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. If the wages are low and no job securities, they do not make more effort in their works.

        The last part is discussed about the Critical evaluation for those two major issues. Also include the recommendation for improvement the productivity of the company.

Two major issues

Failure in Management

This problem has to be taken seriously. The office manager does not seem to care about the worker feeling. The Office manager want the supervisor to be retrain into a rigorous team leadership training program. The training is not suitable in time. Improvement needed in Human Resources practices and team leadership for the top management not only the supervisor. If the top management is insensitive to the worker, it is impossible for the lower management level to be sensitive.

Management is the main things that affect the over all performance of the company, if the management works efficiently and hit the target directly, that is when the company’s performance reach the good level. Getting the managements to work together is important. Supervisors are overworked already and they will fall behind their work in order to accomplish the training that provided by the top level management. Retraining for the supervisors can likely reduce the level of productivity and they will feel that they are being taken advantage. For a company like United Mutual the manager should understanding better HR practices. Training is a good thing but in this case it could be a bad effect for the productivity of the company. Besides it takes time and energy, the office manager itself who want to trains the supervisors has bad team leadership since the office manager does not sensitive with the worker, especially supervisor.

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Payment of wages

This issue also considered as a big issue with in this company. The workers who receive low wages are expected to work longer by the manager. Furthermore the company does not guarantee the job security. In this case the office manager does not seem to understand the worker. This issue really affects the performance because if the workers do not perform well, the company’s performance also would not be good in any ways.  Managers must revise where the system went wrong to fix this problem. There must be a way out to fix this problem, ...

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