Analysing The CIC Large Insurance Company Essay

CIC is a big insurance company which has become keenly cognizant of the demand for basic alteration. There are some jobs in company relating to the bing civilization which is really traditional, male dominated and position witting. The prevalent direction manner of the company is bossy and dictatorial.

So, in order to decide these jobs there is demand to reconstruct the CIC. As a duty of HR director, alteration in administration construction and civilization is necessary. It will assist to authorise the employees so that they become genuinely devoted both to their work and to the company.

It consists of beliefs and patterns observed by specific human groups that have been passed down from their ascendants through their grandparents, parents and society around them.

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In CIC member of administration are following their tradition, they are non working harmonizing to the construct of modernisation, which is a large job.

Male dominated:

In this company there is no regulation of equality. Work force ‘s are preferred more than adult females ‘s. They have big figure of male staff members and employees and females are short in figure.

Status witting:

Members of the company are position witting. They are witting about their position really much. Directors due to their position make non co-operate good with the employees. Top governments are merely doing money. They are non worried about the sustainability of company.

Hierarchical job:

Due to the bossy and dictatorial manner of top direction, lower direction can non work harmonizing to the outlooks what is required for the company. This consequences in hierarchal job from which CIC is enduring.

Autocratic direction manner:

The company direction manner is bossy which means that directors takes all the of import determinations and do non see sentiment from their employees.

Dictatorial direction manner:

CIC is besides following this manner where employee do non hold right of oppugning on the determinations taken by directors.

Reformation of CIC:

In order to reconstruct a large insurance company, two chief alterations are indispensable ;

Administration Structure

Administration Culture

Organizational construction

Administration construction:

Boddy, ( 2008:319 ) defines administration construction as:

“ Organizational Structure describes the manner work is divided, supervised and coordinated. When people join a section or take a occupation within the construction this gives a reasonably clear signal about what they should make. ”

Organizational construction determines the mode and extent to which regulations, power, and duties are delegated controlled and co-ordinates and how information flows between degrees of direction.

As the CIC is confronting excessively many jobs. In order to decide defects like bossy, dictatorial and hierarchal there is compulsory demand to do new construction for administration.

Harmonizing to the Boddy, ( 2008, 319 ) :

Administration construction consists of-

Structure and public presentation

Design of construction

Dividing work

Decision devising

Learning administration

Structure and public presentation:

When an administration is non executing well directors frequently change the construction.

When concern grows, those running it divide the work and co-ordinates parts – they create a construction within which people work.

It reflects the belief that construction affects public presentation.

Design of construction:

Planing of construction is the most of import thing for any administration.

Structure is how work is divided, supervised and coordinated.

It defines the duties of divisions, sections, and people what they are expected to make.

As CIC is a big insurance company, following is an illustration of construction of a unit in a big concern.

The construction within a BAE aircraft mill ( Boddy, 2008:320 )

Vertical construction:

Due to the big company perpendicular construction is appropriate for CIC.

In perpendicular construction there is a construct of centralization ( those at the Centres make most determinations ) and its opposite decentralization.

Centralised and Decentralised Administration:

Harmonizing to the learn management2 it has been given that:

In a centralized administration senior officers will retain the major duties and powers.

Conversely decentralised administration will distribute duties for specific determinations across assorted mercantile establishments and lower degree directors, including subdivisions or units located off from senior managers/head officers.

An illustration of decentralized construction is TESCO the supermarket concatenation. Each shop of Tesco has a shop director who can do certain determinations refering their shop. The shop director is responsible to a regional director.

Advantages of centralized and decentralized construction for administration:

Advantages of centralized construction:

Senior directors enjoy greater control over the administration.

The usage of standardized processs can consequences in cost nest eggs.

Decisions can be made to profit the administrations as a whole. Whereas a determination made by a section director may profit their section, but disadvantage other sections.

The administration can profit from the determination devising of experient senior directors.

