...Heidi Wickenhauser Week 4 – Case Assignment Chapter 8, page 227 (1) What forces were in play in the misbehavior of the three CEO's? I think both normative and instrumental forces are associated with the misbehavior of the three CEO’s. A normative force describes the person’s expectations of how he or she is supposed to behave. An instrumental force is the individual’s personal interests or beliefs. All of these CEO’s were aware (if they didn’t spearhead) the employee code of conduct and policies so they are aware of what is perceived as appropriate behavior in the workplace (normative). However, these CEO’s were influenced to misbehave by their own instrumental forces. (2) What should the board of directors have in mind in the selection and periodic review of the CEO? In the selection, a candidates core values and beliefs should be of strong determination. They should also be evaluated on their past experiences, not just from a professional perspective but also personal. The CEO is the face of the company and needs to be able to lead by example and make strong, confident decisions that he truly belives is in the best interest of the organization. During a periodic review, their behavior toward others should be evaluated in addition to their success (or failure) within that period. Boards always have the organization’s best interest in their mind, especially because they are usually invested in the company in one way or another. The Board should analyze the...
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...Departures 1. The reaction of the Boeing’s board of directors against his “misbehavior” is a sign of a senior management that has no tolerance for any misstep especially on a period where the company is trying to regain its previously-tainted leadership (on account of another case of misbehavior). I believe that Stonecipher’s affair should not happen had he thought of his position as a position of pure trust and confidence. That affair was understandably an issue of poor judgment impairing his ability to lead Boeing back to industry leadership after recent company turmoil. The reaction of the board was correct. Mark Hurd clearly violated policy when he misfiled his expense report. Although this situation may seem small and he intended to repay the expense, it shows his intention to mislead the company and what he is willing to do to cover up his mistakes. The reaction of the board was correct. Fraternization in the workplace should not be tolerated, it gives the assumption and perception that the individual is or will be shown favoritism. I the case of Brain Dunn, although he gave gifts and it was not within the misuse of company funds, the CEO should be held to a higher standard and should hold himself to a higher standard which he did by resigning and showing that he understood what he did was wrong. The reaction of the board was correct. 2. To limit the type of behavior shown by the three CEO’s above, if I were on the board of directors I would stronger consider doing...
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...behavior was unethical, but feared they would face retaliation for addressing it. Whistle blowing is only perceived as positive when it is handled effectively and results in corrective action (Near & Miceli, 1995, p. 679). Janet’s secretary approached HR about her concerns, but was asked to sign a statement or discuss it with the CEO. HR’s approach to the situation put pressure and responsibility on the secretary to correct Janet’s behavior. It is likely she feared for her job because she was not confident HR and the CEO would resolve the manner in her favor. “Rather than framing interpersonal mistreatment in organizations as a private problem for individuals to resolve, we should hold organizations responsible for managing misbehavior within” (Cortina and Magley, 2003, p. x). HR needs a better method for addressing employee concerns about unethical behavior. Janet’s secretary may have felt more comfortable officially reporting her concerns if HR was able to demonstrate they could investigate the situation without implicating her and if they illustrated what corrective actions they would take if they found her allegations to be true. Ralph M. and Pierre M., two company vice presidents, had equally negative experiences with Janet. She had demonstrated poor decision making that resulted in business...
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...Royal Dutch/Shell case write up Introduction Royal Dutch/Shell Group of Companies was formed through and alliance of Royal Dutch Petroleum company and Shell Transport Trading company in 1907. Even though the two companies remain separate, the matrix structure of Royal Dutch/Shell Group of Companies had helped the company survive the oil price collapse and some other crisis. By 1990, Royal Dutch/Shell’s revenues exceeded the industry leader Exxon’s, making it the largest oil company in the world. However, In the 1990s and early 2000s, the company’s reserve replacement ratio has dropped from above 100 percent to almost below 100 percent, which indicates that the company was having trouble with replacing the oils it produced each year with new reserves. In order to boost up its reserve placement ratio and offset other series of problems, Royal Dutch/Shell Group Companies changed its operating structures. In January 2004, the company announced that it would reduce its estimate of proved oil reserves by 4 billion barrels, or 20 percents. Six months later, by the time the restatement was completed, the company had reduced its reserves for 3 additional times. Royal Dutch/Shell’s reputation was hugely affected as it had been suited by several security boards. Shareholders were outrageous as well. Causations of the reserve restatement Firstly, the complex operating structure of Royal Dutch/Shell had a huge negative impact on Royal Dutch/Shell’s performances and it directly led...
