Organizational Behavior Within Aig Commerce Essay

Organizational behaviour is the survey and application of cognition about how people, persons, and groups act in organisations. It does this by construing people organisation relationships in footings of the whole individual, whole group, whole organisation, and whole societal system. The major intent of this is to construct better relationships by accomplishing human aims, organisational aims and societal aims. In this paper, am traveling to lucubrate on how the organisational behaviour of all the stakeholders has affected the direction of American international Group.

History of AIG

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AIG history day of the months back to 1919, when Cornelius Vander Starr established an insurance bureau in Shangai China. He was the first Westerner in here to sell insurance to the Chinese, which he continued to make until AIG left China in early 1949 and moved to its current headquarter place, New York City. In 1962 Starr gave direction of the company ‘s U.S dawdling U.S retentions to Maurice R. Greenberg, who shifted its focal point from personal insurance to high border corporate coverage. Get downing 2005, it was found in a series of fraud probes which led to Greenberge being ousted amid an accounting dirt in February 2005. He was succeeded by Martin J. Sullivan who subsequently resigned on June 15, 2008 after revelation of fiscal losingss and subsequent falling in stock monetary value. Willumstad was besides forced by the US authorities to step down and was replaced by Edward M. Liddy on September 17, 2008. ( Shelp R, 2009 )

Working environment

The on the job environment at AIG is so negative that the supervisors do n’t even look the staff in the oculus. The slogan at the company is work more with less forfeit. It has been said that when you visit the offices you merely run into a clump of clueless people running about and reacting to the latest authorities opinion. And after they work to the point of exhaustion, they are forced to travel even more. This is every bit close to a sweatshop as it gets. No 1 could of all time bring forth good consequences in such an environment nevertheless good they are. The direction at AIG office is invariably traveling in meetings together, directors garnering files and mousing them to HR who is invariably on the floor with his tablet in meetings with troughs. Such scenarios instill panic into the workers since they feel under force per unit area and fright losing their occupations at any clip.

Rumors of people being sucked are out every twenty-four hours. How people lick this information can merely be directed at hapless leading accomplishments and dishonesty among the employees who snitch one another to the supervisors. How are people supposed to work in such environment? The best thing to make at such a point is to put an probe into who leaks out such information amongst the supervisors and penalize them.

Problems within AIG

Failure in Leadership within AIG.

The major job within AIG has been accounting fraud particularly as from 2005, due to hapless leading. The company was fined by the New York Attorney General a sum of $ 1.6 billion because of the condemnable charges against some of its executives. This shows that most the executives are out to flesh out their pockets at the disbursal of other stakeholders. This was besides witnessed in March 2009 when the company announced that they were paying out $ 165 million in executive fillips. President Obama who voted for the companies bailout as a senator was angered by such programs and even mentioned that it was difficult to understand how derivative bargainers at AIG warrant any fillips, much less $ 165 million in excess wage at the disbursal of the taxpayer who keep the company afloat. Most politicians on both sides reacted with indignation to the planned bailouts, for case Senator Dick Durbin said this was pathetic and reminded the executives that the lone ground they have a occupation is the taxpayers. ( Keen P, et al 1997 )

The blooper of leading in AIG showed how selfish and inconsiderate they were to an extent that they had the bravery to even demand fillips from the dorsums of taxpayers who keep the company afloat. There has besides been rear of barrel of public presentation values in AIG when the executives wanted to hard currency in so much money and yet the sort of work they did does non merit any applauding. In any instance disciplinary action should be taken against them. At one point finger indicating rose to a high degree that president Barack Obama had to step in to presume the incrimination that was truly on the shoulders of the company leaders.

Numerous jobs have besides been experienced recognition card holders. A good illustration is Jerry of Shelton who had an car policy with AIG the old two old ages that he had paid for in full. He so received a aggregation notice ( 2 old ages ) subsequently ) from Critical recovery services, Inc. for 54 because they claimed they had to see him for 30 yearss after he had canceled. This is non proper because it ‘s like they force insurance on him after he has canceled. He nevertheless subsequently contacted the commissioner of the province of Connecticut Insurance and was informed that this was an illegal pattern. This is a clear act of blackmail which is in any circumstance illegal. These shows how unethical the employees of the company can be which translate to bad blood between the taxpayer and the company. It ‘s such instances that have no uncertainty led the destabilization of such a large company.

Finally, the company ‘s repute was besides dented through the deficiency of unity shown by the leaders. If they were wise plenty and trustworthy the systems of cheques and balances would hold operated efficaciously and prevented the companies ‘ diminution. Most people have lost trust in these leaders. Building and keeping the trust of the people you lead should be an on-going undertaking of leading. Not merely must you seek to make trust between you and your followings, effectual leading besides requires that you build trust among your followings. Even if they trust you, you wo n’t truly be able to travel them towards desired organisational ends unless they trust each other. ( Salacuse W, 2006 )

Possible recommendations

Re stigmatization

Changing of the company name may be one of the ways to seek to better its image. AIG trade name is so severely damaged by the companies immense losingss because of the taxpayer bailout and the changeless combat with its long term CEO that the usage of its subordinate names to better merchandise gross revenues may demo the AIG board and direction that the company needs a new name to better its standing with consumers and the companies it does concern with. The reference of the name AIG recaptures bad memories by most of the taxpayers and hence most people would seek to avoid being associated with any merchandise or any signifier of concern related to the company. Changing of the name will give the company a difference face wholly although the interior may stay one and the same. The psychological nature of human existences nevertheless will do them take it as a different company. ( Hoover ‘s 2008 )

Restructuring program

The company should alter the manner it operates and cut on the disbursals. The operating cost of the company is besides so high. It hence calls for comprehensive reappraisal of its disbursal construction to significantly cut down runing cost. Restructuring will besides better corporate administration and transparence to maximise its value so that when the universe economic system improves, possible investors will see AIG as their first precedence. This will rebelliously hike the company ‘s on the job capital. ( Gilson S, 2001 )

Change in Employer associations and industrial dealingss should alter.

The company should promote workers to prosecute in more advanced, constructive bargaining to cut down the disturbingly broad gulf between those employers utilizing endeavor bargaining to accomplish meaningful, advanced, permanent alteration and the really many who were seeking to cut costs without invention. ( Sheldon M,1999 ) in his book, “ employer association and industrial dealingss ” says, to stem the bad on the job relation, members need to reconstruct a working environment based on trust, security and employee engagement in some of the major issues that affect the employees either straight or indirectly.

As AIG has illustrated, no company, nevertheless large or popular it may be can accomplish its objects unless there is proper apprehension and good will amongst the employees and their foremans. Here should ever be proper relationship non merely between leaders and followings but besides amongst the followings themselves.