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Verizon Communications Inc Implementing A Human Resources Balanced Scorecard Case Study Analysis

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Verizon Communications Inc Implementing A Human Resources Balanced Scorecard Case Study Analysis

Background and Facts

Verizon Communications Inc Implementing A Human Resources Balanced Scorecard an office materials seller for tiny and average sized companies has just recently been involved in preparing for a merger with its rival Home Deport, which has influenced performance levels in departmentswith the senior supervisor associated with lawful issues put forth by the federal Trade Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With obstacles in the type of a possible social adjustment and low worker spirits, the organization needs a complete reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising department of Verizon Communications Inc Implementing A Human Resources Balanced Scorecard is increasing unpredictability in the working environment causing numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated decisions because Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment in the process. Offered the reality that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may have the ability to influence performance or tactical goals. Federal Profession Payment's antitrust suit against the merger used up useful time of the organization's senior management suggesting that 'political' factors can have severe implications for a global service.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide circumstance recommend that Verizon Communications Inc Implementing A Human Resources Balanced Scorecard is thriving in an atmosphere where there is prospective growth of businesses. Reality that store customers are primarily looking for office products for residence workplaces suggests that the market has a rising trend of entrepreneurs and home based companies.

Social factors: Social fads in the economic climate show that customers are looking for convenience as well as attractive rates. Market research demonstrates how the client for Verizon Communications Inc Implementing A Human Resources Balanced Scorecard does not have understanding about finding solutions which can use a mix of convenience and inexpensive.

Technical factors: Technology plays a crucial role in Verizon Communications Inc Implementing A Human Resources Balanced Scorecard's company technique especially as the organization is piloting Modern technology centers which would certainly use technology sales and support in the kind of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

A number of underlying Business Habits problems can be seen in Verizon Communications Inc Implementing A Human Resources Balanced Scorecard's case as highlighted in this area.

Uneasiness regarding social change: There is worry concerning a social modification that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with most of the staff members currently showing discontent over this prospective relocation. This expected modification has actually created stress in the workplace which has actually been paired with the previous stress of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of personnel that can match the demanding environment of a busy company. Not just does this result in problem in finding the appropriate people, it places stress on brand-new hires as can not endure the pace and also pressure that the organization anticipates them to bear.

Dual Coverage Lines: Novices discover this business society troublesome and also difficult to handle especially as populated line connections are suggested to be weaker as a whole and also objective setup and also efficiency examination is still done by the solid line manager. This suggests that beginners might lose clearness concerning their respective roles as well as purposes especially as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been qualified and ideal for the task yet the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Anxiety and insecurity can be identified as two major problems that Lewis would certainly be dealing with especially as the merger has actually currently be terminated and also 2 senior executives of the marketing division would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social modification but would also need to prove herself in her new function.

Inappropriate Management Design of Leader: Lewis's management style as well as its incompatibility with the marketing division's function can additionally be seen as an OB challenge specifically as she has actually been used to managing problems in the procedures division where employees are educated to concentrate on processes as well as get them. The advertising and marketing division on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused extra on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, advertising, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be determined as one more OB problem. Although the marketing division does not share the same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allocation amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be recognized as one more OB issue which can need more focus. The fact that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both departments from acquiring from each various other's experience and know-how. Combination of advertising with retailing and also operations would become more difficult if the advertising department itself is degenerated which can be an additional prospective OB worry.

Verizon Communications Inc Implementing A Human Resources Balanced Scorecard Analysis

Different theories have actually been used to clarify the conditions to get further clearness about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are passive and also lazy, have little aspiration and withstand change. The hard variation of this theory highlighted coercion, limited controls, hazards as well as punishments. Gradually it creates reduced performance, refined sabotage and rivalry (Bargain, 2003). Although the situation at Verizon Communications Inc Implementing A Human Resources Balanced Scorecard is not completely complying with Concept X, it can be seen that brand-new hires are discovering this setting instead demanding which might at some point result in a better disposition of the monitoring towards Theory X. According to McGregor's promoted view, which he called Theory Y, the important job of the administration is to organize organizational problems to make sure that people can accomplish their very own goals best by directing their initiatives in the direction of organizational rewards. If individuals locate no fulfillment in their work, the administration would have little selection but to depend on theory X and also outside control (Offer, 2003). Even while assessing Lewis's administration design, theory X may have appropriated in the procedures department to some extent but the Advertising division would certainly need reliance on Theory Y to get the creative thinking and also creativity from the groups.

