MOUNTAIN WEST HEALTH PLANS INC.

:
CASE ANALYSIS REPORT

Submitted by : PORFERIO A. SALIDAGA, JR.

Submitted to : Dr. George Fong

Subject : Management Dynamics

Date : May 02, 2012

Problem

Inefficiency of the performance of customer service personnel, and higher labor cost.

Objective

To increase efficiency of the performance of the customer service personnel, and

lower the labor cost.

Analysis of Relative Facts

Mountain West Health Plans Inc. is health insurance company with an ever-
increasing costs of its service customer department which is a labor intensive unit
The previous director Evelyn Gustafson has just retired and is now replaced by Erik
Rasmussen, a young man with a new bachelor’s degree in business administration.
Considering the following strengths, weaknesses, opportunities, and threats, how
would the company solve its problem on inefficiency and high labor cost?

Opportunities: Threats:

1. The market is wide, hence 1. Dissatisfaction

the customer potential is of customers
high for health insurance due to the
business. inexperienced
customer
service
personnel and
the length of
time they
spent on hold.
Strengths: SO Strategies (Growth Strategies) ST Strategies
(Diversifying
1. Erik S1,O1. Erik Rasmussen, being Strategies)
Rasmussen, young, should be tasked to study
 the new head thoroughly the human resource of S2, T1: To improve
of the the company and to come up with a the skills of the
Customer short-term and long-term strategies employees by
Service Dept. to improve the efficiency of the transforming
is a young man human resource of the company Rasmussen into a
with a and minimize turnover, and how leader who knows
bachelor’s this study would contribute to how to motivate
degree in customer satisfaction and widen them, and by
business the market share of the company in regularly sending
administration; the insurance business; them to trainings
focused on customer
2. Subordinates S2, O1: Motivate the personnel by: service.
adore a leader
who knows (a) Changing Rasmussen’s
how to approaches from being job-
motivate them. centered leader, into an
employee-centered leader. The
customer service department is a
labor-intensive department, and as
such, it must give focus more on
looking after for the needs of his
subordinates so that job
commitment may be solicited. As
shown in Blake and Mc Canse’s
Leadership Grid, work
accomplishment is achieved from
committed people, and that
interdependence through a
common stake in organization
purpose leads to relationships of
trust and respect. Furthermore, as
stated by Chris Lowney,
leadership is not a position but
influence. Instead of applying the
position power in attaining the goal
of the company, Rasmussen must
instead use the interpersonal
influence tactics, and among them
are: use of rational persuasion;
making people like him; developing
allies; relying on the rule of
reciprocity; and rewarding the
behaviour of subordinates he
wants.

Evelyn, the predecessor of

Rasmussen was adored by his
subordinates because she is a
 leader whom they can trust. She
did not have to use her position
power to bring out results.

(b) Job enrichment: To give

employees control over the
resource necessary for performing
tasks, make decisions on how to do
the work, experience personal
growth, and set their own pace.
This would result, as shown by
research, employees’ greater
sense of involvement, commitment,
and motivation, which in turn
contributes to higher morale, lower
turnover, and stronger
organizational performance.
(Daft, 499)

This strategy would be more

effective instead of the statistical
standards and time and motion
study applied by Rasmussen which
are effective only on machine
productions but not on services
done by human beings.

To make an employee efficient, he

must not be considered as a
machine but a human being made
up of components of attitudes:
cognitions, affect, and behaviour.
And such attitudes influence how
well a person perform on the job.

Weaknesses: WO Strategies (Niching Strategies) WT Strategies

(Slowing Down
1. Erik W1, O1: To improve the Strategies)
Rasmussen company’s standing in the market,
being new and the company should develop a
has no actual decentralized team
experience in communication channel in
leading the communicating the goals of the
people in his organization to the workers. The
department, customer service department,
has effected being just a component of the
drastic whole organization, its
 changes communication networking can
without easily be facilitated and controlled,
establishing hence, individuals should be given
trust and the opportunity to communicate
respect from freely with other team members.
the Subordinates must be given the
subordinates opportunity to air their views on
but only from certain changes that may affect
position their works.
power;
W2, W3 O1: It must improve the
2. Noisy working workplace that is conducive for
place; working to minimize stress among
the workers.
3. The employees
are doing a
day-to-day
string of
stressful calls.

Alternatives

1. S1, O1: Study thoroughly the human resource of the company and to come
up with a short-term and long-term strategies to improve the efficiency of the
human resource of the company and minimize turnover.

Advantages: The outcome may be a guide for future human resource

programs.

Disadvantages: It cannot answer the present human resource problem of the

company.

2. S2, O1: Application of employee-centered kind of leadership, interpersonal

influence tactics, and concept of job enrichment.

Advantages: Improves people effectiveness as they are given the power how
to do a task thereby developing their creativity.

Disadvantages: Management control is loosen so effective performance

monitoring may suffer.

3. W1, O1: Develop a decentralized team communication channel.

Advantages: The decision is more reliable, and may get a wider acceptance
as it is a product of deliberation of many persons.
 Disadvantages: The decision-making process may take longer because the
information is passed among individuals before it reaches the decision-
maker.

4. W2, W3 O1: Physical improvement of the workplace, minimizing noise and

clutter.

Advantages: It lessens stress in the workplace, hence may improve the

productivity of workers.

Disadvantages: It can be costly and may not materially affect productivity.

5. S2, T1: Regular trainings of employees to develop their leadership skills on

customer service.

Advantages: It may heighten motivation and a venue to identify potential

future leaders.

Disadvantages: It can be costly and may not affect productivity.

Solution

Alternatives recommended are a combination of number 2, 4, 5. I believe that with a

highly motivated employees, working in a peaceful workplace can produce higher
output, and in effect can lower cost.