Stratton Oakmont Case Summary

907 Words2 Pages

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 …show more content…

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 …show more content…

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

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