Background and FactsRisk Management At Lehman Brothers 2007 2008 a workplace products store for tiny as well as moderate sized services has actually recently been associated with preparing for a merging with its rival Residence Deport, which has actually influenced performance levels in departmentswith the elderly supervisor involved in lawful issues presented by the government Profession Payment. With the Marketing Head putting forward 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 duty in the near future. With difficulties in the type of a possible cultural change and reduced employee morale, the organization requires a total reengineering initiative at the advertising department.
The potential cultural adjustment at the advertising division of Risk Management At Lehman Brothers 2007 2008 is enhancing unpredictability in the working environment causing different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis
Political Factors: Political factors play a major role in influencing critical decisions since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the fact that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to impact performance or tactical objectives. Federal Profession Payment's antitrust suit versus the merger used up important time of the company's senior management suggesting that 'political' factors can have significant ramifications for a worldwide company.
Economic Factors: Economic factors such as the appearance of small businesses in the global circumstance recommend that Risk Management At Lehman Brothers 2007 2008 is prospering in an atmosphere where there is possible growth of businesses. Along with this, fact that store customers are primarily seeking office products for home offices recommends that the marketplace has a climbing trend of business owners as well as home based organisations.
Social factors: Social patterns in the economy reveal that consumers are trying to find benefit in addition to appealing prices. Market research demonstrates how the client for Risk Management At Lehman Brothers 2007 2008 does not have understanding regarding finding solutions which can use a combination of comfort and also affordable.
Technological factors: Technology plays an important role in Risk Management At Lehman Brothers 2007 2008's service strategy especially as the company is piloting Innovation centers which would certainly supply innovation sales and also support in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).
OB Issues as well as Manifestations.
Several underlying Organizational Actions problems can be seen in Risk Management At Lehman Brothers 2007 2008's case as highlighted in this section.
Uneasiness concerning social change: There is worry about a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the personnel already showing discontent over this potential action. This anticipated change has actually produced tension in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Demanding Task Atmosphere for Newcomers: There is shortage of workers that can match the stressful environment of a hectic company. Not just does this cause trouble in locating the appropriate people, it puts anxiety on brand-new hires as can not endure the rate as well as pressure that the organization anticipates them to birth.
Double Reporting Lines: Newbies find this organizational culture troublesome and challenging to manage particularly as dotted line partnerships are indicated to be weaker in general and also objective setup and also performance analysis is still done by the solid line supervisor. This suggests that newcomers could lose clearness regarding their corresponding roles and objectives especially as populated line coverage does not keep them in straight communication with the solid line managers.
Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified as well as proper for the job but the reality that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.
Worry & Task Instability: Worry and instability can be recognized as two significant issues that Lewis would be dealing with specifically as the merger has now be cancelled as well as 2 elderly executives of the advertising and marketing department would be leaving. The whole responsibility of the division would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural modification but would certainly also need to prove herself in her brand-new role.
Inappropriate Monitoring Style of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing division's function can likewise be viewed as an OB difficulty specifically as she has been used to taking care of concerns in the operations division where personnel are shown to concentrate on procedures and also obtain them right. The marketing department on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow that concentrated extra on outcome than processes.
Interdepartmental Arguments: Interdepartmental arguments between three departments, advertising, merchandizing and also procedures specifically over the allocation of the marketing mix can be identified as another OB problem. Although the marketing division does not share the exact same vision as the various other two departments concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allotment among each other either.
Disintegration in Marketing Department: Disintegration between the advertising and marketing departments can be identified as one more OB problem which could require more attention. The reality that the marketing and advertising sections in the advertising and marketing department are disconnected is protecting against both divisions from obtaining from each other's experience as well as expertise. Combination of advertising with retailing and procedures would certainly come to be harder if the advertising department itself is degenerated which can be an additional possible OB issue.
Risk Management At Lehman Brothers 2007 2008 Analysis
Various concepts have been used to explain the situations to obtain more quality concerning the circumstance available.
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are easy and careless, have little passion and also withstand modification. The situation at Risk Management At Lehman Brothers 2007 2008 is not completely following Concept X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might ultimately lead to a greater inclination of the administration towards Theory X. Even while analyzing Lewis's administration style, theory X may have been appropriate in the operations division to some extent but the Advertising department would certainly call for dependence on Concept Y in order to obtain the imagination as well as creativity from the groups.
