The Need for Changing Organization Design and Structure

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Case Details:

Case Code : INS049
Case Length : 03 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Available
Organization : Varied
Industry : Insurance
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Montley Life Insurance Company is struggling to cope with the growing competition. The company has six regional centers across the country. Almost all the regional centers (except the southern center) are accumulating losses.

The directors of the company met recently and brainstormed to find out a way to bring back the company into the profit zone. During the meeting, they examined the reasons for the success of the southern center and the failure of the other centers. One of the significant findings was that though the size of operations in the southern center is big, the administration expenditure is much less than the other centers.

Insurance Case Studies | Case Study in Management, Operations, Strategies, Insurance Case Studies, Case Studies

The top management identified other possible causes for the losses at these centers:

• Excessive staff
• Duplication of work
• Inconsistency in data processing and standards
• High support cost
• Reluctance of employees to adapt to changes

Therefore, the company sought the help of an outside consultancy called KP Consultancy to set things right. The project was given to Devesh Chauhan (Devesh), one of the senior analysts at KP Consultancy...