In unsure times the administration will necessitate strong leading and pull in the same way. It is believed that strong leading is frequently best given from above.

Advantages of decentralized construction:

Senior directors have clip to concentrate on the most of import determinations ( as the other determinations can be undertaken by other people down the administration construction.

Decision devising is a signifier of authorization. Authorization can increase motive and hence intend that staff end product additions.

Peoples lower down the concatenation have a greater apprehension of the environment they work in and the people ( clients and co-workers ) that they interact with. A This cognition accomplishments and experience may enable them to do more effectual determinations than senior directors.

Authorization will enable sections and their employees to react faster to alterations and new challenges. Whereas it may take senior directors longer to appreciate that concern demands have changed.

Authorization makes it easier for people to accept and do a success of more duty.

Combination of centralized and decentralised:

Combination of centralized and decentralised is more effectual for administration.

For illustration, maps such as accounting and buying may be centralised to salvage costs.

Whilst undertakings such as enlisting may be decentralised as units off from head office may hold staffing demands specific merely to them.

Following diagram shows the illustration of centralised and decentralised construction.

Robbins and Judge Organisational behavior

If we look at the above diagram it shows that CEO has powers and he is conveying message to the employee below it which is a portion of centralized construction.

On the other manus in the in-between Vice President has some governments which is pass oning with other workers as parts 1 2 3 which so further linked with territories. So its transparently exhibits decentralised construction.

Dividing work:

Boddy, ( 2008:330 ) demonstrate that:

If divide work so necessitate to organize by

Direct supervising


Standard inputs and end products

Rules and processs

Information systems

Direct personal contact

Decision devising:

Decision devising is really of import procedure for any administration or company. Before doing determination some undertakings are required as shown in following diagram.

Undertakings in doing determinations ( Boddy, 2008:210 )

For a bright hereafter of CIC it is really utile to see some determination doing theoretical account

Decision doing theoretical account by Garbage Can ( March, 1988 ) :

Garbage Can says that, Decision requires ( PPS ) :




To bring forth a determination, they need to come together in a “ pick chance ” e.g. a meeting

PPS are independent, and determinations get taken merely when all three come together ( even if indiscriminately ) in the “ refuse can ” ( a meeting )

Learning Administrations:

Learning administration includes larning attack to scheme and participative policy devising.

Looking in enlightening, formative accounting and control, internal exchange and wages flexibleness

Looking out boundary workers as environmental scanners

Learning chances in clime and ego development

All of the above acquisition administrations accent on one thing “ Enabling Structure ”

Administration civilization

Organisation civilization:

Atkinson, ( 2009:6-10 ) defines organisation civilization as:

He says that a popular and simple manner of defining civilization is ‘how things are done around here ‘ . For illustration, Atkinson explains organisational civilization as reflecting the implicit in premises about the manner work is performed ; what is ‘acceptable and non acceptable ‘ ; and what behaviour and actions are encouraged and discouraged.

Administration civilization will cover up the defects related to Status witting, Male laterality and Traditional civilization.

Administration civilization comprises of the followers:

Culture and Performance

Culture Development

Culture Components

Culture Scheme

Interpersonal Role

Gender Segregation

Culture and public presentation:

Culture plays a really dominant function in any administration. It affects the administration public presentation.

It is belief that civilization affects public presentation

Schein ( 1985 ) : Culture develops as people work together, and develops a set of beliefs about what plants, which is transmitted to consecutive coevalss.

Beliefs relate to mission, ends, ways of accomplishing ends, and how to mensurate public presentation.

Culture development:

Following diagram explains that how civilization is develops in an administration.

The phases of cultural formation ( Boddy, 2008:86 )

As CIC needs a balanced civilization following above stairss of development will enable the CIC to prolong its civilization for long period of clip.

Culture constituents:

Boddy, ( 2008:87 ) shows that:

Components of civilization are ;


Espoused beliefs and values

Basic implicit in premises


Artifacts include Surface degree, seeable characteristics such as linguistic communication, signifier of salutation, vesture and the physical layout ( unfastened program or closed offices ) .

