Organisational Behaviour

Only available on StudyMode
  • Download(s) : 53
  • Published : November 21, 2010
Open Document
Text Preview
People are real assets of an organization. If treated well, they can take organizations to commanding heights. Consolidated Life is a prestigious insurance company. Every company has its own culture within the organizations; the same applies to Consolidated Life. The old culture in the Policy Issue Department at Consolidated Life was loose, flexible, people – oriented management style whilst the new culture was strict and task – oriented. In the case study, it analyzed the issues that Jack Greely (the new divisional senior vice president) had confronted such as culture, leadership, Supervisors’ Forum and morale of supervisory staff. This case study is further concluded up with the appropriate recommendations on how Jack should have handled the issues from a cultural perspective. The topics to be addressed were communications, leadership style, culture and attitude. An organization can gain a competitive advantage by developing its people effectively, outline on their capability and to meet clearly defined objectives.

Jack Greely was the new divisional vice president in the Policy Issue Department at Consolidated Life. Before his arrival at Consolidated Life, the culture was loose, flexible and people – oriented management style. According to Schein (in Kinicki and Kreitner 2009), organizational culture is the set of shared, taken – for – granted implicit assumptions that group holds and that determines how it perceives, thinks about and reacts to its various environments. In the case study, the old culture under the leadership of Rick Belkner was laissez – faire. Rick allowed his supervisors a free hand to run their units as they saw fit and Mike used this latitude to implement group meetings and training classes in his unit (case study, p.16). According to Robbins et al. (2008, p. 577) people orientation is the degree to which management make decisions and take into consideration the effect of outcomes on people within the organization. This management style will lead to increase productivity, reduce errors and reduce the lost time (case study, p.16).

However, upon Jack’s arrival, the culture was completely changed to a stricter and task – oriented management style. He had the authority to run the division and was characterised as tough but fair and it was necessary for his division to do things his way and “get the work out” (case study, p.17). Thus, under his leadership, he faced some challenges from his team and his team could not adapt to the new culture. This was clearly reflected in the case where the employees lack of desire to work where poor quality of work was done (case study, p.17). Besides, the morale of supervisory staffs had decreased to an alarming level and prompted turnover to happen as employees had the intention to leave or transfer to other department which caused the organization to have a weak culture. According to Robbins et al. (2008, p.580) a strong culture is one which demonstrates a high agreement among members about what the organization stands for. This agreement of purpose builds cohesiveness, loyalty and organizational commitment which will lessen the employees’ tendency to leave the organization. Hence, the weak culture will increase turnover, increase absenteeism, poor quality work, low productivity and high job dissatisfaction (Leopold et al. 2005).

The second issue that Jack confronted was the poor morale of his supervisory staff which had dropped to an alarming level. Morale is the “psychological state of a person as expressed in self-confidence, enthusiasm and loyalty to a cause or organization ( Because of a stricter, task-oriented management doctrine being practiced; Jack was a major topic of conversation in and around the division. People dubbed that MBO now meant “management by oppression” (case study, p.17). A leader must be one who has the ability...
tracking img