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IAI Actuarial Core Principles · Business Management · Communicating strategy; culture and structure in decision making; strategy case studies

Sunrise Mutual, an Indian life insurer, has a long-serving leadership team that rewards staff who follow written procedures to the letter and rarely approves exceptions. Which of Handy's cultural types does this most closely describe?

This is a role culture. Handy's role culture relies on formal rules, defined job descriptions and procedures, and rewards compliance with them. Power culture depends on a central figure, task culture on flexible teams, and person culture on individual specialists, none of which fits.

  1. ARole cultureCorrect
  2. BPower culture
  3. CTask culture
  4. DPerson culture
  5. Entrepreneurial culture

Explanation

Handy's role culture is built on defined roles, rules and procedures, with authority tied to position. The firm's emphasis on following procedure and avoiding exceptions matches this. A power culture would centre on one dominant individual, and a task culture on project teams solving problems.

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