Rainyday Insurance Adjusters Company

Q1. Major problem: Managing the change
Further to the growing business, the company planned and executed expansion of its office and upgradation of its equipment including its computers -all with good intentions.
There are enough evidences in the case that substantiate the management failure to plan and implement a mechanism of Managing this change. The changes brought into were not well planned, thought through, and sequentially executed. Panics have surged among managers but it’s too late now. The price being paid emanates from fallacy at planning and implementation stage. People continue to be pivotal in catapulting organizational success. Mere intervention in assets plus hardware can at times yield counter-productive results.

Causes of these problems:
Sharp rise in turnover, low productivity and increasing errors are just the effects or results. The cause behind these could be numerous. Until and unless the cause are prudently diagnosed any action to combat will run futile. Due to backlash on part of management, we see clear instances of resistance to change. Again this resistance originated from casual approach on training inputs. These are exhibited through-
a. Possibly the purpose of the change was not communicated and clarified well because people are still baffled by the revamp of existing way of working. There is a misconception that the change was outcomes of top level’s initiative that was not necessary at all.
b. Involvement of people at various levels was not done at planning stage. Isolated plans normally fail and sustainable plans are those that encourage participation.
c. Habit patterns of work groups looks disregarded
d. People were excessively loaded with work and the change has made it bleaker thereby further sliding trust and support culminating into frustrations and irritations.
e. Change was too rapid and looks as if the same was done in haste. Normally sharp changes create immense shocks and this has proved to be disastrous. There seems a mismatch in implementation because people’s trainings should have been much prior to the change. Before any change preparation in people should commence earlier and support at test stage should have been adequate.
f. Employees were complacent with achievement thus far
g. Past experiences with change have negated and even the best resources have overnight turned to be inapt at work. Outcomes are obvious when people become stranded despite knowing the jobs merely due to a change in the tool. There obviously stands a generation gap. Old timers know the job but not the computers whilst new generation doesn’t know the job but know computers.
h. Difference of opinion, mistrust and in-cooperation have creeped in the works thereby spiraling disappointment and harassment with the work.
In a nutshell, poor change management is creating problems, that is feeding one another thereby creating further problems and the business results have been adversely affected.

Q2. Interventions to address the problem
Whatever was misdone cannot be undone. Mistakes already made need to be rectified and there is no alternative to it.
Rainyday should do all those activities which it was supposed to do prior to the change i.e. it needs to adopt following measures to fight the shock emanating from the change:
a. Communication
The Management must clearly explain all the concerned as to why the change was imperative i.e. to expedite the process and handle bigger volumes of transaction. Till the management can convince all other efforts will bear little fruits. Also, employees should be given enough assurance that a flourished business will enrich the company and ultimately them with higher benefits and compensation. This could serve as the incentive for bearing the pain.
b. Empathy and rectification of embittered relations
The management should listen to the shocks, grievances and distress that employees have faced and make commitments for its correction. This plays a role of appeasing the hue and cry thus set in. Management must clear all misunderstandings and should share all the reactions and feelings. This will unite the scattered and motivate the demotivated ones so that all are channelized to face the common challenge.
c. Participation
People are the best source of solutions that any organizations face. They know the problems best. Their suggestions should be respected and given due inclusiveness. The best way to surpass this hurdle is to seek their ideas, areas where they are facing problems and how the same could be overcome. It must be borne in minds that poor performance is not an outcome of not knowing the job alone but could be attitudinal problems as well. Participation accrues accountability and ultimately the solutions will surface up. Management must facilitate collection of ideas and employee participation before chalking out action plans.
d. Overcoming complacency and respect for past experiences
People need to know that yesterday’s success cannot guarantee tomorrow’s glory and complacency caps progress. Employees should be given the brighter picture post the change and how their past experiences could lead play catalytic role especially in terms of customer relations and job technicalities.
e. Bridging the generation gaps
New entrants in the organizations bring new hopes and ideas and they have to be molded accordingly. New generation’s computer knowledge blended with old generation’s experiences can be synergistic. Also, teaching and mentoring leaves quick development of people meaning more free time and further mentor successes.
f. Training
Old generations were not interested in the training possibly owing to generation gaps or with the feeling of superiority complex. It is never late to learn and in fact learning is an ongoing process through out the career. Right training gaps have to be identified and then trainings must be imparted to bridge them. Only then can the anticipated results will get materialized.

