An organisations structure and culture and their relationship to the promotion or inhibition of change within Insurance Company

0 Comment

However, the change model to be utilised in this case is the Lewin’s 3 stage model of unfreezing, change and refreezing to explain the change process. Though change is inevitable, it is a complex process that has drivers and resisters. The organisational structure and culture are vital elements in an organisation that can either inhibit or promote change depending on the situation. It is thus very vital to discuss how culture and structure can influence the change process in an insurance company bearing in mind that the insurance sector operates in a very dynamic environment. The company in this case is Zurich Assurance Company Ltd. There are other numerous factors that cause resistance to change and will be discussed briefly alongside culture and structure. In order to achieve this, the paper will be divided into several sections. The first section will be a brief background summary of the insurance company. Secondly, organisational change will be discussed. This entails discussion of strategic and operational change. Thirdly, the paper will discuss theoretical underpinnings of the organisation structure and culture. … The company boasts of its values embedded in its rich culture and which determines how things are done. The company beliefs in integrity, team working, support for the community and abiding with rules and regulations and sustainable value creation. The company has a divisional organisation structure whereby every division handles its own product and employees but resources and controlled centrally. The whole organisation is under the leadership of a chief executive officer. Organisational Change Effective change management according to Senior (2009) depends on the management but whatever the case the impact of change varies according to industry or sector. The change process as per Lewin’s 3 stage model begins with unfreezing. This is where the company analyses its internal and external environment to identify any gaps that exist and thereby identify need for change (Paton amp. McCalman, 2008). The changes may need a strategic change or operational change depending on the urgency and importance of change. Strategic changes are long-term in nature and affect the whole organisation. They involve creating new vision, developing strategies, implementing the changes, dealing with resistance and evaluating the effectiveness of strategy so as to review. It is a cyclical process. Operational changes affect only a small group of staff such as a department or team and involve changing particular activities as opposed to the whole system. The strategic change process involves extensive planning and begins with environmental scanning to determine the need for change. This involves conducting a SWOT analysis to determine the strengths and weaknesses as well as opportunities and threats for the company. This allows the