Background and Facts
Texas High Speed Rail Corp a workplace materials retailer for small and also average sized services has actually lately been associated with planning for a merger with its competitor Home Deport, which has affected effectiveness levels in departmentswith the elderly manager involved in legal difficulties presented by the government Profession Compensation. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With difficulties in the type of a possible cultural modification as well as low employee spirits, the organization wants a complete reengineering initiative at the advertising division.Problem Statement
The prospective social change at the advertising and marketing department of Texas High Speed Rail Corp is increasing unpredictability in the working environment bring about different challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant role in impacting tactical decisions given that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Provided the reality that the store has a global visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries might be able to influence performance or critical objectives. Federal Profession Payment's antitrust fit versus the merging used up important time of the organization's senior administration recommending that 'political' factors can have severe implications for a worldwide organisation.
Economic Factors: Economic factors such as the development of local business in the international situation recommend that Texas High Speed Rail Corp is thriving in an atmosphere where there is potential growth of businesses. Along with this, reality that shop customers are primarily looking for office materials for home offices recommends that the market has a rising trend of business owners and also home businesses.
Social factors: Social patterns in the economic situation reveal that clients are looking for ease along with appealing costs. Market research shows how the consumer for Texas High Speed Rail Corp lacks understanding concerning discovering solutions which can supply a mix of convenience and low costs.
Technological factors: Innovation plays an essential role in Texas High Speed Rail Corp's organisation method particularly as the company is piloting Technology centers which would certainly provide technology sales and assistance in the form of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).
OB Issues and Effects.
Several underlying Business Actions problems can be seen in Texas High Speed Rail Corp's case as highlighted in this area.
Uneasiness regarding cultural change: There is concern regarding a social modification that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the personnel currently revealing discontent over this prospective relocation. This predicted modification has developed tension in the workplace which has been paired with the previous anxiety of preparing the firm for a prospective merger with Residence Deport.
Stressful Task Environment for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a busy company. Not just does this result in difficulty in discovering the right people, it puts tension on brand-new hires as can not hold up against the rate as well as pressure that the organization expects them to birth.
Double Coverage Lines: Beginners find this organizational society cumbersome and also difficult to handle specifically as dotted line relationships are implied to be weaker generally and objective setup and efficiency analysis is still done by the strong line manager. This implies that newcomers could lose clarity about their corresponding roles and objectives especially as dotted line reporting does not maintain them in direct interaction with the strong line managers.
Animosity 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 last would take Krasnow's position came as an impact to her morale. Lewis may have been qualified as well as appropriate for the job however the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.
Fear & Task Instability: Worry as well as instability can be determined as two major worries that Lewis would certainly be dealing with specifically as the merging has actually now be terminated and also two senior executives of the marketing department would certainly be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not just be in charge of brining regarding a cultural change yet would certainly likewise need to prove herself in her brand-new function.
Incompatible Management Design of Leader: Lewis's management style and also its conflict with the advertising and marketing department's duty can likewise be seen as an OB challenge specifically as she has actually been used to managing problems in the operations department where employees are taught to focus on processes and get them. The advertising division on the various other hand can be viewed as a team of people that are used to being nurtured by Krasnow that concentrated much more on result than procedures.
Interdepartmental Disputes: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing and procedures respectively over the allotment of the marketing mix can be recognized as an additional OB problem. The advertising department does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not concur over the marketing mix allotment amongst one an additional either.
Fragmentation in Marketing Department: Fragmentation between the marketing and advertising departments can be recognized as an additional OB problem which could need additional attention. The truth that the marketing and advertising areas in the advertising and marketing division are separated is protecting against both divisions from gaining from each other's experience and also know-how. Assimilation of marketing with retailing and operations would come to be harder if the advertising division itself is degenerated which can be another possible OB worry.
