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The effect of bureaucracy in organizations
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Leaders are those that other follows. In the business world, Bernard Ebbers demonstrated his leadership skills by growing his small-scale long-distance service company into a multi-billion telecommunication giant in the country. According to the Washington Post, the acquisition of MCI Communications Corp. in 1998 was the largest deal in history at the time (Washington Post, 2005). “Focused”, “mentor”, “incredible”, were some of the words used by his former employees to described Ebbers as a leader (Trevino, L. and Brown, M., 2005). On the contrary, some believe Ebbers displayed destructive deviant behavior, which was not accepted socially. Ebbers’ management philosophy was to aggressively grow while cutting cost down. Even after the 40 million dollar acquisition of MCI (Washington Post, 2005), the company announced a 2000 job cut (Trevino, L. and Brown, M., 2005), and such approach showed little to no concern over providing job security to its employees. The focus was on inflating company’s stock value rather than on the operation of the business itself. The effect of this irresponsible corporate behavior created widespread consequences beyond their own organization (Isaacs, 2002). In addition, Ebbers also paid no attention to his employee’s work environment; he bureaucratically cut off …show more content…
In an interview by the New York Times, Susan Kalla (2002) said, “Bernie was endearing, but he didn’t even have a working knowledge of the business”. WorldCon’s newly acquired companies never consolidated into a single enterprise, which affects the day-to-day function of the company (Eichenwald, 2002). Without solid growth in the core business activities, accounting mishaps would be the only way to manipulate company earnings in order to meet those aggressive targets required to keep the company stock prices
Across the globe, there are CEO’s, managers, and several other individual’s in leadership-type roles that have the expectation of making their company successful in the eyes of the investors, the employees, and the customers that they serve. This may be measured by a company’s gross profitability, employee engagement or overall customer satisfaction. Most companies have leadership models and strategies in place that leaders are expected to use in order to drive the expectations of the company while maintaining consistency across the business. In an effort to examine various types of leadership styles, I have conducted interviews with two individuals that are or have been previously tasked with leading their teams and their company towards success.
In this paper, we have examined our company of choice, TM Berhad, utilizing each of these four frames as a “spectacle” to determine the leadership approach of its management, and then detailing the more prominent of the frames used.
Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of assets or underreporting of liabilities, sometimes with the cooperation of officials in other corporations (Medura 1-3). In response to the increasing number of scandals the US government amended the Sarbanes Oxley act of 2002 to mitigate these problems. Sarbanes Oxley has extensive regulations that hold the CEO and top executives responsible for the numbers they report but problems still occur. To ensure proper accounting standards have been used Sarbanes Oxley also requires that public companies be audited by accounting firms (Livingstone). The problem is that the accounting firms are also public companies that also have to look after their bottom line while still remaining objective with the corporations they audit. When an accounting firm is hired the company that hired them has the power in the relationship. When the company has the power they can bully the firm into doing what they tell them to do. The accounting firm then loses its objectivity and independence making their job ineffective and not accomplishing their goal of honest accounting (Gerard). Their have been 379 convictions of fraud to date, and 3 to 6 new cases opening per month. The problem has clearly not been solved (Ulinski).
AT& T is the largest communications company in the world. The company is the leading U.S. provider of wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services. They have even expanded to include entertainment with television services called UVERSE TV. With the many accomplishments of this media giant its portrayal of evidenced practice of some successful organizational behavior concepts reveal clear understanding of leadership. AT & T has proven success through effective organizational behaviors that include focusing on organizational structure, organizational culture and communication.
Leadership directly impacts an organization's bottom line, employee satisfaction, and turnover; it can impact how the organization is viewed by society and in particular its marketing audience. This is particularly significant during a downturn in economic markets. Organizations must meet budgetary controls, and need to communicate...
Mlls, D. Q. (2005). Leadership How to Lead, How to Live. Boston: Harvad Business School Press.
Sears Holdings is a company in transition. Now, faced with adversity and the threat of bankruptcy looming its leadership has come under scrutiny. “Great leaders not only have drive; they want to lead. Also important is a high need for power, a preference to be in leadership rather than follower positions. A high power need induces people to attempt to influence others, and sustains interest and satisfaction in the process of leadership. When the power need is exercised in moral and socially constructive ways, rather than to the detriment of others, leaders inspire more trust, respect, and commitment to their vision (Bateman, pp 399, 2007).”
