Organizational Behavior

Topics: Vice President of the United States, Management, Change management Pages: 5 (1640 words) Published: September 29, 2011
Management of Innovation: TransAct Insurance Corporation Case Study|

Prepared for: MGT1000-Term Assignment
Submitted: 28 September 2011

Prepared by:

1. Introduction: TransAct Insurance Corporation Case Study

“Change is the only constant said Heraclitus, Greek philosopher” (Change Management Training, 2011). This is main challenge that every business faces when they become aware of the need for improvement. TransAct Insurance Corporation (TIC) provides automobile insurance throughout United States of America. Last year a new president was brought in by TIC'S Board of Directors to improve the company’s competitiveness and customer service. After spending several months assessing the situation, the new president introduced a strategic plan to improve TIC'S competitive position. He also replaced three vice presidents. Jim Leon was hired as vice president of claims. TransAct Insurance Corporation (TIC) hired a new vice president named Jim Leon to handle change within the organization.

When dealing with improving situations in an organizational environment, the central theme is the study of innovation and change. There are many ways to handle this situation by using theories and organization knowledge. This essay will explore the forces for change and forces restraining change; to determine future outcomes for the organization.

2. Key Concepts of Change and Innovation
When dealing with organizational situations, the most important aspects to consider are people, space, and time. The key issue presented by people is the role of human relations in change and innovation. This is important since it involves employee motivation, social relations, and satisfaction. Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. In this case, it involves 1,500 employees, 50 claim center managers, and 5 regional directors. There is an apparent conflict between Jim Leon and his employees. His solution to the problem was to conduct employee surveys and initiate meetings with employee representation. Surveys are effective in identify problems areas, especially ones that top management are unaware of. Environment problems brought up, so they can be handled accordingly. Motivation levels are also calculated to see if employees are satisfied with their jobs. The results showed that morale levels were low in the TransAct Insurance Corporation case study, so that was a major issue to handle. Other advantages include: benchmarking, communication, and initiative levels. The problem with the survey was that the results were shown to everyone in the organization, which was a concern for many (The Advantages, Considerations and Risks of Employee Satisfaction Surveys, 2011). The term space references the issue of levels of analysis in organizational change and innovation. The levels of analysis include individual level, team level, and organizational level. Individual level deals with individual level analysis of characteristics like creativity, motivation, performance, ethics, behavior and productivity (Multiple Levels of Analysis, 2004). This is major factor when it comes to the problems Jim Leon is facing. Morale was very low, and was unenthusiastic at first towards Jim’s “Claims Management Credo”. This credo outlined his philosophy that each claims manager would follow which he believed to be the most important values.

One of the main concepts that most managers overlook is time. It’s important to see how change unfolds over time. In most cases, change is a long term plan that takes time to implement. It is an effective strategy to look at the past, present and future possibilities. In the TIC case, Jim Leon looked at past performance of the organization to help come up with appropriate plan of action. He understood that it would take time to increase employee...
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