Reference no: EM133128469

Question - Case - 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.

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.

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?

The general manager points to the banner "We will be the leader in our region in providing quality financial solutions which exceed our customers' expectations." and asks both managers to explain their decision in terms of the company Vision.

1. How does this case illustrate that functional departments such as accounting and sales hold different cultural values?

2. 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?