Chapter Exercise 8.

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Exercise 8.2
Answers to Form 8.2.1
1.
What do you see as the major problems at Rainyday Insurance Adjusters
Company?
Based on increased growth in the company, the firm has implemented new computers to
enable claims processors to have speedier turnaround and higher capacity. However, since
the installation of the new computers, the firm has experienced 1) increased voluntary
turnover, 2) decreased productivity, and 3) increased errors among claims processors. In
addition, 4) conflict between the more tenured and newer employees seems to exist. These
problems are quite serious since customer complaints have increased leading the CEO of
Rainyday to worry over lost business.
2.

What are the causes of those problems?

Employees are dissatisfied, especially more tenured employees. It seems with the
installation of the new computers, employees did not feel properly trained to use them.
Additionally, when new systems are implemented in organizations, often employees may
initially resist the changes, especially if they have not been involved in the process of the
change. The more tenured employees at Rainyday may have been more favorable to the
new systems if they had been consulted about the new computers or given more accessible
opportunities for training. The older employees did not view the computer training that
was offered to the employees very positively since they would have to go back to school
with students who were significantly younger. This can be intimidating to "students older
than average" who have not been in a school setting for some time.
More experienced employees may feel threatened about attending school with students
who are considerably younger, especially to learn about the newer computers which may
intimidate them. Newer employees, on the other hand, are somewhat dissatisfied with not
being able to get the help they need from more experienced employees. In both cases, it
seems that a major change such as the implementation of new computers could have been
handled in a more effective manner to get the support of more experienced employees so
that they would want to learn the new skills and would feel comfortable training the newer
employees.
3.
What steps should be taken to better understand the performance problems
at Rainyday? That is, what would you do to conduct a more thorough needs
assessment to better pinpoint the problems?
Step 1. Interview a larger sample of both newer and older employees about the problems
and causes to make sure you have a representative sample of information.

Step 2. Develop a comprehensive survey based on findings from the interviews. Survey
the entire group of claims processors about their views on the training as well as their
general work attitudes (e.g., morale, intention to quit the company, satisfaction with the
social relationships, satisfaction with the work itself, satisfaction with supervision).
Step 3. Summarize the findings from the interviews and surveys to determine the full
scope of issues and problems in existence among the claims processors, and the causes of
those problems.
4.
Provide several suggestions for addressing the problems in the claims
department at Rainyday.
Short-term (within the next month):
1. Ask all employees what assistance they need so that they are able to use the new
computers (make sure to determine if there are differences in their opinions - for example,
newer employees may need one type of help and more experienced employees may need a
different type of assistance).
2. Have a meeting with the "informal leaders" among the claims processors to get their
input on what should be done.
3. With the support and participation of more senior employees, institute a "buddy system"
whereby more senior employees are paired with newer employees so that each can teach
the other how to work with the computers. Older employees can teach new employees
about general work-related issues, while newer employees can assist older employees in
how to use the new computers.
4. If suggested by employees, provide some in-house training on the new computers
during an acceptable time or employees. Solicit input from employees. Perhaps have the
local high school teacher teach their course at Rainyday for only Rainyday employees so
they do not have to attend training with high school students.
Longer-term (within the next six months)
1. Incorporate into the performance appraisal and/or compensation system the mentoring
now provided by older employees. In this way, older employees may see that assisting
newer employees is measured and rewarded so that they will see the incentive for
mentoring new employees. Also, incorporate into the performance appraisal and reward
systems a way to measure and reward employees for fewer errors using the new
computers. Be sure that any rewards that are used are those that employees value (e.g.,
time off, money, prizes).
2. In the future, be sure to include a representative sample of employees into discussions
of major organizational changes.

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