Background and Facts
White Mountain Health Care an office products merchant for small and average sized organisations has actually lately been associated with planning for a merging with its rival Home Deport, which has affected performance degrees in departmentswith the senior manager associated with legal difficulties put forth by the government Trade Payment. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With challenges in the type of a prospective social adjustment as well as low staff member morale, the organization requires a total reengineering initiative at the marketing department.Trouble Statement
The prospective cultural change at the advertising and marketing division of White Mountain Health Care is increasing unpredictability in the working environment leading to different challenges 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 significant function in influencing calculated choices since Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Commission's treatment at the same time. Provided the reality that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might have the ability to impact efficiency or tactical objectives. Federal Profession Commission's antitrust fit against the merger took up valuable time of the company's elderly monitoring suggesting that 'political' factors can have severe implications for a global business.
Economic Factors: Financial factors such as the appearance of local business in the international scenario recommend that White Mountain Health Care is growing in a setting where there is potential development of organisations. Fact that shop customers are primarily looking for workplace materials for house workplaces recommends that the market has an increasing trend of entrepreneurs as well as house based businesses.
Social factors: Social fads in the economic climate reveal that clients are searching for comfort as well as appealing prices. Marketing research demonstrates how the customer for White Mountain Health Care lacks awareness about finding services which can offer a combination of ease as well as affordable.
Technical factors: Innovation plays a crucial duty in White Mountain Health Care's company strategy especially as the organization is piloting Technology facilities which would offer technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).
OB Issues and Manifestations.
A number of underlying Organizational Behavior issues can be seen in White Mountain Health Care's case as highlighted in this section.
Apprehensions regarding social adjustment: There is uneasiness about a cultural modification that would take place once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the employee already showing unhappiness over this prospective relocation. This expected change has actually produced stress and anxiety in the workplace which has actually been coupled with the previous stress and anxiety of preparing the company for a potential merger with Residence Deport.
Demanding Task Setting for Newcomers: There is shortage of workers that can match the stressful environment of a hectic company. Not only does this lead to trouble in locating the best individuals, it places stress and anxiety on brand-new hires as can not hold up against the pace and pressure that the organization expects them to birth.
Twin Coverage Lines: Beginners find this organizational culture troublesome as well as tough to cope with particularly as dotted line connections are suggested to be weaker generally and objective setup and also performance analysis is still done by the strong line manager. This suggests that beginners could shed quality about their particular functions and purposes specifically as populated line reporting does not maintain them in direct interaction with the solid line supervisors.
Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the last would take Krasnow's placement came as a strike to her morale. Lewis may have been capable as well as appropriate for the job yet the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.
Worry & Work Insecurity: Worry and also insecurity can be identified as two major issues that Lewis would certainly be handling specifically as the merger has actually currently be cancelled and also two elderly executives of the marketing department would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change however would certainly likewise have to show herself in her new role.
Incompatible Management Style of Leader: Lewis's administration style and its conflict with the marketing division's function can also be seen as an OB obstacle especially as she has actually been utilized to dealing with concerns in the procedures department where personnel are shown to focus on processes and also obtain them. The advertising and marketing department on the other hand can be viewed as a group of people who are utilized to being nurtured by Krasnow who focused a lot more on outcome than processes.
Interdepartmental Differences: Interdepartmental disagreements in between three divisions, marketing, merchandizing and operations specifically over the allowance of the marketing mix can be recognized as one more OB worry. The advertising and marketing department does not share the exact same vision as the other two departments relating to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allotment amongst one an additional either.
Fragmentation in Marketing Division: Fragmentation in between the advertising and marketing divisions can be determined as another OB concern which could require additional attention. The truth that the advertising and marketing areas in the advertising department are disconnected is protecting against both divisions from obtaining from each various other's experience and knowledge. Integration of advertising with merchandising and procedures would certainly become harder if the advertising department itself is broken down which can be another possible OB worry.
White Mountain Health Care Analysis
Different concepts have been utilized to describe the scenarios to obtain further clarity concerning the scenario handy.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that staffs are passive as well as careless, have little passion as well as stand up to modification. The difficult variation of this theory stressed threat, tight controls, threats and punishments. Over time it generates reduced efficiency, subtle sabotage as well as competition (Deal, 2003). Although the scenario at White Mountain Health Care is not totally following Concept X, it can be seen that new hires are locating this environment instead demanding which might ultimately bring about a higher inclination of the management towards Theory X. Based on McGregor's supported view, which he called Theory Y, the crucial task of the management is to set up organizational conditions to ensure that individuals can achieve their own goals best by directing their initiatives in the direction of organizational incentives. If individuals discover no complete satisfaction in their work, the management would have little selection however to depend on theory X and also external control (Offer, 2003). Also while evaluating Lewis's administration design, theory X might have been suitable in the procedures department somewhat however the Advertising division would call for reliance on Concept Y to get the creative thinking and also originality from the groups.