Texas High Speed Rail Corp Analysis
Various concepts have been made use of to describe the scenarios to get more clarity regarding the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are easy as well as careless, have little ambition and withstand change. The tough variation of this theory emphasized threat, tight controls, risks and also punishments. In time it produces low efficiency, refined sabotage as well as rivalry (Bargain, 2003). Although the situation at Texas High Speed Rail Corp is not completely complying with Theory X, it can be seen that new hires are locating this setting instead demanding which may at some point bring about a higher inclination of the monitoring in the direction of Theory X. According to McGregor's promoted sight, which he called Theory Y, the important task of the monitoring is to prepare organizational problems to make sure that people can achieve their very own objectives best by directing their initiatives towards business benefits. If individuals discover no satisfaction in their work, the monitoring would have little choice however to depend on theory X as well as exterior control (Bargain, 2003). Also while evaluating Lewis's management design, concept X may have appropriated in the procedures department somewhat however the Advertising and marketing department would require dependence on Theory Y to get the creative thinking as well as originality from the teams.
Tuckman's Teamwork Theory: As far as Lewis's concern about bringing consistency in between the marketing and advertising department is worried, this would originally result in clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the initial phase of team development, people might not bond, as they are hectic discovering their place in the group. By combining the marketing and advertising division's work, there may coincide first detach which could result in the 2nd stage of 'storming' where the groups test one another. Nonetheless, it is only during the third phase or 'norming' when they would collaborate to share suggestions prior to the group can cause synergy in the 4th phase 'performing'.
When individuals are provided with modification, they get in phase one as well as so there might be feelings like despair, unpredictability, irritation, anger, anxiety, rejection and also disorientation.The scenario at the advertising and marketing division of Texas High Speed Rail Corp is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to provide support to the division so that they can find a sense of instructions. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis obtain entailed in the division a year prior to his real separation.
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the workplace has actually been caused to start with by the change in administration as well as secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the significance of 'safety and security requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and unharmed' goes to the second level of demands. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety' needs fulfilled. This suggests that unless the workers are made to really feel safe about their present employment condition in Texas High Speed Rail Corp they may not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Texas High Speed Rail Corp Case Study
Implication of Analysis.
The OB analysis has actually considered different concepts to recognize exactly how to deal with the present circumstance handy. The following three options have been recommended to help Lewis handle the business obstacles in the advertising and marketing division. Each of these options has actually been recommended for reducing the transition needed to bring the marketing department according to the demands of the marketplace and also for making the cultural modification that would adhere to when the present leader leaves.
Integration of marketing and advertising functions. Dividing Adverting and Manufacturing functions. Combination of Advertising with Operations.
Assessment of Alternatives.
Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business marketing along with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and also advertising and marketing functions.
The advantage of this technique is that it will certainly integrate the two features while reducing the requirement for employing an additional source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department and also all the same her substitute would certainly be needed for the current duty that she is executing. The downside of this alternative is that external hiring may produce animosity from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's placement.
Separating Adverting and also Manufacturing: Provided the affordable stress and also high quality job called for from the advertising and marketing agency, it is recommended that Lewis ought to enable the manufacturing system to be a separate function from the marketing device. Given that a lot of advertising and marketing agencies had these 2 functions as different systems, it makes even more feeling to follow the standard.
Integration of Marketing with Operations: Considering that Lewis is already taking treatment of the advertising and also procedures divisions all at once; it makes feeling to integrate the 2 features because she has actually been successfully taking care of both ends. The fact that Lewis has to adjust her management design for the marketing division recommends that these 2 departments would be culturally varied.
Referral.
An evaluation of the 3 alternatives indicates that combination of marketing as well as operations would not be a feasible relocation as a result of the large distinctions in between the two departments although that presently Lewis is dealing with both. While splitting up of the production feature might have been a beneficial move for the advertising and marketing department, the reality that it would indicate putting a third function under Lewis's wing suggests this ought to be avoided too. The combination of the advertising division is the best option in regards to getting the optimal results from the division. An action plan for this option is discussed below.
Action Plan.
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.
Advertising and Marketing features would certainly be merged.
Judith Shapiro will certainly be hired to take Lewis's place as SVP of marketing and advertising.
Manufacturing feature will stay part of marketing under advertising function.
Lewis will certainly separate herself from operations.
An autonomous leadership design with staff member empowerment will be utilized in advertising and marketing division.
Open door plan and emphasis on cross departmental interaction will certainly be focused on getting rid of discord.
Backup plan.
If the assimilation does not exercise as prepared, a contingency strategy would adhere to which would certainly divide the production function from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. In that case the manufacturing feature will most definitely be divided by putting it under an SVP manufacturing.