New Jersey Insurance Company

New Jersey Insurance Company  : 

New Jersey Insurance Company Presentation By – Dhwani Shah Megha Jagtap Parth V. Purohit

Overview: 

Overview Management Control Mechanism with responsibilities. Control the unit in an efficient manner. Operations starts according to the set standards. Actual performance comparison with the budgeted standards. The given case discusses about the two sections of the organisation - a ) Individual Loan Section b ) Corporate Loan Section

Law Division: 

Law Division V.P William Somersby. All rights to comment on Legal Management. Divided into 5 Sections. Responsible for all Legal Matters, related to company’s operation. Advise to company management (Tax & Other Legislation) Represents company. Legal implication of policies (Employee Benefit Plan)

Individual Loan Section: 

Individual Loan Section John Wallace- Supervisor. Responsible for legal processing of loan to individual. Against Mortgaging the Properties. Terms, amounts, interest rates & maturity. FHA, VA, Conventional Loans. Approved loan transferred to Law division. Directly by bank. Independent company was hired to sell mortgage. Watch upon old and new loan takers.

PowerPoint Presentation: 

Divided into 3 groups. Each group with attorney, responsible person. One Extra group. 5 attorneys & supporting staff-26 mortgage examiners. No formal training. Selected carefully & well trained. 3 month training, 1.5 on-the-job training.2-3 years continues training till satisfactory rate of output. Supervised under professional Lawyers. 12 to 15 Loans transaction per day. Regular data maintenance and controlling.

Corporate Loan Section: 

Corporate Loan Section Peter Carlisle- Supervisor. Different operation. Large amount. Loan is given by NJIC. To industrial , commercial enterprise & public utility. Against Bonds issued to public. Confirmation by the registration statement by SEC. Concern of Investment division for amount, repayment, interest, maturity. Involvement of sitting for negotiation & rendering advise on terms of the transaction.

PowerPoint Presentation: 

Final loan decision-In interest of NJIC. Consulting private law firm for checking the market stability of investment. Dependency on outside firm, due to which substantial part of loan drafting legal documents. Huge expenses on outsiders, for representing NJIC and maintain Loyalty. Control procedure was different then Individual Loan Section. Initiation of each transaction, Mr. Carlisle consulted by the attorney to whom so it was referred. Reassignment to equalization of work load. Degree of control through weekly staff conference. Substitution of examiner. confiscation of employee in case of any serious mistake only.

Q 1) In what ways does Mr. Somersby control the operation of the sections of his division? In what ways does top management control the operation of the Law division? : 

Q 1) In what ways does Mr. Somersby control the operation of the sections of his division? In what ways does top management control the operation of the Law division?

Que 2) What possibilities for improving control, if any, do you think should be explored? : 

Que 2) What possibilities for improving control, if any, do you think should be explored? More stringent review of the budget could be put in place. Exercise more control. Budget can be reviewed every month. Relied on the outside counsel to perform the tasks. It would reduce the cost. Employ some of the experts. Better control over the current work. Submit the report at any time.

  Que 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 six months of 1987?: 

Que 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 six months of 1987? Relation to the Individual loan section and Corporate Loan Section- Huge deviation in the actual performance from the budgeted reports Deviation of $25,374, which is over budgeted

The questions that can be asked to Mr. Somersby are:: 

The questions that can be asked to Mr. Somersby are : Is there any substantial reason for the deviation? What measures would you take to minimize the deviation? Why has there been an extra cost incurred as borrowed labour? Why were only 24 full time employees employed when the budgeted was 26? On what basis are the resources allocated? What will be the impact on cost if we employ experts instead of outsourcing the tasks in the corporate loan section?

PowerPoint Presentation: 

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