Q.1) In what ways does Mr.Somersby control the operation of the section of his division? In what ways does top management control the operation of the law division?
Soln: the task which was performed by the 2 sections was the legal processing of the loans but the operation & control mechanism was different. In case of individual loan section independent companies would batch together a number of loans and sell them to NJIC in a package. After the loan gets approved by the investment division of the company it would forward it to the law division to look after the legal issues. Now to control the operation of this section, the section was divided into 3 groups each headed by the attorney & each responsible for a geographical section of the country i.e. Atlantic west, Midwest, pacific coast.
In addition to the 3 attorneys there was 1 who helped out in busy spots & took over a group in case of sickness or vacation & was in the training status. Since the corporate loan, generally used to be of much larger amount than an individual loan & was directly made by NJIC to a borrower, such as industrial or commercial enterprise the operation & control was quite different. The corporate loan section used to work closely with the investment division people because of the size & complexity of the corporate loans. The corporate loan section without exception also retained well known outside counsel. The top management at the NJIC controlled the operation of the law division by asking the head to prepare a budget for the operation of the division during the following year. The top management through this budget checked the total expected cost & revenue to ensure that the overall anticipated profits was satisfactory. When the actual results come the management compares the actual result with the budgeted report & use to find the deviation &