Organizational Behaviour - Transact Insurance Corporation

Assignment Paper

TransAct Insurance Corporation

Organizational Behavior

Ibrohim Mahmudov(이브라힘)  Student ID: 14012678

Sejong School of Business

Bachelor’s of Business Administration

2015.11.25

 Questions and answers:

1. Identify the forces pushing for change and the forces for restraining the change effort in this case.

Basically, there are many vital reasons that can force pushing for change TransAct Insurance Corporation’s organizational management.  Firstly, the president of the firm wanted to improve the company’s competitiveness and customer service. These are main forces that pushing for change. That’s why he hired Jim Lean as a vice president for this corporation.

 Moreover, the relatively authoritarian management among claim division and also employees’ morale level was poorly low, high workloads and isolation that resulted high turnover one form of employee resistance.    

Coming to the forces for restraining, probably managers and employees have a fear of unknown and incongruent organizational systems forces. Because Jim let comments show to employees and that make managers feel a fear of unknown, I mean they were afraid of the risk of losing personal loss or carrier path that they have reached so far. Revealing survey results also one of reason for emerging incongruent organizational system.  

1. Was Jim Leon successful at bringing about change? Why or why not?

Personally I impressed and surprised new vice president Jim Leon’s first attempts to change organization as a transformational leader. I consider his first attempts and efforts were really smart. I mean he tried to use Communication strategy as successful as possible. He immediately met all claim managers, directors and visited personally to reach employees. That’s really smart decisions, I guess. He used the highest priority and first strategy, namely communication successfully.

But on the other hand, he implemented really radical and serious step to change and reduce restraining. Clearly, “Claims Management Credo” was good idea but Jim rushed and hurried to do surveys and revealing comments. As a result, the harsh feelings emerged between managers and employees. Finally, I consider Jim Leon as a successful transformational leader. He was successful despite his mistakes.