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...To fully understand how the business culture has acquired the greed mindset, a look at what a corporation is and defining corporate behavior becomes the starting point. First a corporation is defined as “an association of individuals, created by law and having an existence apart from that of its members as well as distinct and inherent powers and liabilities (Webster Dictionary).” Although made up of people, being separate or apart from its members also equals unaccountability. The question of “who pays when a company goes under” is at the forefront of discussions today. Corporations are developed to serve society, meet a need or provide a service. Over the years, however, the good intentioned corporation has evolved into a greed machine that has lost site of the community that it serves and the people employed who ultimately perform the work. The steady parade of top executives confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior and an overall attitude that greed is acceptable. The bottom line, insatiable need for growth, amoral corporate...
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...Corporate greed essay To fully understand how the business culture has acquired the greed mindset, a look at what a corporation is and defining corporate behavior becomes the starting point. First a corporation is defined as “an association of individuals, created by law and having an existence apart from that of its members as well as distinct and inherent powers and liabilities (Webster Dictionary).” Although made up of people, being separate or apart from its members also equals unaccountability. The question of “who pays when a company goes under” is at the forefront of discussions today. Corporations are developed to serve society, meet a need or provide a service. Over the years, however, the good intentioned corporation has evolved into a greed machine that has lost site of the community that it serves and the people employed who ultimately perform the work. The steady parade of top executives confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior and an overall attitude that greed is acceptable. The bottom line, insatiable need...
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...A review on Power Bases application to Sri Lanka’s context Introduction This paper is based on Organizational Behaviour module and the topic considered for the paper is a review on Power, Politics, and Influence application to Sri Lanka’s current issues by Shamindra Hettiarachchi. The initial chapter of the paper discusses, what is all about Power, Politics, and Influence, the reasons why power required and the power dependency module. Then the other chapter briefly describe power typology, such as Power as decision making, by Steven Lukes,1974, Power as knowledge, by Michel Foucault, 1980, Powershift, by Alvin Toffler, 1990 and the Power bases, by Raven, 2008. Out of all the power typologies Bertram Raven (2008) power bases are discussed in detail with their current issues to Sri Lankan’s context. They are, Legitimate Power, which is the power a person receives as a result of his or her position in the formal hierarchy of an organization, Reward Power, which is compliance achieved based on the ability to distribute rewards that others view as valuable, Coercive Power, which is the power base that is depend on fear, Expert Power, which is influence based on special skills or knowledge, Referent Power, which is influence based on possession by an individual of desirable resources or personal traits, Informational Power, which is influence based on the information an individual control. Each power base is described briefly and discussed in detail to the...
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...Introduction Taking Sides Clashing Views in Management written by Marc and Vera Street diverse into some deep, debatable topics. Upon reading each issue, it is clear that there is no right or wrong answer. Several times I found myself torn on both sides; this is – I was both for and against certain issues. I have always tried to make decisions as informed as possible but realized that judgments are still personal and what we believe in. Issues Issue 1: I do believe that corporations have a responsibility to society as a whole, not only to maximize their own profits and benefit the economy but also to respect the community that they reside in. They achieve this by not only providing employment, but also upholding an image. It is up to the corporation to determine whether or not the image will be a positive or negative in society; they need aim for a positive image in order to stay in business. Society has rejected some businesses because of their previous practices, from unsafe working conditions and wages to unsafe products and producers presented by management, and also unethical pollution of land and water. Corruption, misleading advertising, and managements that were solely profit driven were once tolerated, therefore rejecting the society’s needs. Due to such practices we now have laws and agencies that prohibit these actions. By evolving practices over the past one hundred years corporations have learned that the welfare of their employees and society is important....
