Background and Facts
Punchtab Inc an office products retailer for tiny and also medium sized businesses has just recently been associated with preparing for a merger with its competitor House Deport, which has affected effectiveness degrees in departmentswith the senior supervisor involved in lawful difficulties presented by the government Trade Commission. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With challenges in the kind of a possible cultural change and low employee spirits, the organization is in need of a complete reengineering initiative at the advertising and marketing department.Issue Statement

The possible social change at the advertising department of Punchtab Inc is increasing uncertainty in the working environment bring about numerous 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 function in impacting critical choices considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Offered the reality that the store has a global existence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to affect efficiency or critical objectives. Federal Profession Commission's antitrust match versus the merger took up beneficial time of the company's elderly administration recommending that 'political' factors can have severe ramifications for an international company.
Economic Factors: Financial factors such as the introduction of small businesses in the international circumstance recommend that Punchtab Inc is thriving in an atmosphere where there is potential growth of organisations. Truth that store clients are primarily looking for office supplies for home offices recommends that the market has a rising fad of business owners as well as home based organisations.
Social factors: Social patterns in the economy show that customers are seeking ease in addition to appealing rates. Marketing research demonstrates how the customer for Punchtab Inc does not have recognition about discovering remedies which can use a mix of comfort as well as low costs.
Technological factors: Technology plays a crucial function in Punchtab Inc's organisation approach especially as the company is piloting Modern technology facilities which would certainly use modern technology sales as well as assistance in the form of memory upgrades, outer installments. (Recap of PEST in appendix 2).
OB Issues as well as Symptoms.
Several underlying Organizational Behavior problems can be seen in Punchtab Inc's case as highlighted in this area.
Uneasiness concerning cultural modification: There is apprehension about a cultural adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member currently showing unhappiness over this potential relocation. This expected modification has actually developed stress and anxiety in the workplace which has been combined with the past tension of preparing the firm for a potential merger with Residence Deport.

Stressful Task Setting for Newcomers: There is shortage of employees that can match the demanding setting of a busy organization. Not just does this lead to trouble in finding the best people, it puts anxiety on new hires as can not stand up to the pace as well as stress that the organization anticipates them to birth.
Double Reporting Lines: Novices discover this organizational culture troublesome and also difficult to deal with particularly as dotted line connections are meant to be weaker generally and also objective setting and efficiency assessment is still done by the strong line supervisor. This suggests that beginners can shed clarity regarding their respective duties as well as purposes especially as dotted line coverage does not keep them in direct interaction with the solid line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had been guessed that the latter would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been capable and also appropriate for the job but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.
Concern & Work Instability: Anxiety as well as insecurity can be determined as two significant concerns that Lewis would be managing specifically as the merger has actually currently be cancelled and 2 elderly executives of the advertising division would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would not just supervise of brining about a social adjustment yet would additionally have to confirm herself in her brand-new role.
Inappropriate Monitoring Style of Leader: Lewis's management design as well as its incompatibility with the marketing department's function can additionally be seen as an OB challenge especially as she has actually been utilized to dealing with problems in the procedures division where workers are educated to focus on processes and obtain them. The marketing department on the other hand can be viewed as a team of people who are used to being supported by Krasnow that concentrated more on result than processes.
Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, advertising, merchandizing and also operations specifically over the allocation of the advertising and marketing mix can be determined as another OB problem. Although the advertising department does not share the exact same vision as the other two departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also operations departments do not concur over the advertising mix allowance among each other either.
Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be identified as one more OB issue which could require more attention. The fact that the advertising and marketing areas in the marketing department are disconnected is stopping both departments from gaining from each other's experience and knowledge. Integration of advertising with retailing and also operations would end up being more difficult if the advertising and marketing division itself is broken down which can be another potential OB concern.
Punchtab Inc Analysis
Different theories have been made use of to clarify the scenarios to get more clarity about the scenario at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are passive as well as lazy, have little aspiration and withstand adjustment. The difficult variation of this theory highlighted threat, limited controls, dangers as well as penalties. In time it generates low productivity, refined sabotage as well as competition (Deal, 2003). The scenario at Punchtab Inc is not entirely adhering to Concept X, it can be seen that brand-new hires are locating this setting rather stressful which might ultimately lead to a higher inclination of the monitoring in the direction of Concept X. According to McGregor's advocated view, which he called Concept Y, the essential job of the management is to set up organizational problems so that people can accomplish their own objectives best by guiding their efforts towards organizational benefits. If people find no satisfaction in their job, the monitoring would certainly have little option but to depend on concept X and also outside control (Bargain, 2003). Even while examining Lewis's administration style, concept X may have appropriated in the operations department to some extent yet the Marketing department would certainly call for reliance on Theory Y to get the imagination and also originality from the teams.
Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing consistency between the marketing and also advertising division is worried, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing as well as advertising and marketing division's job, there might be the same first separate which could lead to the 2nd phase of 'storming' where the groups test one another.
Bridges' Shift Version: As per William Bridge's theory (appendix 4), individuals are fairly uncomfortable with modification, which is apparent by the scenario at Punchtab Inc The situation can be seen as a regular training course of life if is examined based on Bridge's theory where he clarifies that individuals experience three stages of shift when they experience adjustment. 'Closing, shedding as well as Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people exist with change, they go into stage one and so there might be emotions like despair, unpredictability, aggravation, anger, fear, rejection and also disorientation.The scenario at the marketing division of Punchtab Inc is similar so Lewis can obtain comfy with the concept that it is not phenomenal habits. In the 2nd phase, there may be a requirement to link the void between the brand-new and also old culture so Lewis might need to encounter this challenge as soon as Krasnow leaves. There might be reduced morale and also low productivity at this stage which need to not be taken as a problem. It is during this stage that Lewis will certainly have to provide assistance to the department to ensure that they can find a sense of direction. It can be seen just how Krasnow has actually already made this transition much easier by making Lewis obtain associated with the division a year prior to his actual separation. According to Bridges' Version, phase 3 will certainly produce openness to understanding, High power and dedication as people will accept the change (Bridges, 2004).

