Background and Facts
Scott Lawsons Dilemma a workplace materials retailer for little and moderate sized companies has just recently been associated with planning for a merger with its rival Home Deport, which has actually influenced efficiency levels in departmentswith the senior manager involved in legal difficulties put forth by the government Profession Commission. With the Marketing Head advancing the news 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 near future. With difficulties in the kind of a possible cultural modification as well as low employee morale, the organization requires a total reengineering effort at the marketing department.Issue Declaration
The potential cultural change at the advertising department of Scott Lawsons Dilemma is increasing unpredictability in the working environment causing various obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major role in influencing strategic decisions since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's treatment while doing so. Offered the fact that the store has a global presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may be able to impact performance or tactical objectives. Federal Trade Commission's antitrust suit against the merger occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have major implications for an international organisation.
Economic Factors: Financial factors such as the emergence of local business in the global circumstance recommend that Scott Lawsons Dilemma is growing in a setting where there is possible development of companies. Reality that shop customers are primarily looking for workplace supplies for house workplaces recommends that the market has a rising trend of entrepreneurs and also house based companies.
Social factors: Social trends in the economy show that clients are trying to find ease along with appealing prices. Marketing research shows how the consumer for Scott Lawsons Dilemma lacks awareness regarding finding services which can offer a mix of convenience and low costs.
Technological factors: Innovation plays an essential role in Scott Lawsons Dilemma's service method particularly as the organization is piloting Modern technology centers which would certainly provide modern technology sales and support in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).
OB Issues as well as Manifestations.
Several underlying Organizational Habits issues can be seen in Scott Lawsons Dilemma's case as highlighted in this section.
Uneasiness about social modification: There is worry concerning a cultural modification that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with most of the team member already showing discontent over this potential action. This expected change has developed stress and anxiety in the work environment which has actually been paired with the previous stress and anxiety of preparing the company for a possible merger with Home Deport.
Stressful Task Environment for Newcomers: There is lack of employees that can match the demanding setting of a busy organization. Not only does this bring about problem in locating the best people, it places tension on brand-new hires as can not withstand the speed and also pressure that the organization anticipates them to bear.
Dual Coverage Lines: Newbies discover this organizational society cumbersome and hard to cope with especially as populated line connections are indicated to be weak in general as well as objective setting and efficiency assessment is still done by the solid line manager. This means that newcomers might shed clarity concerning their particular functions and also objectives especially as populated line coverage does not maintain them in straight communication with the solid line supervisors.
Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been qualified and also suitable for the work but the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.
Worry & Job Instability: Concern and also insecurity can be identified as 2 significant concerns that Lewis would be taking care of particularly as the merging has now be terminated as well as two senior executives of the marketing division would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining about a social adjustment but would certainly also have to show herself in her brand-new duty.
Incompatible Administration Style of Leader: Lewis's administration style and its conflict with the advertising department's role can additionally be seen as an OB challenge especially as she has been utilized to managing problems in the procedures department where personnel are shown to concentrate on procedures as well as get them. The advertising and marketing division on the other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that focused extra on output than procedures.
Interdepartmental Differences: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing and also operations respectively over the allocation of the advertising and marketing mix can be recognized as another OB concern. The marketing department does not share the same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix appropriation among one an additional either.
Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be identified as another OB problem which could need additional interest. The fact that the advertising and marketing areas in the marketing division are detached is preventing both divisions from gaining from each other's experience and also experience. Integration of marketing with merchandising as well as procedures would certainly become more difficult if the advertising and marketing department itself is disintegrated which can be another prospective OB issue.
Scott Lawsons Dilemma Analysis
Numerous concepts have actually been made use of to clarify the situations to get more clearness regarding the situation at hand.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are passive as well as lazy, have little ambition as well as withstand modification. The difficult variation of this concept highlighted browbeating, tight controls, threats and penalties. With time it creates reduced productivity, subtle sabotage and competition (Offer, 2003). Although the scenario at Scott Lawsons Dilemma is not completely following Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may ultimately cause a higher inclination of the monitoring towards Theory X. According to McGregor's promoted view, which he called Concept Y, the essential job of the monitoring is to prepare organizational conditions so that people can achieve their very own goals best by guiding their initiatives in the direction of business incentives. If people discover no complete satisfaction in their work, the administration would certainly have little choice yet to count on concept X and external control (Bargain, 2003). Also while evaluating Lewis's administration style, theory X might have been suitable in the operations division to some extent but the Advertising division would certainly require reliance on Theory Y to get the creative thinking and also originality from the teams.
