Communication Within The Accident Insurance Group Management Essay

This paper examines the procedures of communications as it relates to groups and organisations. It looks at the methods used in directing out messages – particularly messages that are negative or bear bad-news. The Paper besides looks at the reverberations that may happen from hold in acquiring the right information, by the correct means, in a timely mode, to the relevant audience.

While fulfilling all people at the same clip may non be practical, the application of recommended processs would decrease the effects of ill constructed methods or no communicating at all. The paper looks at what was communicated, how it was received, what could hold prevented the receivers to clearly understand what was sent ; and eventually it attempts to set frontward alternate methods that if introduced and followed should let the communicators to properly disseminate clear messages and spread many possible unsavoury state of affairss.


The Accident Insurance Group specialized in the pursuit of claims on behalf of persons at work or elsewhere, taking a per centum of the money if such claims were successful. The company ceased trading in May 2003 after one of their primary moneymans withdrew and a thin season for accident and personal hurt claims.

Rumors of the predicament of the company began go arounding among staff, some of whom received text messages that, among other things, their wages were non paid. Some of the staff members received text messages that informed them of their dismissal. The president of the company denied that he was straight responsible, and blamed the decision makers PriceWaterhouseCoopers.


In any organisation for communicating to be effectual some common features must be present. First, it should supply practical and relevant information ; besides it should give clear directives and divulge relevant facts ; information that is devoid of the feelings and perceptual experiences of the writer, and should give all sides of the statement before coming to a decision.

The communicator should distill the information and usage AIDSs such as diagrams and charts if these are able to assist in clear uping the procedure. A specific audience is normally targeted ; the messages should be tailored to run into this specific audience. Finally, the messages are used to carry its audience or do recommendations that would be considered by others.

In today ‘s universe of rapid alterations, concern communications is even more important as it normally defines the thin line between a company and its rivals. The velocity with which information is disseminated and the wider countries that are serviced makes it imperative that the best format and quickest agencies are chosen, such that the significances that were originally meant are non lost when translated by some other transcriber in another portion of this broadening and diverse planetary community.

More and more companies are prosecuting the usage of engineering to pass on with employees. Electronic mails, Instant Messaging, Intranets, Extranets, audio-visual AIDSs, tele-conferencing, Voice over Internet Protocol, and autotypes are but a few of the tools that aid communications in modern society. The growing of electronic commercialism has been the accelerator that fuelled many new tendencies in communicating. Companies need non direct representatives to run into face to face ; purchasers can compare points and monetary values while at place ; with the simple imperativeness of a button a contract can be entered into by individuals in two different parts of the universe.

Like in everything else when the tools to make the occupation are non used efficaciously or ignored wholly, the result are far from acceptable. Therefore, disregarding the regulations of communications will finally be the ruin of any company that chooses to short-circuit common cardinal regulations and constructs.

In every administration all employees portion a common linkage ; they are all portion of the communicating concatenation. Everything that is done by anyone while they represent the company, communicates something about that company to clients. All employees so should be trained to pass on efficaciously so that they reflect that professional image of their company. Companies ‘ direction owe it to employees to move with societal duty to guarantee that the highest ethical criterions abounds.

In the Accident Insurance Group ‘s scenario the company is faced with a bombardment of state of affairss that required action on the portion of the direction to stave-off what may hold been impending bankruptcy. Their fiscal angel had withdrawn, perchance due to the regional economical state of affairs, and they were now losing a great trade of their instances which antecedently they had won.

What had changed to caused a antecedently successful company with a perfect program of action to now be at the losing terminal is non instantly clear ; so that one can merely theorize that there may hold been alterations in the ordinances by authorities organic structures, or perchance the surrender of cardinal managerial and professional staff or a combination of fortunes and state of affairss outside of the control of the direction. Another possibility could be the enlargement or variegation of the company into countries in which it lacked the necessary competences.

With decreasing bottom line the company had to confront the fact that its endurance depended on cutting the staff on paysheet by a important sum. Many of the staff would hold given long and important service to the company.

