Background and Facts
Mary Kay Cosmetics Inc Sales Force Incentives B a workplace products retailer for tiny and also average sized businesses has actually lately been associated with preparing for a merger with its rival Residence Deport, which has actually affected efficiency degrees in departmentswith the elderly supervisor involved in lawful issues put forth by the government Trade Commission. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With difficulties in the type of a potential social adjustment and also low worker morale, the company requires a total reengineering effort at the marketing department.Problem Statement
The prospective social change at the marketing department of Mary Kay Cosmetics Inc Sales Force Incentives B is boosting unpredictability in the working environment resulting in various difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant role in affecting calculated decisions since Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Trade Compensation's intervention while doing so. Provided the fact that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations might have the ability to influence efficiency or strategic goals. Federal Trade Payment's antitrust fit against the merger took up beneficial time of the organization's senior management suggesting that 'political' factors can have significant implications for an international organisation.
Economic Factors: Financial factors such as the introduction of local business in the global scenario recommend that Mary Kay Cosmetics Inc Sales Force Incentives B is flourishing in an environment where there is prospective development of services. In addition to this, fact that store customers are mostly searching for office products for home offices recommends that the marketplace has a rising pattern of entrepreneurs as well as home based organisations.
Social factors: Social fads in the economic climate reveal that consumers are trying to find comfort in addition to eye-catching prices. Marketing research shows how the customer for Mary Kay Cosmetics Inc Sales Force Incentives B lacks understanding about finding options which can supply a combination of comfort as well as inexpensive.
Technological factors: Modern technology plays a vital role in Mary Kay Cosmetics Inc Sales Force Incentives B's service method particularly as the organization is piloting Modern technology facilities which would supply technology sales as well as assistance in the kind of memory upgrades, outer installments. (Summary of PEST in appendix 2).
OB Issues and Symptoms.
A number of underlying Organizational Behavior problems can be seen in Mary Kay Cosmetics Inc Sales Force Incentives B's case as highlighted in this section.
Worries about social adjustment: There is apprehension about a social modification that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee currently showing discontent over this potential action. This anticipated adjustment has produced tension in the office which has been coupled with the previous stress of preparing the company for a potential merging with Residence Deport.
Stressful Job Atmosphere for Newcomers: There is scarcity of workers that can match the difficult setting of a fast-paced company. Not only does this result in trouble in finding the right people, it puts tension on brand-new hires as can not withstand the speed as well as stress that the company anticipates them to bear.
Dual Coverage Lines: Newbies discover this business culture difficult and difficult to deal with especially as dotted line partnerships are implied to be weaker generally and also objective setup and also efficiency examination is still done by the solid line supervisor. This means that beginners might shed quality regarding their particular duties and also purposes specifically as populated line coverage does not keep them in direct interaction with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's position came as a blow to her morale. Lewis might have been qualified and suitable for the task yet the reality that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.
Anxiety & Task Insecurity: Anxiety and insecurity can be identified as 2 significant worries that Lewis would be handling particularly as the merging has actually now be cancelled as well as two elderly execs of the advertising department would certainly be leaving. The whole duty of the department would be falling on Lewis's shoulders that would not just supervise of brining regarding a cultural adjustment however would additionally need to confirm herself in her brand-new duty.
Inappropriate Monitoring Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising division's duty can additionally be viewed as an OB challenge especially as she has been made use of to managing concerns in the procedures department where workers are educated to concentrate on processes and get them right. The advertising division on the other hand can be viewed as a group of people who are made use of to being supported by Krasnow who concentrated a lot more on result than processes.
Interdepartmental Differences: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be determined as another OB concern. Although the marketing division does not share the exact same vision as the other two departments regarding the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allocation among one another either.
Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB issue which might need additional attention. The truth that the marketing and advertising areas in the marketing division are disconnected is stopping both divisions from obtaining from each various other's experience and know-how. Assimilation of advertising with retailing as well as procedures would certainly become harder if the advertising department itself is disintegrated which can be another potential OB issue.
Mary Kay Cosmetics Inc Sales Force Incentives B Analysis
Various concepts have been utilized to clarify the circumstances to obtain additional quality regarding the scenario handy.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy as well as lazy, have little aspiration and withstand change. The circumstance at Mary Kay Cosmetics Inc Sales Force Incentives B is not entirely following Concept X, it can be seen that new hires are finding this environment rather stressful which may eventually lead to a greater inclination of the administration in the direction of Theory X. Also while examining Lewis's monitoring style, theory X may have been appropriate in the procedures division to some degree but the Marketing division would require dependence on Theory Y in order to get the creativity as well as creativity from the teams.
