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
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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
Buchanan, A. H. (2001). Organizational Behaviour:An Introductory Text (4 ed.). (F. T. Hall, Ed.) Pearson Education.
An organization can be defined by its successes and-slash-or its failures, while the behavior of an organization determines its success or failures. Organizational behavior concepts are extremely important when determining the future of any company. Organizations constantly have to compete with one another and by doing so it applies certain concepts to its business to ensure that its organization is profitable and that it is able to provide continuous employment. Therefore, it is vital to the life of the organization that the necessary steps are taken to engrave organizational behavior
Kinicki, A., & Fugate, M. (2016). Organizational Behavior: A Practical, Problem-Solving Approach. New York, NY: McGraw-Hill Education.
As stated by Robbins and Judge (2011), “organizational behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within
Most notably was the Tyco International scandal which happened in 2002, during which the SEC filed fraud charges against the CEO of Tyco, Dennis Kozslowski.
In today’s business world, Organizational Behavior is an important tool for managers to effectively manage teams and it aids in being able to understand and foresee human behavior in an organization. It studies on how organizations can be arranged more accurately, and how several events in their outside situations effect organizations. It has become more significant today than in previous years because organizations must master to adapt to the rapidly changing business cultures that have stemmed from a competitive market.
Kinicki, A., & Fugate, M. (2016). Organizational behavior: a practical, problem-solving approach. New York, NY: McGraw-Hill Education.
The article calls Kozlowski “a rogue CEO for the ages.” In this context, what does the term “rogue” mean? What did Kozlowski do to deserve this description?
Robbins, S. P., & Judge, T. A. (2011). Organizational Behavior (14th Edition). Boston, MA: Prentice Hall.
With the level of unethical conduct and the level of the executives involved, it will be difficult to ascertain the impact OCB may have had on the alleged persons. Personnel are simply human who will act up intermittently, but individual actions should not have the power to virtually bring down a big organization such as Tyco International Ltd. Most companies are now realizing the effect of OCB on refining the degree of performance and productivity within
References:Huczynski, A. A. and Buchanan, D. A. (2007) Organizational behaviour: An introductory text. 6th ed., Harlow: Financial Times Prentice Hall.
Science of Organizational Behavior is applied in Nature. Throughout the history it has been developed with the above contributory studies and also the theories, so that with the effect of the same behavior of a person could be judged accordingly.
Issues of ethics and employee fear can be studied using organizational behavior theories. Organizational behavior refers to the study of the effect groups, individuals and structures have on human behavior within organizations. Micro and macro organizational behavior theory are the two primary behavior theories. Behavioral theories are used in the field of management mainly because it encompasses concepts like decision making, leadership, team building, job satisfaction and motivation. Organizational behavior theories also deal with culture. Understanding various work cultures can help to improve the performance of the company.
BUCHANAN, D. and HUCZYNSKI, A., 2004. Organizational Behaviour – An Introductory Text, 5th ed. London, UK: FT Prentice Hall.
Organizational behavior is the study of conduct and attitude of people within an organization. According to Robbins & Judge (2015), the behavior of individuals working in an organization contributes to its level of performance. A systematic approach has been used in this paper to interpret the relationship among individuals working together in an organization for the purpose of achieving a common goal. There are a number of factors that influences the operations of an organization such as conflict, power, negotiation and politics. The paper will review the dynamics of the factors influencing organization behavior with respect to the situation at Metro Cash & Carry Company.