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United Mutual Insurance Company - failure in management

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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.

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