Tuckman's Team effort Theory: As for Lewis's problem about bringing consistency between the marketing and advertising division is worried, this would at first result in clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the preliminary stage of group growth, individuals may not bond, as they are busy locating their area in the group. By incorporating the marketing and advertising division's job, there might be the same preliminary separate which can bring about the 2nd phase of 'storming' where the groups challenge one another. Nonetheless, it is only during the 3rd phase or 'norming' when they would certainly integrate to share concepts prior to the group can cause harmony in the fourth stage 'executing'.

When people are presented with change, they enter stage one and so there might be feelings like unhappiness, unpredictability, irritation, rage, worry, denial and also disorientation.The scenario at the advertising department of Verizon Communications Inc Implementing A Human Resources Balanced Scorecard is similar so Lewis can get comfortable with the idea that it is not extraordinary behavior. It is throughout this stage that Lewis will have to give assistance to the department so that they can find a feeling of instructions. It can be seen just how Krasnow has actually currently made this change less complicated by making Lewis obtain entailed in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the importance of 'safety and security needs as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected as well as out of threat' is at the second degree of requirements. Prior to a staff member can be made to create mentally, he needs to have his 'Physiological 'as well as 'Safety and security' needs met.

SWOT Analysis for Verizon Communications Inc Implementing A Human Resources Balanced Scorecard Case Study



Ramification of Analysis.

The OB analysis has taken a look at various concepts to understand how to cope with the current circumstance handy. The complying with 3 options have been recommended to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these alternatives has been proposed for relieving the change required to bring the advertising and marketing division in accordance with the needs of the market and also for making the social modification that would comply with when the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Combination of Advertising with Operations.

Evaluation of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising and marketing company of Verizon Communications Inc Implementing A Human Resources Balanced Scorecard is already stamina for the organization in terms of conserving up on expenses connected to advertising and marketing and also promo. Since no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the marketing feature, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business marketing along with agency and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate the two features while reducing the demand for working with an additional source for advertising. Along with this, Lewis would be heading the advertising and marketing division as well as all the same her substitute would certainly be required for the current duty that she is carrying out. The downside of this choice is that outside hiring may cause resentment from interior employees who may be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Given the competitive stress as well as top quality job called for from the ad agency, it is suggested that Lewis ought to permit the manufacturing unit to be a different feature from the advertising system. Because most ad agency had these 2 functions as different units, it makes more feeling to adhere to the norm. In addition to this, both functions might have the ability to concentrate on their core triggers more successfully. The negative aspect of this technique would be that extra costs would have to be birthed for setting up different production features. In addition to this, a manufacturing head might have to be worked with which could enhance expenses for the company.

Combination of Advertising And Marketing with Procedures: Because Lewis is currently taking treatment of the marketing as well as procedures divisions all at once; it makes sense to integrate the two functions considering that she has been effectively taking treatment of both ends. The truth that Lewis has to adjust her administration design for the advertising division recommends that these 2 divisions would be culturally varied.

Referral.



An examination of the three alternatives shows that combination of advertising and marketing as well as operations would not be a viable step due to the huge distinctions in between the two divisions in spite of the truth that currently Lewis is handling both. While separation of the manufacturing function might have been a beneficial step for the advertising and marketing division, the reality that it would certainly mean placing a 3rd feature under Lewis's wing implies this should be prevented.

Action Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will separate herself from procedures.

An autonomous management style with staff member empowerment will be made use of in advertising and marketing division.

Open up door policy and also emphasis on cross department interaction will certainly be focused on getting rid of dissonance.

Contingency strategy.

If the combination does not work out as planned, a backup plan would certainly follow which would divide the manufacturing function from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will certainly be separated by positioning it under an SVP manufacturing.