Tuckman's Synergy Theory: As far as Lewis's problem about bringing consistency in between the advertising and marketing as well as advertising and marketing department is concerned, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and also advertising and marketing division's job, there may be the same preliminary separate which might lead to the 2nd stage of 'storming' where the groups test one an additional.
Bridges' Transition Design: According To William Bridge's theory (appendix 4), individuals are rather uncomfortable with modification, which is evident by the scenario at Risk Management At Lehman Brothers 2007 2008 The situation can be seen as a typical course of life if is studied based on Bridge's concept where he clarifies that people experience three phases of transition when they experience adjustment. 'Ending, shedding as well as Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there might be emotions like sadness, uncertainty, frustration, temper, concern, rejection and also disorientation.The circumstance at the marketing division of Risk Management At Lehman Brothers 2007 2008 is similar so Lewis can get comfortable with the suggestion that it is not amazing actions. In the 2nd stage, there may be a requirement to connect the space between the brand-new and old culture so Lewis may have to face this ordeal as soon as Krasnow leaves. There may be low spirits as well as low productivity at this phase which need to not be taken as a setback. It is during this stage that Lewis will have to offer guidance to the department to make sure that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis obtain associated with the division a year before his actual departure. As per Bridges' Version, phase 3 will produce visibility to knowing, High power and dedication as people will accept the change (Bridges, 2004).
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the value of 'protection needs as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and also out of danger' is at the second degree of requirements. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and also 'Safety and security' needs met.
SWOT Analysis for Risk Management At Lehman Brothers 2007 2008 Case Study
Ramification of Analysis.
The OB analysis has checked out different theories to understand exactly how to manage the existing scenario handy. The complying with three alternatives have been suggested to assist Lewis deal with the organizational obstacles in the advertising department. Each of these alternatives has actually been proposed for relieving the shift needed to bring the advertising and marketing division according to the needs of the market and also for making the cultural change that would adhere to once the existing leader leaves.
Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Workflow.
Examination of Alternatives.
Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing and also advertising and marketing features.
The advantage of this method is that it will certainly integrate both functions while lowering the requirement for employing an extra source for advertising. Lewis would be heading the marketing division and also in any case her replacement would be required for the existing duty that she is performing. The disadvantage of this option is that external hiring might produce bitterness from inner personnel who may be considering the placement of EVP after Lewis takes control of Krasnow's position.
Separating Adverting as well as Manufacturing: Given the competitive pressures and also premium quality work called for from the ad agency, it is recommended that Lewis should allow the production system to be a separate feature from the advertising device. Given that the majority of ad agency had these 2 functions as separate devices, it makes more sense to adhere to the standard. Both functions may be able to focus on their core turns on much more efficiently. The disadvantage of this strategy would certainly be that extra prices would certainly have to be birthed for setting up separate production features. Along with this, a production head may need to be hired which might raise overheads for the company.
Assimilation of Marketing with Operations: Given that Lewis is already caring for the marketing and also procedures divisions concurrently; it makes sense to incorporate both features given that she has been efficiently caring for both ends. The reality that both departments already have significant distinctions over allowance of sources recommends that this assimilation might be able to bring about consistency particularly as Lewis would be heading both ends.However there are different drawbacks of this step especially as it would place way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her management design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally varied. Along with this, Lewis may not be able to use one kind of leadership style to both divisions which can lead to inadequacy in either among both functions.
An analysis of the 3 options suggests that assimilation of advertising and marketing as well as operations would not be a practical action due to the large distinctions between the 2 divisions regardless of the truth that currently Lewis is handling both. While separation of the manufacturing function might have been a beneficial step for the marketing department, the reality that it would certainly suggest positioning a third feature under Lewis's wing means this must be avoided.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.
Marketing and advertising features would be merged.
Judith Shapiro will be worked with to take Lewis's place as SVP of marketing and advertising.
Manufacturing function will certainly stay part of marketing under advertising and marketing function.
Lewis will certainly separate herself from operations.
An autonomous management design with employee empowerment will be used in marketing division.
Open up door policy as well as focus on cross departmental communication will certainly be focused on eliminating dissonance.
If the integration does not exercise as planned, a contingency strategy would certainly comply with which would certainly separate the production feature from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will certainly be separated by placing it under an SVP production.