• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

United Mutual Insurance Company - failure in management

Extracts from this document...


United Mutual Insurance Company worked in the insurance business. They are facing 25% turnover among the clerical and secretarial staff and productivity is lower than the insurance industry national standards. The high turnover and low productivity are caused by reasons beyond the control of supervision. Furthermore most of clerical and secretarial are not clear about their duties and responsibilities creating ambiguity and conflict. The Office manager, Gary Best wants training for the supervisors. But supervisors are so overworked already that they will baulk in training. And also there is a problem in setting up the training time. There are two major issues within this company which caused the problem above. Management failure is considered as the main issues of the company. According to Raymond one of the three highest ranking managers there have been serious problem in the top managements, they need better Human Resource practices, not only expecting it from the supervisors. And also the top management is insensitive to people and lower level management that is sensitive. Gary best the office manager wants to give training for the supervisors and expect them to accept almost any working condition. Low wages also considered as another issue that caused the dropped of productivity. This issue is related to the previous issue which is management failure. The worker wages are low and the managers expected them to work in long hours and there are no job securities for them. ...read more.


Newnham, 2002, p.B2). In United Mutual Gary Best want the supervisor to get workers to accept almost any working conditions. But he did not seem to have a good leadership skills and HR practices. HRM is usually called normative approach. Normative approach is a description of what HRM should be. It usually adopts a 'unitary' stance- that the realization of employees' hopes and ambitions is compatible (perhaps identical) with hopes and goals of the organizations (Dessler, Griffiths, Beverley & Llyod-Walker. 2004, p.22). If the employees goal different from the organizations, there will be an internal conflict within the organizations. It is most often teams of committed employees who help distinguish between firms that succeed and those that do not (Schneider and Bowen, 1993, p.39). In order to make the worker to have the same goals as the organizations, the worker must be pleased with what they've got and feel that they part of the organizations. In the United Mutual, the workers feel unhappy about the wages and they can not guarantee the job security. They feel that they deserved better than what they have got. This will result in high turnover. The managers wants them to work longer than what they should. This will lead to reducing the level of productivity. If the United Mutual wants to keep them, the company should give their desired wages. ...read more.


Human resource manager must be capable to respond to the workforce problem and taking right action to produce the right solution. For every action and decision that is going to taken, manager must think of the impact of the taken action. Payments of wages for the worker need to be evaluated and changed to improve the employee's motivation so it can improve the productivity to higher level. If all the conditions that mentioned above are fixed United Mutual more likely could increase its productivity level regardless to other issue that may arise after the establishment of the new actions. Reference Textbook Dessler, Griffiths, Lloyd-Walker & Williams, Human Resource Management, Prentice Hall, Australia, 1999. Dessler, Griffiths, Beverley & Llyod-Walker, Human Resources Management 2nd Edition, Prentice Hall, Australia 2004. Journals M. Newnham, 'Treating employees well turns out to make good business sense', the age, 11 February 2002, p.B2. Benjamin Schneider & David Bowen, 'the service organization: human resources management is crucial', Organizational Dynamics, Vol. 21, No. 4 (1993), p.39. Gean Freeman, 'Human resources planning- training needs analysis', vol.39, no.3, 1993, p32-4. HR Monthly, 'Job analysis and job design', February 2000, pp. 24-6. Charlene Marmer Solomon, 'HR facilitates the learning organizational concept', Personnel Journal, November 1994, pp.56-66. Larry D. Hales, 'Training: a product of business planning', Training and development journal, vol.40, no.7, 1986, pp.87-92. Max Nenham, 'Treating employees well turn out to make good business sense', the age, 11 February 2002, Business, p.2. Takashi Watanabe. 'Asian Business & Management', Houndmills: Apr 2003. Vol. 2, Iss. 1; p. 111. 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays


    with work * Less stress * Promotion opportunities * Helps with job applications * Increased job satisfaction Training on the whole has a number of advantages: * Improved job performance * Increased productivity * Increased motivation * Increase in job satisfaction * Improvement in quality * Improved customer service *

  2. The 3M Company case study

    By shortering the product life cycle , it increases the R&D expenditure. Even the most effective innovating firms such as 3M may create organizational bureaucracy that slows down innovation. The most successful innovators know that just spending more on R&D is not enough; neither is anticipating customer needs.

  1. Managing Human Resources in Marks & Spencer.

    Sometimes this can benefit the employee. A single woman with a child may be able to work between the hours of 9am to 3pm each day while her child is at school. Working flexible hours could mean an employee may take time off for personal reasons and still work their required number of hours a week.

  2. Observations on Management and Leadership

    to honor and take strength and direction for its growth from both philosophy and social science, For all the efforts of the logical/scientific positivistic/pragmatic elements of our culture to make management a technical/formula~oriented pursuit, this approach is totally wrong-headed, (The McNamara approach to the management of the Vietnam war is an archetypal example of this.

  1. Banquets Management

    of silvers required along with the type of size, no. of glasses along with the types. In some hotels the banquet staff may handle this itself 5. BAR STOCKS With meals the organiser is able to purchase a certain number of bottles of wine, beer, spirits etc.

  2. Working practices

    responsibility * The job security * The decision they have to make * The payment they get * The skills, knowledge and qualities they have There are four main types of job roles in a business: * Directors: they are responsible for the overall direction of the business * Managers:

  1. Management and Practices

    For example, the characteristics of business growth in the past 100 years dictated that organisations centralise their decision making. However, many companies today are finding that centralised decision making better supports innovation. Changed conditions may now dictate a different approach for decision making.

  2. how HRM orperate within any oraganisation

    The managers carry the responsibility for recruiting, selecting, appraisal and training in an organisation with employees rather then a specialist in a centralised HRM function. * HRM was given more status in the organisation, instead of being something carried on at lower levels of the organisation.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work