Q3. Training helping to solve the problem:
Trainings are effective and result-bearing if they are focused, need based and material properly planned. Trainings could normalize this havoc through:
a. Proper training could give an insight into the functioning of this upgraded computers
b. It will also provide enough skills as to how the transactions could be made.
c. The old-generation will learn the computers whereas the new generation will master the art of transactions. This will expedite the processing and entire level of competency will get augmented. All the employees will come to the same platform. However, the training needs for new and old ones will differ.
d. Trainings can instill ways and means of erasing the previous habits and hangovers and give a way into new methods.
e. Turnover that was an outcome of disappointment would get removed and speedy and errorless transactions will reduce customer complaints as well as boom productivity.
It is better late than never, the company must start training on war-footing basis. This will be the only survival strategy.

Process used for Training that will be followed will be as per the model below:

4- Steps involved: Step 1: Diagnosis
General Training needs are evident from the case. The approach should embark from the basics.
Adverse impact on performance merely came up due to changes made recently or was they present previously but never surfaced or purely owing to the current changes?
How receptive are the trainees?
What extent of performance is correctible and what extent are not?
What are the ways out of this impasse?
Some of the sources of data required for identifying the detailed inputs are:
– Manpower inventories: Screening for both new and old employees
– Skills inventories: Screening for both generation groups
– Exit Interviews: Meeting and collecting information on job drop downs
- Job Description / Specification: Revisiting it on a changed context and work system
– Performance Standards vs. actual performance
– Work Sampling : Analysis of operating problems like Productivity and errors
– Structured Interviews including situation oriented behaviors
– Tests : to unearth prevailing Knowledge, Ability, Skills
– Diaries: Track of progress at individual level

Illustrative format that can be worked out and used are: Criteria Expected performance Actual performance Training need Group/ Individual
Eg. Computer formatting Completed without errors within 30-seconds Old generation taking minimum ½ hour Training on mastery of computer form formatting Old generation
Eg. Form filling Collecting information and completing within 2- Minutes, without any errors in computers New generation do not know how this is done Extensive training on Form filling New generation

NB: Expected performance is converted objectively to form the evaluative criteria to measure the training effectiveness.

Step 2: Development
The development of training package can be summarized by the matrix below
Sub-stage Activities Outcomes
Instructional design Data compiled, trainees identified and trainer skills and competencies worked out A complete list of training needs, Trainees and trainer
Learning Environment A detailed plan of how learning will be allowed to practice, make mistakes and correct, given feedbacks and monitored Pool of competent, conversant and experienced work force
Materials and models Then on, the materials and models will be prepared. For example, new recruits will be extensively focused on filling of the forms part whereas focus on old generation will be on computer friendliness and processing speeds etc. Focused Material and models ready.

Step 3: Delivery
Rainyday needs to adopt a multiple learning stages for Training its resources. They are
A. On the job Training
• Coaching/understudy / Mentor-Menthe approach: There is an immense potential in-house, it is just that two generations must be appropriately blended to create synergies. The Old generation can teach the new the technicalities of filling forms and processing whist the new generation’s computer aptitude can be leveraged to help the old generation. This can bear fruits since learning, practicing, making mistakes; receiving feedbacks etc form the basic learning process.

