New Jersey Insurance Company Essay

1. In what ways does Mr. Somersby control the transaction of the parts of his atom? In what ways does top management control the proceedings of the law division? Mr. Somersby controls the operation of the division by requiring reports from each section of his division. Which much(prenominal) reports he was able to monitor the per tenorance as tumefy as the expenditures of each section. The law division has around five sections to which cardinal of them seem more crucial than the others. This is because such section handle accounts that provoke either make or break the financial status non only of their division but of the company as well. Because of the importance of such sections, Mr. Somersby conducts conferences with the sections in bless to determine if at that place argon any problems during their operation and to prepare for future developments. The top management controls the law division by monitoring the financial standing of the division through the beseechd re ports that they acquire.They conceal discrepancies and questionable differences in cost through comparison with the divisions previous financial report. They are able to do because of the established threadbare they be in possession of set from their years of experience most of the employees have been retained repayable to their costly training. Thus, hiring of new employees are avoided unless bespeaked and frequent transactions in their routinary operation. They require the division to set budgets, and monitor their communicate costs from their incurred cost. The same goes to Mr. Somersby. When round deficits are detected they questions such occurrence in order to reassert the incurred cost or to make certain actions for the situation to desist.2. What possibilities for improving control, if any, do you think should be explored? Since budget plans seems to be crucial in their company, they should yield to establish more definite parameters for their reports especially for the corporate add division. They should turn back the factor of TIME with their reports. For doing almost routinary transactions and for handling such situations for a largeer period of time, the examiners should have a clearer gauge as to how long their transactions would be. By sending reports on a timelier manner they would be able to have more reliable figures for their budget estimates. As for larger accounts comparablethose of the corporate loans, they should to a fault try to consider not only outsourcing on the legal matter but for investment matters as well. They could consider hiring consultants that have a larger network in these matter in order to have a broader reference in the evaluation process.These financial experts capacity be able to help them more in accessing mortgages, company and idiosyncratic net worth and the market standing of any investment. With this, just like on legal matters, these too can be a form of marketing, because they can claim to have a more reliable function because of the presence of financial experts that are not tied with their company. Thus unbiased reports and projections. They should also coordinate with the government in some cases so that they could keep lead story and prepare for any policy changes in their area that might impress the prices of their resources but that of their needed inputs as well.3. As Mr. Montgomery, what comments would you make and what questions would you ask Mr. Somersby about the performance of the two sections of the law division for the first 6 months of 1987? As Mr. Montgomery, my comments for Mr. Somersby would be as follows There have been huge deviations on the projected budget and the actual budget of the law division. More particularly, the individual loan section has incurred most of those deviations. From the figures, it seems that the corporate loan section had lesser topic of transactions compared to their previous year. It seems that the individual loan section h as employed an noncitizen which is different because their division has carefully trained and well experienced examiners, and has not required to have one from the previous years. The questions would be as followsWhat are the reasons of the over budget?What are your plans in order to prevent your division from incurring these deviations? Why was an additive labor for the individual loan sections do? How come the budgeted number of employees was 26 and the actual number of employees was 24? Since, employing additional labor for the individual loan section happened, is there a need to employ a new permanent worker? Were some of the populate from the corporate loan section laid off? Are there any management problems in the corporate loan section? arrest you considered employing financial experts instead of outsourcing them? What would become of the division then?