Transact Insurance Corporation
What symptom(s) exists in this case to suggest that something has gone wrong?
Jim Leon, the new vice president of the claims department at Transact Insurance Corporation introduced a new strategy the company’s system. One of the most noticeable signs of change was the “Claims Management Credo” which was an outlined procedure that claim managers were to follow. After evaluation of this process, the results turned out to be pretty bad.
The following are symptoms that suggested something went wrong in this case:
Many managers were unhappy about the individual comments being shared from the employee survey and complained about it. The managers were upset about the poor reflection of themselves which increased their tendency to resist following Jim’s directives. The backlash that happened from the results of the survey caused two claims managers to resign. Three managers requested to step down from their managerial positions and transfer back to non-management positions. By Jim sharing too much information on the surveys negatively impacted the manager’s reputation and their relationship with the employees. Some managers and employees had disputes and developed ill feelings towards each other stemming from the survey.
Jim Leon failed to reduce employee resistance to his organizational change that would improve his department’s management. Since employees doubted his commitment to change, this resulted in employees not fulfilling the requirements of the new philosophies that were put into place and not wanting the change the routines they had been accustomed to. They were also unsure of how they would fit in the organization after these changes took place.
What are the main causes of these symptoms?
The claims department was being operated in an authoritarian top down manner. The employees felt as if their workloads were too high and their cubicles were