Engineering Inspection & Insurance Company (Eiic)
Introduction
Engineering Inspection & Insurance Company (EIIC) was founded in 1952 by Warren Rodman. Before 1990, they was a small but highly successful company that offers machinery and insurance services. After years of above average growth and profits, they are moving backward from the industry average, policy delivery times are excessive and morale is low. They need to change their current strategy as it is no longer effective. The issues they are facing is not only internal but also face the challenges from the external environment.
Analysis and discussion
Critical Operation and Strategic problems A. The increasing of employee turnover rate at 17% in 1990 is the sign of company dysfunction in EIIC. It caused the rising of sentiment of being undervalued in underwriters who feel deprived of relevant decision making power. They receive a monthly salary of $2,250 over $27,000 yearly income. The career advancement among underwriter and acquisition of the other jobs aside to the job at EIIC. At this moment, employees experience the dissatisfaction in company even the slightest can immediately resign to go for another jobs. B. Beside the turnover rate among employees, EIIC also realise the grow of disputes and conflicts between branch managers and the chief inspectors which is raised from the ineffective company structure. The decision was made by chief inspectors instead of bank managers ensure the certain risks. But the tasks of chief inspectors is oversee inspection activities instead of monitoring their inspection staffs. This structure is the source of internal confliction in organisation. The branch manager is responsible for the all the losses and failed goals instead of chief inspectors. C. Another problem is the late delivery of insurance policies. They usually complete in 14 days on the average. However, it is only able for small policies and a large policies always take at least 43 days to finish. In details " 26 days for First
Engineering Inspection & Insurance Company (EIIC) was founded in 1952 by Warren Rodman. Before 1990, they was a small but highly successful company that offers machinery and insurance services. After years of above average growth and profits, they are moving backward from the industry average, policy delivery times are excessive and morale is low. They need to change their current strategy as it is no longer effective. The issues they are facing is not only internal but also face the challenges from the external environment.
Analysis and discussion
Critical Operation and Strategic problems A. The increasing of employee turnover rate at 17% in 1990 is the sign of company dysfunction in EIIC. It caused the rising of sentiment of being undervalued in underwriters who feel deprived of relevant decision making power. They receive a monthly salary of $2,250 over $27,000 yearly income. The career advancement among underwriter and acquisition of the other jobs aside to the job at EIIC. At this moment, employees experience the dissatisfaction in company even the slightest can immediately resign to go for another jobs. B. Beside the turnover rate among employees, EIIC also realise the grow of disputes and conflicts between branch managers and the chief inspectors which is raised from the ineffective company structure. The decision was made by chief inspectors instead of bank managers ensure the certain risks. But the tasks of chief inspectors is oversee inspection activities instead of monitoring their inspection staffs. This structure is the source of internal confliction in organisation. The branch manager is responsible for the all the losses and failed goals instead of chief inspectors. C. Another problem is the late delivery of insurance policies. They usually complete in 14 days on the average. However, it is only able for small policies and a large policies always take at least 43 days to finish. In details " 26 days for First