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5.

Organizational Structure of the Company


Organizational structure is one of the main tools to bring about
organizational effectiveness. To be effective, organizational structure of the
Company has been designed by considering the following factors.

To fulfill the strategic objectives of the company.


To ensure efficiency and effectiveness in work processes.
To determine extent of centralization /decentralization to ensure
empowering and accountability in decision-making.
To avoid unnecessary and undue combination of functions.
Communication.
Specialization
Flexibility
Internal Control

Echelons of the Company's organizational structure are:


1. General Meeting of Shareholders;
2. Board of Directors
3. The Chief Executive Officer
4. Executive Officers and Services Managers.

1. General Meeting of Shareholders


The General Meeting of Shareholders is the supreme organ and the highest decision
making body of the Company.
2. Board of Directors
The Board of Directors oversee the general activities of the company and is accountable
to the General Meeting of shareholders.

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3. The Chief Executive Officer
The management of the Company shall be vested in the Chief Executive Officer. He is
accountable to the Board of Directors. To ensure efficiency and effectiveness,
empowering and accountability in decision making process, to avoid unnecessary and
undue combination of functions, two divisions (Insurance Operations and Finance and
Administration) and three services (Strategic Planning, Legal and Internal Audit) are
organized under the Chief Executive Officer.
3.1. Operations Division

The division is headed by Executive Officer who is reporting to the Chief Executive
Officer. It is basically responsible for the core activity of the Company, i.e. execution
of operational activities pertaining to prudent underwriting, sound claims management,
reinsurance, recovery, premium rating, product development and other areas of
insurance operations. Under the division there are team of experts and three work units.
The work units are Underwriting Department, Claims Department and Branches.

3.1.1. Underwriting Department


Insurable risks of complicated nature and voluminous are underwritten at underwriting
department of head office. The department provides also technical assistant to branches
of the Company. Underwriting Department Manager shall report to Executive Officer,
Operations Division.

3.1.2. Claims Department


Most claims that lodged against the Company are carried out at claims department. The
department is organized to avoid claims leakage, to provide efficient claims service to
satisfy customers with the effect of retaining existing customers and attracting new
ones. Claims Department Manager is accountable to Executive Officer, Operation
Division.

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3.1.3 Branches
Branches directly link the Company with customers. They are categorized as branch
one or two or three based on number of policies sold, premium, number of customers,
types and complexity of property and liability to be insured.

3.2. Finance and Administration Division


Accountable to the Chief Executive Officer, this organ of the Company has a
responsibility for formulating robust strategies and policies regarding resources, i.e.
human resources, financial resources, material resources, IT, etc. and the coordination
of these resources in order to create capabilities that will be the source of competitive
advantage for the Company. It also gives support to other work units of the Company.
The division is structured in three departments:
1. Finance Department
2. Human Resources Management and General Services
3. Information Technology Department

3.2.1 Finance Department


Reporting to Executive Officer for Finance and Administration, this organ of the
Company has a responsibility for the allocation and reallocation, proper utilization, safe
keeping of financial resources of the Company. It also exercises the responsibility of
creating, and maintaining efficient system of recording, organizing and preparing
reports about financial transactions of the Company.

3.2.2 Human Resources Management and General Services Department


Reporting to Executive Officer for Finance and Administration, the work unit has a
responsibility for the acquisition, deployment, proper utilization, development,
motivation, smooth communication, team work spirit of human resources of the
company and economical, efficient and effective utilization of material resources.

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3.2.3 Information Technology Department
Answerable to Executive Officer for Finance and Administration, this department is
generally responsible for the development of specifications for acquiring the right
information technology devices required for the different operations and resources
management of the company, installation of the same, their repair and maintenances,
development of data system and providing the necessary information for management
decision.

3.3. Strategic Planning and Marketing Service


Under the general supervision of the Chief Executive Officer, the main
functions of the work unit are assessing the developments in the external
environment, analyzing the industry environment, proposing strategic
planning and market expansion, product development, innovation and
diversification of insurance business that are targeted to customer needs
and wants in order to increase share holders equity. It also under takes
assessments to improve the services rendered by the Company to ensure
the satisfaction of existing customers and also to attract new ones.
Furthermore, the unit engages in activities which build image of the
Company.

