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Social Security Reform Case Study Analysis

Background and Facts

Social Security Reform an office supplies store for tiny and medium sized businesses has actually recently been associated with planning for a merger with its competitor Residence Deport, which has actually influenced effectiveness levels in departmentswith the senior manager involved in lawful problems presented by the federal Profession Compensation. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With obstacles in the type of a potential social change and low employee spirits, the organization wants a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Social Security Reform is enhancing unpredictability in the working environment resulting in different obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting strategic choices because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's intervention at the same time. Given the truth that the shop has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to affect performance or tactical objectives. Federal Trade Commission's antitrust match against the merger used up valuable time of the organization's senior management suggesting that 'political' factors can have serious effects for a worldwide business.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation recommend that Social Security Reform is thriving in an environment where there is prospective development of businesses. Along with this, truth that shop consumers are mostly looking for workplace products for office suggests that the marketplace has an increasing trend of entrepreneurs as well as online services.

Social factors: Social trends in the economy reveal that clients are seeking comfort in addition to attractive costs. Marketing research shows how the client for Social Security Reform does not have awareness about locating services which can provide a mix of ease as well as affordable.

Technological factors: Technology plays a vital function in Social Security Reform's company method particularly as the company is piloting Modern technology facilities which would offer technology sales as well as assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Habits issues can be seen in Social Security Reform's case as highlighted in this area.

Concerns concerning social adjustment: There is uneasiness about a cultural adjustment that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the staff members already showing unhappiness over this potential action. This predicted adjustment has developed tension in the workplace which has actually been combined with the previous stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a fast-paced organization. Not only does this cause difficulty in finding the appropriate individuals, it puts anxiety on new hires as can not hold up against the pace and stress that the organization expects them to bear.

Twin Reporting Lines: Novices locate this organizational society troublesome and also tough to handle specifically as dotted line connections are meant to be weaker in general as well as unbiased setting and also efficiency evaluation is still done by the strong line supervisor. This means that newcomers could shed clearness about their corresponding duties and also purposes particularly as dotted line reporting does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been capable and proper for the task yet the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Fear as well as instability can be recognized as 2 significant concerns that Lewis would be taking care of particularly as the merger has actually currently be terminated and two senior execs of the marketing division would certainly be leaving. The whole duty of the division would be falling on Lewis's shoulders who would not just supervise of brining about a cultural modification however would certainly likewise need to show herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's administration design as well as its incompatibility with the advertising division's role can likewise be seen as an OB obstacle particularly as she has actually been made use of to managing concerns in the operations division where employees are educated to focus on procedures and also obtain them. The advertising and marketing division on the other hand can be seen as a team of people that are used to being nurtured by Krasnow who focused extra on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 divisions, marketing, merchandizing and also procedures respectively over the allotment of the marketing mix can be recognized as one more OB problem. Although the advertising and marketing department does not share the same vision as the various other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allocation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as another OB issue which can require additional focus. The truth that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both divisions from acquiring from each other's experience and also proficiency. Integration of advertising with retailing and also operations would certainly come to be harder if the marketing department itself is broken down which can be one more potential OB worry.

Social Security Reform Analysis

Various concepts have actually been made use of to explain the scenarios to obtain more clarity regarding the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are passive and also careless, have little aspiration as well as withstand change. The circumstance at Social Security Reform is not completely complying with Theory X, it can be seen that new hires are locating this setting rather stressful which may at some point lead to a better disposition of the administration in the direction of Concept X. Also while evaluating Lewis's monitoring style, theory X may have been ideal in the procedures division to some level however the Advertising and marketing department would require dependence on Concept Y in order to get the creativity and originality from the groups.

Tuckman's Teamwork Theory: Regarding Lewis's concern regarding bringing harmony between the advertising and marketing department is concerned, this would originally result in clash as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of group development, individuals might not bond, as they are busy finding their location in the team. By integrating the advertising and marketing division's job, there may be the same preliminary separate which might lead to the 2nd phase of 'storming' where the teams challenge one another. Nevertheless, it is just throughout the third phase or 'norming' when they would certainly come together to share ideas before the group can produce harmony in the 4th phase 'performing'.

