News Article Review. Zucchi, L & Lister, S (2012). Zurich unveils strategic priorities and organisational changes

News Article Review 2

Introduction

Zucchi, L & Lister, S (2012). Zurich unveils strategic priorities and organisational changes. Zurich Insurance Website. Retrieved from HYPERLINK “http://www.zurich.co.uk/home/mediacentre/lifenews/Zurich+unveils+strategic+priorities+and+organisational+changes.htm” http://www.zurich.co.uk/home/mediacentre/lifenews/Zurich+unveils+strategic+priorities+and+organisational+changes.htm

Decision making is one of the most fundamental aspects of organizations. It is an activity that is carried out by any manager irrespective of his or her stature in the organization. The fundamental nature of decision making in organizations is underlined by the fact that it may result in the growth, prosperity or even failure of the organization in question. It is worth noting, however, that decisions are mostly risky and uncertain, always incorporating no guarantee as to their success (Shapira, 2002). In fact, decision-making is usually done amidst constantly changing factors, conflicting points of view, as well as unclear information, something that could make even the best managers to make enormous and sometimes irreparable blunders (Shapira, 2002). Nevertheless, decision-making is almost always aimed at enhancing the position and fortunes of the organization. It refers to the mental or cognitive processes that lead to the selection of the certain course of action from varied alternatives (Blenko, 2010). It may also refer to a problem solving activity that ends only when the decision maker comes up with a satisfactory solution (Blenko, 2010). Needless to say, decision making underlines organizational changes, which could be in the long term or the short term. This is especially considering that most of them are strategic decisions aimed at enhancing the competitiveness and profitability of the organization (Shapira, 2002). While there may be varied tough decisions in organizations, decisions involving human resources or workers are some of the most difficult ones. This was the case for Zurich, a global insurer that proposed varied organizational changes in line with its strategic priorities in September 2012.

Zurich considered the changing and challenging market conditions, as well as the unprecedented regulatory variations and came up with varied priorities. The company aimed at persistent growth in the corporate and retail risk markets, as well as corporate savings market via a program that it had launched earlier in 2012. Zurich would also maintain its focus on intermediated and advisory market so as to be synchronized with the increased necessity for advice to its customers. Having established the Retail Redistribution Review Changes, the company also prioritizes on separately managing the business in force, so as to enhance service delivery to existing customers.

These changes in the priorities have necessitated further changes especially in the composition of its workforce. While there may have been varied alternatives, the company management proposed that role numbers are reduced so as to enhance its agility and efficiency, as well as ability to compete in the market. It will eliminate approximately 200 jobs from the management and functions layers across the business. The business evolution has been necessitated by the persistent transfer of financial responsibility all the way to individuals from the state through to the corporate, the impending basic regulatory changes, as well as the gap between savings and protection in UK (Zucchi & Lister, 2012). This evolution aims at meeting the demands of customers and intermediaries. Varied sales roles that the proposed changes affect are within the branch offices of the company, which will be streamlined during the implementation of the proposals (Zucchi & Lister, 2012).

The key theme of this article is informing the general public, as well as the company employees about the organizational changes that would be made in the company’s workforce in the coming months. While this information has been relegated almost to the end of the article, it goes without saying that the author is successful in relaying this information. This is especially considering that the article has been given the appropriate title, which serves as one way of piquing the interest of the reader especially due to the incorporation of the words “organizational changes”. In addition, the article aims at informing the general public and the workers about the justification for the proposed actions. It outlines the company’s commitment to meeting the needs of the stakeholders especially the customers, as well as enhancing the company’s competitiveness in the market. It states its reason as the necessity of building on its success, which can only be attained through focused and sustainable cost base. On the same note, it has affirmed the reputation of the company especially as a player who acts fairly with regards to its employees. This is especially considering that it is still consulting with union representatives and employee forums on the affected jobs.

However, the article seems unclear as to when the changes are to be effected, or even whether their implementation has already been decided. This is especially where the author states that the company has informed workers whose jobs “may” be rendered redundant. This undoubtedly creates an unclear picture as to whether the changes will be effected, as well as the sectors that would be affected. Nevertheless, the strength of the article lies in the comprehensive nature of the information especially with regard to the proposals and justification for the same. The validity of the information contained in the article cannot be doubted, especially considering that it is incorporated in the company’s website. Overall, it does a commendable job in informing the public and workers about the likely changes and the priorities of the company.

References

Zucchi, L & Lister, S (2012). Zurich unveils strategic priorities and organisational changes. Zurich Insurance Website. Retrieved from HYPERLINK “http://www.zurich.co.uk/home/mediacentre/lifenews/Zurich+unveils+strategic+priorities+and+organisational+changes.htm” http://www.zurich.co.uk/home/mediacentre/lifenews/Zurich+unveils+strategic+priorities+and+organisational+changes.htm

Blenko, M (2010). How Companies Can Make Better Decisions, Faster. HarvardBusiness. Accessed from http://sciencestage.com/v/37283/effective-decision-making-better-and-faster-decisions-how-to-improve-company-and-business-organizati.html

Shapira, Z. B. (2002). Organizational decision making. Cambridge: Cambridge Univ. Press.