Espoused beliefs and values:

Beliefs members hold about their work and the state of affairss with which they deal. Truly held thoughts of members about right or incorrect, just or unjust.

Basic implicit in premises:

Deeply held thoughts about the manner people work together, and the beginnings of their success.

As a duty of HR Manger these are the basic things that should be considered while implementing civilization in an administration or company.

Culture scheme:

In order to organize a civilization for a large insurance company there is demand to develop some scheme. This will work out the job of traditional civilization which CIC is following. Strategy like execution of new engineering.

Technology in concern:

Business aid 2009 provides grounds to demo that:

New engineering can be put into different classs that will assist to understand the different effects they could hold:

A New Product/Service:

For illustration, mini-discs, lap-top computing machines, synergistic Television ( for place shopping, games, banking, etc )

New Business Operationss:

For illustration, automatic hard currency boulder claies, computing machine aided design ( CAD ) , e-mail, distant working, etc

A New Production Procedure:

For illustration, telling, invoicing to robotic arm fabrication.

New Materials:

For illustration, silicon french friess ( computing machines ) , polystyrene packaging, etc

So, execution of engineering will raise the criterion of the Company.

Interpersonal Function:

Boddy, ( 2008:15 ) demonstrate Mintzberg ‘s Interpersonal Role as follows:

There are three types of function ;

Figurehead function

Leader function

Liaison function

Figurehead function:

A­Performing ceremonial and symbolic responsibilities, receive visitants.


Sign letters of award to successful appliers.

Leader function:

Direct and motivate subsidiaries, train, advice and influence.


Design and organize procedure with squad and other directors.

Liaison function:

Maintain information links in and beyond the administration.


Become link individual for authorities organic structures to reach for advancement studies.

Following interpersonal function will screen out the position witting job in CIC and for any other administration. As it shows the individual to individual relationship and besides a manner to actuate employees every bit good.

Gender segregation:

Boddy, ( 2008:369-370 ) states that:

Although the figure of adult females in the work force has increased, they do non hold equal entree to all businesss. Many undertakings are still preponderantly male or female businesss.

For illustration:

Womans are much more likely than work forces to work as instructors, nurses or bibliothecs than as physicians, Judgess or hired comptrollers. They frequently do everyday office work and store work, but seldom do what is defined as skilled manual work. The contrary is true for work forces.

Gender in direction:

Rosener ( 1977 ) found the difference between ;

Male managerial manner

Female managerial manner

Male managerial manner:

She found that male directors tended to accommodate what she termed a transactional manner. This uses the rule of exchange as the dominant manner of pull offing giving wagess for things good, and punishing failure. Male respondents tended to trust on chiefly on their positional authorization, the position conferred on them by their formal function to act upon others.

Women managerial manner:

Womans tended to utilize a relational manner, actuating staff by persuasion, encouragement and utilizing personal qualities instead than place. They by and large try to do staff good about themselves.


Consequently Rosener believes that female theoretical account of leading is more suitable to modern, disruptive conditions than the bid and control styles typical of the male directors in her research.

From the research of Rosener it shows that adult females ‘s have got ability to make work at high occupational places. Therefore, there should be no favoritism on the footing of gender.

This phenomenon is really of import as CIC has a segregation job like male laterality. For a long term sustainability there should be no gender segregation in any company or administration as cipher is superior, everyone has equal rights and should follow the rule of equity.


From the above survey we as HR Manager have analyzed that CIC is a large insurance company with a batch of construction and cultural jobs. Following perpendicular administration construction with mix of centralised and decentralised is best option for CIC to decide these jobs.

On the other manus, we as Manager fulfils our duties by giving appropriate solutions to the jobs related to both civilization and construction. In the terminal we would state that non merely for CIC but for any administration or company following this construction and civilization will surely better its criterion.