Bridges' Change Design: As per William Bridge's theory (appendix 4), individuals are quite uncomfortable with adjustment, which is noticeable by the circumstance at Social Security Reform The circumstance can be viewed as a normal program of life if is researched as per Bridge's concept where he discusses that individuals experience 3 stages of shift when they experience adjustment. 'Ending, losing and Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there might be emotions like sadness, uncertainty, aggravation, temper, fear, rejection and disorientation.The circumstance at the marketing department of Social Security Reform is comparable so Lewis can get comfy with the suggestion that it is not extraordinary behavior. In the 2nd stage, there may be a requirement to bridge the space in between the new and old society so Lewis might need to face this challenge when Krasnow leaves. There might be reduced morale and reduced productivity at this stage which should not be taken as a trouble. It is during this stage that Lewis will certainly have to provide assistance to the department to make sure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the division a year prior to his real separation. Based on Bridges' Model, stage 3 will certainly cause openness to learning, High energy and also commitment as individuals will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to instability at the work environment has actually been triggered to start with by the modification in administration as well as second of all by the fact that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the importance of 'safety and security needs as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and secure and safe' goes to the second level of requirements. Before a worker can be made to create emotionally, he needs to have his 'Physiological 'as well as 'Safety and security' needs satisfied. This shows that unless the personnel are made to feel protected about their present employment condition in Social Security Reform they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Social Security Reform Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to understand how to cope with the current scenario handy. The complying with three choices have been suggested to help Lewis deal with the business challenges in the advertising and marketing division. Each of these alternatives has actually been suggested for easing the change required to bring the advertising and marketing division according to the requirements of the market and also for making the social change that would certainly adhere to when the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Production functions. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising firm of Social Security Reform is currently strength for the organization in terms of conserving up on overheads related to advertising and marketing as well as promotion. Given that no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the marketing feature, this is a desirable opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising in addition to agency and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing and advertising functions.

The advantage of this method is that it will incorporate both features while reducing the requirement for hiring an added resource for advertising. Lewis would be heading the advertising department and in any kind of case her substitute would certainly be required for the existing duty that she is doing. The drawback of this option is that exterior hiring may produce animosity from internal personnel that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable stress as well as high quality work required from the ad agency, it is advised that Lewis should permit the production system to be a separate function from the advertising unit. Considering that the majority of ad agency had these 2 features as different systems, it makes more feeling to adhere to the standard. Along with this, both functions may have the ability to focus on their core activates much more efficiently. Nevertheless, the disadvantage of this method would be that extra expenses would certainly have to be birthed for setting up separate production features. Along with this, a production head might have to be hired which could boost expenses for the organization.

Assimilation of Marketing with Procedures: Considering that Lewis is already looking after the marketing and also procedures divisions all at once; it makes sense to integrate the two features since she has actually been effectively looking after both ends. The fact that both divisions currently have major distinctions over allocation of sources recommends that this combination might have the ability to cause harmony especially as Lewis would be heading both ends.However there are different negative aspects of this step particularly as it would certainly put excessive burden over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising and marketing division recommends that these 2 divisions would certainly be culturally diverse. Along with this, Lewis may not have the ability to apply one sort of leadership style to both divisions which could cause ineffectiveness in either among both functions.


An examination of the 3 choices indicates that assimilation of advertising and marketing and also procedures would not be a viable relocation due to the substantial differences in between both departments despite the fact that currently Lewis is dealing with both. While separation of the production feature might have been a desirable relocation for the marketing department, the fact that it would certainly suggest positioning a third feature under Lewis's wing means this must be stayed clear of also. The integration of the advertising division is the most effective option in regards to obtaining the optimum arise from the department. An action prepare for this choice is talked about listed below.

Action Plan.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

Judith Shapiro will be hired to take Lewis's location as SVP of marketing and advertising.

Production function will certainly stay component of advertising under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous leadership design with staff member empowerment will certainly be utilized in marketing department.

Open door plan as well as emphasis on cross department interaction will be targeted at getting rid of discord.

Backup strategy.

If the integration does not exercise as prepared, a contingency plan would adhere to which would certainly separate the manufacturing function from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. In that case the production function will certainly be separated by placing it under an SVP manufacturing.