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

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Background and Facts

Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans a workplace materials store for little as well as medium sized companies has just recently been involved in preparing for a merger with its rival Home Deport, which has influenced efficiency levels in departmentswith the senior manager involved in lawful issues put forth by the federal Trade Payment. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With obstacles in the form of a potential cultural adjustment and also low staff member morale, the organization is in need of a full reengineering initiative at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is enhancing uncertainty in the working environment causing different obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing calculated decisions since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Provided the reality that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might be able to influence performance or strategic objectives. Federal Trade Payment's antitrust match versus the merger occupied important time of the company's elderly administration suggesting that 'political' factors can have significant implications for a global service.

Economic Factors: Financial factors such as the development of small companies in the worldwide situation recommend that Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is prospering in an atmosphere where there is prospective development of organisations. In addition to this, fact that shop consumers are mainly looking for workplace supplies for office recommends that the market has a rising trend of entrepreneurs and home organisations.

Social factors: Social fads in the economic climate reveal that customers are looking for convenience along with eye-catching rates. Marketing research shows how the consumer for Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans lacks recognition concerning discovering services which can offer a mix of convenience and also inexpensive.

Technical factors: Innovation plays an important duty in Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans's company method particularly as the organization is piloting Technology facilities which would certainly offer innovation sales as well as support in the form of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Behavior concerns can be seen in Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans's case as highlighted in this section.

Apprehensions about cultural change: There is concern concerning a cultural adjustment that would happen once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the team member currently showing unhappiness over this possible relocation. This predicted adjustment has actually developed anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of workers that can match the difficult setting of a fast-paced company. Not only does this cause problem in discovering the appropriate individuals, it places anxiety on brand-new hires as can not stand up to the pace and also pressure that the organization expects them to bear.

Dual Reporting Lines: Beginners find this business culture difficult as well as challenging to handle specifically as dotted line partnerships are suggested to be weaker in general and objective setup as well as performance assessment is still done by the strong line supervisor. This implies that newbies can lose clarity about their corresponding duties as well as objectives particularly as dotted line reporting does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been capable as well as proper for the job yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Instability: Concern as well as insecurity can be identified as 2 major issues that Lewis would be dealing with especially as the merger has actually now be terminated and two elderly executives of the advertising and marketing division would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining about a social adjustment however would likewise have to verify herself in her new role.

Inappropriate Management Style of Leader: Lewis's monitoring style and its incompatibility with the marketing division's role can likewise be seen as an OB obstacle especially as she has actually been made use of to managing issues in the operations department where employees are instructed to concentrate on procedures and also get them right. The advertising and marketing department on the other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be recognized as another OB problem. The advertising division does not share the very same vision as the various other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising departments can be determined as one more OB problem which might need more attention. The fact that the marketing and advertising areas in the marketing department are separated is preventing both divisions from gaining from each other's experience and also expertise. Integration of advertising and marketing with merchandising and operations would certainly become more difficult if the marketing department itself is disintegrated which can be an additional possible OB problem.

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

Various theories have been used to clarify the situations to obtain further quality concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are passive as well as careless, have little passion and resist modification. The hard version of this concept emphasized browbeating, tight controls, risks and punishments. Over time it produces reduced performance, subtle sabotage and also competition (Bargain, 2003). Although the scenario at Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is not entirely complying with Concept X, it can be seen that new hires are finding this atmosphere instead demanding which may eventually cause a higher disposition of the management in the direction of Concept X. Based on McGregor's supported view, which he called Theory Y, the crucial task of the management is to arrange business problems so that people can accomplish their own goals best by directing their efforts in the direction of business incentives. If people locate no contentment in their work, the administration would certainly have little choice however to rely on theory X and external control (Deal, 2003). Even while assessing Lewis's administration design, theory X might have appropriated in the operations division to some extent but the Marketing division would certainly require reliance on Theory Y so as to get the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern regarding bringing consistency in between the marketing as well as advertising and marketing division is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and advertising and marketing department's job, there may be the exact same first detach which can lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Change Model: According To William Bridge's theory (appendix 4), people are fairly unpleasant with modification, which is evident by the situation at Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans The scenario can be seen as a regular program of life if is examined based on Bridge's concept where he clarifies that people go through three phases of shift when they experience adjustment. 'Closing, losing and Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter phase one therefore there may be emotions like sadness, uncertainty, aggravation, rage, concern, rejection and disorientation.The situation at the marketing department of Note On Employee Stock Ownership Plans Esops And Phantom Stock Plans is comparable so Lewis can get comfortable with the idea that it is not phenomenal actions. In the second phase, there may be a need to bridge the gap in between the brand-new as well as old society so Lewis might need to face this experience as soon as Krasnow leaves. There might be low morale as well as reduced performance at this stage which should not be taken as a trouble. It is throughout this stage that Lewis will certainly need to give advice to the division to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift simpler by making Lewis obtain associated with the division a year prior to his actual departure. According to Bridges' Model, phase three will certainly cause visibility to discovering, High energy and commitment as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'safety needs as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure as well as out of threat' is at the second degree of requirements. Before a worker can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

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



Implication of Analysis.

The OB analysis has considered numerous concepts to understand just how to deal with the present scenario at hand. The adhering to three options have actually been recommended to assist Lewis take care of the organizational difficulties in the advertising division. Each of these options has actually been suggested for relieving the shift needed to bring the advertising and marketing department according to the requirements of the market and also for making the cultural modification that would certainly follow as soon as the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production functions. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising along with firm and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing and also advertising and marketing features.

The advantage of this method is that it will certainly incorporate the two features while reducing the requirement for hiring an additional resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing division and also in any kind of case her replacement would be needed for the present function that she is carrying out. The disadvantage of this alternative is that outside hiring may cause resentment from internal workers that may be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Provided the affordable stress and high quality job needed from the advertising and marketing firm, it is advised that Lewis ought to enable the production system to be a different feature from the marketing unit. Given that many marketing firms had these two functions as different units, it makes more sense to comply with the standard.

Integration of Advertising with Workflows: Because Lewis is currently looking after the advertising as well as procedures departments simultaneously; it makes good sense to integrate both functions because she has been effectively caring for both ends. The truth that the two departments currently have major distinctions over appropriation of resources recommends that this integration may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous negative aspects of this move especially as it would certainly place too much concern over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the marketing division recommends that these 2 departments would be culturally diverse. In addition to this, Lewis might not have the ability to apply one kind of management design to both departments which can result in inefficiency in either among both features.

Referral.



An assessment of the 3 choices indicates that assimilation of advertising as well as operations would not be a feasible action due to the huge distinctions between the two departments regardless of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a beneficial relocation for the marketing division, the fact that it would certainly indicate placing a 3rd function under Lewis's wing means this ought to be stayed clear of.

Action Plan.
Recommendation
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly continue to be part of marketing under advertising and marketing function.

Lewis will divide herself from operations.

An autonomous leadership style with employee empowerment will certainly be made use of in marketing division.

Open up door plan and focus on cross departmental communication will certainly be focused on eliminating dissonance.

Contingency plan.

If the integration does not work out as prepared, a backup strategy would follow which would certainly divide the production function from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be divided by placing it under an SVP manufacturing.