Pension Management At General Motors Case Study Solution


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Pension Management At General Motors Case Study Solution

Background and Facts

Pension Management At General Motors an office products store for tiny and average sized businesses has actually recently been involved in preparing for a merger with its competitor Residence Deport, which has actually influenced efficiency levels in departmentswith the senior supervisor involved in lawful difficulties presented by the federal Profession Compensation. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With obstacles in the form of a potential social adjustment and reduced worker morale, the company requires a total reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising department of Pension Management At General Motors is raising uncertainty in the working environment bring about numerous challenges 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 major role in affecting tactical decisions considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Payment's intervention while doing so. Given the fact that the store has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may have the ability to influence performance or tactical goals. Federal Trade Compensation's antitrust suit versus the merger occupied useful time of the company's senior administration recommending that 'political' factors can have severe ramifications for a global company.

Economic Factors: Financial factors such as the development of small businesses in the worldwide circumstance recommend that Pension Management At General Motors is thriving in a setting where there is prospective development of services. Truth that shop clients are mostly looking for office products for residence workplaces recommends that the market has an increasing pattern of business owners and residence based businesses.

Social factors: Social trends in the economy reveal that customers are searching for convenience as well as attractive prices. Market research demonstrates how the consumer for Pension Management At General Motors lacks understanding concerning finding options which can provide a mix of comfort as well as inexpensive.

Technological factors: Innovation plays a vital duty in Pension Management At General Motors's organisation approach especially as the organization is piloting Technology facilities which would offer innovation sales and assistance in the type of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Habits issues can be seen in Pension Management At General Motors's case as highlighted in this section.

Uneasiness regarding social change: There is uneasiness about a social modification that would occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with the majority of the team member currently revealing discontent over this potential action. This predicted change has produced stress and anxiety in the work environment which has been combined with the past stress of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of employees that can match the demanding setting of a fast-paced organization. Not only does this lead to problem in discovering the best individuals, it places stress and anxiety on brand-new hires as can not stand up to the rate and pressure that the organization anticipates them to birth.

Double Coverage Lines: Newcomers discover this organizational society difficult and tough to cope with particularly as populated line connections are meant to be weaker generally as well as objective setup and also efficiency examination is still done by the solid line supervisor. This indicates that novices can lose quality about their respective duties and also objectives specifically as dotted line reporting does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's placement came as an impact to her morale. Lewis might have been capable as well as appropriate for the task but the truth that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Instability: Worry and also insecurity can be identified as two significant worries that Lewis would be taking care of especially as the merging has now be terminated and two senior execs of the advertising and marketing division would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a social adjustment but would certainly likewise have to verify herself in her new role.

Incompatible Monitoring Style of Leader: Lewis's monitoring style and also its conflict with the marketing division's duty can additionally be viewed as an OB obstacle particularly as she has actually been made use of to handling concerns in the operations department where workers are instructed to concentrate on procedures and also obtain them right. The marketing department on the other hand can be viewed as a team of people that are made use of to being supported by Krasnow that focused a lot more on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be recognized as one more OB issue. The advertising and marketing department does not share the very same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and procedures divisions do not concur over the advertising mix appropriation amongst one an additional either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising departments can be determined as an additional OB problem which might need additional focus. The fact that the advertising and marketing sections in the marketing division are disconnected is stopping both departments from acquiring from each various other's experience as well as experience. Integration of advertising with merchandising and procedures would certainly come to be more difficult if the advertising division itself is disintegrated which can be an additional prospective OB worry.