Because giving bad intelligence is an unpleasant undertaking, and the fact that some of the employees had long been with the company, the direction chose what seem to be an easy manner to interrupt the bad intelligence – directing text messages. Sending messages, and written papers to a lesser extent, are impersonal and the torment felt by the receiver of the intelligence, is non witnessed as in face to confront interaction.

Everyone is different, and while some may manage bad intelligence comparatively easy, others may necessitate some professional intercession to get by with their state of affairs. It is in this visible radiation that the company should hold reviewed the procedures and devised some ways of pass oning honestly and candidly with the staff so that misgiving and misinformation would hold been eliminated or kept at the barest lower limit.


Without a uncertainty, The Accident Assurance Group was a company whose informal channel of communicating was active since widespread rumors abounded whenever messages were sent out.

The company used electronic media in order to inform the staff of the defects and the failure to run into wages of the workers for the approaching month. There is a strong internal informal channel of communicating as the rumor of what was happening spread throughout the company as workers shared information.

In giving bad intelligence, how the message is conveyed could be more annihilating than the message itself. In this instance the company take to inform the employees by agencies of the electronic media. Obviously there was small or no idea of the reaction of the workers when these messages were read ; the battalion of inquiries, the misgiving, treachery and general anxiousness that must hold been felt by the employees, who would hold most likely seek replies from direction for the state of affairs.

Besides taking that medium of communicating, the direction had targeted merely a section of the employees to have such notices. This would hold even made affairs worse since the workers would see that procedure as some kind of profiling or victimization.

As a general regulation the more complex a message is to be communicated the richer medium should be employed ( Bovee and Thill, Excellence in Business Communication 2004 ) . Directors must be cognisant of the fact that different media has different capacities for presenting messages. Where the subjects are hard or there are some emotional concerns it is advisable to utilize a rich medium. Thin media are those that do non necessitate the usage of different formats to portion the significances of the communicated messages ; rich media on the other manus offers multiple types of information every bit good as multiple ways in which the messages could be shared by both the transmitter and the receiving system. Media profusion theory ( Daft and Lengel 1986 ) , states that the transmitter should utilize the richest medium to pass on the coveted message. This medium is even more important if the subject is one that is sensitive or equivocal.

In an article in May, 2003 the NSW Industrial Relations Commission upheld the statement by the suspect attorney on behalf of an Air Traffic Controller John Eid, who received a text message from direction reding him of his dismissal ( Australian Associated Press 2003 ) . Commissioner Elizabeth Bishop stated that the text message should non hold been sent – regardless of whether Mr. Eid was fired or resigned.

Clearly, in state of affairss that are sensitive and may hold serious reverberations, the transmitters should seek to present messages in formats that are formal ; in which the stated message could be read, understood, and confirmed by agencies of feedback.

The Accident Insurance Group was cognizant for rather some clip that its internal fiscal state of affairs was weak. Yet it chose non to advert this fact to the workers. The Chairman of the company, Mark Langford appears to be less than honest and forthright in his leading of the company.


The company has been confronting economical challenges partially because a major moneyman had withdrawn, and many of the instances for personal hurt had been less than successful.

The company issued text messages to some of the staff bespeaking that their services were no longer required. To others, they merely stated that wages were non paid for the month. The company demonstrated its discourteous intervention of the staff by leting text messages to be sent.

Harmonizing to adept advice given by jurisprudence house, ( MHL Support 2010 ) “ A text message as a signifier of dismissal is wholly unacceptable. Firstly, some sort of disciplinary process precedes a dismissal, and that should be conveyed efficaciously through official channels. Professionalism is overriding ” .

The Chairman of the company should, at the oncoming of the hard period, explicate to all staff by memos and face to face, to guarantee that all employee understand what was go oning, and to appreciate what the company was faced with. Alternatively he chose to put fault on a 3rd party. Harmonizing to ( Bovee and Thill, Excellence in Business Communication 2004 ) Internal communicating helps employees do their occupations, develop a clear sense of the organisation ‘s mission, and place and respond rapidly to possible jobs. Good communicators use both formal and informal channels to guarantee a free flow of information through the organisation.