Maslow's Need power structure: The OB issue pertaining to insecurity at the workplace has been triggered first of all by the change in monitoring as well as second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the importance of 'protection requires as being a lower 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 really feel protected and out of danger' is at the second level of needs. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Safety and security' requires met. This shows that unless the employees are made to really feel secure regarding their current employment status in Punchtab Inc they may not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Punchtab Inc Case Study
Ramification of Analysis.
The OB analysis has actually looked at different theories to comprehend just how to cope with the existing situation handy. The following three options have actually been suggested to assist Lewis handle the organizational challenges in the advertising department. Each of these choices has been recommended for reducing the transition needed to bring the marketing division according to the requirements of the market as well as for making the cultural change that would comply with once the current leader leaves.
Assimilation of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Advertising with Procedures.
Assessment of Alternatives.
Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing firm of Punchtab Inc is currently toughness for the organization in regards to conserving up on expenses connected to marketing and also promo. Because no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing function, this is a positive chance for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both marketing and advertising features.
The advantage of this approach is that it will integrate the two functions while reducing the requirement for working with an additional source for advertising. In addition to this, Lewis would be heading the marketing division as well as all the same her substitute would certainly be needed for the current function that she is doing. The drawback of this alternative is that outside hiring might bring about resentment from interior personnel who may be looking at the setting of EVP after Lewis takes over Krasnow's position.
Dividing Adverting as well as Production: Offered the affordable stress and also high top quality job required from the marketing agency, it is suggested that Lewis ought to allow the production system to be a separate function from the marketing system. Since the majority of advertising companies had these two features as different systems, it makes more sense to comply with the norm.
Combination of Advertising And Marketing with Procedures: Because Lewis is currently looking after the advertising and marketing as well as procedures divisions at the same time; it makes sense to incorporate the two functions considering that she has been successfully dealing with both ends. The fact that the two departments currently have significant differences over allocation of sources suggests that this combination may have the ability to cause harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this relocation specifically as it would certainly place way too much worry over Lewis's shoulders. The reality that Lewis has to adapt her management design for the advertising and marketing department recommends that these 2 divisions would be culturally varied. In addition to this, Lewis might not be able to use one kind of leadership design to both divisions which can lead to ineffectiveness in either among both functions.
Recommendation.
An evaluation of the 3 options indicates that combination of advertising and procedures would certainly not be a possible step due to the substantial differences between the two departments in spite of the truth that currently Lewis is taking care of both. While splitting up of the production feature might have been a favorable relocation for the advertising department, the fact that it would indicate placing a 3rd function under Lewis's wing suggests this should be prevented.
Action Strategy.

Lewis will take over the role of EVP Marketing after Krasnow leaves.
Advertising and Marketing features would certainly be combined.
Judith Shapiro will be hired to take Lewis's place as SVP of advertising and marketing.
Production function will remain part of advertising and marketing under marketing feature.
Lewis will certainly divide herself from procedures.
An autonomous management style with staff member empowerment will certainly be made use of in advertising and marketing department.
Open up door plan and also focus on cross departmental interaction will certainly be focused on removing disharmony.
Contingency strategy.
If the integration does not work out as prepared, a contingency plan would adhere to which would separate the manufacturing feature from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will absolutely be separated by positioning it under an SVP production.