...fire case. The paper first presents an insider account of the context and decision environment within which he failed to initiate an early recall of defective vehicles. A cognitive script analysis of the personal experience is then offered as an explanation of factors that led to a decision that now is commonly seen as a definitive study in unethical corporate behavior. IThe main analytical thesis is that script schemas that were guiding cognition and action at the time pre.cluded consideration of issues in ethical terms because the scripts did not include ethical dimensions. In the summer of 1972 I made one of those important tran.sitions in life, the significance of vifhich becomes obvious only in retrospect. I left academe with a BS in Engineering Science and an MBA to enter the world of big business. I joined Ford Motor Company at World Headquarters in Dearborn Michigan, fulfilling a long-standing dream to work in the heart of the auto industry. I felt confident that I was in the right place at the right time to make a Dennis A. Gioia is Associate Professor of Organizational Behavior in the Department of Management and Organization, The Smeal College ofBusiness Administration, Pennsylvania State University. Professor Cioia's primary research and writing focus of the nature and uses of complex cognitive processes by organization members and the ways that these processes affect sensemaking, communication, influence and organizational change. His most recent research interests...
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...MANAGEMENT CONTROL SYSTEMS Performance Measurement, Evaluation and Incentives Second Edition Kenneth A, Merchant University of Southern California Wim A. Van der Stede London School of Economics Lffir Prentice Hall FINANCIAL Th,tES An impriil of P Harlow, England . London ' eatson Education New York . Boston . san Francisco . Toronlo Sydney. Tokyo . Singapore. Hong Kong .Seoul. Taipei. New Delhi Cape Town . Madrid . Mexico City . Amsterdam ' Munich . Paris. Mian "@@64wrw MANAGEMENT AND CONTROL in organizations. Management contlol \ fianagemenr conrrol is a critical function o In Aplil 2005, employees at the 75-year-old California-based not-for'-proirt Gemological Institute of America (GIA), the world's largest grader of diamonds, were accused of accepting bribes fi'om large diamond dealers to inflate diarnond grades. Large diamond can lead to large financial losses, r'eputation damage, and possibly even to organizational failure. Here are some recent examples: IYlfaitures dealers rvouid submit proportionally high bids, often 20 to 30qa highel than prevailing bids fol lough stones. knowing that they would be able to sell these stones at a profit because they bribed GIA staff to get a higher-than-deserved grade. A small differ-ence in grade can mean a huge difference in price, often hundreds of thousands of dollars on larger diamonds. The size of the blibes is unknown, but the probe into the allegations...
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