Pension Management At General Motors Analysis

Different concepts have actually been utilized to clarify the scenarios to get more clarity about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are passive as well as lazy, have little ambition and withstand change. The difficult version of this concept stressed threat, limited controls, dangers and penalties. In time it generates low efficiency, subtle sabotage as well as competition (Deal, 2003). The circumstance at Pension Management At General Motors is not entirely following Theory X, it can be seen that brand-new hires are finding this setting instead demanding which might ultimately lead to a greater disposition of the monitoring in the direction of Concept X. Based on McGregor's supported view, which he called Concept Y, the essential job of the monitoring is to organize business problems to make sure that individuals can achieve their own goals best by directing their initiatives in the direction of organizational rewards. If people locate no contentment in their job, the monitoring would have little option yet to depend on concept X and exterior control (Deal, 2003). Also while assessing Lewis's monitoring style, theory X might have been suitable in the procedures department somewhat yet the Advertising department would call for dependence on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: As for Lewis's worry regarding bringing harmony in between the advertising and marketing division is concerned, this would initially result in clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the first stage of team development, people might not bond, as they are busy locating their location in the group. By combining the marketing and advertising department's work, there may coincide first separate which can lead to the 2nd phase of 'storming' where the groups challenge each other. It is only throughout the 3rd phase or 'norming' when they would certainly come together to share suggestions prior to the group can bring about harmony in the fourth phase 'performing'.

When people are offered with adjustment, they enter stage one and so there might be emotions like despair, uncertainty, disappointment, rage, anxiety, denial and also disorientation.The circumstance at the marketing department of Pension Management At General Motors is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to offer assistance to the department so that they can find a sense of instructions. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis obtain involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB issue pertaining to insecurity at the work environment has been activated to start with by the modification in management and secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the relevance of 'protection requires as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected and untouched' goes to the 2nd level of demands. Before a worker can be made to create emotionally, he needs to have his 'Physiological 'and also 'Safety' requires met. This indicates that unless the personnel are made to really feel protected concerning their current employment status in Pension Management At General Motors they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Pension Management At General Motors Case Study

Implication of Analysis.

The OB analysis has looked at numerous theories to comprehend how to deal with the present circumstance handy. The adhering to 3 choices have been suggested to help Lewis take care of the organizational challenges in the advertising department. Each of these alternatives has actually been proposed for alleviating the shift required to bring the marketing department according to the demands of the market and for making the social modification that would certainly comply with when the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Production features. Combination of Advertising with Operations.

Assessment of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing company of Pension Management At General Motors is currently strength for the organization in regards to conserving up on overheads associated with marketing and promotion. Considering that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a favorable possibility for integrating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The advantage of this approach is that it will certainly integrate both features while reducing the need for employing an additional resource for advertising. Lewis would certainly be heading the marketing department and also in any kind of case her substitute would be required for the existing function that she is doing. The downside of this option is that exterior hiring may cause animosity from internal employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Offered the competitive pressures as well as high top quality job called for from the advertising agency, it is suggested that Lewis ought to permit the production unit to be a different function from the marketing system. Considering that a lot of advertising agencies had these 2 functions as separate devices, it makes even more feeling to follow the standard.

Assimilation of Advertising with Operations: Given that Lewis is already dealing with the marketing and also procedures departments at the same time; it makes good sense to integrate both features considering that she has been effectively caring for both ends. The truth that the two divisions currently have significant differences over allowance of resources suggests that this combination might have the ability to bring about harmony particularly as Lewis would be heading both ends.However there are numerous disadvantages of this action specifically as it would put too much worry over Lewis's shoulders. The truth that Lewis needs to adapt her management design for the marketing department suggests that these 2 divisions would be culturally varied. Along with this, Lewis might not have the ability to use one type of leadership design to both departments which might cause inadequacy in either among both features.


An analysis of the 3 alternatives suggests that assimilation of advertising and marketing and operations would certainly not be a possible relocation due to the huge distinctions between the two departments in spite of the reality that currently Lewis is managing both. While separation of the production feature may have been a positive step for the advertising division, the fact that it would certainly suggest putting a third function under Lewis's wing indicates this should be avoided.

Action Strategy.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Production feature will certainly continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will divide herself from procedures.

An autonomous leadership design with employee empowerment will be used in marketing department.

Open up door policy and also focus on cross departmental communication will certainly be targeted at removing disharmony.

Contingency strategy.

If the assimilation does not exercise as planned, a contingency strategy would follow which would divide the production function from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the production function will definitely be separated by positioning it under an SVP production.