To accomplish its function the unit is structured in two sections namely;


customer relations section and strategic planning section.

3.4 Legal Service


Reporting to the Chief Executive Officer, the core functions of the service
are to provide legal advices and handle litigations that pave ways for
achievement of strategic objectives of the Company; represent the
Company in courts in cases brought by and against the Company; study
and present to the Company means whereby litigations are avoided or at
least minimized and better legal services could be provided to the

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Company to bring about smooth relationship with stakeholders; drafts and
review insurance policies, internal rules and other contracts in ways that
avoid and /or minimize litigations.

3.5 Internal Audit Service


The service reports to the Board of Directors and accountable to the Chief
Executive Officer administratively. The core function of the service is to
observe whether resources management and operational processes of the
Company are been carried in accordance with laws, rules, regulations and
procedures in economical, efficient and effective ways in order to meet
strategic objectives of the Company and to give professional opinion for
improvement.

Organizational structure of the main organs and work units of the Company
are illustrated by Chart 1 and Chart 2 respectively hereinafter.

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CHART 1

ORGANIZATIONAL STRUCTURE OF MAIN ORGANS OF TEH COMPANY

-
General Meetings of Shareholders

Board of Directors

Chief Executive Officer

Executive Officer, Manager, Strategic Executive Officer, Finance Manager, Legal Manager,
Insurance Operations Planning and and Administration Services Internal Auditor
Marketing
CHART 2
ORGANIZATIONAL STRUCTURE OF WORKUNITS OF THE COMPANY

Chief Executive Officer

Executive Secretary

Executive Officer, Manager Legal Manager, Strategic Planning Manager Internal Executive Officer, Finance and
Insurance Operations Services and Marketing Auditor Administration

Attorney Auditor
Senior, Reinsurance Secretary I Secretary I Secretary II
Officer
Head, Customer Head, Executive
Micro-Insurance Desk Officer
Relations Marketing
Secretary II

Officer, Customer relations Manager, HRM and Manager, Manager,


Officer, Promotion General services Finance IT
Department Department
Branch Underwriting Claims Secretary and Receptionist
Manager Manager IT manager
Officer, HRM =1
Micro-insurance Senior Engineer u/w=1 Senior Engineer, claims = 1 Officer, General Services=1 Senior Officer
relation Officer = 1 Senior UW officer =1 Claims Engineer II= 1 General Accounting =1
Assistant UW Claims Officer =1 Archivist & Property Accountant, Receivable=1
Officer II = 1 Underwriting officer=2 Claims Engineer I = 1 custodian =1
Assistant UW A/Claims Officer II= 1
Officer I = 1 Assistant officer II= 2 A/Claims Officer I = 1 Secretary I =1
Driver & Expeditor Claims Inspector =2 Cashier, Receivable = 1
=1 Office boy /girl =1
Cleaner/Messenger Assistant UW office I= 2 Recovery Custodian=2 Cashier, Paying = 1
=1 Secretary I =1 Driver/Expeditor =1

Motorist/ Messenger =1 Guard =3


Cleaner =2
6. Job Analysis
Structuring the major functions or components of an organization must
be followed by analysis of job to be performed at each level of the
structure. Natures and contents of each job to fit the positions
classified by the category of each function shall be analyzed.

Job analysis comprises job description, job specification and job


grading.

6.1 Job Description


On each level of the designed structure of the Company core jobs and
support jobs have been described. Job description comprises a full
understanding of the job, the qualities required to perform it effectively
and the context of the job. Details shall be presented as a separate job
description document.

6.2 Job Specification


The specification for each job shall be prepared to specify what
knowledge skills and other attributes, acquired by education and
through experience that job holders must possess to be able to
perform the job effectively. Accordingly, to implement the strategy of
the Company core and strategic positions shall be manned by qualified
and competent personnel.

Therefore, for a new entrant who performs core and strategic activities
of the Company essential selection criteria shall be first degree.
Furthermore, desirable criteria such as communication, certification of
IT, etc. are identified. Detail job specification of the company is
presented in Annex I.
Job positions are categorized into two, substitutable and non-
substitutable.

