Background and FactsMarlenes Marvelous Adventure Southwest Airlines an office materials seller for small and average sized services has recently been involved in planning for a merging with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly manager involved in lawful issues presented by the government Trade Payment. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With obstacles in the form of a prospective social modification and reduced worker morale, the organization requires a total reengineering initiative at the marketing division.
The prospective social adjustment at the marketing department of Marlenes Marvelous Adventure Southwest Airlines is raising uncertainty in the working environment causing various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis
Political Factors: Political factors play a major function in impacting tactical choices considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Trade Payment's intervention in the process. Provided the reality that the store has an international presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to influence performance or critical objectives. Federal Trade Compensation's antitrust match versus the merger occupied useful time of the company's senior monitoring suggesting that 'political' factors can have serious ramifications for an international organisation.
Economic Factors: Economic factors such as the appearance of small companies in the worldwide scenario recommend that Marlenes Marvelous Adventure Southwest Airlines is growing in an atmosphere where there is possible development of organisations. In addition to this, fact that store customers are mostly searching for office supplies for office suggests that the marketplace has a climbing trend of business owners as well as home organisations.
Social factors: Social patterns in the economy show that customers are looking for convenience as well as attractive prices. Market research demonstrates how the consumer for Marlenes Marvelous Adventure Southwest Airlines lacks awareness concerning locating solutions which can provide a combination of benefit as well as low costs.
Technical factors: Modern technology plays a vital function in Marlenes Marvelous Adventure Southwest Airlines's service strategy specifically as the company is piloting Innovation facilities which would certainly offer modern technology sales and also assistance in the kind of memory upgrades, outer installments. (Summary of PEST in appendix 2).
OB Issues and also Manifestations.
A number of underlying Organizational Behavior problems can be seen in Marlenes Marvelous Adventure Southwest Airlines's case as highlighted in this area.
Worries about social modification: There is concern concerning a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the employee already showing unhappiness over this potential relocation. This predicted adjustment has created anxiety in the work environment which has actually been coupled with the previous stress of preparing the company for a prospective merger with Home Deport.
Difficult Job Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic organization. Not just does this lead to problem in locating the best people, it puts tension on brand-new hires as can not withstand the pace and also stress that the organization expects them to birth.
Double Reporting Lines: Newbies find this organizational culture troublesome as well as tough to deal with especially as dotted line connections are meant to be weaker in general as well as unbiased setup as well as performance analysis is still done by the solid line manager. This indicates that newcomers might shed clarity about their corresponding duties as well as purposes especially as dotted line coverage does not keep them in direct communication with the solid line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been speculated that the latter would take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and appropriate for the task however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.
Fear & Work Instability: Anxiety and also instability can be identified as two significant concerns that Lewis would be dealing with specifically as the merger has actually currently be cancelled and 2 senior executives of the advertising division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a social modification yet would additionally need to show herself in her new role.
Inappropriate Administration Style of Leader: Lewis's management design as well as its conflict with the advertising division's duty can likewise be viewed as an OB difficulty especially as she has been made use of to handling problems in the operations department where employees are taught to concentrate on procedures and also get them right. The marketing division on the other hand can be viewed as a group of people that are utilized to being supported by Krasnow that focused extra on output than procedures.
Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and also operations specifically over the allocation of the advertising mix can be recognized as another OB concern. Although the marketing division does not share the very same vision as the other two departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allocation amongst each other either.
Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be recognized as an additional OB problem which could require further focus. The truth that the advertising and marketing sections in the advertising department are separated is protecting against both divisions from gaining from each other's experience and experience. Assimilation of advertising and marketing with merchandising and operations would certainly end up being more difficult if the advertising department itself is disintegrated which can be an additional prospective OB worry.
Marlenes Marvelous Adventure Southwest Airlines Analysis
Different theories have actually been used to explain the conditions to obtain further clearness about the situation handy.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and also lazy, have little passion and resist change. The tough variation of this concept stressed coercion, tight controls, threats and also punishments. In time it produces reduced productivity, subtle sabotage and also rivalry (Bargain, 2003). The situation at Marlenes Marvelous Adventure Southwest Airlines is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which might at some point lead to a better disposition of the monitoring towards Theory X. As per McGregor's advocated view, which he called Theory Y, the essential task of the administration is to arrange organizational conditions so that people can achieve their own objectives best by guiding their initiatives towards organizational incentives. If people locate no fulfillment in their job, the monitoring would certainly have little selection but to rely on theory X as well as external control (Bargain, 2003). Also while analyzing Lewis's monitoring style, theory X might have appropriated in the procedures division to some extent but the Marketing department would certainly need dependence on Theory Y to get the creativity and also originality from the groups.
