New 1ersey Insurance

Company
Presentation By -
Dhwani Shah
Megha Jagtap
Parth V. Purohit
;er;iew
W Management Control Mechanism with responsibilities.
W Control the unit in an eIIicient manner.
W Operations starts according to the set standards.
W Actual perIormance comparison with the budgeted standards.
W The given case discusses about the two sections oI the organisation -
a) Individual Loan Section
b) Corporate Loan Section
aw Di;ision
W V.P William Somersby.
W All rights to comment on Legal Management.
W Divided into 5 Sections.
W Responsible Ior all Legal Matters, related to company`s operation.
W Advise to company management (Tax & Other Legislation)
W Represents company.
W Legal implication oI policies (Employee BeneIit Plan)
Indi;idual oan Section
W John Wallace- Supervisor.
W Responsible Ior legal processing oI loan to individual.
W Against Mortgaging the Properties.
W Terms, amounts, interest rates & maturity.
W FHA, VA, Conventional Loans.
W Approved loan transIerred to Law division.
W Directly by bank.
W Independent company was hired to sell mortgage.
W Watch upon old and new loan takers.
W Divided into 3 groups.
W Each group with attorney, responsible person.
W One Extra group.
W 5 attorneys & supporting staII-26 mortgage examiners.
W No Iormal training.
W Selected careIully & well trained.
W 3 month training, 1.5 on-the-job training.2-3 years continues training till
satisIactory rate oI output.
W Supervised under proIessional Lawyers.
W 12 to 15 Loans transaction per day.
W Regular data maintenance and controlling.
Corporate oan Section
W Peter Carlisle- Supervisor.
W DiIIerent operation.
W Large amount.
W Loan is given by NJIC.
W To industrial , commercial enterprise & public utility.
W Against Bonds issued to public.
W ConIirmation by the registration statement by SEC.
W Concern oI Investment division Ior amount, repayment, interest, maturity.
W Involvement oI sitting Ior negotiation & rendering advise on terms oI the
transaction.
W Final loan decision-In interest oI NJIC.
W Consulting private law Iirm Ior checking the market stability oI investment.
W Dependency on outside Iirm, due to which substantial part oI loan draIting
legal documents.
W Huge expenses on outsiders, Ior representing NJIC and maintain Loyalty.
W Control procedure was diIIerent then Individual Loan Section.
W Initiation oI each transaction, Mr. Carlisle consulted by the attorney to
whom so it was reIerred.
W Reassignment to equalization oI work load.
W Degree oI control through weekly staII conIerence.
W Substitution oI examiner.
W conIiscation oI employee in case oI any serious mistake only.
" 1) In what ways does Mr. Somersby control the operation
of the sections of his di;ision? In what ways does top
management control the operation of the aw di;ision?
"ue 2) What possibilities for impro;ing control, if
any, do you think should be explored?
W More stringent review oI the budget could be put in place.
W Exercise more control.
W Budget can be reviewed every month.
W Relied on the outside counsel to perIorm the tasks.
W It would reduce the cost.
W Employ some oI the experts.
W Better control over the current work.
W Submit the report at any time.
"ue 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 di;ision for the
first six months of 1987?
Relation to the Individual loan section and Corporate Loan Section-
W Huge deviation in the actual perIormance Irom the budgeted reports
W Deviation oI $25,374, which is over budgeted
%he questions that can be asked to Mr.
Somersby are:
W Is there any substantial reason Ior the deviation?
W What measures would you take to minimize the deviation?
W Why has there been an extra cost incurred as borrowed labour?
W Why were only 24 Iull time employees employed when the budgeted was
26?
W On what basis are the resources allocated?
W What will be the impact on cost iI we employ experts instead oI
outsourcing the tasks in the corporate loan section?
Thunk Yoo