Background and Facts
Western Technology Investment an office products store for small and moderate sized organisations has just recently been associated with planning for a merger with its rival Residence Deport, which has influenced performance degrees in departmentswith the senior manager involved in legal problems presented by the government Profession Commission. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With obstacles in the form of a possible social modification and also reduced staff member spirits, the organization is in need of a complete reengineering effort at the advertising department.Issue Declaration
The potential cultural adjustment at the advertising department of Western Technology Investment is raising unpredictability in the workplace resulting in numerous 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 major function in influencing calculated decisions given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Provided the truth that the shop has an international existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to influence efficiency or strategic objectives. Federal Trade Payment's antitrust match against the merger used up beneficial time of the company's elderly management suggesting that 'political' factors can have major implications for a worldwide company.
Economic Factors: Economic factors such as the appearance of small businesses in the international scenario recommend that Western Technology Investment is flourishing in an atmosphere where there is potential development of organisations. In addition to this, truth that store customers are primarily looking for workplace materials for home offices suggests that the market has an increasing trend of entrepreneurs and also home businesses.
Social factors: Social patterns in the economic climate show that customers are seeking comfort in addition to appealing rates. Marketing research demonstrates how the consumer for Western Technology Investment lacks awareness regarding finding solutions which can use a combination of convenience and also inexpensive.
Technological factors: Technology plays an important function in Western Technology Investment's service technique particularly as the company is piloting Modern technology facilities which would provide innovation sales and support in the form of memory upgrades, outer setups. (Recap of BUG in appendix 2).
OB Issues as well as Effects.
Several underlying Organizational Behavior concerns can be seen in Western Technology Investment's case as highlighted in this section.
Concerns about social change: There is worry about a cultural modification that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with most of the team member currently revealing unhappiness over this prospective step. This anticipated modification has developed stress in the workplace which has actually been paired with the previous stress of preparing the company for a potential merger with Residence Deport.
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the demanding setting of a hectic company. Not only does this result in problem in finding the best people, it puts anxiety on new hires as can not stand up to the rate as well as pressure that the company anticipates them to birth.
Dual Reporting Lines: Newcomers discover this business culture difficult and also difficult to deal with especially as dotted line partnerships are meant to be weak in general and also objective setup as well as performance assessment is still done by the solid line manager. This suggests that newbies can lose clarity about their particular duties and also goals specifically as populated line reporting does not keep them in direct interaction with the strong line supervisors.
Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been hypothesized that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been capable as well as ideal for the job but the truth that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.
Worry & Job Insecurity: Anxiety as well as instability can be recognized as 2 major concerns that Lewis would certainly be handling particularly as the merging has currently be cancelled as well as 2 senior executives of the advertising division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a social modification however would certainly additionally have to confirm herself in her new duty.
Incompatible Management Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's role can additionally be viewed as an OB difficulty especially as she has been utilized to taking care of concerns in the procedures division where personnel are educated to concentrate on procedures and also obtain them right. The advertising and marketing division on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow that focused extra on outcome than processes.
Interdepartmental Disputes: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the advertising mix can be determined as one more OB problem. The advertising and marketing division does not share the very same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also operations departments do not agree over the marketing mix appropriation amongst one an additional either.
Disintegration in Advertising Department: Disintegration in between the advertising and marketing divisions can be recognized as one more OB problem which might require further interest. The fact that the marketing and advertising sections in the advertising division are separated is stopping both departments from acquiring from each other's experience and competence. Assimilation of advertising with merchandising as well as operations would certainly end up being more difficult if the marketing department itself is broken down which can be one more prospective OB concern.
Western Technology Investment Analysis
Various concepts have been used to clarify the situations to get more clarity about the scenario at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that subordinates are passive as well as lazy, have little passion and stand up to adjustment. The scenario at Western Technology Investment is not totally following Theory X, it can be seen that new hires are finding this atmosphere rather stressful which might eventually lead to a higher disposition of the management towards Theory X. Even while assessing Lewis's management design, concept X may have been ideal in the procedures division to some degree yet the Advertising and marketing department would require dependence on Theory Y in order to obtain the creativity and originality from the teams.
Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing consistency between the marketing and advertising division is worried, this would originally result in conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first phase of team development, people might not bond, as they are busy locating their area in the group. By combining the advertising and marketing department's work, there may be the same preliminary detach which could bring about the 2nd stage of 'storming' where the teams test one another. It is just throughout the 3rd stage or 'norming' when they would certainly come with each other to share suggestions prior to the group can bring around synergy in the fourth stage 'performing'.