B. Off the Job Training
• Seminars: The vendor who has upgraded the version of computers would be the best resource to train the technicalities to the employees. They can help out both in terms of transaction; processing and other related aspects of the computers. Training programs must include seminars.
• Outside/ Institutional training: Rather than sending the old generation to the class which also simultaneously teaches teenagers, the class can be hired to train purely the old generations only. Before sending them, each individual must have a clear idea of their gaps and what they have to get clarified.
• Behavior modeling: This is again a scientific means of teaching. The people have to be taught the basic principles and exercises should focus realistic situations. Depending on the behaviors and performance, they can be suggested appropriately. Steps involved are – Modeling, role playing, social reinforcement and learning transfer.
• In house development- Some form of in-house development must always be there.

Step 4: Evaluation
After imparting necessary training inputs, following information related to the job and training must be gathered to ascertain the effectiveness.
– Reaction
– Learning: must be Swift and people must be clear on principles and practices.
– Behavior: There should be no more resentment with the new computer systems, people should be comfortable and a pleasing and co-operative work environment must prevail.
– Results: Results should start improving i.e. productivity should get enhanced and errors should get plummeted.
Then on, again a new cycle of training must start.

Q4. Computer training was not successful because:
1. The necessity of training was not communicated well. New computers systems version entailed new competencies and this was not explained well to all concerned.
2. People who were performing well being sent to a High school to learn sound ridiculous. This must have developed some form of humiliation on the employees.
3. The generation gap was boiling leading to sense of complexes among employees.
4. The training planned at high school was a mixed training, meaning that the employees had to acquire learning together with the teenagers. The program must have been separated out.
5. The training was unfocused; there was less relevance to what Rainyday needed. The Package must have included the transactions and routine works that employees were expected to perform at work for it to be more meaningful.
6. Training should have been done during work hours. Training that starts at 6:30 am may not be digestable to many late-wakers. There were no incentives to training at present and in the future except for 1-hour’s pay.
7. The training needs were not clearly identified both at group level and individual levels. The intervention treated everybody alike leading to dilution of training needs.
8. Employees were forced on training; this should start and end up with trainees themselves. This was given little consideration.
9. There were no prior home works done to formulate training needs. It was done on ad-hoc basis, possibly for the heck of doing it.

Q5. Action plan for Training program
Objective:
1. To achieve anticipated level (not clarified in the case) of productivity and reduce errors to zero.
2. To create a synergistic and pleasing work environment among the claim processors by bridging their competency gaps.

Summary matrix on Plan of Action
Day base: May 15th 2007.

Plan of Action Activities Deadline Who Remarks
Needs identification Formulate a tool for gathering competency gaps among old and new employees Within 1 Month from release (15th June ’07) Consultant

The format could be different for new and old employees Completion of Competency Mapping June End ‘07 Line Mangers Detailed Need identification Mid-July ‘07 Consultant
Development Instructional mechanism: Based on needs, Identify
• Trainers
• Venue
• No. of trainees
• No of batches End-July ‘07 Consultant While the batches of trainees are engaged, have plans ready as to how the operations gets going Learning Environment:
Have plans ready on how
• Leanings will be implemented
• Feedbacks given
• Corrections/ reinforcement done on work situations Mid-Sept ‘07 Consultant & line Mangers Material and Model:
• Printing of training materials
• Tie-up with Version upgrader and fix time of their availability
• Tie-up with High-school for resource and Venue
End-Sept ‘07
• Purchase Manager
• MD

• MD
Delivery Execute training programme sequentially Feb ‘08 Line managers Trainings modes will be
• Coaching/ Up-scaling
• Seminar
• Institutional training
• Behavioral modeling
• In-house development
Evaluation Carry out reaction, learning, behavioral and Result analysis.
Ascertain efficacy of training June ‘08 Line managers, staff Managers Based on the post evaluations, the gaps still pending will surface up and future plans need to address them

NB: Training is time taking but efforts and investments will not go in vein. Provided Rainyday adopts this roadmap, results can be guaranteed with a fair degree of confidence. This method is the most scientific at arriving at needs, imparting training and monitoring performance post training should become part and parcel for Rainyday’s future plans as well.