Research on Managing in Complex Environment - Aetna

Managing in Complex
Environments

ABSTRACT
Complexity in the business environment influence functions and growth of a business
which makes it important to understand each and every activity of a business. This research
paper is in context to Aetna, a health benefit company in United States. The report discussed
various diversity issues faced by company while operating their activities such as Gender Issue
Generation Gaps, Ethnic and Cultural Differences, etc. which are affecting Aetna's organisational
functions. Strategies such as ICE are also explained in this study which are utilised by cited
company in order to eliminate various diversity issues influencing its functioning. Furthermore,
this examination also determined various diversity initiatives adopted by other companies such
as Humana that excels in hiring diverse talent, creating welcoming environment and
communities for employees and contributing to the society in a meaningful way. Cigna is a
global organisation that employs over 35000 people representing different cultures, beliefs and
values. Centene is a multi-line health care enterprise which offers Medicaid managed care and
speciality services. Furthermore, the research paper included effective recommendations which
can be used in order to manage various complex situations in business environment and issues
related to diversity such as Diversity training, Cultural Sensitivities training and diversity
awareness with ensuring fair and comfortable work environment, etc.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. EXAMINATION OF THE CASE STUDY MATERIAL...........................................................1
2. RESEARCH INTO THE COMPANY AND ITS BUSINESS CONTEXT................................2
3. EXISTING DIVERSITY POLICIES..........................................................................................6
4. RESEARCHING OTHER DIVERSITY INITIATIVES ADOPTED BY OTHER
COMPANIES..................................................................................................................................8
5. COST/BENEFITS ANALYSIS.................................................................................................10
6. EVALUATING THE EXISTING AND POTENTIAL BENEFITS OF “THE AETNA WAY”
........................................................................................................................................................13
7. RECOMMENDATIONS...........................................................................................................15
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Aetna is one of the leading diversified health benefit companies incorporating in United
States. Company serves around 37.2 million people in America. There are around 35000
employees out of which 31 per cent of employees come from different background, colour and
religion. Diversity means various types of people of different culture, colour and beliefs that
come and live together in harmony. In order to enhance the effectiveness at workplace,
management prefers to have diversified workforce. Every individual comes up with different
skills, abilities and ideas which help the organisation to thrive in competitive environment.
Present report is to assist Raymond Marcos in evaluating the existing and potential benefits of
“the Aetna Way” – despite the challenging economic circumstances that company faces. In this
report, the issues related with diversity will be discovered and recommendations will be provided
to Aetna so that management can overcome them efficiently.
1. EXAMINATION OF THE CASE STUDY MATERIAL
Aetna is one of the leading diversified health care organisations providing effective
services to more than 37 million people. Aetna provides a wide range of consumer directed
health insurance services and related products which include dental, pharmacy, group life,
disability plans and behavioural health along with management capabilities as well as health care
management services for medical plans. The customers of organisation include individuals,
college students and employer groups as well as hourly and part-time workers. Diversity in past
was an employee relation issue which revolves largely around race and gender. In the present
scenario, diversity at workplace becomes an important and essential part of the organisation
(Shadid, 2018). Aetna is the largest health care organisation incorporating in United States of
America and its health care network consists of 4919 hospitals, 84300 healthcare professionals
and more than 490000 primary care doctors and specialists.
In the year 2008, largely spread defaults on sub-prime mortgages caused a global crisis in
capital markets. Many leading investment banks in the world collapsed, credit markets enhanced
globally all around the world and the private sector as well as governments attempted to bind up
the global financial system (Balter, Chow and Jin, 2014). All 15 European nations that utilize the
euro currency (the “euro zone”) have been in a recession following two aligned quarters of
decrement in their overall domestic products. Governments across the world—including the UK,
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the Netherlands, France, Belgium, Germany, Ireland, Italy, Japan, Spain, Iceland, China,
Sweden, South Korea, Hungary, Ukraine, Russia, Norway, Saudi Arabia, Austria, the UAE,
Portugal and Indonesia—stepped up engagement to stem the worst financial crisis in last ten
years. Those interventions took the form of capital injections, interest rate cuts and lending
pledging to reconstruct liquidity, revive the indisposed banking system and rebuild investors’
assurance. At Aetna, commending diversity implies acknowledging and esteeming person
contrasts.
This is a sober minded business system that spotlights on expanding efficiency,
imagination and responsibility of workforce while addressing the requirements of differing
shopper gatherings. Aetna seeks after a more nuanced meaning of decent variety, in particular,
that it is something beyond sexual orientation and racial or ethnic diversity (Bratton and Gold,
2012). Certainly, a developed perspective of diversity in corporate America requires a genuine
and sellable business instance of decent variety for the association and its main concern. An
interior business case for decent variety must stretch out the past consistence (and the agony of
fines and awful PR that rebelliousness can bring) to a genuine vital commitment to business
development and main concern comes about utilizing the assets.
2. RESEARCH INTO THE COMPANY AND ITS BUSINESS CONTEXT
Main Diversity Issues
At Aetna, more than 35000 employees are currently employed out of which
approximately 11000 employees are of different backgrounds, culture and colour. Out of total
workforce, 26600 are female employees from which 64 per cent holds management and
supervisory positions. In order to enhance the effectiveness within work culture, management of
Aetna formulated precise strategies and utilise appropriate framework so that diversity within
workplace can be boost up. At Aetna, celebrating diversity means appreciating and valuing
individual differences. This is a pragmatic business strategy that focuses on maximizing
productivity, creativity and commitment of workforce while meeting the needs of diverse
consumer groups. However, there are certain issues which the management observes within
organisation regarding working with diversified people especially Aetna's African American,
Hispanic and Asian employees. The issues are discussed as below:
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Gender Issue - Gender issues observed within healthcare sector were with female employees
who were not treated appropriately. Many female employees complained about the unfair
treatment of senior employees and managers within Aetna health care. This is considered to be a
severe issue as it can tarnish the reputation and goodwill of organisation. Gender inequality is
common but serious offence in the organisation as they have to follow Equality and Civil Rights
Act where it is the responsibility and duty of top management to monitor unfair and prejudiced
behaviour as well as take actions so that workplace effectiveness and culture can be enhanced
effectively and efficiently. As majority of workforce at Aetna composed of female employees,
management must consider the gender inequality issues and make necessary policies and
changes so that these issues can be obliterated.
Generation Gaps - In large organisations like Aetna, employees of different ages are working
which inevitably creates generation gaps in the firm. Disagreement between senior and juniors as
well as superiors and subordinates are common in Aetna. It was observed that discrepancies
occurred due to dominance behaviour of superiors on subordinates. Diversified people are more
likely to be the target of superiors and managers in organisation. It reduces motivation of juniors
which affect the corporate culture of organisation. Generation gap can be observed in any large
organisation where a large number of employees are employed. Bridging the gap between
multiple generations of workers can sometimes become an issue for employers attempting to
establish teamwork.
Ethnic and Cultural Differences- Ethical and cultural differences can be occurred in large scale
corporations where different types of employees are working together to share benefits.
Employees in Aetna are coming from different background and culture such as African-
American, Asians and Hispanic who work together for accomplishing the common goals and
objectives of organisation (Rice, 2015). Management observes that ethical and cultural
differences have been occurring in the organisation which affect the corporate culture of
company.
In the survey conducted within organisation, it was asked to employees whether Aetna
enables people from diverse backgrounds to contribute to their fullest or not. Responses were
beyond expectations as majority of employees disagreed with the statement. Ethical and cultural
differences affect the overall performance of diversified employees within organisation.
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