Summary of the case
ABC Insurance Company has started business in 1990.It has grown quickly over the last 20 years and now has 3 regional offices in the UK. It employs 300 people with the majority employed as Sales Consultants who sell home and personal insurance policies over the telephone. The Company culture is very much about team working, sharing in success and valuing each individual’s contribution to ensure the continuing growth and profitability of the organization. Peter Smith has been with the company for 8 years and has recently been promoted to Sales Manager, based at the Birmingham office and he has management responsibility for 20 Sales consultants. The previous manager of this team of Sales consultants retired recently and in the 6 months prior to leaving, did not actively manage the team to the extent that sales targets were not reached, absence levels were high when compared to the other Sales teams at the Birmingham office and generally the team performance was very poor. Motivation levels are low because bonuses are paid out on the achievement of sales targets and the team have not achieved bonus for the last 9 months. Peter is new to management but he has recently completed his management training and is very keen to put his new knowledge into practice. He knows he has to improve the team’s performance and levels of morale and motivation because his job could be at risk if he fails to do so. The team has not received any training that is regularly provided and Peter accepts that the team is not working together. More experienced members of the team are not helping out the newer team members who are making mistakes resulting in the more experienced team members then correcting the mistakes. This is causing ill- feeling and resentment and generally the team is feeling very disillusioned.
The key problem in the case is that the team is lacking efficiency.
* Sales targets were not reached
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