Companies in the United States have dramatically changed over the last 50 years, as they have adapted to changing technologies, regulations, legislation, and business climates. One of the ways that companies have adapted is through the streamlining of business functions and business units. This has become especially true in the development of Division of Labor, the theory by Fayol that divides functions of a company in to areas of specialization, such as production, finance, and marketing (Nickels, McHugh, & McHugh, 2013, p. 174). Each area of specialization is very important to the overall success of the company, and if one area is underperforming, it can have a ripple effect throughout the rest of a company.
Mutual of Omaha, a Nebraska-based business, is made up of three primary business units: Individual Financial Services, Group Benefit Services, and Mutual of Omaha Bank ("Mutual of Omaha's 2013 Annual Report", 2014). Mutual of Omaha is a mutual company owned by the policyholders, and includes affiliated companies including: United of Omaha Life Insurance Company, Companion Life Insurance Company, United World Life Insurance Company, Mutual of Omaha Insurance Company, Mutual of Omaha Investor Services, Inc., Omaha Financial Holdings, Inc. and East Campus Realty. .
Because Mutual of Omaha operates in the financial sector, it must be very strong in regards to compliance with Federal and State laws. Mutual of Omaha also has a dedicated fraud and compliance department, named the Corporate Investigations Unit. They are responsible for coordinating compliance through each business unit with applicable statutes, such as the Gramm-Leach-Bliley Act, HIPAA, and the Fair Credit Reporting Act. This is an important unit that plays a major impact on the company and customers. Failure to comply with these statues can lead to large fines, which may result in less profit and higher premiums. .
