Industrial and Organization Psychology: Stocker Broker job in Allianz Australia Limited - Case Study Example

Industrial/Organizational Psychology Introduction Industrial organizational psychology also known as I/O psychology is important in increasing productivity at the workplace and related issues including mental and physical employee’s well-being. The industrial side of I/O psychology which is also referred to as personnel psychology focuses on matching individuals to specific job roles in the best way possible. The organization side of I/O psychology on the other hand deals with how individual behavior is affected by organizations management styles, social norms, role expectations and organizational structures. This paper is an objective analysis of a Stocker Broker job in Allianz Australia Limited. It will determine whether or not industrial organizational psychology affects a Stocker Broke in Allianz Australia Limited. Allianz Australia Limited is one of top ten insurance companies in Australia. It offers products and services on wide range for insurance and risk management. Its products and services include workers’ compensation, business, commercial and industrial insurance, personal insurance, loss control and risk management strategies and public and product liability. Its operations are in New Zealand and Australia and have about 3,600 employees. One of the important positions in this company is an Insurance Broker whose responsibility is to identify and organize suitable insurance cover for both private clients and commercial organizations (check Appendix 1 for a full job description of an Insurance Broker). All jobs in this company have already been analyzed and documented. When there is a vacant position the Human Resources department follows the documented job description and requirements to seek for the right candidate. However, as the company expands and new positions are created the human resource performs a job analysis. This is done by collecting and recording information pertaining the job which is checked for accuracy. A job description is written based on the provided information. The information is then used to determine knowledge, abilities and skills needed on the job. This information is updated from time to time by the human resources. The job description contains the nature and scope of work and its relations, duties of the position, skills required, and complexity degree. Job specifications include physical capacities or qualifications, physical features where necessary, ability to interpret information, perform arithmetical calculations, judgment and concentration ability. Other specifications include emotional stability, personal appearance, creativity, dominance, self-reliance, and research, among others. Recruitment and selection Allianz Australia advertises its jobs both internally and externally depending with the kind of job. If the company wants to promote individuals and need someone who is familiar with its services and products then it strictly advertises internally. However, if the job needs new expertise or if it is not specific to internal knowledge then the human resource department advertises the job in the newspaper and websites like indeed.com, LinkedIn and Jobseekers.com, among others. Once the human resources receive applications by the given deadline, short listing takes place depending on the advertised qualifications and requirements for the job. The shortlisted candidates are contacted and invited to written exam which includes language, IQ test and personality test. Those who pass the written test are called for oral interview for the interviewers to know the candidates better. The candidate who passes the interview is congratulated on email or phone and invited to pick an appointment letter. However, the internal recruitment process is the same except the written test. Once recruited you cannot sit for another written test for any other advertised positions in the company. An individual only attends the oral interview. Training and Development The training that takes place in Allianz is very impressive. If the Stocker Broker is newly recruited without any background in insurance he does not have to wonder whether or not he will fit into the company. It can be challenging sometimes to enter a new field, however, Allianz understand this and provides plenty of support for all the new employees regardless of whether they have experience in insurance or not. There are various ways the company uses to get the new employee know about it including leadership exchange programs, formal technical and insurance training, company team briefings and lunchtime career insurance training. The Allianz Corporate Induction program provides important information about the company including the vision of the company, strategy and values to help new employees settle in quickly into their careers. The Buddying and Support program enable a newly employed Stocker Broker to put into practice the skills and information learned during training. The program supplements the formal induction and is conducted by someone who has worked in the same position before. Coaching is a method used in Allianz to enhance career development, and is a goal-focused, flexible and collaborative relationship. It helps a Stock Broker to identify ways in which he can enhance his work performance. The coach is usually the Stock Broker’s manager or supervisor who guides him towards his goals by supporting, inspiriting and sharing his own experience. Target setting is where the Stock Broker is encouraged to take control of his own career development in order for him to have an opportunity of taking an active role in setting his targets with his supervisor. Since Allianz is committed to support and develop its employees’ careers, it usually encourages them to develop a career plan and actions to be taken to achieve their future career goals. Allianz also has a Management Development Program to enhance professional development of its management. The program is divided into three parts such as Executive Management Development Program, Management Alive, and Management Essentials. The Executive Management Development Program broadens the exposure of Senior Managers to technical areas of the company and provides them with opportunities to work on projects with other senior managers. The Management Alive provides practical techniques to middle managers to apply in their situations modules such as manage workflow, communicate, present, lead and motivate, facilitate