Menu

Managing A 401k Fund Case Study Solution

CASE HELP

Home >> Harvard >> Managing A 401k Fund >>

Managing A 401k Fund Case Study Help

Background and Facts

Managing A 401k Fund an office materials merchant for small and also average sized companies has lately been involved in planning for a merger with its competitor House Deport, which has actually impacted performance degrees in departmentswith the senior manager associated with legal difficulties presented by the federal Trade Compensation. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With difficulties in the form of a potential social modification and also low staff member spirits, the organization wants a total reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Managing A 401k Fund is raising unpredictability in the workplace bring about different challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices considering that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Commission's treatment at the same time. Offered the reality that the store has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may be able to affect performance or strategic goals. Federal Trade Compensation's antitrust match against the merging occupied beneficial time of the company's senior management suggesting that 'political' factors can have serious effects for an international service.

Economic Factors: Economic factors such as the development of small businesses in the international scenario suggest that Managing A 401k Fund is flourishing in an environment where there is prospective growth of organisations. In addition to this, reality that shop consumers are mainly seeking workplace materials for office suggests that the market has a rising fad of business owners and home based companies.

Social factors: Social patterns in the economic climate show that consumers are trying to find comfort along with eye-catching rates. Marketing research shows how the client for Managing A 401k Fund lacks recognition about discovering options which can provide a mix of ease and also affordable.

Technological factors: Technology plays an important duty in Managing A 401k Fund's organisation strategy specifically as the organization is piloting Technology facilities which would offer technology sales as well as support in the form of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Business Actions concerns can be seen in Managing A 401k Fund's case as highlighted in this section.

Uneasiness about social modification: There is worry regarding a social change that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the employee already showing unhappiness over this prospective relocation. This predicted change has actually produced tension in the office which has actually been paired with the previous anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of personnel that can match the stressful environment of a busy company. Not just does this cause difficulty in discovering the best people, it places anxiety on new hires as can not withstand the rate as well as stress that the company expects them to birth.

Twin Reporting Lines: Beginners locate this business society difficult and also hard to deal with especially as dotted line partnerships are implied to be weaker as a whole and objective setting and efficiency analysis is still done by the strong line supervisor. This suggests that novices might lose clearness regarding their respective roles and goals especially as populated line reporting does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and suitable for the job but the truth that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Worry & Work Insecurity: Anxiety and insecurity can be determined as two major worries that Lewis would be managing especially as the merging has now be cancelled as well as two senior executives of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining regarding a cultural change yet would likewise need to confirm herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's management design and also its incompatibility with the advertising department's function can also be viewed as an OB difficulty specifically as she has actually been used to dealing with concerns in the operations division where employees are shown to concentrate on processes and obtain them right. The advertising division on the other hand can be seen as a group of people that are used to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the marketing mix can be identified as an additional OB problem. The advertising division does not share the very same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allocation amongst one another either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising departments can be determined as another OB problem which might need additional interest. The truth that the advertising and marketing sections in the advertising division are disconnected is preventing both divisions from acquiring from each other's experience as well as experience. Integration of advertising with retailing and also operations would become harder if the advertising and marketing department itself is degenerated which can be an additional prospective OB issue.

