Question

Organizational Behaviour

This assignment must be completed within your assigned teams

Fairfax Financial Holdings Limited (Ticker Symbol: FFH) is a Toronto-based financial service holding company whose CEO is Prem Watsa.

You must provide references for your research

1.Is FFH centralized or decentralized? Provide evidence to support your answer.

2.Based on your answer to Question 1, is there a narrow or wide span of control at the holding

company? Explain why with evidence to support your answer.

3.What structure is employed at FFH? Explain your answer and provide evidence to support it.

4.How would you describe the culture at FFH? Hint: This requires research!

Your responses should be informal sentence/paragraph structure with correct spelling and grammar.

Point form responses are not acceptable. Assignments are graded on quality, not length.

Grading

All questions will be graded using the rubric below and then a mark out of 25, and 5 marks will be

assigned for Spelling, Grammar, Format, Neatness, Overall readability, Research

Total Marks= 25

Answer 1

1 Ans:- FFH is decentralized with autonomus management of its subsidiary company. The companies insurance and reinsurer's business work on decentralized basis. These companies mainly provide property and casualty insurance.

2 Ans:- There is narrow control on holding companies. The holding companies are given enough autonomy to work as per their management's decision. The company believes in disciplined approrach in investment and underwriting to achieve desired result.

3 Ans:- FFH is the parent company which works through it's various subsidiaries. The business at insurance and reinsurance business in decentralized but at investment is centrally managed by Hamblin Watsa Investment Counsel Ltd. Hamblin Watsa Investment Counsel Ltd is a wholly owned subsidiary of Fairfax.

4 Ans:- The work culture at Fairfax is employee friendly. THe company is managed by almost same management since 1985. The company provides learning opportunity to its employees and beleives in developing talent inside thea company. The company also believes in conervative investment philosophy and seeks return in long term.