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...corporate scandals involving organizations that had previously been recognized as both ethically and organizationally sound. Based on these case studies, the following issues are discussed: (1) The role of leader behavior and organizational/leadership styles in shaping the corporate organizational culture of an organization, and (2) The extent to which this culture renders the organization and its members (including the top executives) prone to ethical misbehavior. The four companies selected for this case analysis are: Enron Corporation, WorldCom, Inc., Tyco International, Ltd., and HealthSouth Corporation. Each case is considered individually. The basic elements in the scandal are outlined and the principal aspects of each organization’s corporate culture discussed, with special emphasis on the influence of leadership styles and leadership behavior/practices on organizational culture. The four cases are then compared and contrasted in the light of the existing evidence on the relation between corporate culture and ethical misbehavior. PRELUDE “We were doing something special. Magical. It wasn’t a job – it was a mission. We were changing the world. We were doing God’s work.” – Jeffrey Skilling, former Enron COO, President and CEO in the immediate aftermath of Enron’s bankruptcy filing* “I don’t want to just be rich. I want to be World Class rich!” – Kenneth Lay, former Chair & CEO, Enron Corporation** “I’ve thought about this a lot, and all that matters is money.” – Jeffrey Skilling...
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...Samsung – Stages of Corporate Citizenship Corporate Social Responsibility (CSR) as part of business strategy has shown increased prominence in contemporary business world. On a daily basis the roles corporations play in society are scrutinized by the media who constantly lookout to report on scandals, corporate misbehavior or, the positive contributions businesses have on society (Crane, 2008). Induced by this, corporations are facing increasing pressure to legitimate their practices and take account of the impact they have on society, which has led to the emergence of what Crane (2008) refers to as a ‘CSR Movement’. The concept of CSR emerged in the 1960/70’s as an American Doctrine that has popularized in recent decades due to the emergence of factors including globalization and the rise of global/transnational corporations (Jenkins, 2005). Attitudes around this concept have also altered from viewing CSR as a philanthropic exercise to a concept/practice necessary for corporate survival. The latter point can be supported by a numerous examples of organizations that have not complied with ethical/socially responsible standards, such as Nike, who faced numerous allegations of unethical conditions at its overseas suppliers in the 1990’s (Zadek, 2004). It is virtually impossible to define CSR due to the every-evolving nature of the concept. Various sources including academics, articles, and websites tackle, and all produce unique definitions of the concept. Crane, Matten...
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...By: Ateeba Abid MBA (HRM) Internship Report submitted in partial fulfillment of The requirements for the degree of MBA Department of Business Administration GC University, Faisalabad 1 Masood Textile Mills CERTIFICATE BY THE RESEARCH SUPERVISOR I certify that the contents and form of internship report submitted by Mr./Mrs………………………………, Roll No………….. has been found satisfactory and according to the prescribed format. I recommend it be processed for evaluation by the External Examiner for the award of the degree. Signature…………………................. Name: .............................................. Stamp………………………. Chairperson Dean, Faculty of Management Sciences, GC University, Faisalabad. 2 Masood Textile Mills 3 Masood Textile Mills 4 Masood Textile Mills I would like to dedicate this project report To my beloved parents and respected teachers, because whatever i am today is all due to their prayers and their support 5 Masood Textile Mills Preface It is the age of information & competition. The scientific advancement has made the life more dynamic & competitive worldwide. So one must have practical knowledge and trained enough to live successfully in present competitive situation because it is becoming difficult to survive without creating changes & adapting ourselves according to these changes. The students of MBA receive knowledge during their study, has completely theoretical base. Their ideas remain unsaturated,...