Managing A 401k Fund Analysis

Different theories have been made use of to describe the circumstances to obtain additional clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are easy as well as careless, have little aspiration and withstand change. The difficult variation of this theory stressed coercion, tight controls, risks and also penalties. Over time it produces low efficiency, subtle sabotage as well as competition (Offer, 2003). Although the situation at Managing A 401k Fund is not completely complying with Concept X, it can be seen that new hires are discovering this atmosphere instead difficult which might eventually lead to a higher inclination of the management in the direction of Concept X. Based on McGregor's promoted view, which he called Concept Y, the important task of the monitoring is to arrange business problems to ensure that people can accomplish their very own objectives best by guiding their efforts towards organizational rewards. If people locate no contentment in their job, the monitoring would have little choice but to depend on theory X and also outside control (Deal, 2003). Even while assessing Lewis's monitoring style, theory X might have appropriated in the operations division to some extent yet the Advertising department would certainly require reliance on Theory Y to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony in between the marketing and advertising department is concerned, this would originally cause conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the initial stage of group development, individuals may not bond, as they are hectic locating their place in the team. By incorporating the marketing and advertising division's job, there may coincide preliminary separate which could bring about the second stage of 'storming' where the teams challenge one another. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would come together to share ideas prior to the team can produce synergy in the fourth stage 'carrying out'.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), people are rather unpleasant with change, which is obvious by the scenario at Managing A 401k Fund The scenario can be seen as a typical course of life if is researched as per Bridge's theory where he describes that individuals undergo 3 stages of change when they experience change. 'End, losing as well as Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people exist with change, they go into phase one and so there may be emotions like unhappiness, uncertainty, aggravation, anger, anxiety, denial and disorientation.The circumstance at the marketing division of Managing A 401k Fund is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary behavior. In the second stage, there may be a requirement to link the void between the new as well as old society so Lewis might have to face this ordeal once Krasnow leaves. There might be low morale and low performance at this stage which ought to not be taken as a trouble. It is during this stage that Lewis will certainly have to offer guidance to the division to make sure that they can locate an orientation. It can be seen how Krasnow has already made this shift much easier by making Lewis obtain involved in the department a year before his actual separation. Based on Bridges' Version, stage 3 will certainly produce openness to knowing, High energy and commitment as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem related to instability at the workplace has been triggered firstly by the modification in management and also second of all by the reality that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'security requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel protected as well as out of danger' is at the 2nd degree of needs. Prior to an employee can be made to establish psychologically, he requires to have his 'Physical 'and 'Safety' requires met. This shows that unless the personnel are made to really feel safe and secure about their existing employment status in Managing A 401k Fund they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Managing A 401k Fund Case Study



Implication of Analysis.

The OB analysis has actually taken a look at numerous concepts to comprehend how to handle the current circumstance available. The following 3 choices have been recommended to assist Lewis manage the business obstacles in the advertising and marketing division. Each of these options has been recommended for relieving the change needed to bring the marketing division in accordance with the needs of the marketplace and also for making the social change that would comply with as soon as the existing leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing and also advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate the two features while lowering the requirement for working with an added resource for advertising. Lewis would be heading the advertising department and in any case her replacement would be needed for the present duty that she is carrying out. The disadvantage of this choice is that exterior hiring might cause resentment from inner personnel who may be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Offered the affordable stress and high top quality job needed from the advertising and marketing firm, it is advised that Lewis needs to permit the manufacturing device to be a different feature from the advertising and marketing device. Because a lot of advertising and marketing companies had these 2 features as separate units, it makes more feeling to adhere to the norm.

Assimilation of Marketing with Operations: Since Lewis is currently taking care of the advertising and marketing and also operations departments simultaneously; it makes sense to incorporate the two functions because she has been effectively taking care of both ends. The fact that Lewis has to adapt her management style for the marketing department recommends that these 2 departments would certainly be culturally varied.

Referral.



An examination of the 3 alternatives suggests that integration of advertising and also operations would not be a feasible action because of the substantial differences in between the two departments despite the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a beneficial move for the marketing division, the truth that it would mean putting a third feature under Lewis's wing means this must be prevented too. The combination of the marketing department is the best option in regards to getting the optimum arise from the division. An action plan for this choice is talked about below.

Activity Strategy.
Recommendation
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will certainly stay component of advertising under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with employee empowerment will be used in advertising and marketing division.

Open up door policy as well as focus on cross departmental communication will be focused on eliminating discord.

Backup strategy.

If the assimilation does not exercise as planned, a contingency plan would comply with which would certainly separate the manufacturing function from the advertising feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.