By the usage of text messages the direction unwittingly encouraged the usage of the informal channel – the pipeline – to distribute the intelligence about. The employees were given obscure directive by text: to look at their bank history. Such message would certainly promote guess and broad spread rumors ; many of which would hold been filled with inaccuracies.

Additionally, the Chairman ‘s response showed deficiency of corporate duty and managerial moralss. This kind of show and vocalization can do prospective employees to shy away from seeking employment and can by and large give society a bad feeling of the corporate civilization of the company.

Mr Langford may hold been guilty of an ethical oversight by leting the text messages to be sent, every bit good as keep backing intelligence of the at hand failure of the company. This oversight is non to be confused by ethical quandary which are unsolved readings of ethical issues.

Obviously Mr Langford ‘s failure to face his staff with the bad intelligence appears to be an ethical quandary that he allowed to intensify to an ethical oversight when the text messages were sent. Such actions may non hold been it maintaining with the company ‘s policies. While some of the direction staff may non believe that the action in itself was incorrectly, others would. The fact that merely few people see affairs as ethical issues while others view the same affairs as minor incommodiousnesss stems from the fact that ethical issues depends on the cultural, societal,


The direction chose to direct the messages via electronic media. This media chosen was non the most appropriate, and instead than unclutter up the issue it raised many new 1s as the staff did non hold the needed information. Besides The CEO tried to shrive himself from incrimination and placed it on the decision makers. As caput of the company he is finally responsible for any messages coming from the company. The pockets of messages that were sent demonstrated a defect in the communicating procedure. Some of the employees received presentment whilst others did non. For messages to be believable the communicators must be unfastened and honest and give the full narrative.

The Chairman of the company chose to distance himself from the text messages sent and blamed the decision makers PriceWaterhouseCoopers ; but the function of the decision makers in the twenty-four hours to twenty-four hours running of the concern and human resource direction would hold been at a lower limit so the burden was on the direction of the Accident Insurance Company to guarantee that either formal letters were sent or meetings called to discourse what was taking topographic point at the company. It is besides possible – if we are to presume that the text came from the decision makers – that the decision makers were expecting the company to inform the staff of the at hand actions before moving. Acerate leaf to state no action was forthcoming so the text messages were so sent to staff that the decision makers could hold identified ; those fortunate to hold records that were accessible.

Perceptive staff would hold long been cognizant of the at hand determination of the direction after seeing the assignment of the decision makers, and they would hold unconsciously braced themselves for the impact of some signifier of unpleasant intelligence. They would hold expected the direction to run into and explicate what was go oning. Since no communicating came from direction, employees used a good established pipeline. Harmonizing to Bovee & A ; Thill ( 2004, p 13 ) every administration has an informal communicating web. Between 75 to ninety per centum of the messages that passes through the pipeline are true. The deficiency of formal communications will promote guesss, some correct, others far-fetched as staff attempt to acquire inside informations of the happenings at the company.

Dr. Jitendra M. Mishra in an extract ( Mishra 1990 ) , stated that “ structured direction uses verbal messages to pass on through the concatenation of bid, while grapevine communicating leaps from one section to another and from any degree of direction to another. It moves up, down, horizontally, vertically and diagonally all within a short span of clip. ” He noted that the pipeline, as communicating, is comparable to the organisations formal information web.

The backdown of the fiscal angel would hold sent a “ ruddy flag ” to many of the employees that things were non all that good in the company. At times companies can be saved by the decision makers but this is normally after a high monetary value is paid and normally the restructuring of the full operational design. ( Becoming Bankrupt. 2010 )


Barriers to communication occur whenever the message of the transmitter is non received in the context in which the transmitter intended. It besides occurs if an wrong medium is used to convey messages to receiving systems. If the messages are ill-defined, obscure, or equivocal so there is some trouble in decoding them. Sometimes there is a covert attempt to direct delusory messages. This forms portion of a delusory communications tactic ( Bovee and Thill, Excellence in Business Communications 2004 ) . The messages sent by the Accident Assurance Group violated proper rules since the usage of text messages is non at all ideal to adequately turn to a extremely complicated and delicate affair as occupation supplanting and non-payment of wages. Text messages can non adequately address the staff which may hold inquiries and remarks to which immediate replies should be forthcoming.

