Problem Statement
Stratton Oakmont is going through a difficult time since they do not have a structured organizational culture. Due to this, the incorporation has caused unethical practices to run the business. There is an absence of training, job fulfillment and properly imposed human resource stratagem. Motivation for employees is rooted in the benefits as money from the work they complete (expectancy theory).
1. Unethical Business Practices
The downfall of the business occurred because of Jordan’s perspective on morals. This view would further help him decide between unethical and ethical decisions. His perspective of becoming a leader was changed after meeting up with Hanna, Belfort. A while after she showed him the result of power
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Employee Rights & HR stratagems
Employee rights are not considered when firing an employee from the company. They are told to do something unethical and then they are fired for the littlest mistakes. Ultimately, policies within the business do not exist. Due to this, managers are able to do anything they wish to do since there are no policies to follow. Structured rules and restrictions are not put into place which further creates an unpleasant atmosphere for workers. The employees have no rights in order to protect themselves from the unlawful ways of the company that cause potential harm to their mental health as well.
3. Culture within the
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The organizations culture is not normal. Jordan’s addictions in the movie included sex, drugs and money. His motivation goes under as McClelland’s Theory of Needs which describes his need for achievement and power. Due to Jordan’s management style, the business practices unethical behavior. The culture focuses on doing anything to receive more wealth for the managers and brokers, even if it means manipulating investors. This created a set of values for the employees that insists to do anything in order to only focus on materialistic and shallow possessions. The employees end up participating in illegal actions such as insider trading along with drug use. Since the employees disregarding ethical behavior rooted from Jordan’s unethical principles, it eventually destroys the business. Stratton Oakmont’s organizational culture would initially be described as cutthroat, aggressive, fierce and male hyper masculine like the African Lion in their logo. The rest of the employees were applauding after an employee was fired for wearing a bowtie to work one day that did not fit the firm’s dress code. This showed how strongly every individual working abided by the culture within the
This culture is real and effective because it brings everyone on board as it builds relationship between the various organization levels vertically or horizontally depending on each firm as well as directly influencing the employee have the confidence in their work because they...
The law provides several rights and freedoms, but there are also limits to the rights provided to employees according to the law. Employee rights are limited to performance in the sense that, they should work to meet the employers targets irrespective of the rights granted to them by the law (John, 2015). Secondly, employee’s rights are limited to discipline. Hence, they should be always committed towards following work place rules and procedures including time adherence, respect of organizations property, and dressing properly at the place of work.
According to chapter twelve in “Work Accommodation and Retention in Mental Health” employers have an economic and a social interest in the mental health condition of their workers. There is recognition that the workplace environment can either help or hurt the productivity of long term employment which is why there has been a shift from a medical to social model of workplace health. As stated by Perez and Wilkerson “Fifty percent of those who miss work because of mental or emotional problems will take either 13 or more days off, or will never return to their jobs” (as cited in Work, 2010, pg. 295). Large multinational corporations like Johnson and Johnson have adopted ideas of keeping the workplace healthy with an understanding of the
MILLERSBURG — The getaway driver in a 2013 armed robbery, identified through DNA evidence collected from urine left at the scene, was sentenced Thursday to five years in prison for his role in the crime.
...2011). Are you causing your staff mental injury? Canadian Business, 84(1/2), 71. Retrieved from EBSCOhost Database (AN: 57410420)
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm (A&E Networks Television). Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
In dealing with a person’s livelihood, and often, sense of self, it is of no surprise that ethical issues regarding employment practices are of great concern. The issues of employment at will and due process contracts in the workplace are among the most widely contentious in the realm of employment. Employment at will is the doctrine that employment may be ended, by either party, for good, bad or no cause at all.1 Due process, on the other hand, is the employment practice in which a person may appeal a decision as a means of receiving an explanation and the opportunity to argue against it.2 Employment at will is the standard in the majority of private corporations today and is argued for relentlessly by freedom of contract enthusiasts, however, it is becoming ever more apparent that employment at will contracts reflect the old corporate maxim where the single bottom line, profit, is accented and the well being of other stakeholders, in this case the employee, are of little or no influence. Due process should be accepted as the prevalent employment system as it shelters employees from the hostile actions of the more powerful employer, provides a stable, bilateral contract between both parties and portrays the growing ethical concerns of society.
