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Organizational Plan for Insurance Company Merger

You are the senior operations manager for a mid-sized insurance company. One of your smaller competitors (also an insurance company) has been hit hard due to many claims from a recent major storm. The company has also made some bad investments and is in financial trouble. Your boss has called you in to tell you that they plan on buying out this firm and integrating their business, and he needs you to develop the internal executive proposal that outlines a plan for integrating the smaller company into your current company's current organizational model. Your job is to come up with a two page organizational plan to create a smooth merger of the two companies. From start to finish, develop a proposal 'for internal use only' that explains how the company should proceed. Your boss tells you that the main goal of your proposal is to minimize behavioral resistance to change at both companies, to include clients, leadership, and subordinates. Include recommendations, such as activities, communications, and corporate meetings/events, in each related area of organizational behavior that will help with this merger. Content Areas: Improving Perceptions, Work-Related Stress, Employee Motivation, Rational Choice Paradigm, Team Processes, Channels Of Communication, Organizational Culture And Power, Ethical Issues, Organizational Structure.

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Step 1
The organizational plan for a smooth merger of the two companies has the objectives of minimizing behavioral resistance to change at both companies and to realize synergies after the merger is complete. The plan will allocate responsibility to the HR personnel and executives involved. These will include examining and determining pay scales, negotiating and contracting with unions, clarifying and implementing the information technology needs, allocation of clients of both the companies, and compliance with the legal requirements.
First, a transition team should be formed. Next, the payroll department should communicate its needs to the HR head, legal department, and corporate tax departments. Moreover, the payroll data from the acquired insurance company should be obtained and integrated. The transition team should have personnel from all levels so that communication is improved. Also, the communication with the employees should be honest, and continuous. A helpline should ...

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This solution explains organizational plan for insurance company merger. The sources used are also included in the solution. 657 words.