and coach, and influence. The Management Essential enable entry level managers to focus on essential management skills and knowledge for team leaders in the company. The Corporate Professional Development Program enables employees including the Stockr Broker to develop his business and interpersonal skills. The available courses under this program include interpersonal (presentation and negotiation skill), human resources (managing performance, recruitment and selection), leadership (change management and coaching) and induction. Allianz provides assistance for those willing to study further. If the Insurance broker undertakes job-related qualifications such as Certificates, Diplomas, Post Graduate Degrees and Bachelor Degrees, he may be eligible for partial subsidization. This encourages employees to continue studying and developing their career. Allianz also provides technical training to develop skills and knowledge of staff in making disciplined decisions, empower them to become leaders in their area of work and encourage them to provide customer service delivery excellently. This program is tailored depending on the job role and provides employees with an opportunity to support their career development and advancements in the company. This program is structure in three phases: level 1 provides employees with introductory knowledge, level 2 deals with individuals who need higher authority and more expertise, and level 3 caters for those in senor positions to have specialized insurance knowledge. A Stock Broker works with his supervisor to decide on which levels or courses are appropriate to his role and career development plan. Comprehensive product training is also provided to employees where a Stock Broker gets an opportunity to learn about the insurance related to his role. Compliance Training is provided to all new employees in Allianz. They are expected to complete five core compliance courses in their first weeks of employments. Each employee is also expected to re-certify this training after every three years. These compliance courses include Allianz privacy, getting a grasp of information security, Allianz equal employment opportunity and getting a grasp on occupational health and safety. Both new and existing sales employees including Stock Brokers must attend the Essential Selling Skills Training courses designed to provide consistency in selling language within and across departments. It enhances a common set of sales skills that supports Allianz’s Miller Heiman Strategic Selling program. If a Stock Broker is in a managerial position he must attend Essential Coaching and Counselling training course available in the company. Employment Performance Appraisal Allianz Australia Limited conducts employee performance evaluations to record and capture results of employees. These results are used to establish whether or not an employee can be promoted or increase his salary. Training gaps are also identified through the evaluations. Immediate supervisors actively engage in the appraisal process. At the beginning of each year meet each employee to discuss the objectives and goals of the job. For example, one objective of the sales people could be, “Converting prospects to 200 customers by end of June 2014”. These objectives are then agreed upon by both the employee and the supervisors which are then documented. The supervisors input the employee’s evaluations. The job results are then measured against the objectives by the supervisor at the end of the year. The final overview review score is provided to every evaluated employee. Overall employee performance ratings at Allianz Australia include Excellent, Very good, Good, Fair and poor. Supervisors usually meet with employees to review their evaluation in person. The supervisors and the employees both give their feedback. Training opportunities, career tracking, work life and other employee concerns are also discussed. A copy of the final review is provided to the employee at the end of the discussion and a printed copy is kept in the personnel file. The supervisors then ensure that they have followed up on their actions they promised the employee enrolling them for leadership training course. Job Stressors and communication process The Insurance Broker in Allianz Australia Limited experience minimal workplace stressors. Sometimes they have a heavy workload and long working hours that may interfere with personal life and rest. Usually, the common job stressors would include confusion of job roles, career concerns, environmental and structural conditions, interpersonal relationships, management style and job features and design. The Allianz Australia Limited strives to ensure that it provides a safe and good working environment for its employees. It provides programs to employees to develop their careers, and has clear outlined responsibilities for the job. There is a culture of good interpersonal relationships between bosses, subordinates and coworkers where they support and help each other. To minimize work-related stress the Allianz Australia Limited management improves communication with the employees. The employees are free to approach their supervisors and talk to them about their concerns on the job. The supervisors have been trained and expected by the company to handle employee problems without biasness. The management shares information with employees regarding any changes or new or expected ways of doing things. This reduces uncertainty among the employees and builds trust (Yang, Che & Spector). Communication between the management and employees is made efficient and friendly. Employees are also involved in decisions that affect their jobs. Communication is the key to this company and the managements consistently praises the good performance of employees verbally. Employee Motivation and Leadership style The supervisors and managers of Allianz Australia Limited recognize the importance of motivating employees. There are various ways they use to achieve this objective. The management allows employees to participate in decision making processes of the company. Through participation employees feel like their opinions and ideas are valued, and therefore increases their motivation. Participating in decision making enables employees to own the decision and work towards achieving the set goal. When employees are bored with their jobs it demotivates them and decreases the productivity of the company at the same time. To ensure this doesn’t happen in the company the management used job