Transact Insurance Company

TransactInsurance Company


Espousedvalues can be described as the qualities that are representative ofthe values and norms that an organisation has stated explicitly asbeing preferable (Kinicki, 2008: 7). On the other hand, enactedvalues are the organisational values and norms that depict or areconverted into the behaviour of employees (Kinicki, 2008: 9). WithinTrancAct Insurance Corporation’s Claims Department, morale andsupervisory leadership emerge as being the division’s espousedvalues. After discovering the relative authoritarian leadership styleand, by extension, the low morale of the employees within the ClaimsDivision, Jim Leon decides to introduce a new leadership style: theClaims Management Credo. This leadership style outlines thephilosophy that each claims manager is required to adhere to.

Aspointed out earlier, espoused values are somewhat distinct fromenacted values. Within TIC, the difference emerges quite explicitly.Jim introduces a new leadership style – Claims Management Credo –which is geared to boost employee morale and confidence: espousedvalues. However, claims managers assume that the leadership stylewill not be implemented fully since, after settling into his newposition, Jim will become too busy to make a follow-up on theprogram. Employees also react in a similar manner. Some employees, inthe comments section of the surveys administered to them, reveal alack of confidence in the new leadership style. Other employees feeloverly skeptical about the whole process, claiming that it is justlike any other promise that they have received before. Employeereactions can be described as enacted values

Therefore,the difference between enacted and espoused values can be perceivedin terms of employee response to the values set by the organisation.Jim proposes a new management approach, but employees and managersreact by being critical of the approach. The intention of the plan isintended to enhance efficiency within TIC, but it results in theexact opposite. Some managers react harshly to their employees, dueto some of the comments that the employees expressed while two othermanagers decide to quit their jobs. Also, three other managersretract to non-managerial positions within the organisation.


Kinicki, A. (2008).&nbspOrganisationalBehavior: Core Concepts.McGraw Companies, Inc.