Global Challenges for Llyods Insurance
Global Challenges for Llyods Insurance
1.0 Introduction
1.1.Definition of Management
Management can be described in many different ways, Boddy (2007) describes management as the activity of getting things done with the aid of people and other resources. Terry and Rue define management as a process or form of work that involves the guidance and direction of a group of people towards organizational goals or objectives.
Carlos C, Lorenzana M.A. (1993)
Considering all the different definition it is safe to say that management theory is the process by which a manger of an organization efficiently utilizes all resources to achieve its overl goals at minimum cost and maximum profit. As management is a closed system all managers deal and interact with different environments – (economic, technological, social, political, legal and ethical) – in which they operate.
Boddy (2007)
1.2 Competing Values Framework
There are many different approaches to management such as, the internal process model, open systems model,human relations model and rational goal model to name but a few. Fortunately they all come together in Quinns competing values framework.
In 1983 Quinn and Rohrbaugh discovered two dimensions of effectiveness. The first dimension is related to organizational focus, from an internal emphasis on people in the organization to an external focus of the organization itself. The second dimension represents the contrast between stability and control and flexibility and change.
It can be argued that the ‘Competing Values Framework received its name because the criteria within the four models seem at first to carry conflicting messages. We want our organizations to be adaptable and flexible, but we also want them to be stable and controlled.
Quinn & Rohrbaugh, 1983;
The framework is most often thought of as a leadership tool but it has shown to have many
important advantages. The CVF can be used for all aspects and levels in organizations. For
example, It can be applied to personal style, yet the same framework can also be used to
assess communication, leadership, organizational culture, core competencies, decision making,
motivation, human resources practices, quality, employee selection, organizational capabilities,
organizational change patterns, strategy, financial performance and many others.
Quinn & Rohrbaugh, 1983;
The Competing Values Framework has four sections; the first is the ‘Open Systems Model which is based on an organic system, it emphasizes on adaptability, readiness, growth, resource acquisition and external support. These processes tend to bring innovation and creativity which is good as it allows employees to be inspired instead of controlled.
The second section is the ‘Rational Goal Model this is based on profit and emphasizes on rational action. This model assumes that planning and goal setting results into productivity and efficiency. This is good as tasks are clarified; objectives are set and action is taken.
The third section is the ‘Internal Process Model this is based on hierarchy and focuses on measurement, documentation and information management. These processes is good for bringing stability and control into an organisation. Hierarchies seem to function best when the task to be done is well understood and when time is not an important factor.
The last section is the ‘Human Relations Model which is based on cohesion and morale with emphasis on human resource and training. This is good as people are seen not as isolated individuals, but as cooperating members of a common social system with a common stake in what happens.
Boddy (2007)
While the models seem to have four entirely different perspectives or domains, they can be closely related and interwoven. They are four subdomains of a larger framework which produces organizational and managerial effectiveness.
Boddy (2007)
2.0 Lloyds Insurance
The oranisation I will be looking at is Lloyds Insurance and the challenge I will be focusing on is globalization.
2.1 Company overview
Lloyds is currently the worlds leading specialist insurance market and it conducts