Bridges' Shift Version: Based On William Bridge's theory (appendix 4), individuals are fairly awkward with adjustment, which is obvious by the circumstance at Western Technology Investment The scenario can be seen as a regular training course of life if is studied based on Bridge's concept where he discusses that individuals undergo three phases of shift when they experience change. 'Closing, losing as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter phase one and so there might be feelings like despair, uncertainty, disappointment, anger, worry, rejection as well as disorientation.The situation at the advertising division of Western Technology Investment is similar so Lewis can get comfortable with the idea that it is not phenomenal behavior. In the second stage, there might be a requirement to connect the space between the new and old society so Lewis may have to encounter this experience once Krasnow leaves. There may be reduced morale and also low performance at this phase which ought to not be taken as a trouble. It is throughout this phase that Lewis will certainly need to provide support to the department to make sure that they can find an orientation. It can be seen how Krasnow has currently made this change simpler by making Lewis get associated with the department a year before his actual departure. Based on Bridges' Version, stage 3 will certainly cause openness to knowing, High power and also dedication as people will welcome the change (Bridges, 2004).
Maslow's Demand power structure: The OB issue pertaining to instability at the work environment has actually been triggered first of all by the change in monitoring and second of all by the truth that the merger will no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the significance of 'security requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel protected as well as unharmed' is at the 2nd level of demands. Before a worker can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' needs satisfied. This suggests that unless the personnel are made to really feel protected concerning their present employment standing in Western Technology Investment they might not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Western Technology Investment Case Study
Effects of Analysis.
The OB analysis has checked out numerous theories to recognize exactly how to deal with the current circumstance available. The adhering to 3 choices have actually been suggested to help Lewis take care of the organizational challenges in the marketing division. Each of these alternatives has been suggested for relieving the shift needed to bring the advertising and marketing department in line with the requirements of the market and also for making the social modification that would certainly comply with when the existing leader leaves.
Assimilation of advertising and marketing functions. Dividing Adverting and Production features. Combination of Advertising And Marketing with Workflow.
Examination of Alternatives.
Assimilation of Marketing & Advertising And Marketing Functions: The internal advertising agency of Western Technology Investment is currently toughness for the organization in regards to saving up on overheads related to advertising and marketing and also promotion. Given that no new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising function, this is a positive possibility for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business marketing together with firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing functions.
The benefit of this technique is that it will integrate the two features while decreasing the requirement for working with an extra resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing department as well as in any type of case her replacement would be required for the current role that she is doing. The disadvantage of this option is that outside hiring might cause bitterness from internal workers who might be eying the setting of EVP after Lewis takes control of Krasnow's setting.
Dividing Adverting as well as Production: Given the affordable stress and high top quality job required from the advertising and marketing company, it is suggested that Lewis needs to permit the production unit to be a separate function from the advertising unit. Considering that most marketing companies had these 2 functions as different systems, it makes more sense to follow the standard.
Combination of Advertising with Operations: Considering that Lewis is already dealing with the advertising and also procedures divisions at the same time; it makes sense to integrate the two functions because she has been successfully looking after both ends. The reality that the two divisions already have significant distinctions over allotment of resources suggests that this integration might be able to bring about harmony especially as Lewis would be heading both ends.However there are different negative aspects of this step particularly as it would certainly put way too much worry over Lewis's shoulders. The truth that Lewis needs to adapt her administration design for the advertising division recommends that these 2 departments would be culturally diverse. Lewis might not be able to apply one type of leadership style to both departments which can result in inadequacy in either one of the two functions.
Referral.
An assessment of the 3 choices shows that integration of marketing as well as operations would not be a possible action due to the vast differences between the 2 divisions regardless of the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a beneficial step for the advertising division, the fact that it would certainly imply positioning a 3rd function under Lewis's wing implies this should be prevented.
Action Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.
Advertising and Marketing functions would certainly be merged.
Judith Shapiro will certainly be hired to take Lewis's area as SVP of advertising and marketing.
Manufacturing function will certainly stay part of advertising under advertising function.
Lewis will divide herself from procedures.
An autonomous leadership design with employee empowerment will be used in advertising and marketing division.
Open up door plan and also emphasis on cross departmental interaction will certainly be aimed at removing dissonance.
Contingency plan.
If the combination does not work out as prepared, a backup plan would certainly adhere to which would divide the manufacturing feature from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing function will certainly be divided by putting it under an SVP production.