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


Home >> Kelloggs >> The Risk Management Foundation Of The Harvard Medical Institutions Inc >>

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 retailer for little and medium sized services has actually just recently been involved in planning for a merger with its rival House Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in lawful issues presented by the federal Profession Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With challenges in the form of a potential social modification and also low staff member morale, the organization wants a complete reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of The Risk Management Foundation Of The Harvard Medical Institutions Inc is boosting unpredictability in the workplace resulting in numerous difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting calculated choices given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Given the reality that the shop has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to affect efficiency or calculated objectives. Federal Profession Commission's antitrust fit versus the merging took up important time of the company's senior management suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Economic factors such as the appearance of local business in the worldwide circumstance recommend that The Risk Management Foundation Of The Harvard Medical Institutions Inc is flourishing in an environment where there is potential growth of companies. Truth that shop customers are mainly looking for workplace materials for home workplaces recommends that the market has a climbing fad of entrepreneurs and also residence based companies.

Social factors: Social fads in the economic climate reveal that clients are looking for ease along with eye-catching costs. Marketing research shows how the customer for The Risk Management Foundation Of The Harvard Medical Institutions Inc lacks recognition regarding locating remedies which can supply a combination of benefit and inexpensive.

Technical factors: Modern technology plays a vital role in The Risk Management Foundation Of The Harvard Medical Institutions Inc's company technique specifically as the company is piloting Modern technology facilities which would certainly offer innovation sales and also support in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

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

Concerns about cultural change: There is concern concerning a cultural change that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the team member already showing discontent over this prospective move. This expected adjustment has actually produced anxiety in the workplace which has actually been coupled with the previous stress of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a busy organization. Not only does this cause trouble in finding the ideal people, it puts tension on new hires as can not stand up to the rate and also stress that the organization anticipates them to bear.

Dual Reporting Lines: Newcomers locate this business society difficult and also hard to deal with especially as dotted line partnerships are indicated to be weaker in general and unbiased setting and also performance evaluation is still done by the strong line manager. This indicates that novices might lose clearness about their corresponding roles and objectives especially as populated line coverage does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been capable and appropriate for the job but the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Fear as well as instability can be identified as two major concerns that Lewis would certainly be taking care of especially as the merging has currently be cancelled and two elderly execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural modification but would also need to show herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's duty can likewise be seen as an OB difficulty specifically as she has actually been made use of to dealing with concerns in the procedures department where employees are taught to focus on procedures as well as get them. The advertising division on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow who focused much more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also operations respectively over the allotment of the marketing mix can be determined as one more OB issue. Although the advertising division does not share the same vision as the various other two departments regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allowance amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing divisions can be recognized as an additional OB problem which could require additional interest. The reality that the marketing and advertising sections in the advertising division are separated is preventing both departments from obtaining from each other's experience and know-how. Combination of advertising with merchandising and procedures would become harder if the marketing division itself is degenerated which can be one more possible OB issue.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Analysis

Numerous theories have actually been made use of to clarify the circumstances to obtain additional clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that juniors are easy as well as lazy, have little passion and also stand up to modification. The hard version of this concept stressed threat, limited controls, risks and punishments. Gradually it creates low efficiency, subtle sabotage as well as rivalry (Deal, 2003). Although the scenario at The Risk Management Foundation Of The Harvard Medical Institutions Inc is not totally adhering to Concept X, it can be seen that new hires are finding this atmosphere rather stressful which may eventually lead to a better inclination of the administration in the direction of Concept X. As per McGregor's advocated sight, which he called Concept Y, the vital job of the management is to set up business conditions to ensure that people can achieve their own goals best by guiding their initiatives in the direction of organizational rewards. If people discover no satisfaction in their work, the monitoring would have little option yet to rely on concept X as well as external control (Offer, 2003). Even while evaluating Lewis's management design, theory X may have appropriated in the operations division somewhat but the Advertising and marketing division would call for dependence on Theory Y to get the creative thinking and creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's issue about bringing harmony between the advertising and marketing division is worried, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the initial phase of group growth, individuals might not bond, as they are busy finding their place in the team. By incorporating the marketing and advertising department's work, there might be the same first disconnect which could cause the 2nd phase of 'storming' where the teams challenge each other. Nonetheless, it is just throughout the 3rd stage or 'norming' when they would integrate to share suggestions prior to the team can cause synergy in the fourth phase 'executing'.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), people are fairly uneasy with change, which is obvious by the circumstance at The Risk Management Foundation Of The Harvard Medical Institutions Inc The circumstance can be viewed as a normal training course of life if is researched according to Bridge's concept where he explains that people experience 3 stages of transition when they experience change. 'End, losing and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with change, they go into stage one and so there may be feelings like unhappiness, uncertainty, frustration, temper, concern, denial as well as disorientation.The scenario at the advertising department 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 amazing habits. In the second stage, there might be a demand to link the gap in between the brand-new and also old culture so Lewis might have to face this challenge when Krasnow leaves. There may be reduced spirits as well as low efficiency at this stage which must not be taken as a trouble. It is during this phase that Lewis will need to provide support to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the department a year prior to his actual separation. As per Bridges' Design, phase three will certainly produce visibility to learning, High power as well as dedication as people will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the significance of 'safety needs as being a reduced level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of risk' is at the second degree of requirements. Prior to a staff member can be made to develop psychologically, he needs to have his 'Physical 'and also 'Security' needs met.

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

Implication of Analysis.

The OB analysis has looked at numerous concepts to recognize how to manage the present scenario handy. The adhering to three alternatives have been proposed to aid Lewis manage the organizational obstacles in the advertising and marketing department. Each of these options has been recommended for relieving the change required to bring the advertising and marketing department in accordance with the demands of the market and for making the cultural adjustment that would certainly follow as soon as the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business marketing along with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and also advertising and marketing features.

The advantage of this approach is that it will incorporate both features while lowering the need for working with an added resource for marketing. Lewis would be heading the advertising and marketing division as well as in any kind of case her replacement would be required for the present duty that she is carrying out. The negative aspect of this option is that external hiring may cause bitterness from internal workers that might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Provided the affordable pressures as well as high quality job called for from the advertising and marketing company, it is suggested that Lewis needs to allow the manufacturing device to be a separate function from the advertising and marketing system. Since a lot of marketing firms had these two features as different systems, it makes even more feeling to comply with the standard.

Integration of Advertising with Procedures: Since Lewis is already taking care of the advertising and also procedures departments all at once; it makes feeling to incorporate the two features given that she has been efficiently taking treatment of both ends. The fact that Lewis has to adjust her monitoring design for the marketing division recommends that these 2 divisions would certainly be culturally varied.


An assessment of the 3 choices suggests that assimilation of advertising and marketing as well as procedures would certainly not be a feasible move due to the vast distinctions between the two departments despite the fact that currently Lewis is dealing with both. While separation of the production feature may have been a beneficial step for the marketing department, the reality that it would mean positioning a third feature under Lewis's wing implies this need to be stayed clear of.

Activity Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will certainly remain component of advertising under marketing feature.

Lewis will separate herself from operations.

An autonomous management style with worker empowerment will be made use of in marketing department.

Open door policy and also focus on cross departmental communication will be aimed at eliminating disharmony.

Contingency plan.

If the combination does not work out as intended, a contingency plan would follow which would certainly divide the production function from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP production.