Any message that informs of occupation loss would arouse an emotionally charged response. Emotions are existent barriers to communications. It was likely that the employees could hold embarked on destructive behaviors, such as destructing belongingss, plundering, ramping offices, barricading entree or a figure of other aberrant behaviors.

Restrictive environment signifiers barrier to communications. Directors that use autocratic manner would happen that communicating flows merely downwards and barely upwards. Directors who keep themselves from the staff besides run the hazard of estranging their staff to free entree.

In this instance a really serious barrier to communicating would hold been from the emotional province of the employees. If the intelligence carrier did non utilize the appropriate words or was insensitive to the province of the employees the message could hold been misunderstood, or misconstrued.

The usage of text, with its limited ability to convey rich contextual content could hold led to a figure of misunderstandings which in bend could hold provoked unpredictable reactions from the workers.

Mr Langford would hold avoided emotional barriers if he had placed himself in the places of his workers, and proactively addressed their demands.


Instantaneous messages are now an built-in portion of modern organisations and its use can concern communications. Similarly the inappropriate usage of blink of an eye and text messages can compromise professionalism in any organisation. While texting has increased internationally, many new signifiers of ordinances have been enacted to command its usage.

With the usage of electronic mail, a timestamp is received and a read reception can be sent corroborating reception. With a missive, the employee is given an chance to answer or a signature received from the messenger service meaning that the employee had received and signed for its reception.

In presenting negative messages the Accident Insurance Group should follow some clear processs. They should hold been clear about the issues that were on manus and be prepared to give specific grounds for the determination that they made. Furthermore they should be cognizant of the manner in which the message would hold been received by the employees: would they desire the intelligence up forepart with accounts or would they wish to hold face-to-face meetings. Ti was incumbent on the direction to guarantee that whatever place they took, was in fact the option that the receiving systems of the intelligence preferred.

Should the company take to direct the intelligence by registered missive they must follow proper protocol. One such protocol is the attack – whether to utilize direct attack or an indirect attack. In a direct attack, the author delves directly into the unpleasant intelligence without any signifier of preamble. In the indirect attack the author gives some signifier of account for the action or actions that were taken. Whatever attack chosen the author should ship on an audience-centered attack. This audience-centered attack takes into history the tone and diction of the message. Harmonizing to the proverb “ it ‘s non what you say but how it is said ” .

If, on the other manus the company chose to give the bad intelligence orally so, an audience-centered attack will order that the carrier listens to the employees. In listening the emotions and feelings would come to the head, but the carrier must non let emotions to deter him/her from transporting out the mission.

In written bad-news message the carrier can non listen to the audience but is able to earn information beforehand.

In turn toing the job of right ethical attack when the way forward is ill-defined, and the state of affairs unique ; as that of the Chairman and the company the best attack would hold been to analyze the both sides of the quandary – the force per unit area from the decision makers, PriceWaterhouseCoopers and the fall-out that would most likely occur when the employees receive the messages. Thereafter implement what would hold been the best process, or the 1 that would do the least injury to the most people. This is the most common construct used by directors when confronting dilemmas. This useful attack is based on the subjective opinion of the direction whose duty it is to analyze the cultural diverseness, imposts, ethnicity, age group, adulthood, length of service and many other factors that may be considered relevant in such instances. The thought is to gain the best benefit for the bulk of the people affected.

Another manner would hold been the attachment to procedural justness ; in this attack the direction informs the employees of what the options are with the state of affairs as it truly is. And leave the option to the employees. Whatever else the direction can be accused of, surely transparence would non be an point.

To avoid farther happenings of affairs of this nature companies are good advised to hold a written codification of moralss that governs the full house ‘s relationship with its employees, with its stakeholders, with the executive direction and top direction. Such codification can be placed throughout the company, and employees should be able to recover it at short notice. In the Web Sites this codification should be conspicuously displayed or available via hyperlink.

