Theories on change and Management applied to Zurich

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Change in organizations

Organizational change is the process of updating the organization present conditions as per the objectives for various benefits. Organizations change empowers to increase the performance on various parts of the organization using the methods and tools of organizational change management.

Organizational theories

Classical Scientific School of thought

This theory enables to run the organization using a set of management principles given by the FW Taylor. He stated that effective performance of organization comes from effective management practices. He listed fourteen principles of management to run organization effectively. This theory is useful to run the organization with more delegation of authority for executing the powers, for creating more clarity in roles and responsibilities for employees of the organization. This theory had introduced more scientific reasons and suggested scientific methods to resolve the problems in conducting smooth business activities. Growth in scientific usage in management practices are the drivers for this theory.

Scientific School of Human Relationship

This approach identified the importance of employees in organization development. This approach had useful to identify the reasons for the poor performance of the employees in various cases. This approach identified employees' job satisfaction levels impact the work performance and productivity. Employees' contribution recognition, growth in human resources studies are the drivers of this theory development.

Systems Approach

This approach takes entire organization as a big system to perform the organization activities. Using this approach entire organization's activities are divided into main systems, they are input, process, output. Majorly to facilitate the manufacturing organization, this approach was useful to divide the whole systems of the organization to focus for higher performance. Increase in manufacturing organizations around the world, lack of growth in management principles for effective practices are the drivers of this approach.

Contingency approach

This approach is mainly useful to take simple and complex decision in an organization at a faster rate. Contingency approaches enables to depend on a skilled, experienced managers to take effective decisions, contingency approach useful to handle, perform, manage all managerial activities under the leadership of few person, rather than group of persons. Slow pace in decision making, instant decisions requirements are the drivers of this theory.


Bureaucratic Organizations

Bureaucratic organizations are the oldest form of organisation structures. It was developed in the time when the early days of industrialisation and proven as not adoptive and useful to most of the organisations. Max Weber had developed this organisation structure to facilitate organisations to run according to the rules and procedures. It has more administrative characteristics than the management oriented. So it failed to win the hearts of the most of the organisations. A bureaucratic organization is useful to run the organisation according to the predefined rules structure for every employee and for every position in the organisation. Max Weber had used this model to create a organisation structure using formal relationships between the employees and his boss. He defined a structure that contains clear job and positions responsibilities and framed entire processes to facilitate communication from top to bottom. It states to hire a trained and specialised person for each position in the organisation.


All business organisation activities are performed as per the predefined formal procedures

Formal communication path between every position in the organisation.

Specialised and trained employees are taken into the company as employees under strict hiring and selection process.

Employees will get all statutory benefits from the organisation.

Discipline of the organisation can be increased

All administrative activities can be performed in a smooth manner


Employee involvement in performing task and duties with subjective and own decisions are not allowed

Strict disciplinary action on employees increases employee dissatisfaction and also reduces employee morality

Slow communication channel

Slow process flow in contingency cases

This type of structure is not suitable for present business world.

It has several drawback sin its principles

This approach has equal number of strengths and weaknesses. So developments in alternate organization structures damaged the growth and usage of this approach.

Organization Zurich

Zurich financial services is insurance based organization providing services in United Kingdome, Europe, Asia and America. Organization has started in 1872, in Zurich, Switzerland. Zurich has more than 60,000 employees to serve the customers.


Organization development:

Organization development is the process of making the organization internal operations from one type to another for getting effective business results. Organization development gives a chance to update the organization values, principles, standards, processes, policies, strategies, conventions, models, methods, technologies, culture, and people, as per the current market requirement.

Organizational Development Techniques

If organization is not ready to accept the changes from the external world, then it would remain as a follower and stay back in the race. In this competitive business environment, every company should act smart in getting new business opportunities, and to acquire new business contracts. Organization development is essential to develop the organization to face the risks and challenges from the competitors. Companies which fail to adjust the strategies as per the moves of the competitor then it may face trouble, it may lose market share, decline in sales, losing market share.

Organization change enables to develop people, process, technology and culture of the organization. A major change gives new business opportunities and gives ability and power to tackle and protect the business organization from the threats. So organization development is very much essential to every major business organization for sustainable growth and development. For long term growth and development, to expand market operations, to build image, to diversify in new fields, to improve performance of the company and individual and to improve productivity of the company as well as the individual organization development is essential with the consent and cooperation of the stakeholders of the organization. A right organizational change in a right time with a right implementation process and also with professional change implementers' organizations can build a smooth and secure career.

Once if organization development process is started, based on the change required in the organization, suitable for development of the organization is chosen by the management along with the managers or professionals of the change implementation process.

Changing new products or existing product features

To change the company there are several forms available, one of the useful forms for improving the sales growth, increasing the market size, improving the customer base, entering new market is through developing new kind of products for the old and new markets. Sometimes, new features are added to the existing products for creating additional demand for them. A new product development process enable the organization to changes its product lines with high demand product to improve business conditions of the company in target markets. Developing or changing existing product base give plenty of opportunities to promote sales and attract the customers using new kind of marketing strategies. A new product is also useful to develop a company financially and it gives additional advantages to generate more business in new and highly competitive markets. A new product is useful to increase the market image of the company by turning the attention of new and old customers towards the company. Zurich Financial Services is already providing so many financial services to the customers, but after the recession period, some of the products or financial services were proven as the complicated and problematic to the company. So Zurich Financial Services should redesign its financial services to get competitive advantages.

