Introduction
ING is a company with a “broad customer base, including individuals, families, small businesses, large corporations, institutions and government” that has been doing business for over 150 years. ING's structure makes acquisition much easier due to the amount of capital on hand and their ability to absorb competition instead of fighting them. Acquisition does not always end with the most favorable result but is able to further ING's footprint on the market and gives the company more opportunity in the future. ING's structure in their newly acquired Asian/Pacific branch is setup to be highly bureaucratic leaving management by committee as the standing law of the branch (see figure 1). Having many people manage a department or geographical area does have advantages and disadvantages. In ING Asia/Pacific's case a vast majority of the time thiis has lead to many employees not understanding the structure at all and left the company unable to make strategic decisions to capitalize on further business. Although the company has continued to show positive results through an unstable global market, there is a great deal that could be done to attain even more success.
Figure 1
(Schotter, 2006, p. 12)
Understood Success
ING A/P's debut was strategically done at a time of large expected growth, which would later be realized by the company in capital and client base. During this time many countries were deregulating which would allow companies such as ING to enter the market and give favorable return on investments to customers where they may not have received such compensation in the past. For ING A/P the benefit could be seen purely in the regions population size and attraction to newly supplied insurance coverage. ...
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...ets, ING A/P missed many opportunities to increase its customer base, market presence and profitability. Changing ING A/P would be long and drawn out process but could very well lead the company into a greater echelon of success then it has seen over its 150 year existence.
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Edward Joseph Snowden is a former CIA technician, Booz Allen Hamilton's former employee, and a former NSA defense contractor. Edward Snowden had leaked a secret of NSA through an interview with Glenn Greenwald from The Guardian which startled the world. In his disclosure, Snowden revealed about NSA that they are mining data works all along and secretly monitoring U.S. citizens' personal information by accessing through different servers.
ING is one of the 20 largest financial structures in the world and within the top ten in Europe. A dutch-founded company, ING offers a variety of products lines in the insurance industry. It offers insurance services in the Americas, in Europe as well as in Asian countries. ING also does retail and wholesale banking all over the world. ING was the first European enterprise to enter the life insurance market in countries such as Japan, Taiwan and South Korea. Life insurance policies in Asia are different than policies in the rest of the world. Asian life insurance policies include a savings aspect as well the life insurance component. Jacques Kemp has recently become the CEO of the Asia/Pacific subdivision of ING Insurance and is attempting to prepare his firm for the future competition they will face.
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There were separate management structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) hire another person or persons) as decision making specialist to perform a service. In the modern corporation, managers must understand the links between
Organizational structure can be defined as the “formal arrangement of jobs within an organization” (Robbins & Coulter, 2009, p. 185). Having a defined and unified structure helps employees work more efficiently. Jacques Kemp, former CEO of ING Insurance Asia/Pacific, realized this need early on in his role. The company had been performing well and recently acquired another insurance company to become “one of the largest life insurance companies in Asia-Pacific” (Schotter, 2006, p. 4). However, Kemp’s proactive personality led him to seek out ways to achieve more efficient coordination between the regional office and business units (Robbins & Coulter, 2009). Kemp noticed that “most business unit managers did not even know the current corporate standards” and he began searching for a way to manage the managers (Schotter, 2006, p. 5). ING Insurance Asia/Pacific’s organizational structure was mechanistic and fairly well structured, but for a company that had recently been involved in a major acquisition and was divided across 12 geographically dispersed markets there was a great need to tweak this structure to unify the company (Schotter, 2006). If I had been in Kemp’s position as CEO, I would have made modifications to the organizational chain of command, formalized business processes, and used technology to stimulate collaboration amongst the region to help this company overcome organizational design challenges.
Individuals when faced with any major change will be inevitably resistant and will want to preserve the status quo, especially if they think their status or security within the organization is in danger (Bolognese, 2010). Folger and Skarlicki believe that organizational change produces skepticism in employees which make it problematic and possibly even impossible to contrive improvements within the organization (as cited in Bolognese, 2010) Therefore, management must understand, accept and make an effort to work with resistance, since it can undermine even the most well-conceived change efforts (Bolognese, 2010). Furthermore, Coetsee states for organizations to achieve the maximum benefits from change they must effectively create and maintain a climate and culture that does not support resistance and rewards acceptance and support ( as cited in Bolognese, 2010).
Both companies’ changing strategic postures and organizational capabilities led to the major restructuring each company was forced to undertake as its competitive position was eroded. However, it is extremely difficult to overcome deeply set administrative heritage. Although Matsushita and Philips followed different strategies - classic "global" and "multinational" models respectively, both of them proved to have limitations.
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From information gathering and research, organizational change management is similar in a way that psychology explores people’s behaviors in the workplace by creating theories and set of principles to compliant with the o...
Robbins et al. (2011, p. 186), states ‘Change is an organizational reality and affects every part of a manager’s job’. Today’s wave of change primarily created by economic condition so change is now such a constant feature of organization life (Goodman, E. 2011, p.243). Organizations need to be changed at one point or another in structure, technology or people. These changes are defined as organizational change (Robbins et al. 2011, p.18). Organizational change is important because changes can increase effectiveness and efficiency, the innovation of products, services as well as dealing with changes in external and internal forces (Goodman, E. 2011, p.243). However, ‘the bottom line is that organizational change is difficult because management systems are design and people are rewarded for stability’ (Lawler, E.E. & Worley, C.G. 2006, p.11).
Individuals go through a reaction process when they are personally confronted with major organizational change (Kyle, 1993; Jacobs, 1995; Bovey & Hede, 2001). Within this process there are four phases that it consists of: initial denial, resistance, gradual exploration, and eventual commitment (Scott & Jaffe, 1988; Bovey & Hede, 2001). Resistance to change is the initial area to focus on. The issues of organizational change and resistance to change have received a lot of attention over the past decade (Macri, Tagliaventi & Bertolotti, 2002). The perceptions of individuals play a fu...