Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans Case Study Solution


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Background and Facts

Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans an office supplies retailer for small as well as moderate sized businesses has actually just recently been involved in planning for a merging with its rival Home Deport, which has influenced efficiency degrees in departmentswith the elderly supervisor associated with lawful complications put forth by the federal Trade Payment. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With obstacles in the type of a possible social modification as well as reduced employee spirits, the company is in need of a full reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is raising uncertainty in the workplace leading to various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical decisions because Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may have the ability to affect efficiency or tactical objectives. Federal Trade Compensation's antitrust fit versus the merger occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have serious effects for a global service.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation suggest that Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is thriving in an environment where there is possible growth of organisations. In addition to this, fact that store consumers are mainly trying to find office supplies for home offices recommends that the marketplace has a climbing pattern of business owners and also online companies.

Social factors: Social fads in the economic situation reveal that customers are searching for comfort as well as appealing rates. Market research shows how the consumer for Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans does not have recognition concerning discovering remedies which can offer a mix of ease and inexpensive.

Technical factors: Technology plays an essential function in Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans's service strategy especially as the organization is piloting Modern technology centers which would certainly use technology sales as well as assistance in the form of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Actions issues can be seen in Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans's case as highlighted in this section.

Concerns about cultural adjustment: There is concern concerning a cultural change that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the staff members currently showing discontent over this possible action. This expected change has actually developed anxiety in the office which has been coupled with the previous tension of preparing the company for a possible merger with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a hectic company. Not just does this lead to problem in locating the right people, it puts anxiety on brand-new hires as can not hold up against the speed as well as stress that the company anticipates them to bear.

Twin Reporting Lines: Newcomers discover this organizational society difficult and difficult to cope with particularly as dotted line relationships are meant to be weak generally as well as objective setting and also performance analysis is still done by the strong line manager. This means that novices could lose quality regarding their corresponding duties and objectives particularly as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been capable as well as proper for the work yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Anxiety and also insecurity can be determined as two significant problems that Lewis would be dealing with especially as the merger has currently be terminated as well as 2 elderly executives of the advertising division would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining about a cultural change but would also have to show herself in her new duty.

Inappropriate Management Style of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing department's duty can likewise be seen as an OB obstacle especially as she has actually been used to managing concerns in the procedures department where personnel are shown to concentrate on processes and also get them right. The advertising division on the various other hand can be seen as a team of people that are made use of to being nurtured by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 divisions, marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as an additional OB worry. Although the advertising and marketing department does not share the very same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix allotment amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be determined as one more OB issue which could require additional focus. The fact that the marketing and advertising sections in the advertising and marketing division are detached is avoiding both departments from getting from each other's experience and proficiency. Combination of advertising and marketing with retailing and operations would certainly come to be harder if the advertising division itself is disintegrated which can be one more prospective OB concern.

Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans Analysis

Different concepts have been made use of to describe the conditions to obtain more clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are passive as well as careless, have little aspiration as well as resist change. The situation at Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is not completely adhering to Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which might at some point lead to a higher disposition of the administration in the direction of Theory X. Also while evaluating Lewis's administration style, theory X may have been ideal in the procedures department to some level yet the Advertising and marketing division would call for reliance on Concept Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Concept: As much as Lewis's concern regarding bringing consistency between the marketing as well as advertising and marketing department is worried, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising and marketing and also marketing department's work, there might be the same preliminary separate which could lead to the 2nd phase of 'storming' where the teams test one an additional.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are rather uneasy with modification, which is noticeable by the circumstance at Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans The circumstance can be seen as a typical training course of life if is examined according to Bridge's theory where he explains that people experience three phases of change when they experience change. 'End, losing and Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they enter phase one therefore there may be feelings like despair, uncertainty, irritation, temper, anxiety, rejection as well as disorientation.The situation at the advertising and marketing department of Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is similar so Lewis can get comfortable with the suggestion that it is not remarkable behavior. In the 2nd stage, there may be a need to bridge the space in between the brand-new and also old culture so Lewis might need to encounter this ordeal when Krasnow leaves. There may be reduced spirits as well as low productivity at this stage which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly have to provide guidance to the department to ensure that they can find a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis get involved in the division a year before his actual departure. Based on Bridges' Design, phase 3 will certainly produce visibility to knowing, High energy and also dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to insecurity at the office has been triggered to start with by the change in monitoring and second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the importance of 'protection requires as being a reduced level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure as well as safe' is at the 2nd level of demands. Before a worker can be made to establish psychologically, he needs to have his 'Physical 'and also 'Security' requires fulfilled. This indicates that unless the workers are made to feel protected about their present work standing in Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans Case Study

Implication of Analysis.

The OB analysis has actually checked out different concepts to recognize exactly how to handle the present scenario available. The adhering to 3 options have been suggested to help Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these choices has actually been suggested for relieving the shift required to bring the marketing division in accordance with the demands of the marketplace and for making the social change that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Production features. Combination of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing as well as marketing functions.

The advantage of this strategy is that it will integrate both functions while decreasing the demand for employing an extra source for advertising. Lewis would be heading the advertising department and in any case her substitute would be needed for the present duty that she is executing. The downside of this option is that outside hiring might produce resentment from internal workers that might be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable pressures and also high quality work required from the advertising company, it is recommended that Lewis should permit the production system to be a different feature from the marketing unit. Considering that many advertising and marketing agencies had these 2 features as different units, it makes even more sense to follow the norm.

Assimilation of Advertising And Marketing with Procedures: Since Lewis is already caring for the advertising and operations divisions simultaneously; it makes good sense to integrate both features because she has actually been successfully looking after both ends. The truth that both departments currently have significant differences over appropriation of sources recommends that this integration may be able to cause consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this step specifically as it would certainly put way too much worry over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the marketing department recommends that these 2 departments would certainly be culturally varied. Along with this, Lewis might not have the ability to use one kind of management design to both divisions which might lead to ineffectiveness in either one of the two features.


An assessment of the 3 alternatives suggests that integration of advertising and marketing and procedures would not be a possible move due to the vast differences between the two divisions regardless of the reality that currently Lewis is handling both. While splitting up of the production function may have been a beneficial move for the advertising and marketing department, the truth that it would certainly imply putting a third function under Lewis's wing means this ought to be prevented.

Activity Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly stay part of advertising under marketing function.

Lewis will separate herself from procedures.

An autonomous management design with worker empowerment will certainly be made use of in advertising department.

Open door policy and focus on cross department interaction will be aimed at eliminating disharmony.

Contingency plan.

If the assimilation does not exercise as planned, a contingency plan would certainly follow which would certainly divide the manufacturing function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will absolutely be separated by putting it under an SVP production.