Case Study: Transact Insurance Ltd
You need to work with your teammates.
You’re welcome to do it Individually as well. Read the case study of Transact Insurance Ltd. Use one of the models in the chapter on culture or the prescribed articles to describe the culture of the organization. Also identify the major influences on the evolution of that culture. Consider the changes in the South African environment (competition, globalization, employment equity, downsizing, need for innovation, etc), and indicate the suitability of the organizational ultra for the future objectives of the organization.
Case study: Transact Insurance Transact Insurance Ltd (TILL) provides motor vehicle Insurance throughout South Africa.
Last year, a new managing director was hired by the Till’s board of directors to Improve the company’s competitiveness and customer service. After spending several months assessing the situation, the new managing director introduced a strategic plan to improve TILL’S competitive position. He also replaced three vice- presidents. Jim Leon was hired as Vice-president: Claims, TILL’S largest division with 100 employees, 40 claims centre managers and five regional directors.
Jim immediately met with all claims managers and directors, and visited employees at the 40 claim centers. This was a difficult task but he persisted.
Through these visits and discussions Jim discovered that the claims division had been managed in a relatively authoritarian manner. He could also see that morale was very low and employee-management relations were cautious. High workloads and isolation (claim adjusters work In tiny cubicles) were two common complaints. Several managers acknowledged that the high staff turnover among claims adjusters was partly due to these conditions.
Following discussions with TILL’S managing director, Jim decided to do the following: * He initiated a divisional newsletter with a tear-off form for employees to register their comments. * He announced an open- door policy in which any claims division employee could speak to him directly and confidentially without first going to their immediate supervisor.
* He also fought organizational barriers to initiate flexi-time programmer so that employees could design work schedules around their needs. This programmer later became a model for other areas of TILL.
One of Jims most pronounced symbols of change was the “Claims Management Credo’ outlining the philosophy that every claims manager would follow. At his first meeting with the complete claims management team, Jim presented a list of what he thought were important philosophies and actions of effective managers. The management group was sakes to select Ana presently Trot tons last.
I nee were tool that the resulting list would be the division’s management philosophy and all managers would be held accountable for abiding by its principles.
Most claims managers were uneasy about this process, but they also understood that the organization was under competitive pressure. The claims managers developed a list of 10 items, such as encouraging teamwork, fostering a trusting work environment, setting clear and reasonable goals, and so on. The list was circulated to senior managers in the organization for their commitment and approval, and sent back to all claims managers for their endorsement. Once this was done, a copy of the final document was sent to every claims division employee.
Jim also announced plans to allow up with an annual survey to evaluate each claims manager’s performance. One year after the credo had been distributed Jim announced that the first annual survey would be conducted. All claims employees would complete the survey confidentiality and return it to human resources where the survey results would be compiled for each claims centre manager. The survey polled the extent to which the claims manager had lived up to each of the 10 items in the credo. Each form also provided space for comments.
The claims division survey had a high response rate.
In some centers, every employee completed and returned a form. Each report showed the claims centre manager’s average score for each of the 10 items as well how employees rated the manager at each level on the five- point scale. The reports also included every comment made by employees at the centre. No one was prepared for the results of the first survey. Most managers received moderate or poor ratings on the 10 items.
Very few managers averaged 3 (out of 5) on more than a few items. The comments were even more devastating than the ratings.
Comments ranged from mildly disappointed in to extremely critical of their claims manager. Employees also described their long- standing frustration with TILL, high workloads and isolated working conditions. Several people bluntly stated that they were skeptical about the changes that Jim had promised. “We’ve heard the promises before, but now we’ve lost faith”, wrote one claims adjuster.
The survey results were sent to each claims manager, the regional director and employees. Jim instructed managers to discuss the survey data and comments with their regional manager and directly with employees.
The claims centre managers .NET into shock when they realized that the reports included individual comments. They had assumed that the reports would exclude comments and would only show averaged scores. Some managers went to their regional director, complaining that revealing the personal comments would ruin their careers.
Many directors sympathized, but the results were already available to employees. When Jim heard about these concerns, he agreed that the results were lower than expected and that the comments should not have been shown to employees.
After discussing the situation with his directors, he decided that the discussion meetings Detente clams managers Ana tenet employees snouts proceed as planned. 10 delay or withdraw the reports would undermine the credibility and trust that Jim was trying to develop with employees. However, the regional director attended the meeting in each claims centre to minimize direct conflict between the claims and centre manager and employees.
Although many of these meetings went smoothly, a few created harsh feelings between managers and their employees.