working environment causing various challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis
Political Factors: Political factors play a major role in impacting critical decisions considering that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Compensation's intervention while doing so. Provided the truth that the shop has a global visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might be able to affect performance or calculated goals. Federal Profession Commission's antitrust fit versus the merging took up valuable time of the organization's elderly management suggesting that 'political' factors can have significant implications for a global organisation.
Economic Factors: Economic factors such as the introduction of small companies in the international scenario recommend that Investment Technology Group is growing in an environment where there is possible development of businesses. Reality that shop consumers are primarily looking for office supplies for house offices recommends that the market has a climbing trend of entrepreneurs and also residence based organisations.
Social factors: Social trends in the economy reveal that clients are looking for benefit along with attractive prices. Market research demonstrates how the consumer for Investment Technology Group does not have recognition about discovering services which can offer a mix of benefit as well as low costs.
Technological factors: Modern technology plays an important role in Investment Technology Group's business strategy specifically as the company is piloting Technology centers which would supply innovation sales and also assistance in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).
OB Issues and Symptoms.
Several underlying Organizational Behavior issues can be seen in Investment Technology Group's case as highlighted in this section.
Uneasiness about cultural modification: There is concern regarding a social modification that would happen when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the personnel currently revealing unhappiness over this potential step. This predicted adjustment has actually developed stress in the office which has been paired with the previous stress and anxiety of preparing the firm for a potential merging with Home Deport.
Demanding Work Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a fast-paced organization. Not only does this cause problem in locating the right people, it places anxiety on brand-new hires as can not stand up to the speed and also stress that the organization anticipates them to bear.
Double Reporting Lines: Beginners locate this organizational culture difficult as well as difficult to handle particularly as populated line partnerships are meant to be weak as a whole and also unbiased setting and also efficiency evaluation is still done by the strong line manager. This indicates that novices can lose clearness regarding their respective roles as well as objectives particularly as populated line coverage does not keep them in direct communication with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as a blow to her spirits. Lewis may have been capable and appropriate for the task but the reality that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.
Concern & Job Insecurity: Anxiety and also instability can be identified as two major issues that Lewis would certainly be handling especially as the merger has actually currently be cancelled as well as two senior executives of the advertising and marketing division would be leaving. The whole obligation of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural modification but would likewise need to confirm herself in her brand-new role.
Inappropriate Administration Style of Leader: Lewis's administration design and its incompatibility with the advertising and marketing division's function can also be seen as an OB obstacle specifically as she has been made use of to handling concerns in the operations department where employees are taught to concentrate on processes as well as obtain them. The marketing department on the various other hand can be seen as a group of people that are made use of to being supported by Krasnow that concentrated extra on result than procedures.
Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the advertising mix can be determined as one more OB worry. The marketing department does not share the exact same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allocation amongst one another either.
Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be recognized as one more OB issue which could require further interest. The truth that the marketing and advertising areas in the advertising and marketing division are disconnected is stopping both divisions from obtaining from each various other's experience as well as competence. Combination of marketing with merchandising and operations would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be one more prospective OB problem.
Investment Technology Group Analysis
Various theories have actually been made use of to discuss the circumstances to obtain further quality regarding the situation available.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are easy and also careless, have little ambition and stand up to change. The scenario at Investment Technology Group is not completely complying with Theory X, it can be seen that brand-new hires are finding this setting instead stressful which might eventually lead to a better inclination of the management in the direction of Concept X. Also while analyzing Lewis's monitoring style, concept X may have been appropriate in the procedures department to some level yet the Advertising department would need reliance on Concept Y in order to get the creative thinking as well as originality from the teams.
Tuckman's Synergy Theory: As far as Lewis's concern concerning bringing consistency in between the advertising and marketing and also marketing department is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing as well as marketing division's work, there may be the very same preliminary detach which might lead to the 2nd phase of 'storming' where the teams test one an additional.
When individuals are offered with modification, they get in stage one and so there may be emotions like sadness, unpredictability, disappointment, temper, anxiety, denial as well as disorientation.The situation at the advertising and marketing division of Investment Technology Group is comparable so Lewis can obtain comfy with the idea that it is not remarkable habits. It is throughout this phase that Lewis will have to provide guidance to the division so that they can find a sense of instructions. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis obtain included in the division a year prior to his real departure.
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the significance of 'security requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure as well as out of danger' is at the 2nd level of requirements. Prior to an employee can be made to develop emotionally, he requires to have his 'Physical 'and also 'Security' requires met.
SWOT Analysis for Investment Technology Group Case Study
Implication of Analysis.
The OB analysis has actually looked at different concepts to understand how to deal with the present situation available. The adhering to 3 choices have actually been proposed to help Lewis deal with the organizational challenges in the advertising and marketing department. Each of these alternatives has been suggested for relieving the shift needed to bring the advertising department in accordance with the demands of the market and also for making the cultural modification that would certainly adhere to when the existing leader leaves.
Combination of marketing and advertising features. Dividing Adverting and Production features. Combination of Marketing with Workflow.
Examination of Alternatives.
Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing as well as advertising and marketing functions.
The advantage of this technique is that it will certainly incorporate both functions while decreasing the demand for hiring an additional resource for marketing. In addition to this, Lewis would certainly be heading the advertising division as well as in any case her substitute would be needed for the present function that she is executing. The negative aspect of this choice is that exterior hiring may cause bitterness from interior personnel who may be considering the position of EVP after Lewis takes control of Krasnow's setting.
Separating Adverting and also Manufacturing: Given the affordable stress and also top quality work needed from the advertising agency, it is advised that Lewis ought to allow the manufacturing unit to be a separate function from the marketing system. Since many ad agency had these two functions as different systems, it makes even more sense to follow the standard. In addition to this, both functions may be able to concentrate on their core triggers extra effectively. Nevertheless, the disadvantage of this strategy would be that extra expenses would certainly need to be borne for setting up separate manufacturing features. A manufacturing head might have to be worked with which could raise expenses for the organization.
Assimilation of Marketing with Operations: Because Lewis is already taking care of the advertising and procedures divisions at the same time; it makes feeling to integrate the 2 features since she has actually been successfully taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse.
An examination of the three options suggests that assimilation of advertising and operations would certainly not be a possible action as a result of the huge distinctions in between the two divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a favorable relocation for the advertising department, the truth that it would certainly mean putting a third feature under Lewis's wing means this should be prevented. The combination of the marketing department is the very best option in terms of obtaining the optimum results from the division. An activity plan for this option is gone over below.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.
Marketing and advertising features would certainly be combined.
Judith Shapiro will certainly be employed to take Lewis's area as SVP of advertising and marketing.
Production function will stay component of advertising under advertising and marketing function.
Lewis will divide herself from operations.
An autonomous management style with staff member empowerment will be utilized in marketing department.
Open door plan and emphasis on cross departmental communication will certainly be targeted at removing disharmony.
If the combination does not work out as planned, a contingency plan would certainly follow which would divide the manufacturing function from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will certainly be separated by placing it under an SVP production.