Executive Summary
This is a case study of Manulife company’s organizational behavior (organizational culture and team dynamics and culture). This company is a Canadian insurance company with its headquarters located in Toronto, Ontario. This case study of Manulife stresses the importance of organizational culture as it affects employee performance and satisfaction as well as customer satisfaction. It also touches on some of the ways in which this can be managed effectively.
While being a leader in the industry, Manulife is critically examining how they place value on their employee’s contributions and reward them accordingly to achieve their development goals. This study has shown that Manulife is implementing a global, business-wide performance management system and an employee recognition program to know where they stand, what expectations are for their performance, and how Manulife will recognize them for their efforts.
This report finally gives recommendations as to how Manulife can improve its organizational culture. These recommendations can be applied to any organization that wishes to implement effective structures and procedures based on employee performance.
Organizational Background
Manulife is a Canadian-based international group of mutual life insurance and investment companies. Formed in 1887 by John A. Macdonald and Ontario’s lieutenant governor, Alexander Campbell. The company has grown from a small mutual life insurance firm to the largest health care organization in Canada through mergers with investment firm companies such as Standard Life and Sun Life.
Manulife is considered a large corporation and is most known for its investments in pensions. In 2010, Manulife became one of Canada’s largest mutual fund providers, with 64% of assets invested into pension funds. The company also offers financial advice and share trading services to individuals and companies around the world through its international headquarters located on Bay Street (Toronto). The company provides home and auto insurance, as well as life insurance products. Its Life Insurance operations are the largest in Canada.
Manulife Group is an international diversified financial services organization. The company was initially based in Toronto but now has a headquarters in Markham, Ontario. Manulife provides a range of services to people and businesses, such as insurance and investments, wealth management and banking, employee benefit programs, and personal finance software solutions (Manulife Financial Corporation, 2017). In its 2011 annual report, Manulife said it had about $1 trillion (US$1.8 billion) in assets under management globally. The company is listed on the Toronto Stock Exchange.
Manulife was founded by John A. Macdonald and Ontario’s lieutenant-governor, Alexander Campbell, in 1887. The first office of the new company was located in Markham, Ontario. Over time, the company has been expanding across Canada and around the world. It now serves over 40 million customers globally and has 2,700 offices in more than 50 countries on all five continents as of August 31, 2011. In 1991, Manulife acquired Standard Life Insurance Co., creating an international giant in life insurance with about $300 billion (US$420 billion) in assets under management (Bonham, 2018). Manulife is listed on the Toronto Stock Exchange and the New York Stock Exchange.
Manulife has several subsidiaries that provide financial services to its clients. These subsidiaries include Manulife Securities, Manulife Trust Company, Manulife Bank, and UOB. Manulife operates in a variety of industries: Life Insurance, Pension Funds and Investments, Employee Benefits and Human Resources, Wealth Management and Banking, Corporate Governance, and Management Accounting (Manulife Financial Corporation, 2017). Manulife’s website states that it is a leader in many international markets. The company claims to cover 90% of the population in 42 countries where it has operations. Manulife develops its brand by investing in particular markets where they have a good chance at earning business, such as Canada, the USA, the United Kingdom, China, and India.
Organizational Vision and Mission
Manulife Group is a global diversified financial services organization. The vision of Manulife is to be the world’s most trusted company, providing innovative and comprehensive financial solutions that help build wealth and power organizations. Manulife’s mission is to grow in every market through people, technology, and business process innovation. The mission of Manulife is to help its customers build wealth through education and experiences that are useful to their lifestyles.
Manulife’s vision and mission are definitely affected by the company’s strategy of investing in its brand to improve markets where it has an excellent chance to grow. For example, Manulife uses its brand to make its products beneficial to retail customers through better marketing techniques and good customer service. Manulife also makes use of its brand to expand in developing countries throughout Asia. As a result, Manulife’s vision and mission are closely tied to the company’s strategy.
Manulife’s core values offer a foundation for how it conducts business. The company states that it is committed to its people, communities, clients, and shareholders. Manulife provides charitable support to help individuals and communities in different countries where it operates. For example, in Canada, Manulife supports the Canadian Olympic Fund. Bonham, M. S. (2018). The company also supports activities that contribute to helping children stay active through various programs such as Jumpstart, a national charity dedicated to improving kids’ physical literacy. In other countries like Australia, Manulife supports Habitat for Humanity programs in some of the major cities across the country.
