Question

Case Study: TRANSACT INSURANCE CORPORATION

Last year, a new CEO was hired by TKCy because of declining ingrat the company's competitiveness and customer outreach. The new CEO was a formidable leader, but his strong interpersonal skills and ability to remember names and put people at ease set him apart. Due to these conditions, managers were uneasy about the process, but they also endorsed that he start initiating an annual survey to evaluate each claims manager's performance. This concerned the managers, but most of them introduced the survey after vetting it. One year after the survey had been distributed, management announced that the first annual performance review survey would be conducted. All claims center managers were surprised, as they hadn't expected another survey and were even worried about having a poor travel experience if a survey were to be repeated next year.

It all started: anonymously. The comments were even more discouraging than the ratings. Comments ranged from mildly disappointed to extremely critical of their claims manager. Employees also described their long-standing frustration with the changes that Jim had imposed. We've heard the promises before, but now we've lost faith, and we've lost confidence in our claims manager."

The survey results were sent to each claims manager, the regional directors, and employees at the claims center. Jim went to their regional directors, complaining that revealing the personal comments would ruin their careers. Many directors sympathized, but the results were already available to employees. When Jim heard about these concerns, he agreed that the results were lower than expected and that the comments should not have been shown to employees. After discussing the situation with his directors, he decided that the discussion meetings between claims managers and their employees should proceed as planned. To delay or withdraw the reports would undermine the credibility and trust that Jim was trying to develop with employees. However, the regional director attended the meeting in each claims center to minimize direct conflict between the claims center manager and employees. Although many of these meetings went smoothly, a few created harsh feelings between managers and their employees. Sources of some comments were easily identified by their content, and this created a few delicate moments in several sessions.

A few months after these meetings, two claims center managers quit, and three others asked for transfers back to non-management positions in TIC. Meanwhile, Jim wondered how to manage this process more effectively, particularly since employees expected another survey the following year.

Discussion Questions:

What symptom(s) exist in this case to suggest that something has gone wrong?

What are the main causes of these symptoms?

What actions should the company take to correct these problems?

Answer 1

The symptoms in this case suggest that something has gone wrong in the organization, including declining competitiveness and unease among managers. The main causes of these symptoms include poor leadership, lack of trust, and ineffective communication. To correct these problems, the company should improve competitiveness, address concerns, rebuild trust, ensure confidentiality, and improve the handling of survey results.

From the case study, it is evident that there are several symptoms suggesting that something has gone wrong in the organization:

Declining competitiveness and customer outreach

Unease among managers about the new CEO's survey initiative

Negative comments and criticism from employees about their claims managers

Surprised and worried claims center managers about the possibility of another survey next year

Resignation and transfer requests from claims center managers

Managers feeling that their careers are at risk due to personal comments in the survey

Delicate moments and conflicts in the discussion meetings between claims managers and employees

The main causes of these symptoms include:

Lack of competitiveness and customer outreach

Unaddressed concerns and unease among managers

Poor leadership and inadequate communication from the CEO

Lack of trust and faith in the claims managers

Lack of confidentiality and anonymity in the survey process

Ineffective handling of the survey results and discussions

To correct these problems, the company should take the following actions:

Improve competitiveness and customer outreach through strategies such as market research and customer feedback

Address the concerns and unease among managers by providing clear communication and reassurance

Improve leadership and communication skills of the CEO through training and development

Rebuild trust and confidence in claims managers through transparent and fair evaluation processes

Ensure confidentiality and anonymity in future surveys to encourage honest feedback

Improve the handling of survey results by considering the timing, format, and level of disclosure

Address conflicts and delicate moments in discussion meetings through effective mediation and conflict resolution strategies