Organizational Theory – Case Study

In a narrative format, discuss the key facts and critical issues presented in the case. In this case study, the regional claims manager, Christine Brooks, Is tasked with reorganizing the Westchester zone In order to consolidate 4 offices Into one office by the end of the year.

She anticipates challenges because of this change and has a plan to work with the managers to make the transition as smooth as possible. There is background provided on the insurance industry history over the past years.

This reorganization is the fallout of the stagnant economy in 2002. It was because of this issue that premiums paid by policyholders were Insufficient to cover the cost of claims and operating expenses (Rosenberg, 2006). The company suffered losses and plans were set In place to begin reorganization.

The four offices had each developed their own distinctive cultures, unique identity and managers were concerned about how their employees would adjust to the reorganization (Rosenberg, 2006). Christine used the common approach to conduct manager survey.

She is now tasked with deciphering the results to determine how to make the reorganization effective and how to make the move. In the results, she was pleased that she did receive favorable responses on most of the questions; she also wanted to address the other diverse answers that varied in range. Some areas of concern were turn over, manages expressed concern that the family oriented environment had disappeared, and the communication of new processes had deteriorated (Rosenberg, 2006).

This could be an issue during the reorganization for their employee morale.

It was important for Christine to remind her team of managers that this was not a choice to reorganize and consolidate offices, but a mandate. Some of the positives for Christine were her mama’s long term employees were familiar with change and would be receptive. Considering the results of Christina’s survey of her managers regarding the reorganization, should she proceed with moving all three offices at once or should she relocate the offices in a piecemeal fashion? Why or why not?

Based on the survey results, I believe Christine should proceed with moving all three offices in a piecemeal fashion. This will allow her to give each office the opportunity to get moved in and establish their own departmental Identity as well as Implement new processes for their new office. This will allow the organizational culture to adapt to environmental changes and to coordinate/integrate its internal operations (Lester & Parallel, 2007). This will also allow the managers to create a sense of belonging and identity within their respective departments.

If Christine were to move all 3 offices at once, it would create a difficult environment and cause delays with transition. This will also allow the departments that are experiencing more turnover than others to hire new employees under new renewed morale of a new office. The manager’s will be able to introduce new processes in a new environment to hopefully lift morale for existing employees for retention. If she moves all of the offices at once, it will not allow for this opportunity. The change would not be as seamless with all offices moving at once.

Since the change is inevitable, it is important for Christina’s team to embrace their new office as a fresh start for those that struggle with morale and develop new processes that they are able to control to Implement In their new environment. 2 AAA Deterrent organizational cultures develop In ten Tour claims’ offices of the same insurance company, all located in one geographic region of the United States? Different organizational cultures developed in each office of the same company because it each respective office may have developed different ways of functioning.

The cultures could vary because of the varying categories of organizational culture. With that being said, each office may have a different function that would call for a different cultural category. For example, if an office is accounting, it may have adapted the mission culture – emphasizes an external focus through stability.

Another reason could be because of managers varying style of management. Some managers allow their team to create a culture and process that works as long as it is ethical and follows organizations guidelines.

Lastly, another reason could be that it would be difficult for a new leader to come into an office and change culture. New managers or leaders can only attempt to manage the existing culture. Leaders often set the tone for the type of culture that will be represented in their organization.

Again, each leader manages differently and focuses on different areas. Also, subcultures may develop and sometimes become greater than the actual organizational culture. Different organizational cultures even within the same office can exist because of subculture.

I do believe that based on the department function would determine how different each culture would be from office to office. Tenured employees use same cultures established in the past and often make it different to develop a new organizational culture.

Often, new cultures develop as employees turnover and bring their previous organizations culture to the business. What could Christine, as the overall supervisor of all four claims offices, have done to promote cultural harmony among and between the offices?

As the overall leader, Christine has the opportunity to set the tone for the reorganization with her employees and with corporate. Often during the case study, you would notice, when her managers made a point of concern/complaint, her response was that the change was going to basically happen whether they liked it or not. I do believe a better method would have been to allow the managers to speak out. When you have a group of managers vs..

Subordinate employees, you would assume that you are speaking with a group of leaders that understand that change is part of the business.

Christine should have seed the meeting to express her desire to hear from the managers how they thought we could make the change for each of their respective offices as least impact as possible. She could have also used her apparent flexibility of allowing the managers to choose whether they wanted to be moved over the weekend – this would have made the managers feel that they were given some choice and have a better outlook on the move. Empowerment could go a long way for the morale of the managers to pass along to their teams. The managers would have been able to position the idea to their employees.