Manulife’s organizational culture
Manulife has developed its organizational culture so that it is structured around its core values, and the essence of those values is reflected in everything the company does. Manulife has also implemented a total quality management system that helps Manulife create products, services, and programs that work together as a system that meets customer needs. This helps improve productivity at the same time not creating redundancies because it allows smaller staff numbers to be used when necessary.
Manulife has created a structure in its organizational culture that has allowed employees to have more freedom in making decisions. The company also has set up a hierarchical structure in which authority is not top-down, but rather everyone can help participate in decision making. Manulife has focused on hiring people who are ready to take action without needing detailed instructions. This is reflected in the company’s core values, which include: Integrity, Leadership, Client Focus, Teamwork, and Simplicity.
Manulife uses a collaborative culture that is designed to help people work together to achieve their goals. Manulife’s organizational culture also provides a foundation for helping the company carry out its business vision globally. Manulife employees use cultural values to demonstrate their commitment to excellence and dignity in their work (Leo Almazora, 2018). This is accomplished through teamwork and trust, which are exhibited by their dedication and hard work. The company uses its organizational culture as a guide for making decisions for the company’s business. Manulife’s organizational culture is an important part of how the company develops its products, services, and marketing strategies by ensuring that everyone works together.
Manulife’s organizational culture also allows the company to offer protection to its retail consumers. Consumers’ needs are met through effective and efficient marketing. Manulife’s brand is also a key ingredient in providing consistently high-quality products and services to its retail customers by operating under one organization. Manulife is able to ensure that its employees are ready to continue delivering their products and services through an organizational culture that provides training opportunities. Manulife was able to develop a corporate governance style that supports the business strategy by investing in their brand after they acquired Standard Life Insurance. Manulife’s organizational culture has also made the company’s success possible by establishing a foundation where individuals are able to contribute to the success of their business and organization. Manulife’s organizational culture is responsible for allowing the company to earn revenue that reaches billions of dollars.
Manulife has also developed a corporate strategy of investing in its brand to promote itself as an international organization. The company advertises itself on television, magazines, newspapers, and the Internet. Manulife also advertises its products and services through social media such as Twitter and Facebook. The company promotes itself online by stating its services are available to all customers through websites like LinkedIn and Google+. Manulife’s website use emphasizes the company’s involvement in developing innovative products and services for their customers by using a variety of financial strategies like life insurance, investments, pensions, employee benefits, and human resources (Leo Almazora, 2018). Manulife also uses its website to emphasize the company’s corporate culture, which consists of supporting charitable events and causes. Manulife has also developed a brand that is successful by investing in its organization and people. The company’s brand is well-recognized as a leading provider of financial solutions for its retail customers. Manulife’s brand is used to communicate the company’s purpose, values, and culture. Manulife also uses its brand on its products and packaging.
Manulife marketing and branding can be viewed through the eyes of the customer approach, which puts customers first in strategy and in practice. Manulife lets its customers have a say on their products, services, and strategies through surveys, focus groups, public forums (such as seminars), and direct communication through email newsletters. Manulife also supports its customers by sending them regular updates on the company’s financial results, successful marketing campaigns, and new products. To ensure that retail customers are well-informed and supported, Manulife sells a variety of products to meet their needs at a range of price points. This approach lets the company’s retail customers have a say in its business decision-making through the firm’s various communications channels.
Manulife has been recognized as one of Canada’s 5000 Top Employers for 7 years in a row by Mediacorp Canada Inc. due to its emphasis on “employee relations .”Greystone Manulife is also featured on the Globe and Mail Best Places to Work list for 9 consecutive years and is named one of Canada’s Best Workplaces. This is not just about their employees but about the ways in which Manulife supports its clients, communities, and stakeholders with “customer focus and commitment .”In fact, Manulife has been recognized as one of Canada’s Top 100 Employers for 7 consecutive years by Mediacorp Canada Inc. due to its efforts “to maintain a high level of employee satisfaction” (l Navin, 2021). Unlike its competitors, Manulife has a higher ratio of female workers in leadership positions. In addition, Manulife is also the only Canadian insurer to earn the International Organization for Standardization’s ISO 26000: 2011 certification, which shows its commitment towards corporate social responsibility (CSR).
Manulife has also been recognized for its efforts to give back to the societies around them through corporate philanthropy. Manulife is a major supporter of Canadian charities and often donates money to organizations like Youth Canada, Boys & Girls Clubs – Canada, and Habitat for Humanity. They even have a program called The North Star Fund, which is Manulifes’ corporate philanthropy program that offers financial donations to charities that directly align with their business strategy.
