Analysis of De'Ath Insurance Company Ltd

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All organizations De’Ath Insurance Company Limited being included tend to face many challenges and threats in the current business environment. Some of these challenges include; threats to efficiency, effectiveness and other challenges arising from the environment which is seemingly turbulent. Most of these challenges range from the increased competition and the change in demand by the customers which are of great importance for organizations which want to still be healthy and viable. For any firm to be able to manage these turbulent situations there is the need for the leadership team to understand its role during the change process (Taylor, et al, 2015). Leaders have to convey the vision and the goals of the firm with the changes that have arisen. Therefore in any business strategy that the insurance company is planning to initiate, there is the need to have an interplay understanding between the HR department, the management actions, and the labor relations.


 Managing of people in any organization is one of the most important aspect currently which is playing a big role in ensuring that efficiency and good results have been achieved; this call for efficient management of the employees so that they can add value to the organization. Performance management is considered to be a whole work system which starts when a job is defined as for requiring. The whole process ends when an employee leaves the organization. The system helps in increasing competence, decrease cost as quality is promoted. The ultimate asset of a firm that is competitive is people. Therefore, an organization is required to develop the competencies of its employees in a manner that aligns with the goals of an organization (Ronen, 2010).

De’Ath Insurance Company Limited is made up of people. It is the people in this organization who provide stewardship, leadership, and followership. Individuals in the firm come up with strategies which help the firm to realize its specific objectives. Everyone in the organization constantly learns innovative and new ideas which facilitate the firm in moving from mediocrity to greatness. Understanding people who are in the organization is the greatest facet that can help the organization grow steadily. In fact, organizations are social units which have been formulated by people to have things done (Otley, 2015).

The major issue in the organization

The greatest problem that is affecting De’Ath Insurance Company Limited today is change. The change that is mostly realized in the organization includes that of leadership, management, organizational structure, and culture. The change is the speed within which trade and industry are revolutionizing and the rate at which new products are being introduced in the market. The high change rate demands an increased capability by the managers so as to manage not only the company but also the employees who are greatly affected by the changes. The world has already and it is continuously changing (Schultz & Helmstetter, 2010).

When the organization is observed today, it is clear that it is operating under an increasing demand for change. The insurance market to be precise has radically changed and this is due t globalization, technical development, strong competition and the introduction of a market that is customer driven. The high pace of change in the market requires that the firm has to change in its management and behavioral norms so as to adapt and shift to the new modes (Stone & Stone, 2013).

            Change is considered to be a simple process. It is considered easy to describe it occurs whenever the aged is substituted with the new. It is simply the process of traveling from the old things or ways to the new ones while leaving whatever happened yesterday behind in substitute for a new tomorrow. Implementing transformation might be difficult because people are unwilling to leave what is familiar with to them and venture into the unfamiliar territories. One of the scholars went ahead and illustrated how the future in the organization management may look like.

As per this description, change mostly involves the process of moving from the known to unknown. Consequently, having the future as an uncertain aspect, the whole process of change affect the competencies of the employees, their sense of worth and also their coping abilities. Most of the employees tend not to support change unless when there are various compelling reasons which may convince them to do so. So in any organization, for change to be successful, there are various factors that it must involve. Some of the factors include vision, mission, strong leadership, culture, participation, and communication (Mayo, 2016).

To elaborate this further, having a vision helps the firm to develop a future picture of itself whereas the mission helps it set the scene for its organizational changes. For these to be effective, there is the need to have leadership and communication which are pivotal in enhancing the preparation of the organization for the changes it is planning to initiate and provides guidance as the firm goes through the turbulent phases. On the other hand, participation involves the process of giving the included stakeholders a fair say as the process of change is being initiated whereas the understanding of the workings and initiatives influencing change that all these stakeholders share is what is considered as the organizational culture (Klein & Mowrer, 2014).

To enhance change and help the employees support the set organizational goals, there is the need to have a look at the various theories which relates to topics such s change management, classical management, organizational culture and structure, leadership management and any other that is relevant when a firm is pursuing its goals (Lozano et al 2015).

Currently, most of the organizations are using the new ways of implementing plans. Some of the different management theirs that are being applied include behavioral, classical, quality and quantitative management theory, contingency and the systematic management theory. The classical management theory basically focuses on the findings which indicate the best ways which can be used to accomplish and also manage different tasks. On the other hand, the behavioral management theory is known to recognize the employees in the firm as individuals who have real human needs. Thus there is the need for the management team to establish their trusted relationship and also value their actions to ensure that they are directed towards the benefit of the employees. The contingency management theory is basically formed on the basis of the premise the managerial team’s preferred approaches or actions all depend on the variables of the situations facing them (Herbert & Seal, 2012).

The classical theory mainly came into place due to the need for increasing more production especially the United States. This was as a result of the short supply of labor whereby the only way out was to expand productivity and raise the efficiency of the employees. In this effect, four principles of scientific management theory were devised (Stark, 2015). They included;

The development of factual science to be involved in the management

Ways of scientific training and selection of the employees

Efficient ways of remunerating the employees to enhance fast and a job of high quality

Equal division of responsibility and work between the managers and the employees

There is the need for the management to come up with an understanding of the fundamental concepts of management techniques and principles which are effective. For them to gain this type of insight and come up with an effective and efficient management system, they are required to awareness of past management principles, theories, and models. Notably, all the theories indicate that there has a to a good relationship between the managers and the employees. There must a good way for the firm to know how to cope up with the level of change in the industry. There should be a good way into which good self-awareness, the competency to self-care and the ability of the management team to inspire people all ought to be combined so as to initiate change and help all the firm activities remain afloat.


To help the employee cope with various changes that may arise in the organization, below are some of the ideas and models which help both the management and the employees.

The management ought to reflect on the various things that it can really influence

The biggest problem in any change process is when an individual feels powerless and lack the control of employees especially when the change process has been imposed from a body outside the organization and one has a little choice that he or she can do about the choice. There is the need to focus on the classical model which focuses on the locus of control in the Doughnut model and this should help individuals identify;

What are the individual and the team core responsibilities?

What is that that is outside the individual and teams core responsibility?

It should also help in identification and recognize of one’s responsibility and what he or she cannot be able to influence directly.

Understand some of the main organizational change theories

Having a continuous and more vigilant level of changes in the business environment, a lot has been written about the organization’s process of change.  This also includes the psychological effect that the changes have on individuals. There are various dynamics of change that can be predicted which include; deterioration in communication methods, the decrease in productivity, the loss of team cohesion, the morale going down, power struggles and many other (Goodwin et al, 2010).

In this case, the firm ought to increase its urgency by inspiring people to move and make real and relevant objectives. There is also the need to build the guiding team where it should get people who have bets emotional commitments and the right mix of levels and skills. It is also important for the firm leaders and the rest of the employees to get the vision of the firm right (Garvare & Johansson, 2010).

Understand the human psychology on matters of change well

There is the need to understand that the psychology in a human being is different and it all depends on individual personality. Personality is any set of psychological characteristics which can be used to distinguish one individual from another one. There are different people with different personalities ranging from overseers, supporters, examiners, and defenders. All these people take and implement changes differently where some struggles with change whereas others do not. Some take more time to adjust to change which is imposed on them compared to others. It is therefore important to understand all these psychological traits when imposing change on employees so as to formulate ways of curbing the change (Davidson, 2010).


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October 30, 2023

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