Peninsular Insurance

2.1. What are the problems?

The main problem that causes this issue is disconnecting in relationship and communication between Chairman (Tan Sri Ibrahim Nassan) and General Manager (Patrick Wale).

Many experts assert that one of the most important ingredients to a successful corporation is a high-quality relationship between the Chairman and the General Manager. Maintaining a high-quality relationship between these two roles requires a high level of maturity and understanding from both Chairman and General Manager. By referring to Peninsular Insurance (A) case, Patrick Wale as the General Manager facing some relationship and communications disconnect with the Chairman and this problem has lead to Patrick frustration towards the overall merging process of the New Zealand Insurance Corporation (NZI) and Peninsular Insurance. There are some factors that contribute to this problem which are the differences in cultural and behaviour, engagement of external factors such as government intervention and economic situation. Working as General Manager in Peninsular Insurance in Malaysia, he experienced some difference between Asian country and non Asian country on the value called power distance. Power distance means the extent to which people accept unequal distribution of power in society. People in Asian countries, specifically in Malaysia tend to have high power distance scores. They accept and value unequal power, value obedience to authority, and are comfortable receiving commands from their superiors without consultation or debate. High power distance individuals also prefer resolving differences or contracting their boss indirectly