Team dynamics and culture of Manulife company
Manulife is committed to operating an open, honest, and informed workplace that respects diversity and encourages employees to express their opinions openly. Manulife provides a channel for the free expression of ideas for employees so they can improve their skills, knowledge, and understanding of the company’s products or services. Manulife also provides training opportunities for its employees through on-the-job learning experiences, which allow them to develop new skills or repair existing ones.
Manulife’s organizational culture is used as a guideline for decision-making in all areas of their business, from developing ways to attract business from new or existing customers to develop new marketing techniques or activities. Manulife’s organizational culture is also used as a foundation for the company’s corporate strategies and daily operations (Joseph & Gaba, 2020). Manulife is considered to be a business that values the importance of people, and for this reason, Manulife is able to develop products, services, and plans that meet its customers’ needs. Manulife’s organizational culture supports its corporate strategy by encouraging employees to be creative in order to develop new products or services. The company also uses its organizational culture as a guideline for decision-making in all areas of their business, from developing ways to attract business from new or existing customers to develop new marketing techniques or activities.
Manulife recognizes that individual differences can result in conflict; therefore, the company provides training opportunities for its employees through on-the-job learning experiences. They also encourage their employees to take pride in their work with workplace recognition programs. By creating an environment of trust, respect, and open communication, Manulife helps employees develop business skills that assist in the development of new products or services which are consistent with their organizational culture (Joseph & Gaba, 2020). Manulife is considered to be a business that values the importance of people, and for this reason, Manulife is able to develop products, services, and plans that meet its customers’ needs.
Manulife’s organizational culture supports its corporate strategy by encouraging employees to be creative in order to develop new products or services. The company also uses its organizational culture as a guideline for decision-making in all areas of their business, from developing ways to attract business from new or existing customers to develop new marketing techniques or activities. Manulife’s corporate culture is used as a guideline for its daily operations in order to make sure everything the company does is consistent with its goals, beliefs, and practices. Manulife recognizes the value of its corporate culture by encouraging employee development and rewarding those who embrace it.
Manulife’s organizational culture is used as a guideline for decision-making by developing products or services that meet their customers’ needs. For example, if a new customer wants to purchase a term life insurance policy, Manulife would develop products that would fit this customer’s needs so they would buy from them instead of another insurance provider. Manulife also uses this approach to create innovative products and services. For example, Manulife developed their Dividend Policy which is an investment program for mutual funds that allow investors to earn an average annual return of 8.93%. By creating these programs, Manulife is able to attract new business from new or existing customers and develop a range of innovative products and services for its customers. Manulife has a commitment to privacy in accordance with the principles of the legislation and the guidelines issued by the Information Commissioner’s Office (ICO), which states that all personal information must be collected and held securely.
Findings
Manulife is committed to providing excellent service to its customers. Manulife provides a means for employees to express their opinions on ways that could improve the company’s products or services and provide feedback for their direct manager. Manulife has a great deal of faith in its employees and believes that it can always do better to help them maximize their skills, knowledge, and understanding of the company’s products or services. Manulife is committed to operating an open, honest, and informed workplace that respects diversity and encourages employees to express their opinions openly. They also provide training opportunities for their employees through on-the-job learning experiences, which allow them to develop new skills or repair existing ones. Manulife’s organizational culture is used as a guideline for decision-making in all areas of their business, from developing ways to attract business from new or existing customers to develop new marketing techniques or activities. Manulife’s organizational culture is also used as a foundation for the company’s corporate strategies and daily operations.
Manulife provides an environment that encourages employee development and rewards those who embrace it by providing training opportunities for their employees through on-the-job learning experiences. Manulife also provides opportunities to develop business skills that help employees maximize their skills, knowledge, and understanding of the company’s products or services. Manulife demonstrates that it adheres to the principles set out above by ensuring personal information is collected, used, and disclosed by its employees in accordance with the legislation and that all personal information is held securely. Manulife also demonstrates that they are committed to developing their companies by operating an open and honest workplace. By listening to its employees, the company implements programs that result in a high level of employee satisfaction due to its organizational culture, which is aligned with its corporate strategy.
Manulife’s organizational culture was aligned with their corporate strategy when employees adopted this approach to decision making. Manulife also adheres to this approach in all areas of their business by developing products and services that meet their customers’ needs and expanding their market share. For example, Manulife developed the Dividend Policy, which is an investment program for mutual funds that allows investors to earn an average annual return of 8.93%. By developing these programs, Manulife is able to attract new business from new or existing customers and develop a range of innovative products and services for its customers.