Changing business relationships with other companies

In the recent recession several problems are identified in the financial services industry. Subprime issues caused major damaged to the world economy. This type of business issues may impact in the future business activities. Several big companies spread this recession al over the world. Globalization impacted the world economy. Several countries failed to control the affect on them, because of the multi nation's corporation. Growth in the intonation business, rapid globalization connected and integrated every economy of the world directly, so problem of country speed to another country very fastly. MNC were unable to stop and control its impact on other countries. Improper and wrong business partnerships, inter organization business transactions created several financial problems to the countries in the world.

Developing location based marketing strategies

In the globalised international trade rules to conduct busies operations may be same or different. But for improving business in various markets, a single marketing strategy cannot be useful to improve business. Companies need to apply location based strategies to improve sales growth and income levels. Zurich Financial Services should also create location based marketing and business strategies to develop the company in different locations. Location based strategies are useful to frame a plan and to fix a business objectives and also action plan to improve business conditions in a selected region.

Suitable Organizational Development

Zurich is a fastest growing financial services company across major markets around the world, because of the latest economic turmoil its sales and income levels affected very badly in major markets. To set the previous financial numbers like before organisational change is required in several activities for achieving organisational objectives.


Changes required in Zurich

Change in financial product features as per the local market legal and customer requirements.

Protecting individual markets from external macros economical threats in future business processes.

Change in empowering marketing force to frame field level strategies to protect market share and to compete with he competitors in the field directly.

Changing the marketing strategies as per the local market conditions.

Reasons for the required changes

To make the company keep changing for facing business challenges anytime and in any market.

To improve the sales and also income.

Controlling the damaged occurred in the recent economic turmoil.

To enhance employees performance and decision making capability in their regime.

Model organizational change

John Kotter had developed an eight step model for the organization change process implementation.


For implementing change in an organization, according to John Kotter, a need of change has to identify by the management or by any related employee. In most of the cases, while conducting the internal or external environmental scanning need for change are identified for the part or whole parts of the organization.


Once need of implementation has been identified, a new team for implementation process should be made or formed to support further activities. Based on the skills and experience in handling and implementing major business changes new team is formed.


Develop a right vision for the organizational changes. It should guide the teams or change implementers to make objectives and strategies in respective areas at various points of time.


Change team should spread the information about the change across the whole organization. Communication is necessary to minimize and to resist change from various parties in the business. True and correct information spreading is essential to decrease ambiguity in performing role and responsibilities in performing various activities.


For executing any major responsibility in the entire change process delegation of authority and responsibilities to the employees and other team members are essential. Delegation of power empowers the employees to conduct and complete few related activities for the change.

Short-term wins

After dividing the whole implementation process and performing the required actions for the change implementation, during the every milestone of the process, if it is declared and celebrated and if that success is shared with other team members of the process then it would help to increase the motivation and satisfaction of team members. It acts as a motivating factor.

Consolidate gains

After all stages of the change process are completed then team manager should combine all the stages of the work to see the results of the overall change implementation. All the gains resulted from the final consolidation must be counted and reported for future purpose.

Anchor culture

If the whole implementation process is successfully completed, then later part of the implementation should be tested and performance monitored for further actions.

2.A and 2.B

Stakeholder Analysis

Zurich Financial Services is conducting its business activities in more than 170 different countries. Based on the area of operations, type of business, stakeholders of the Zurich Financial Services company will change. But for most of the companies there are few stakeholders who impact the business decisions and who also contribute their efforts to increase the performance of the company. Stakeholders are the key resources or parties to develop any type of company. They are just lake pillars to a company. Stakeholder must consider in change process to seek their help and assistance in making the organization change process successfully according to the objectives of the change. Change is necessary for any kind of company, irrespective of business, industry, size, business strength, position in the market etc. Every stakeholder of a company is essential to complete the business objectives smoothly and effectively.

Zurich Financial Services is conducting business operations in various ways. In few countries it is doing business under its own name and in few more countries it is working as a partner with other companies in providing financial services to the local people of a market. Zurich Financial Services has huge experience in taking major business decisions according to the industry and company requirements and changes. It has been adopting different kinds of approaches to manage the stakeholders during a major change process in the company. For taking any major decision, suppose if Zurich Financial Services want to acquire or buy any other financial services company as part of the diversification or corporate level strategy, in such type of cases share holders of the company are the main decision makers. During the annual general meeting with the shareholders of the company shareholders express their opinion on the new company acquisition.

There are several examples to describe the power of stakeholders of a company, without the consent and support of the stakeholders of a company it is very difficult to move ahead in major business strategies for the development of the company. Management of the company cannot alone take the decision. During the implementation, management of the organization should place the change process before the stakeholders to seek the opinion and advice and also support.

