Metropolitan General Insurance Company

Paper Summary:

This paper explains that, while the Metropolitan General Insurance Co. is committed to a "decentralized operating structure" in its branches, this organizational structure is not replicated in its Oshawa branch, which contributes to its under-performance. The author points out that the problem of duplication is evident on the organizational chart of the Oshawa branch, where each of the product lines has its own clerical staff in addition to the management and administration staff that also has its own clerical staff. The paper stresses that a boundary-less organization model, instead of the present inflexible, mechanistic organization, is more suited to the decentralized environment dependent upon independent agents and brokers.

From the Paper:

"It may be argued that the organizational design that would be most successful in this environment is one that mirror Metropolitan's decentralized model on a local scale. One of the common themes of the cited branch senior staff meeting is blaming the brokers and the assertion that supporting them is "not my job". This is most evident in Tompkins complaints that the brokers requests are preventing her from being able to "move some paper" and Hood's complaint that he does not want the added work of determining who should be doing what tasks."

Sample of Sources Used:

• Greenberg, Jerald. Managing Behaviour in Organizations Fourth Edition. Upper Saddle River, NJ: Pearson Prentice Hall, 2005.
• Hoffman, Randy and Ruemper, Fred. Organizational Behaviour: Canadian Cases and Exercises Fifth Edition. Toronto: Captus Press, 2005.

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