Background and Facts
Riverbend Telephone Company an office supplies store for tiny and also average sized services has recently been involved in planning for a merger with its competitor Residence Deport, which has influenced effectiveness degrees in departmentswith the elderly manager involved in legal difficulties presented by the federal Trade Commission. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With difficulties in the form of a possible social modification as well as low staff member spirits, the company is in need of a complete reengineering initiative at the advertising division.Trouble Declaration
The possible social adjustment at the marketing department of Riverbend Telephone Company is boosting uncertainty in the working environment resulting in different difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant role in affecting critical decisions because Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Compensation's intervention at the same time. Given the fact that the shop has a global visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to affect performance or strategic objectives. Federal Profession Compensation's antitrust fit against the merger occupied beneficial time of the company's elderly management suggesting that 'political' factors can have major ramifications for a global service.
Economic Factors: Economic factors such as the development of small companies in the international scenario suggest that Riverbend Telephone Company is flourishing in an atmosphere where there is prospective development of organisations. In addition to this, fact that shop clients are mainly trying to find workplace products for home offices suggests that the market has an increasing trend of business owners as well as home services.
Social factors: Social fads in the economy show that customers are looking for convenience as well as appealing prices. Market research shows how the client for Riverbend Telephone Company lacks recognition regarding finding services which can supply a mix of benefit and also affordable.
Technological factors: Innovation plays an important duty in Riverbend Telephone Company's business approach specifically as the company is piloting Technology centers which would certainly use innovation sales and also support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).
OB Issues and also Symptoms.
Numerous underlying Organizational Actions issues can be seen in Riverbend Telephone Company's case as highlighted in this section.
Worries concerning social adjustment: There is concern concerning a social adjustment that would occur when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the staff members currently revealing discontent over this prospective move. This anticipated change has actually developed stress and anxiety in the workplace which has been coupled with the past stress and anxiety of preparing the company for a potential merger with Residence Deport.
Demanding Work Atmosphere for Newcomers: There is shortage of employees that can match the stressful setting of a fast-paced organization. Not only does this cause trouble in discovering the right people, it places stress on brand-new hires as can not stand up to the speed and also pressure that the company anticipates them to bear.
Dual Reporting Lines: Newcomers locate this organizational society troublesome as well as tough to handle especially as dotted line partnerships are implied to be weaker in general and also objective setting and performance examination is still done by the strong line manager. This means that newcomers can shed clearness about their respective roles and also purposes specifically as dotted line reporting does not keep them in direct communication with the strong 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 actually been hypothesized that the last would take Krasnow's setting came as an impact to her spirits. Lewis might have been qualified and also suitable for the job but the truth that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.
Concern & Job Instability: Concern and insecurity can be determined as two significant concerns that Lewis would be handling particularly as the merging has actually currently be terminated and two elderly execs of the advertising department would be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a social adjustment however would certainly also have to show herself in her brand-new duty.
Incompatible Administration Design of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing department's function can also be viewed as an OB challenge specifically as she has actually been used to taking care of problems in the operations department where personnel are educated to focus on procedures as well as get them right. The advertising department on the other hand can be seen as a team of people that are made use of to being nurtured by Krasnow that focused more on outcome than processes.
Interdepartmental Arguments: Interdepartmental differences in between 3 divisions, advertising, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be recognized as one more OB problem. The marketing division does not share the very same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allowance amongst one another either.
Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be recognized as another OB problem which might require further focus. The reality that the marketing and advertising areas in the marketing department are disconnected is preventing both departments from gaining from each other's experience as well as knowledge. Combination of advertising with retailing as well as operations would certainly end up being harder if the advertising department itself is disintegrated which can be another possible OB problem.
Riverbend Telephone Company Analysis
Numerous concepts have actually been made use of to clarify the conditions to obtain further clearness about the circumstance at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy as well as lazy, have little ambition as well as resist change. The hard version of this theory highlighted browbeating, tight controls, dangers as well as penalties. Gradually it produces reduced efficiency, subtle sabotage as well as competition (Deal, 2003). The circumstance at Riverbend Telephone Company is not entirely following Concept X, it can be seen that brand-new hires are locating this environment rather demanding which may at some point lead to a better disposition of the administration towards Theory X. Based on McGregor's supported sight, which he called Theory Y, the essential job of the management is to set up organizational problems to make sure that individuals can attain their very own goals best by directing their initiatives towards organizational rewards. If individuals locate no fulfillment in their job, the management would certainly have little selection but to rely upon theory X as well as outside control (Offer, 2003). Also while evaluating Lewis's management style, theory X may have appropriated in the operations department somewhat however the Advertising department would certainly call for reliance on Concept Y to get the creative thinking as well as creativity from the groups.