Stakeholders consent and cooperation helps the organization to implement the organization change process easily and smoothly. Some of the major stakeholders of Zurich Financial Services are

Every employee of the Zurich Financial Services in all its branches, businesses. They include all levels of employees.

Equity, Preference and other Shareholders of the company

Major customers of the company

Credit rating and financial markets rating agencies

Regulatory authorizes in various markets

Governments in various markets

For this large financial services company, every one listed in the above is an appropriate stakeholder of change implementation plan and process.

For this large financial services company, every one listed in the above is an Influential stakeholder of change implementation plan and process.

Involving the stakeholders in change process


To achieve the business objectives, employees of the company in this department should get involved in changing the existing business process and other related decisions to improve the business. Success of any company is possible with employees' contribution in performing the operations of the organization. Marketing system of an organization is not only useful to promote sales of a company; it is useful in many other ways. Market department of Zurich Financial Services should be useful to

Identify the target customers in various markets.

Should conduct market research to find the suitable financial services tot hem

Should understand the financial requirements of the people in various markets.

Should frame the marketing strategies by considering the strategies of the opposite companies.

Should help the organization in achieving the business objectives.

Employees of the department should consider the right marketing channel agents or small financial houses to sell Zurich Financial Services across the market with good marketing team.

Must maintain good customer relationship for developing market image

Marketing people of the Zurich Financial Services must access every corner of the selected market to promote the business. If using the above suggestions if marketing people frame strategies then Zurich Financial Services will get good business from various markets. To achieve all these type of objectives through the market department of Zurich Financial Services support from employees of Zurich Financial Services and satisfaction of Zurich Financial Services company customers is necessary.

Human resources

Employees are the main resources to get the work done. To bring them in the change process, employees should have explained about the benefits they would get. Employees consent is not only required in this system; it is required in every part of the business. Employees skills development program, by providing compensation and incentive benefits, creating new career graphs, new incentive and bonus structure, motivation, recognition in work, and other methods employees can be bring into the process of organization change implementation. Team building programs, by conducting internal team meeting to explain benefits of change can also be useful to bring the customers in the change process.


All the shareholders of the company are the major parties in the decision implementation. Consent of the shareholders is necessary to implement any kind of major business decisions. Management of the organization should explain and provide information to the organization development process and about the benefits that company gets, if implementation is successful. Finance department should prepare necessary financial reports to explain about the benefits that company gets if the change process is successfully implemented in financial terms. If the information provided before the shareholders and also the money lending houses of Zurich Financial Services are satisfactory then they all may support the organization change process. Government, debtors, creditors, and shareholders will only accept the change process procedure only when they are explained everything in financial terms. Using this type of tools and techniques change process resistance can be minimized up to the extent it wants.

Management information System

Entire information flow in the company is handled by this division of a company. Zurich Financial Services also has one MIS system to provide and communicate information to all stakeholders of the company. MIS should also support the change process by providing useful information to the stakeholders to get them in the process of change implementation.

Stakeholders associate with the organization directly and indirectly. They contribute in organization development with their services and decisions.

3. B

Action Plan for the implementation

Resources used to implement the change

Human Resources

For launching new kind of financial services in to the market, for reaching the new and old customers human resources are required. Zurich has huge human resources across the markets.

Financial Resources

Zurich has huge financial resources to implement the proposed changes. It need is to implement the changes effectively.

Technical resources

For better management and controlling entire branches spread across the world latest internal office management tolls and software applications are required.

Objectives of the change implementation

To minimize the damage that affected from the economical crisis.

To provide better financial services as per the customer's financial services as per the needs in a target customers.

To change the internal product making, product marketing policy, strategic management according to the latest market.

To increase the performance of the employees by implementing the internal enterprise management software.

If, all the employees of the organization work towards objectives of the change using a process then required changes can be implemented successfully.

These proposed changes should be implemented in a continuous process. As per the requirements in the market, necessary changes should be implemented.

For any type organizational change, management appoints one special change management team to implement, manage, monitor and control the activities, process, and tasks.

Either through personal observation, using change management tools and techniques, they can monitor and control the change implementation process.


The chosen model for implementing the organization change is very useful to perform every action in a procedural format. This is the most popular organizational change model.

If once the implementations of the changes are successful then the following are the results that may come from the performance of the organization from the affected business areas.

Business opportunities of the organizations can be improved in many markets.

Income to the company can be increased.

Sales growth can be increased

Financial services can be designed as per the market needs.

Crises like subprime can be avoided

Customer base can be improved

More effective financial products can be designed

Location based strategies can be give n importance in the company.

Marketing strategies will be framed as per the location conditions.

Economic system of the world can be improved

Financial needs of several people in the markets can be met.

Zurich Financial Services can enter new markets.


Zurich is the fastest growing and biggest financial company in the world. It has wide arms in many markets. In the recent economic crisis, its incomes levels and sales growth were dropped by the factor and forces affect in external business environment. To grow in the industry and to gain the reputation back, organization development process is the most useful method.