"This is why the market keeps going down every day - investors don't know who to trust," said Brett Trueman, an accounting professor from the University of California-Berkeley's Haas School of Business. As these things come out, it just continues to build up"(CBS MarketWatch, Hancock). The memories of the Frauds at Enron and WorldCom still haunt many investors. There have been many accounting scandals in the United States history. The Enron and the WorldCom accounting fraud affected thousands of people and it caused many changes in the rules and regulation of the corporate world. There are many similarities and differences between the two scandals and many rules and regulations have been created in order to prevent frauds like these. Enron Scandal occurred before WorldCom and despite the devastating affect of the Enron Scandal, new rules and regulations were not created in time to prevent the WorldCom Scandal. Accounting scandals like these has changed the corporate world in many ways and people are more cautious about investing because their faith had been shaken by the devastating effects of these scandals. People lost everything they had and all their life-savings. When looking at the accounting scandals in depth, it is unbelievable how much to the extent the accounting standards were broken.
Sandberg, J., Solomon, D., & Blumenstein, R. (2002, June 27). Accounting Spot-Check Unearthed A Scandal in WorldCom's Books. Retrieved from The Wall Street Journal: http://online.wsj.com/article/SB102512901721030520.html
In the public eye, Bernard Ebbers seemed like an ideal pillar of the community in which he worked in. Ebbers volunteered and was engaged religious functions, served meals to the needy, lived in a modest house and invested most of his wealth in company stock (Johnston n.d.). Bernard Ebbers did all of these good acts in the in public eye, but behind the doors of WorldCom Bernard Ebbers ran the company with fear, intimidation, and manipulation in order to get the result he wanted. This can clearly be seen with Ebbers offering loans to other executives in order to retain high stock prices (Treviño, 2005). Ebbers wanted this in order to use the stock as a tool to fiancé all of WorldCom’s mergers and buyouts. Ebbers was adamant about cutting and
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.
House et al. (2007) discovers that leadership and Organisational culture are closely linked together as leaders influence the culture of their organisations. Researches talk about a range of leadership definitions but it is not easy to define. (E.g. Western, 2008; Yukl, 2010). However, Cohen (2009) critically analyses definitions from Dracker (1996), Eisenhower (1969), Northouse (2004) and finally summarised the definition of leadership constitutes five elements. First of all, ask question to set direction, which means effective leaders need to listen to followers’ voice respectfully and then share the common goals and ideas with them. In addition, leaders need to seek insights and allocate resources optimally; act ethically; allow their employees to work in a conformable and most effective way. This essay will explain different leadership styles and how they influence the organisations with examples of organisations and leaders with main focus on well-known entrepreneur: Sir Alan Sugar. He grows from nothing to incredible success (£ 730 million), is a legend in the UK business history; his reality TV show “The Apprentice”, a great entertainment for recruitment appeals to the public without reasons. However, he as a person is controversial amongst people, probably due to his leadership style as bullying or harassment (destructive). There are four schools of leadership styles: Trait, behavioural, contingency and transformational. Nevertheless, in the case of Alan Sugar, trait and transactional styles match him which will be illustrated following in detail.
Leaders: Strategies for Taking Charge is an organizational management book written by Warren Bennis and Burt Nanus for those who aim to become better leaders. The authors emphasize that having executive positions or being a manager does not automatically make one a leader. A leader is one who inspires his staff, help them find purpose in their work, and effectively implement their plans. They separate the book not quite into chapters on different topics, but rather by four strategies that they have determined are vital for any leader to take on. The strategies are effectively concluded as attention through vision, meaning through communication, trust through positioning, and the deployment of self. A prominent feature of Leaders is the various
Leadership is one of the most important facets in organizations. In most cases, leaders act with respect to organizational culture as well as the codes of conduct that determine the manner in which leaders relate with subordinates. Leadership entails the use of effective communication skills to get activities done in the workplace and to ensure that employees shelve their individual interests for the sake of their organizations’ shared targets. It is the role of leaders to ensure that consumers attain high quality products and services by making certain that members of their firms’ workforce are fully motivated to work effectively and utilize resources in an efficient manner (Bass, 22). With the increasingly sophisticated nature of the corporate world, leadership should not be based solely on the desire to control and coordinate affairs within the workplace, but leaders should also exhibit positive examples and continually monitor the changing trends in corporate governance to initiate the most relevant guidelines. Competitiveness can only be attained when leaders are in a position to set the right standards in their firms and coordinate affairs appropriately by understanding consumer and employee needs.
Bennis, W. & Nanus, B. (1985). Leaders: The Strategies for taking charge. New York: Harper Row.