Tuckman's Synergy Theory: Regarding Lewis's problem regarding bringing harmony in between the marketing and advertising department is concerned, this would initially cause clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first stage of group growth, individuals may not bond, as they are busy discovering their place in the team. By incorporating the marketing and advertising department's job, there might coincide initial disconnect which can bring about the 2nd phase of 'storming' where the groups challenge one another. Nevertheless, it is just throughout the 3rd stage or 'norming' when they would certainly come together to share ideas prior to the group can produce harmony in the 4th phase 'carrying out'.
When individuals are provided with adjustment, they enter phase one as well as so there may be emotions like despair, uncertainty, disappointment, temper, worry, rejection and also disorientation.The scenario at the advertising and marketing department of Scott Lawsons Dilemma is comparable so Lewis can obtain comfortable with the idea that it is not remarkable behavior. It is during this phase that Lewis will have to give guidance to the department so that they can find a sense of instructions. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis obtain included in the division a year prior to his actual departure.
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the office has actually been set off firstly by the change in monitoring and also secondly by the reality that the merging will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the value of 'security needs as being a lower level requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel safe and secure as well as unharmed' is at the second level of demands. Prior to a worker can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety' needs met. This indicates that unless the employees are made to really feel safe regarding their present employment condition in Scott Lawsons Dilemma they might not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Scott Lawsons Dilemma Case Study
Ramification of Analysis.
The OB analysis has actually checked out numerous concepts to recognize how to handle the current situation available. The following 3 choices have been proposed to aid Lewis take care of the organizational difficulties in the advertising division. Each of these options has actually been recommended for alleviating the transition required to bring the advertising department according to the needs of the marketplace and also for making the cultural adjustment that would comply with as soon as the existing leader leaves.
Integration of advertising and marketing functions. Dividing Adverting and Manufacturing functions. Integration of Marketing with Operations.
Evaluation of Alternatives.
Integration of Marketing & Marketing Functions: The internal advertising and marketing firm of Scott Lawsons Dilemma is already strength for the organization in terms of conserving up on overheads connected to marketing and promotion. Because no new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.
The advantage of this approach is that it will certainly integrate the two features while minimizing the demand for hiring an additional resource for advertising. Along with this, Lewis would certainly be heading the advertising department as well as regardless her substitute would certainly be needed for the existing function that she is executing. The downside of this choice is that exterior hiring might cause bitterness from internal employees who might be looking at the placement of EVP after Lewis takes over Krasnow's placement.
Separating Adverting and Manufacturing: Given the affordable pressures as well as high top quality work required from the marketing firm, it is recommended that Lewis ought to enable the production unit to be a separate function from the advertising system. Given that a lot of marketing agencies had these two functions as separate systems, it makes even more sense to comply with the standard.
Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is already taking care of the advertising and marketing as well as operations divisions all at once; it makes good sense to integrate both functions considering that she has actually been effectively caring for both ends. The reality that both departments already have major distinctions over allotment of sources recommends that this combination may be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this step especially as it would place way too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the marketing department recommends that these 2 departments would be culturally diverse. In addition to this, Lewis may not be able to use one kind of leadership design to both departments which can lead to ineffectiveness in either one of the two features.
Recommendation.
An analysis of the three alternatives suggests that combination of advertising and marketing and procedures would certainly not be a possible action due to the large distinctions between the two divisions despite the fact that presently Lewis is managing both. While splitting up of the manufacturing feature might have been a beneficial step for the advertising division, the fact that it would certainly imply placing a third function under Lewis's wing means this need to be stayed clear of. The assimilation of the marketing department is the best choice in terms of obtaining the optimal results from the division. An action plan for this alternative is reviewed listed below.
Activity Plan.
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising functions would certainly be combined.
Judith Shapiro will be worked with to take Lewis's place as SVP of marketing and advertising.
Production function will certainly remain part of advertising under advertising feature.
Lewis will divide herself from procedures.
A democratic leadership design with employee empowerment will be used in advertising and marketing division.
Open door plan and also emphasis on cross department interaction will be focused on removing disharmony.
Contingency strategy.
If the assimilation does not work out as prepared, a contingency plan would certainly adhere to which would separate the manufacturing feature from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.