Case Study Abc Insurance Company

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Case Study
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.

Problem Definition
The key problem in the case is that the team is lacking efficiency. * Sales targets were not reached
* Absence levels were high
* When compared to the other Sales teams at the Birmingham office * The team performance was very poor.
* Motivation levels are low

Objectives of the case

* To find the ways of facilitating good team work in the company * To find what actions should undertaken to encourage and improve levels of performance within the team

* To find ways & means by which how the new manager Peter Smith could solve the existing problems & be an efficient manager who guide the team to success.

* To find what have to be done to support the development of the team

SWOT Analysis

Strengths
* The organization has good manpower strength of 300 employees * It has grown quickly over the last 20 years and now has 3 regional offices in the UK Weaknesses
In the company the employees lack efficiency.
* Sales targets were not reached
* Absence levels were high
* When compared to the other Sales teams at the Birmingham office * The team performance was very poor.
* Motivation levels are low
* The team has not received any training that is regularly provided * The team is not working together.

Opportunities
* If Mr. Peter Smith could solve the existing problems he can be an asset for the company * If company could facilitate effective team work it can diversify in the immediate future

Threats
* If the company goes on with ill- feeling and resentment among employees it will soon perish. * If Mr. Peter Smith couldn’t solve the existing problems he will be thrown out from the organization &he may loose his career

Alternative courses of action
* Give proper training to employees in order to teach them how to work as a team also ensure full attendance of employees in training program * Ensure proper payment of bonus & incentives

* Bonus should be paid not on the achievement of sales target but on the performance & hard work...
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