The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis


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The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis

Background and Facts

The Risk Management Foundation Of The Harvard Medical Institutions Inc an office materials seller for small and moderate sized companies has actually just recently been associated with planning for a merger with its rival Home Deport, which has affected performance degrees in departmentswith the elderly supervisor associated with lawful complications put forth by the government Trade Payment. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With obstacles in the kind of a prospective cultural adjustment as well as low staff member morale, the organization needs a complete reengineering initiative at the marketing department.

Issue Statement

The possible social adjustment at the advertising and marketing department of The Risk Management Foundation Of The Harvard Medical Institutions Inc is boosting uncertainty in the working environment causing numerous difficulties 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 function in impacting tactical choices given that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Compensation's intervention at the same time. Provided the reality that the store has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may have the ability to impact performance or critical goals. Federal Trade Commission's antitrust fit versus the merger occupied beneficial time of the company's elderly management recommending that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide scenario recommend that The Risk Management Foundation Of The Harvard Medical Institutions Inc is prospering in an atmosphere where there is possible growth of services. In addition to this, reality that shop clients are mostly looking for workplace materials for home offices recommends that the marketplace has a climbing trend of business owners and also home based organisations.

Social factors: Social trends in the economy show that consumers are trying to find convenience along with appealing prices. Market research demonstrates how the consumer for The Risk Management Foundation Of The Harvard Medical Institutions Inc lacks awareness regarding finding options which can offer a mix of comfort and affordable.

Technological factors: Modern technology plays an essential duty in The Risk Management Foundation Of The Harvard Medical Institutions Inc's service technique especially as the organization is piloting Innovation facilities which would provide innovation sales and support in the type of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior concerns can be seen in The Risk Management Foundation Of The Harvard Medical Institutions Inc's case as highlighted in this area.

Uneasiness regarding social adjustment: There is worry about a social modification that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the employee already revealing discontent over this potential move. This expected adjustment has actually created tension in the office which has actually been combined with the past stress and anxiety of preparing the firm for a prospective merger with Home Deport.

Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the difficult environment of a hectic company. Not only does this cause difficulty in discovering the ideal people, it places tension on brand-new hires as can not withstand the rate as well as stress that the organization expects them to birth.

Double Coverage Lines: Novices find this business society troublesome and also tough to deal with particularly as dotted line relationships are indicated to be weaker generally and objective setting and also efficiency examination is still done by the solid line supervisor. This indicates that beginners could shed clearness about their respective roles as well as purposes especially as dotted line coverage does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable as well as ideal for the task yet the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Insecurity: Concern as well as instability can be recognized as 2 significant problems that Lewis would certainly be managing particularly as the merging has actually now be cancelled and 2 senior execs of the advertising and marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would not just supervise of brining regarding a cultural adjustment yet would certainly additionally need to show herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's management design and its conflict with the advertising department's function can additionally be seen as an OB challenge particularly as she has been made use of to managing concerns in the procedures department where workers are educated to concentrate on procedures and get them. The advertising division on the other hand can be viewed as a group of people who are utilized to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between 3 departments, advertising, merchandizing and procedures respectively over the allotment of the marketing mix can be recognized as another OB concern. The advertising and marketing division does not share the same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix allotment among one another either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing divisions can be recognized as an additional OB issue which can require more interest. The fact that the marketing and advertising areas in the advertising and marketing department are disconnected is stopping both departments from obtaining from each various other's experience and expertise. Combination of marketing with merchandising and procedures would end up being harder if the marketing division itself is broken down which can be one more potential OB concern.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Analysis