Tuckman's Team effort Concept: As far as Lewis's worry regarding bringing harmony in between the advertising and also advertising division is concerned, this would at first lead to clash as gone over by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and also advertising and marketing division's work, there might be the exact same initial detach which can lead to the second stage of 'storming' where the groups test one another.
Bridges' Transition Model: According To William Bridge's concept (appendix 4), people are fairly uneasy with change, which is evident by the situation at Mary Kay Cosmetics Inc Sales Force Incentives B The situation can be seen as a regular program of life if is studied based on Bridge's concept where he discusses that people undergo 3 stages of transition when they experience change. 'End, shedding and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in phase one and so there may be feelings like sadness, uncertainty, aggravation, temper, concern, rejection and also disorientation.The situation at the advertising department of Mary Kay Cosmetics Inc Sales Force Incentives B is similar so Lewis can obtain comfortable with the idea that it is not extraordinary actions. In the second phase, there may be a demand to link the void in between the new and old society so Lewis may need to face this experience once Krasnow leaves. There might be reduced spirits and also reduced efficiency at this phase which must not be taken as an obstacle. It is throughout this stage that Lewis will certainly need to provide assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this shift simpler by making Lewis get associated with the department a year before his real departure. According to Bridges' Model, stage three will certainly produce openness to learning, High energy and commitment as individuals will certainly embrace the adjustment (Bridges, 2004).
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the significance of 'safety and security needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and out of danger' is at the second degree of needs. Before an employee can be made to create mentally, he needs to have his 'Physiological 'and 'Security' requires fulfilled.
SWOT Analysis for Mary Kay Cosmetics Inc Sales Force Incentives B Case Study
Implication of Analysis.
The OB analysis has actually looked at different theories to comprehend exactly how to deal with the present situation at hand. The following 3 alternatives have been recommended to help Lewis manage the organizational difficulties in the marketing department. Each of these choices has been recommended for easing the transition needed to bring the marketing division in accordance with the requirements of the marketplace and also for making the cultural change that would certainly comply with as soon as the present leader leaves.
Combination of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Workflow.
Assessment of Alternatives.
Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business marketing along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and also advertising and marketing features.
The advantage of this method is that it will integrate both functions while decreasing the requirement for working with an extra resource for advertising. In addition to this, Lewis would certainly be heading the advertising division and also regardless her substitute would certainly be required for the present role that she is carrying out. The disadvantage of this choice is that outside hiring might produce bitterness from interior personnel that may be considering the setting of EVP after Lewis takes over Krasnow's setting.
Separating Adverting as well as Production: Given the affordable stress as well as excellent quality job required from the ad agency, it is advised that Lewis needs to enable the manufacturing unit to be a different feature from the marketing system. Since the majority of advertising agencies had these 2 functions as separate devices, it makes even more sense to adhere to the norm. In addition to this, both functions might have the ability to concentrate on their core activates much more effectively. The drawback of this technique would be that extra expenses would have to be birthed for establishing up separate production functions. A manufacturing head might have to be hired which can boost overheads for the company.
Integration of Advertising with Operations: Because Lewis is already taking care of the advertising and operations departments all at once; it makes good sense to integrate both features given that she has been efficiently taking care of both ends. The fact that the two departments currently have major distinctions over allocation of sources recommends that this integration may have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this relocation particularly as it would certainly place excessive concern over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the marketing division suggests that these two divisions would be culturally diverse. Along with this, Lewis might not have the ability to use one kind of management style to both departments which might lead to inadequacy in either one of both features.
Recommendation.
An evaluation of the 3 alternatives indicates that assimilation of advertising as well as operations would certainly not be a feasible move due to the vast distinctions in between the two divisions regardless of the truth that presently Lewis is handling both. While splitting up of the manufacturing feature may have been a positive move for the marketing department, the fact that it would indicate positioning a 3rd function under Lewis's wing indicates this must be avoided.
Action Plan.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.
Advertising and Marketing features would certainly be combined.
Judith Shapiro will be worked with to take Lewis's place as SVP of advertising and marketing.
Manufacturing function will remain component of marketing under advertising feature.
Lewis will certainly separate herself from procedures.
A democratic management style with worker empowerment will certainly be made use of in advertising division.
Open up door policy and also focus on cross department interaction will certainly be focused on removing disharmony.
Contingency strategy.
If the assimilation does not exercise as prepared, a contingency plan would certainly adhere to which would divide the production feature from the advertising and marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will certainly be divided by positioning it under an SVP production.