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...ADMS 4495 Midterm Notes Chapter 1: A work team is an interdependent collection of individuals who share responsibility for specific outcomes for their organizations. A team is a group of people with respect to information, resources and skills who seek to combine efforts to achieve a common goal. It has 5 characteristics: 1. Shared Goal 2. Interdependence- members cannot achieve goals by themselves. To meet goals you must rely on other members. 3. Bounded- identifiable membership (know who’s on the team). 4. Stability- teams work together for a meaningful length of time. (Tenure). 5. Authority to manage own work and internal processes. Teams operate in larger social system context. (Larger organization) A working group by contrast, consists of people who learn from one another and share ideas but are not interdependent in an important fashion and are not working towards a shared goal. Help others but maintain the goal of achieving independent goals. 4 Challenges proving importance of teams: 1. Customer Service- Transactional models of teamwork are characterized by discrete exchanges, are short term in nature and contain little interactions between customer and the vendor. In contrast relational models of teamwork occur over time , are more intense, and are built upon a relationship between the people involved. 2. Competition- Industry leaders often enjoy vast economies of scale and earn tremendous profits. Teams withing organizations...
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...“Deconstructing Independent Directors”(*) María Gutiérrez Maribel Sáez Universidad Carlos III de Madrid and ECGI Universidad Autónoma de Madrid January 2012 Abstract In this paper we argue that boards of directors lack the mandate, the incentives and the ability to control insiders, especially in jurisdictions where the main agency problem arises between controlling and minority shareholders. We analyze the problems that render independents an inefficient monitoring device for companies with concentrated ownership structures and conclude that the current focus of the regulators and codes of best practice on empowering independents is ineffective and companies would be better off choosing their board members at liberty. Nevertheless, we also present two different proposals for reform: independents as gatekeepers for the regulator and independents as surrogates of the minority. Both proposals are based on the idea that if independent directors are expected to monitor controlling shareholders their most important characteristic should be accountability rather than mere independence. JEL Classifications: G32; G34; K22 Keywords: Independent directors, Board of directors, Concentrated ownership, Monitoring, Corporate Law (*)The authors wish to thank, Jesus Alfaro, Magda Bianco, Fernando Gómez Pomar and Assaf Hamdani and seminar audiences at AEDE 2010 and SIDE 2011 for many useful comments. The contents of this paper are the sole responsibility of...
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...Chapter 1 Case1: "Lessons for 'Under Cover' Bosses" This exercise contributes to Learning Objectives: Define organizational behavior and identify the variables associated with its study, Explain the relationship between personality traits and individual behavior, Describe the factors that influence the formation of individual attitudes and values, Discuss the importance of individual moods and emotions in the workplace, Apply the study of perception and attribution to the workplace; Learning Outcomes: Define organizational behavior and identify the variables associated with its study, Describe the factors that influence the formation of individual attitudes and values, Apply the study of perception and attribution to the workplace, Define diversity and describe the effects of diversity in the workforce, Describe the nature of conflict and the negotiation process, Describe best practices for creating and sustaining organizational cultures, and Describe the components of human resource practices; AACSB Learning goals: Communication abilities, Analytic skills, and Reflective thinking skills Executive offices in major corporations are often far removed from the day-to-day work that most employees perform. While top executives might enjoy the perquisites found in the executive suite, and separation from workday concerns can foster a broader perspective on the business, the distance between management and workers can come at a real cost: Top managers often fail to understand the...
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...VIEW Strategic Human Resource Management Taken from: Strategic Human Resource Management, Second Edition by Charles R. Greer Copyright © 2001, 1995 by Prentice-Hall, Inc. A Pearson Education Company Upper Saddle River, New Jersey 07458 Compilation Copyright © 2003 by Pearson Custom Publishing All rights reserved. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. ii Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–72690–6 BA 996748 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300 Boston, MA 02116 A Pearson Education Company iii iv Table of Contents SECTION ONE ................................................................. 1 An Investment Perspective and Human Resources .... 2 HUMAN RESOURCE INVESTMENT CONSIDERATIONS ...6 INVESTMENTS IN TRAINING AND DEVELOPMENT ..... 14 INVESTMENT PRACTICES FOR IMPROVED RETENTION ..................
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