design to create tasks that are interesting and challenging to the employee. The management also uses reward to motivate employees where both intrinsic and extrinsic rewards are used. If employees especially those in sales department meet or surpass their targets they are given incentives in terms of money. At the end of the year there is a certificate awarded to the best performer of the year in every department. The management cares a lot about the career development of the employees and they have developed and many training programs including claims training, including leadership exchange programs, formal technical and insurance training, company team briefings and lunchtime career insurance training, among others. The motivation theories applied by the management of Allianz Australia Limited are Maslow’s hierarchy of needs theory. According to Abraham Maslow motivation is based on hierarchy of needs of which an individual only moves to the next level of needs if the previous needs have been met. The lowest levels of needs are basic physiological needs including food, water and air. Allianz management meets these needs by offering reasonable salaries to its employees. The second level of needs which include security and safety needs of employees are met by providing them with a safe working environment and help them have a sense of job security. The third level of job of needs is a sense of belonging and affiliation which Allianz management meet by providing a work environment which enhances socialization and implementing employee participation programs that fulfil the need to belong. The social and love needs are also satisfying by rewarding employees for their contributions. The fourth level of needs is esteem needs which Allianz management meets by creating jobs that are challenging and tasks to enable employees feel good and meaningful. Self-actualization is the last level of needs. To ensure that employees reach their potential the management aligns the right job to the right employee. The type of leadership style used in an organization is very important as it provides direction, implements plans and motivates people to meet organization’s goals. The leadership style applied in Allianz Australia Limited is democratic or participatory leadership style. In this style all the employees in the company are involved in the decision making through debates, discussions and sharing of ideas. However, the final decision may be made by the leader. Decisions made through this leadership style are usually accepted and appreciated by those involved and support their implementation (Clark, 2013). Work Groups and Performance Allianz Australia Limited has both formal and informal work groups. A formal work group is formed by the management to achieve objectives or tasks of the organization. An informal work group is one formed by the employees without the direction of management and has a shared common interest. The focus on this group may be on issues that counteract the norms of the organization or improve the employee morale (Goldstone, Roberts & Gureckis, 2008). The informal groups at Allianz Australia include social welfare group (with aim of improving personal life of members) and sales representative groups (share their sales experiences and support each other). The formal group of the company include Managers’ Committee who come together once in a while to discuss about the company’s areas of concern. There are several factors that affect work group performance including size of the group, group composition, norms and cohesiveness. Group composition refers to homogeneity among members; if members are alike in one or more ways such as cultural background, expertise, qualifications and age. Age of employees and heterogeneous characteristics of members lead to conflicts or frequent turn overs (Goldstone, Roberts & Gureckis, 2008). Older employees may rigid to change while younger ones may be irregular in attendance. A small group enhances easier interactions and communication among the members while a large group makes interaction complex and difficult. A norm is a standard of appropriate behavior set by the group. According to Bruce Tuckman’s group formation theory, this standard of behaviours is created at the second stage of group formation and flows to the last stage. If a member’s behavior is contrary to this norm he or she may face abuse or threat of being expelled by the group. The degree to which the members are committed to each other as a result of forces against them is known as cohesiveness. The forces include resistance to live the group motivation to stay in the group and attraction to the group. All factors affecting group performance occur at every different stage of group formation (forming, storming, norming and performing) in regard to group formation theory. The stages enable the group to grow, face challenges together, deal with problems, find solutions and plan to work together to perform (Rousseau & Aube. (2011). Recommended changes on the job Everything about this job is satisfying as the management has done its best to ensure that it is interesting and challenging. Every support provided for the job including training cannot be undermined. Conclusion The study of how industrial organizational psychology affects jobs and organization with a case study of a stock broker job at Allianz Australia Limited proves that productivity and employee well-being can be affected organizational structures, social norms, job role and expectation, and management style among others. References Bowling, K., Eschleman, J. & Wang, Q. (2010). A meta-analytic examination of the relationship between job satisfaction and subjective well-being. Journal of Occupational and Organizational Psychology, 83(4), 915-934 Clarke, S. (2013). Safety leadership: A meta-analytic review of transformational and transactional leadership styles as antecedents of safety behaviours. Journal of Occupational and Organizational Psychology, 86, 22-49. Goldstone, R.; Roberts, M. & Gureckis, T. (2008). Emergent processes of group behavior. Group Behavior, 17, 1–15 Rousseau, V & Aube. (2011). Interpersonal aggression and team effectiveness: The mediating role of team goal commitment. Journal of Occupational and Organizational Psychology, 84(3), 565-580. Yang, L, Che, H, & Spector, P. (2008). Job stress and well-being: An examination from the view of person-environment fit Journal of Occupational and Organizational Psychology, 81, 567-587. APPENDIX A. Insurance Job Description Read More