Tuckman's Team effort Concept: As far as Lewis's worry about bringing consistency in between the marketing and also advertising division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as advertising department's work, there may be the exact same preliminary disconnect which might lead to the second stage of 'storming' where the teams test one another.
When individuals are provided with modification, they enter stage one as well as so there may be emotions like sadness, unpredictability, disappointment, temper, worry, denial as well as disorientation.The situation at the marketing division of Marlenes Marvelous Adventure Southwest Airlines is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this stage that Lewis will have to offer advice to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis obtain included in the department a year before his real departure.
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the work environment has been set off to start with by the adjustment in administration as well as second of all by the truth that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe as well as unharmed' is at the 2nd level of needs. Prior to a worker can be made to create psychologically, he needs to have his 'Physical 'and 'Safety' requires met. This suggests that unless the workers are made to really feel safe and secure regarding their existing employment status in Marlenes Marvelous Adventure Southwest Airlines they might not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Marlenes Marvelous Adventure Southwest Airlines Case Study
Effects of Analysis.
The OB analysis has actually considered numerous concepts to comprehend how to deal with the existing situation handy. The following 3 alternatives have been suggested to aid Lewis manage the organizational difficulties in the marketing department. Each of these choices has been proposed for relieving the transition needed to bring the advertising and marketing division in accordance with the needs of the marketplace and for making the social change that would certainly adhere to as soon as the present leader leaves.
Combination of marketing and advertising functions. Separating Adverting and Production functions. Integration of Marketing with Workflow.
Evaluation of Alternatives.
Combination of Marketing & Marketing Functions: The in-house advertising agency of Marlenes Marvelous Adventure Southwest Airlines is already strength for the organization in terms of saving up on expenses associated with advertising and marketing and also promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the marketing function, this is a positive chance for incorporating the advertising and marketing features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing features.
The advantage of this strategy is that it will integrate the two functions while minimizing the requirement for employing an extra resource for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as regardless her substitute would be needed for the current role that she is executing. The downside of this alternative is that external hiring may produce resentment from interior personnel that might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.
Separating Adverting and also Manufacturing: Provided the competitive stress and also high quality work called for from the ad agency, it is advised that Lewis should enable the production unit to be a different feature from the marketing unit. Because many ad agency had these two features as separate units, it makes even more feeling to adhere to the norm. Both functions may be able to focus on their core triggers extra efficiently. Nevertheless, the disadvantage of this strategy would be that added expenses would have to be borne for establishing different production features. Along with this, a production head might have to be employed which might enhance expenses for the company.
Integration of Marketing with Operations: Given that Lewis is currently dealing with the marketing and also operations departments concurrently; it makes good sense to integrate the two functions since she has actually been efficiently looking after both ends. The fact that the two divisions currently have significant distinctions over appropriation of resources suggests that this integration may be able to bring about harmony specifically as Lewis would certainly be heading both ends.However there are various downsides of this move especially as it would certainly put too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising division suggests that these two departments would certainly be culturally diverse. Along with this, Lewis may not have the ability to apply one type of management design to both divisions which might result in inadequacy in either one of the two functions.
An examination of the 3 alternatives shows that assimilation of advertising as well as operations would not be a practical action because 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 production function might have been a favorable move for the marketing division, the reality that it would certainly mean placing a third function under Lewis's wing suggests this ought to be prevented as well. The assimilation of the advertising and marketing division is the most effective choice in terms of obtaining the ideal arise from the department. An action plan for this choice is talked about listed below.
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.
Advertising and Marketing functions would certainly be combined.
Judith Shapiro will be hired to take Lewis's place as SVP of advertising and marketing.
Production function will stay part of advertising under advertising and marketing function.
Lewis will certainly separate herself from operations.
A democratic leadership design with employee empowerment will certainly be made use of in advertising division.
Open door policy as well as focus on cross departmental communication will certainly be aimed at getting rid of discord.
If the combination does not work out as intended, a contingency plan would comply with which would certainly divide the manufacturing feature from the marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will definitely be separated by positioning it under an SVP production.