In an article by Here Is The City Careers it was suggested that direction support and develop the people responsible forA pass oning redundancies – normally the human resource and line directors since it noted that: “ people being made redundant travel through theA natural phases of mourning ; choler, isolation, heartache, loss and credence with different people taking lessA or more clip to retrieve ” . ( 2010 Entrepreneur Limited 2009 ) .

The article farther showed that “ failure to pull off redundancy reasonably and with clear communicating will ensue in the loss of trust and whenA trust is gone, it is difficult to recover. The discretional attempt from employees, so of import in normal times, isA even more critical with fewer employees making more work. The employer trade name and repute of yourA trade name will be damaged and non merely will talented employees leave, word of oral cavity will do it harder toA pull the new endowment crucial to future company growing. ” ( 2010 Entrepreneur Limited 2009 ) .

On analyzing the province of the Accident Insurance Group it fits the profile posited by the article. Obviously the company would hold been good advised to supply up-front information and trade candidly with the employees and salvage what small positive leftover of its image remained. A A A

Staff at Woolsworth had found out that they were losing their occupations after they read about it in the newspapers. Claire Weekes in a newspaper article suggested that the company looked at more appropriate ways of interrupting the intelligence. She quoted Mr Paul Sweetman, manager of empA¬≠loyee battle at Fishburn Hedges. “ Every administration should set together a multi-functional squad that embraces HR, operations and IT. Co-ordination is the key. The implicit in rule, though, is to speak to employees straight and before intelligence interruptions externally, ‘ ( Sweetman 2009 ) .

Eddie Bensilum, manager at Register Larkin besides back up this pattern with his logical thinking: ‘The actions you take necessitate to be managed really carefully, and frequently within hours of one another, so internal and external communications are synchronised, This could include town-hall-style meetings to do proclamations to staff, at the same clip as one-to-one meetings with people peculiarly affected, and it is important that leaders stay seeable and accessible to staff… .the danger is that sometimes leaders find the whole procedure chilling themselves and withdraw. ‘ ( Bensilum 2009 ) .

In today ‘s universe of alterations and planetary economic downswing it is inevitable that companies face reconstituting through acquisitions, amalgamations, alteration in schemes, or many other grounds for alterations. Management must be able to be up-front in their attack with staff and communicate the intelligence candidly, nevertheless unpleasant that intelligence may be. At the bosom of the affair is the intervention of employees with regard, and sensitiveness ; the consciousness that the administrations are made of different persons with different backgrounds who are able to get by with state of affairss otherwise. Management so should utilize this cognition to turn to each single demand every bit much as possible.


The universe is faced with intensifying recessions, and downswing of economic systems. A spinoff to this state of affairs is the attach toing loss of occupations as more and more concerns restructure, merge, diversify, face hostile coup d’etats, or merely face bankruptcy. Management on the other manus, if non prepared to manage this kind of separation, can worsen the procedure by improper communicating and processs.

Many times in the occupation environment all that is needed in extremely charged emotional scenes is the perceptual experience that the executive is willing to listen and sympathize with staff. The staff that remained besides would necessitate encouragement and psychological guidance, since they would be plagued with emotions runing from guilt for still holding a work ; uncertainness and apprehensiveness as to when the following set of lay-offs would happen and distrust if the intelligence was given to them suddenly.

Enterprises should follow best patterns to let employees to see their organizational civilization ; their position of their environmental response – in general their corporate duty, which, if handled with an audience-centered attack would proactively turn to those state of affairss that would adversely impact its staff, and society in general. Many companies attempt to put up profiles on the Internet that allow on-line visitants and prospective employees to measure the adulthood of their societal duty and compare the services and merchandises offered with planetary equality.

The universe has now become a planetary small town and the velocity with which information travels makes it imperative that executives given to the direction of human resources do so with a high grade of professionalism and sensitiveness, since the audience that is catered to is non merely local or regional, but international as good ; therefore the benchmarks used in measuring companies transcend local and regional patterns.