6.2.1 Substitutable Position


Where experience gained on a certain work positions is deemed to be
adequate enough for discharging the duties and responsibilities
assigned to the position the minimum education requirements set may
be substituted by lower education with work experience gained on the
positions. Therefore, first degree may be substituted with university or
college diploma plus two years of work experience.

Substitutable Positions are presented in Annex II


6.2.2. Non-Substitutable Position
When a task is deemed to be complex or by its nature requires to be
performed by a professional or qualifications are mandatory for the
legal acceptance of the tasks to be performed, educational
requirements shall not be substituted by work experience.

Details of positions where substitution rules shall not apply are


presented in annex III.

6.3. Job Grading


The Company's jobs are determined by the point rating method, which
is based on the assumption that there are clearly distinguishable
factors, such as educational attainment required, experience, effort
and responsibility, complexity, depth and broadness of the job as well
as level of hazards encountered. Progression scheme is also
incorporated in order to motivate and retain the existing staff and
attract future applicants to assure and implement succession plan in
the future. Accordingly, jobs are graded by point rating method
progressively from grade 1 13.

6.4. Staffing Plan and /or Placement


The staffing plan and/or placement of the company are based on the
following factors.
To ensure placement of qualified, competent and experienced work
force.
To reduce head count in order to be cost effective.
Placement of flexible work force with all rounded knowledge with
capacity to work in different positions at a time.
To ensure efficient and effective service delivery to satisfy customers.
Placement of successors for the next higher position.

The following table illustrates summary of staffing plan of the company.

Table: 1 Staffing Plan and/or placement of the Company


No Work Units Job Job Title/ positions No
grade
1. Head Office 13 Chief Executive Officer 1
1.1. Office of the CEO 7 Executive Secretary 1

Sub Total 2
Internal Auditor Department 11 Manager 1

7 Auditor 1
4 Secretary I 1

Sub total 3

Strategic planning and 11 Manager 1


Marketing Division
8 Head, Executive Marketing 1
8 Head, Customer Relations 1

7 Officer Customer Relations 1


7 Officer, Promotion 1

4 Secretary I Receptionist 1
Sub Total 6
Legal Services Department 11 Manager 1

6 Attorney 1
4 Secretary I 1
Subtotal 3
1.5.Operations Division 12 Executive Officer 1
10 Manager, Underwriting 1
Department
10 Manager Claims Department 1

8 Senior Underwriting Officer 1

8 Senior Engineer, UW 1

8 Senior Reinsurance Officer 1

8 Senior Engineer, Claims 1

7 Claims Officer 1
7 Claims Engineer II 1
7 Underwriting Officer 2
7 Micro-Insurance Desk Officer 1
6 A/Claims Officer II 1
6 Claims Engineer I 1
6 Assistant Underwriting officer II 2
5 Assistant Underwriting officer I 2
5 A/Claims Officer I 1
5 Secretary II 1
4 Claims Inspector 2

4 Recovery Custodian 1

4 Secretary I, claims 1
Subtotal 23

No Job Job Title/ position No


Work Units
grade

1.6 Finance and Administration 12 Executive Officer 1


Division 5 Secretary II 1
Subtotal 2

1.6.1 Finance Department 10 Manager 1


7 Accountant, General 1
Accountant
7 Accountant, Receivable 1
5 Cashier, paying 1

Cashier, receivable 1

Sub-Total 9

1.6.2. Human Resources and 10 Manager 1


General Services Department
7 Officer, HR 1

7 Officer, General Services 1

6 Archivist and property 1


Custodian
4 Secretary I 1

3 Driver & Expeditor 1


2 Motorist/Messenger 1
2 Guard 3
1 Cleaner 2
Sub-Total 12
1.6.3 Information Technology 11 Manager 1
Department 8 Senior Officer 1

Sub-Total 2

Head Office Total 54

Branch 9/8 Manager 1

6 Micro-insurance Officer 1
6 Assistant Underwriting Officer 1
II
5 Assistant Underwriting Officer I 1

3 Driver and Expeditor 1

1 Cleaner/Messenger 1
Sub- Total 6

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