Manulife is committed to developing products that are consistent with its corporate culture therefore all employees have a clear understanding of the company’s corporate strategy before making decisions about what products or services to create. All employees are also encouraged to be creative in order to develop new products or services, which is consistent with Manulife’s organizational culture.
Strengths
Manulife’s organizational culture is aligned with its corporate strategy, which is to develop products and services that meet the needs of customers. All employees are also encouraged to be creative in order to develop new products or services, which is consistent with Manulife’s organizational culture.
Total quality management (TQM) is a quality management system that has been adapted by Manulife, as it helps them achieve the company’s goals and objectives. It also ensures they create products, services, and programs that work together as a system that meets customer needs (Luger et al., 2018). This has helped improve productivity and product design at the same time not creating redundancies because it allows smaller staff numbers to be used when necessary.
Manulife values the importance of people; therefore, this entitles them to use their organizational culture to develop their products. This is done by developing products or services that meet the needs of customers and creating new market shares for Manulife. Additionally, Manulife has implemented a total quality management system that ensures they create products, services, and programs that work together as a system that meets customer needs. Manulife adheres to its organizational culture by demonstrating a commitment to enhancing employee development and rewarding those who demonstrate standards of excellence in a manner consistent with the company’s corporate strategy. All employees are also encouraged to be creative in order to develop new products or services, which is consistent with Manulife’s organizational culture.
The Employee Performance Management System (EPMS) is a system that enables Manulife to measure the effectiveness of employees and understand how employees are contributing to the company’s success. Manulife also rewards its employees for their contributions. For example, the company awards employees one week of paid vacation for every year of employment. The Employee Recognition Program has been implemented by Manulife in order to provide recognition for their service and successes on an annual basis. This program has allowed the company to recognize outstanding individuals within their organization as well as their financial achievements during the previous year.
Recommendations and Development Opportunities
Manulife should ensure that communication from senior management to employees is consistent with the company’s organizational culture. This would help improve productivity by reducing information confusion. Manulife can also better evaluate why employees have not been reaching performance thresholds set out in their jobs. This could be done by measuring expectations for performance against the results produced and taking action to improve future performance.
Manulife should implement a staff development program that would enable them to ensure that all employees are achieving the expected standards of excellence. Manulife may also wish to examine whether their coaching programs are meeting their expected results. Manulife should also ensure that all programs and services delivered to customers meet customer needs and standards, so they do not create products or services that fail and leave customers dissatisfied.
Manulife should also ensure that all programs and services delivered to customers meet customer needs and standards, so they do not create products or services that fail and leave customers dissatisfied. Manulife should also identify which training is appropriate for their employees and ensure that monitoring systems are in place to track the effectiveness of this training.
Manulife should also evaluate whether their staff development program is meeting their expectations. If standards are not being met, then Manulife may wish to determine why this is happening and take any necessary action needed to adjust the situation in order to achieve the expected results.
Manulife should also ensure that all training is appropriate for their employees and ensure that monitoring systems are in place to track the effectiveness of this training. If standards are not being met, then Manulife may wish to determine why this is happening and take any necessary action needed to adjust the situation in order to achieve the expected results.
Reference
Bonham, M. S. (2018). A Brief History of the Life Insurance Industry in Canada. Becoming 150: 150 Years of Canadian Business History, 182.
Joseph, J., & Gaba, V. (2020). Organizational Structure, Information Processing, and Decision-Making: A Retrospective and Road Map for Research. Academy of Management Annals, 14(1), 267–302. https://doi.org/10.5465/annals.2017.0103
l Navin. (2021). Disruptive Technologies in the Operation of Insurance Industry. Technical Vjesnik – Technical Gazette, 28(5). https://doi.org/10.17559/tv-20200922132555
Leo Almazora. (2018, November 7). Manulife announces behavior-based employee health platform. Www.Lifehealhpro.Ca. https://www.lifehealthpro.ca/news/manulife-announces-behaviourbased-employee-health-platform-250915.aspx
Luger, J., Raisch, S., & Schimmer, M. (2018). Dynamic Balancing of Exploration and Exploitation: The Contingent Benefits of Ambidexterity. Organization Science, 29(3), 449–470. https://doi.org/10.1287/orsc.2017.1189
Manulife Financial Corporation. (2017, September). Manulife announces structural, and leadership changes. Cision. https://www.newswire.ca/news-releases/manulife-announces-structural-and-leadership-changes-643925973.html
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