In a narrative format, discuss the key facts and critical issues presented in the case. In this case study, the regional claims manager, Christine Brooks, is tasked with reorganizing the Westchester zone in order to consolidate 4 offices into one office by the end of the year. She anticipates challenges because of this change and has a plan to work with the managers to make the transition as smooth as possible. There is background provided on the insurance industry’s history over the past years. This reorganization is the fallout of the stagnant economy in 2002. It was because of this issue that premiums paid by policyholders were insufficient to cover the cost of claims and operating expenses (Rosenberg, 2006). The company suffered losses and plans were set in place to begin reorganization. The four offices had each developed their own distinctive cultures, unique identity and managers were concerned about how their employees would adjust to the reorganization (Rosenberg, 2006). Christine used the common approach to conduct manager survey. She is now tasked with deciphering the results to determine how to make the reorganization effective and how to make the move. In the results, she was pleased that she did receive favorable responses on most of the questions; she also wanted to address the other diverse answers that varied in range. Some areas of concern were turn over, manages expressed concern that the family oriented environment had disappeared, and the communication of new processes had deteriorated (Rosenberg, 2006). This could be an issue during the reorganization for their employee morale. It was important for Christine to remind her team of managers that this was not a choice to reorganize and consolidate offices, but a mandate. Some of the positives for Christine were her team’s long term employees were familiar with change and would be receptive. Considering the results of Christine's survey of her managers regarding the reorganization, should...
References: Donald L. Lester and John A. Parnell, Organizational Theory: A Strategic Perspective, Atomic Dog Publishing (2007).
Rosenberg, S., (2006). The Zone Reorganization: Developing a Strategy for Managing Change. Organizational Theory: A Strategic Perspective. Cincinnati: Atomic Dog Publishing.
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