Exception or No Exception?

In this discussion we will prepare by reviewing the “Exception or no Exception” Case. This case involves the cultural dimension of rules (universalism) versus relationships (particularism). Once you have reviewed this case, post discussions with others in the class. You should include postings related to the following questions:

If you were the general manager of the insurance company, would you give the customer a loan exception to his policy? Or not give the exception? Why or why not?
How does this case illustrate that functional departments such as accounting and sales hold different cultural values?
How does this case illustrate that the vision and mission of a company may have cultural dilemmas in the day-to-day provision of customer service? (A cultural dilemma involves stakeholders who hold different cultural values in issues such as the customer requesting a loan exception to his policy?)

Insurance Loan: Exception? No
exception? : Case Study

The Merging of Cultural Values

By being able to identify each group or
organization’s values we can begin to unravel
the dilemmas managers face. Our case begins
with Jim and an Insurance and Loan company.

Jim is a local elected official with considerable
influence within the local community. He has
a long history with the financial services
company and his business is valued.

Jim needs a loan to help with a cash flow gap.
He walks into a sales office of the insurance
company and requests an exception to the
existing loan limit on his existing insurance
policy

I am longstanding
customer and getting
this exception should
be no problem at all.

Jim meets with his sales agent. He
explains that he wants an exception
to the loan amount on his policy.

Cathy, Jim’s agent, explains that the
former financial services company
has merged with a government-
owned bank.

Processes are changing and with
the merger, all exceptions must
now be approved by the new
Accounting Manager and the Sales
Manager.

Cathy assures Jim, she will walk his
request through the process.

Cathy speaks with the
accounting manager to
request the loan exception on
Jim’s policy.

The Accounting Manager
explains that no exceptions
will be made. Jim’s request
must be denied.

Cathy thinks this is not good
and this decision will
alienate Jim, a valued client.
She proceeds to the Sales
Manager’s office.

The Sales Manager understands
Jim is a valued, long standing
client.

Jim’s request for the exception
is approved.

Cathy is now confused and
troubled because she got
different answers from the two
managers.

Cathy decides to approach the
General Manager.

There appears to
be a dilemma
regarding how
Jim’s request is
to be handled.

Upon hearing Cathy’s
appeal, the General
Manager decides to discuss
the issue at the weekly
operations meeting.

The Accounting and Sales
Managers explain the
situation during the
meeting.

The general manager wants to resolve the dilemma and work it out during the meeting.

As a team, he asks, how will the case of the customer loan exception requests be handled moving forward?

Do the rules apply across the board or are there exceptions to rules made for certain people?

The Sales Manager and the
Accounting Manager each
explain their rationale for
the decision they made to
the other Managers.

The Sales Manager justifies his
decision to approve the
exception to the loan because of
the past and possibility of a
continued relationship with Jim.
He has been a valued client.
Hopefully he will continue as
one.

The Accounting Manager
explains that rules are important
and apply to everyone. Rules
cannot be modified to meet the
needs of one client. How will
people know what to expect or
how to handle the situation?

We will be the leader in our region in providing quality
financial solutions which exceed our

customers’ expectations.

The general manager points to the
banner and asks both Managers to
explain their decision in terms of
the company Vision.

We will be the leader in our region in providing quality
financial solutions which exceed our
customers’ expectations.
(c) 2016 Institute for Culture and Adaptive Leadership, Inc.

What would you do?

Approved! Not approved!

Cultural Dimensions

Universal versus Particular

• Rules or Relationships?

Individual versus Collective

• Self or Society?

Achievement versus Ascription

• What you do or who you are?

Specific versus Diffuse

• Limited or Open?

Neutral versus Affective

• No Emotion or Emotion?

Synchronic versus Sequential

• No agenda or agenda?

Internal versus External

• We control or Fate?

Options

Give the exception.