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Business Failure Ldr/531

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Examining a Business Failure – Tyco International Ltd.
LDR/531 Organizational Leadership
March 01, 2010

Examining A Business Failure – Tyco International Ltd.
Organizational behavior is concerned with human behavior in organizations. This essay seeks to explain how organizational behavior theories could have predicted or explain the failure of Tyco International Ltd.
The theories that organizational behavior are built on are psychology, social psychology, sociology and anthropology. According to Robbins and Judge (2009) , psychology seeks to explain changes in behavior in humans for example, impacts on learning, emotions, leadership, and decision making principles in an organization. Social psychology examines people’s …show more content…

Mr. Kozlowski was once hailed as a paragon of corporate leadership but that all changed when he was accused of corporate fraud. His actions caused the scandal because he had violated his fiduciary duty because he was the agent of the shareholders and had misused their funds sustain his corporate greed. He was more interested in personal gain than in the best interest of the company and its share holders. The Chief Financial Officer and the Legal Counsel are also to be blamed for the scandal because they should have reported the illegal activities and not join in this unethical behavior.
The Auditors also contributed to the scandal as they ignored the warning that were communicated through the moving of Tyco’s headquarters to Bermuda which is a tax haven, excessive bonuses, ignoring due diligence and the huge salary increases of the CEO.
Explanation of Behaviors
With reference to the theories on organizational behavior, Mr. Kozlowski behavior can best be explained using social psychology. Here was an individual who was hailed as a paragon of corporate leadership. He used his behavior to build trust, influence other people and groups and exert power and control. He was able to use his behaviors to influence the other persons in upper management to deceive the shareholders. He was able to communicate with the board in such a manner that built their trust. Using sociology principles, he formed a group and used

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