Employment-At-Will Doctrine The employment-at-will doctrine is a reasonable rule that gives businesses the capacity to terminate workers. Managers can fire a worker "for a justifiable reason, an awful reason, or no reason by any stretch of the imagination" (Halbert and Ingulli, 2012, p.46). This tenet was created in the nineteenth century under the hypothesis that it would be generally as reasonable for a business to fire a representative for any reason, as it would be for a worker to leave from job whenever. Since the principle is so expansive, there have been a couple exemption.
Jordan Belfort throughout his entire life subverted the law for his own financial gain, always seeing money as worth the risk in the decisions he made. His decisions were made by a rational mind of his own volition, considering the long-term possibilities and how to stay ahead of his pursuers. He constructed an environment with Stratton Oakmont to enable this behaviour, as well as corrupt those around him to follow in his footsteps. This lead to his repeated violations of laws to generate wealth when his fear of punishment was lower than that of the rewards he could potentially gain. It was only when he was confronted with the reality of his punishment and experienced it directly that he was finally deterred from his criminal behaviour.
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
Jordan’s whole character is a product of his economic and social class. From the start of the film, Jordan is introduced as an overly ambitious person who can’t get enough of Wall Street. After the stock market crash of 1987, which left many stockbrokers unemployed, Jordan accumulates wealth by defrauding people with cheap penny stocks. Jordan represents the corrupted American dream, and the middle class is whom he preys on. Though corrupt and often illegal, people will still chase after the American dream at all costs. For instance, when Jordan is first exposed of his wrongdoings in Forbes, he doesn’t lose business, instead, hundreds of money-hungry ivy league graduates try to come work for him. Likewise, when Jordan meets his future business partner and co-founder Donnie Azoff, played by Jonah Hill, he promises to quit his minimum salary job if Jordan shows him a paystub of how much he makes. In an article published by Andrew DeYoung, Jordan is depicted as an addict, which represents most of the upper class, too. “If Wolf has anything to say about the way we live now, it is precisely that our economy has become a form of addiction,” he says. “He describes his first day selling stocks as a kind of high; it’s also a form of drug dealing, selling the addictive capitalist dream of transforming one’s rags into untold riches
Culture is “a system of shared beliefs and values that develops within an organisation and guides the behaviour of its members” (Schermerhorn et al. 2011). It plays an important role in any organisation. For instance, in Woolworths we can se...
It is said that people are the greatest assets to an organization and it is their beliefs, customs, perspectives, attitudes, and values that constitute to the culture that prevails in an organization. Culture, a very common word in today’s world, plays a very vital role in organizations and it not only affects an employee’s professional development but also their personal harmony. Culture gives a sense of belonging to people, a sense of who they are and how productive they are at their work place. It helps in interacting with each other at a work place.
Some of the common causes of unethical behavior in the workplace are: 1) extreme emphasis on profits, 2) loss of corporate loyalty, 3) fixation on personal advancement, 4) probability of not getting caught, 5) immoral quality set by top management, 6) indecision about whether act is wrong, and 7) reluctance to stand up for what is right
A negative work environment can make employees feel irritable, anxious and defensive. This can cause poor productivity, lack of motivation and poor communication in the workplace which in turn can cause problems for the company. An employer’s abuse of power can cause mental or emotional distress on employees and also disrupt the workplace. Examples of employers abusing their position include humiliation, undermining, disrespectful language, discriminatory comments, yelling and intimidation. When employees are surrounded by this on a daily basis it can affect their self-worth. Employers can resolve these issues by allowing open lines of communication and by not giving employees the impression that it is acceptable to act negatively and disrespect fellow employees.