Numerous concepts have been utilized to explain the situations to get further quality concerning the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are passive and also lazy, have little passion and withstand modification. The scenario at The Risk Management Foundation Of The Harvard Medical Institutions Inc is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this environment instead difficult which might eventually lead to a better inclination of the administration in the direction of Concept X. Also while assessing Lewis's management style, theory X may have been appropriate in the operations division to some level yet the Marketing division would require dependence on Concept Y in order to get the creativity as well as creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing consistency in between the advertising and marketing division is worried, this would originally cause contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the initial stage of group advancement, people may not bond, as they are active finding their area in the group. By incorporating the advertising and marketing division's work, there may coincide preliminary separate which might lead to the 2nd phase of 'storming' where the teams test one another. However, it is just during the 3rd stage or 'norming' when they would integrate to share suggestions before the group can bring about synergy in the 4th stage 'performing'.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are fairly awkward with modification, which is noticeable by the scenario at The Risk Management Foundation Of The Harvard Medical Institutions Inc The scenario can be seen as a regular program of life if is researched as per Bridge's concept where he describes that individuals experience three phases of change when they experience change. 'Ending, losing and also Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one therefore there may be feelings like unhappiness, unpredictability, stress, anger, fear, denial as well as disorientation.The circumstance at the advertising and marketing division of The Risk Management Foundation Of The Harvard Medical Institutions Inc is similar so Lewis can obtain comfy with the suggestion that it is not extraordinary behavior. In the 2nd phase, there may be a demand to bridge the void in between the brand-new and old culture so Lewis might need to face this experience once Krasnow leaves. There may be low morale and low productivity at this phase which should not be taken as a problem. It is throughout this stage that Lewis will have to provide guidance to the division to ensure that they can find an orientation. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis obtain involved in the division a year before his real separation. As per Bridges' Model, phase 3 will certainly produce visibility to discovering, High energy and commitment as individuals will certainly embrace the change (Bridges, 2004).

Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the relevance of 'security needs as being a lower degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe and also out of risk' is at the second degree of demands. Before an employee can be made to develop psychologically, he requires to have his 'Physical 'and also 'Safety' requires satisfied.

SWOT Analysis for The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study

Ramification of Analysis.

The OB analysis has considered numerous concepts to comprehend just how to handle the present scenario available. The adhering to 3 options have been recommended to aid Lewis handle the business difficulties in the advertising and marketing division. Each of these options has actually been recommended for reducing the shift required to bring the marketing department in accordance with the demands of the market as well as for making the cultural adjustment that would certainly comply with when the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Marketing & Advertising Functions: The in-house marketing agency of The Risk Management Foundation Of The Harvard Medical Institutions Inc is currently stamina for the organization in regards to conserving up on overheads connected to marketing and promo. Considering that no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the marketing feature, this is a favorable chance for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business advertising and marketing along with agency and retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this approach is that it will certainly integrate both functions while decreasing the demand for employing an added resource for marketing. Along with this, Lewis would be heading the marketing division and also regardless her replacement would certainly be needed for the current role that she is doing. The disadvantage of this option is that outside hiring may bring about bitterness from interior workers that may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Offered the affordable pressures and premium quality job required from the ad agency, it is recommended that Lewis should allow the production device to be a separate feature from the advertising and marketing system. Since a lot of advertising agencies had these 2 functions as different devices, it makes more sense to adhere to the norm. In addition to this, both functions may be able to concentrate on their core turns on extra successfully. However, the drawback of this method would certainly be that added expenses would need to be birthed for establishing separate manufacturing features. A manufacturing head might have to be hired which could increase overheads for the organization.

Integration of Marketing with Workflows: Because Lewis is currently taking care of the marketing and also procedures divisions simultaneously; it makes sense to integrate both features since she has actually been effectively dealing with both ends. The reality that both divisions currently have major distinctions over allocation of sources recommends that this combination might be able to produce harmony especially as Lewis would be heading both ends.However there are various drawbacks of this step specifically as it would certainly place excessive concern over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the marketing department recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to use one type of leadership style to both departments which could result in ineffectiveness in either one of the 2 functions.


An assessment of the 3 choices indicates that combination of marketing and operations would certainly not be a practical action as a result of the huge differences between the two departments despite the fact that presently Lewis is dealing with both. While splitting up of the production feature might have been a beneficial action for the advertising department, the reality that it would suggest placing a 3rd feature under Lewis's wing means this need to be prevented. The assimilation of the marketing department is the very best choice in terms of obtaining the optimum results from the department. An action prepare for this alternative is gone over below.

Action Strategy.

Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will divide herself from operations.

A democratic leadership style with staff member empowerment will certainly be utilized in marketing department.

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

Backup strategy.

If the integration does not work out as prepared, a contingency strategy would certainly comply with which would divide the production function from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will certainly be divided by positioning it under an SVP manufacturing.