Tuckman's Team effort Concept: Regarding Lewis's worry regarding bringing harmony between the advertising and marketing division is worried, this would initially cause clash as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first stage of group advancement, people may not bond, as they are hectic finding their place in the group. By incorporating the marketing and advertising department's job, there may be the same preliminary detach which might cause the 2nd phase of 'storming' where the teams challenge one another. It is just during the third stage or 'norming' when they would certainly come together to share concepts before the team can bring about harmony in the fourth stage 'executing'.
Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are fairly uncomfortable with change, which is apparent by the circumstance at White Mountain Health Care The situation can be seen as a typical program of life if is examined as per Bridge's theory where he clarifies that individuals experience 3 stages of shift when they experience change. 'Ending, losing as well as Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they enter phase one and so there might be emotions like unhappiness, unpredictability, irritation, rage, worry, denial and disorientation.The scenario at the advertising department of White Mountain Health Care is comparable so Lewis can obtain comfy with the idea that it is not phenomenal actions. In the 2nd stage, there might be a requirement to link the space in between the brand-new and old culture so Lewis may need to face this ordeal when Krasnow leaves. There might be reduced spirits and also low productivity at this stage which should not be taken as an obstacle. It is during this phase that Lewis will certainly have to give advice to the department so that they can discover a sense of direction. It can be seen how Krasnow has currently made this transition less complicated by making Lewis get associated with the division a year before his real departure. Based on Bridges' Design, stage 3 will certainly produce openness to learning, High energy as well as dedication as people will certainly welcome the change (Bridges, 2004).
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the relevance of 'security requires as being a reduced degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and also out of risk' is at the 2nd degree of requirements. Prior to an employee can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Security' needs satisfied.
SWOT Analysis for White Mountain Health Care Case Study
Ramification of Analysis.
The OB analysis has actually looked at different concepts to understand exactly how to manage the present circumstance at hand. The following three alternatives have actually been proposed to assist Lewis manage the organizational challenges in the advertising department. Each of these options has been suggested for easing the shift required to bring the advertising division in accordance with the requirements of the market and also for making the social change that would certainly comply with as soon as the present leader leaves.
Integration of marketing and advertising features. Dividing Adverting and Manufacturing functions. Assimilation of Marketing with Procedures.
Evaluation of Alternatives.
Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing along with agency and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and also marketing features.
The benefit of this technique is that it will integrate the two functions while lowering the need for hiring an additional source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing division as well as in any case her replacement would certainly be required for the existing role that she is performing. The disadvantage of this choice is that outside hiring may cause bitterness from interior employees who may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.
Dividing Adverting as well as Production: Offered the affordable stress and top quality work called for from the advertising agency, it is suggested that Lewis must allow the manufacturing unit to be a different feature from the marketing unit. Considering that the majority of advertising agencies had these two features as different systems, it makes more sense to follow the standard. Along with this, both functions may have the ability to focus on their core turns on a lot more effectively. Nonetheless, the disadvantage of this approach would certainly be that additional expenses would certainly have to be borne for establishing different manufacturing functions. Along with this, a manufacturing head might have to be worked with which might boost overheads for the organization.
Integration of Marketing with Procedures: Since Lewis is currently looking after the advertising and also operations divisions concurrently; it makes sense to incorporate the two functions considering that she has actually been successfully taking care of both ends. The fact that the two departments currently have major distinctions over allotment of resources suggests that this assimilation might have the ability to produce harmony particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this action specifically as it would certainly put excessive concern over Lewis's shoulders. The fact that Lewis needs to adjust her administration design for the advertising and marketing department suggests 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 departments which might result in ineffectiveness in either among both features.
Suggestion.
An evaluation of the 3 options indicates that assimilation of marketing as well as procedures would not be a viable move due to the vast differences in between the 2 divisions regardless of the truth that presently Lewis is handling both. While splitting up of the manufacturing function might have been a favorable action for the advertising division, the fact that it would suggest putting a 3rd function under Lewis's wing implies this ought to be prevented.
Activity Strategy.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.
Marketing and advertising features would be merged.
Judith Shapiro will certainly be worked with to take Lewis's area as SVP of advertising and marketing.
Production function will remain component of advertising under marketing feature.
Lewis will separate herself from operations.
A democratic leadership style with employee empowerment will be made use of in advertising division.
Open up door policy and emphasis on cross department communication will certainly be focused on eliminating dissonance.
Contingency strategy.
If the integration does not work out as planned, a contingency plan would follow which would certainly divide the production feature from the advertising feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production function will most definitely be separated by positioning it under an SVP production.