Case 4-2 NEW JERSEY INSURANCE COMPANY
1. In what ways does Mr. Somersby control the operation of the sections of his division? In what ways does top management control the operation of the law?
For this case, two sections of Mr. Somersby‘s division were concerned.
First, Individual Loan Section which was responsible for the legal processing of loans made to individuals and secured by mortgage on real property. 1. Operation is being controlled by evaluating the work or output of individual examiners. 2. Time and motion study. Since the job is repetitive they believed that the examiners would perform better or become efficient over time. 3. Training. These examiners were trained thoroughly, three months training, a year and a half on the job training and experience. They work under the supervisions of lawyers which should be familiar with the examiners’ work. 4. Law tended to maintain a staff sufficient to handle minimum work load, and it supplement this with overtime. 5. Records. Number of loan transaction, number processed and backlogs 6. Both management and section complies with company policy which is also the reason why they maintain the work force level of mortgage examiners aside for the cost of selecting and training them. Examiners are also trained to other tasks when the work load lessened (multi-skilling/tasking).
Second, Corporate Loan Section where larger amount was made directly by NJIC to industrial, commercial or public utility compared to Individual Loan Section. Controls:
1. All transactions were consulted to Mr.Carlisle by the attorneys. 2. Reassignments to equalize the work load of the various attorneys. 3. Weekly staff conference – a venue for the staffs to learn from each other’s experience and a vehicle to improve and for developing a consistent policy; keeping informed would be easy for the staffs to relieve one another in case of emergencies. 4. Submission of (time-based) current work...
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