Tuckman's Team effort Concept: As far as Lewis's issue regarding bringing harmony in between the advertising and marketing and advertising division is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and advertising division's job, there might be the exact same first detach which might lead to the 2nd stage of 'storming' where the groups challenge one an additional.
When people are provided with change, they get in stage one and so there may be feelings like unhappiness, unpredictability, irritation, anger, fear, rejection and also disorientation.The scenario at the advertising division of Riverbend Telephone Company is similar so Lewis can get comfortable with the concept that it is not remarkable habits. It is during this stage that Lewis will have to offer guidance to the division so that they can locate a feeling of instructions. It can be seen how Krasnow has already made this change simpler by making Lewis obtain involved in the division a year prior to his real departure.
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has goes over the relevance of 'safety needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and out of threat' is at the second degree of demands. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Safety' requires met.
SWOT Analysis for Riverbend Telephone Company Case Study
Effects of Analysis.
The OB analysis has actually checked out different theories to understand exactly how to handle the existing situation handy. The complying with 3 choices have been suggested to help Lewis take care of the business difficulties in the marketing department. Each of these options has been recommended for reducing the change needed to bring the advertising and marketing division in line with the needs of the market as well as for making the cultural adjustment that would adhere to once the current leader leaves.
Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Workflow.
Examination of Alternatives.
Integration of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising and marketing agency of Riverbend Telephone Company is already stamina for the company in regards to saving up on overheads connected to advertising and marketing as well as promo. Considering that no new employment has been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the marketing function, this is a beneficial possibility for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business marketing in addition to agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing functions.
The benefit of this strategy is that it will certainly integrate the two features while reducing the need for hiring an additional source for advertising. Lewis would be heading the advertising and marketing department and also in any case her replacement would certainly be required for the current duty that she is executing. The drawback of this alternative is that external hiring might bring about bitterness from interior workers that might be eying the setting of EVP after Lewis takes over Krasnow's setting.
Dividing Adverting and also Manufacturing: Offered the competitive pressures and also premium quality work needed from the ad agency, it is suggested that Lewis ought to enable the production system to be a separate function from the advertising and marketing system. Since the majority of ad agency had these 2 functions as separate devices, it makes even more sense to follow the standard. Along with this, both features might be able to focus on their core triggers more successfully. Nevertheless, the negative aspect of this technique would be that additional costs would need to be birthed for setting up separate manufacturing features. In addition to this, a manufacturing head may have to be hired which could increase overheads for the organization.
Assimilation of Advertising with Procedures: Given that Lewis is already taking treatment of the marketing and also procedures departments all at once; it makes feeling to incorporate the two features because she has been efficiently taking care of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing department recommends that these two divisions would certainly be culturally diverse.
Referral.
An assessment of the three alternatives indicates that combination of advertising as well as operations would certainly not be a feasible action as a result of the large differences between both departments although that presently Lewis is dealing with both. While separation of the manufacturing function may have been a desirable move for the advertising and marketing division, the truth that it would certainly suggest positioning a third function under Lewis's wing means this need to be prevented too. The integration of the marketing division is the most effective alternative in terms of obtaining the optimum arise from the division. An action prepare for this choice is discussed listed below.
Activity Plan.
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.
Marketing and advertising features would be merged.
Judith Shapiro will certainly be employed to take Lewis's area as SVP of marketing and advertising.
Production function will certainly remain part of advertising under marketing feature.
Lewis will certainly divide herself from operations.
A democratic management style with employee empowerment will be used in marketing division.
Open up door plan as well as focus on cross departmental interaction will be targeted at getting rid of dissonance.
Backup strategy.
If the assimilation does not exercise as prepared, a contingency plan would certainly follow which would certainly divide the manufacturing function from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will most definitely be separated by placing it under an SVP production.