Failure at Tyco International, Ltd.

1137 Words5 Pages
Failure at Tyco International, Ltd.
LDR / 531
January 31, 2011
Clance Doelling

Failure at Tyco International, Ltd. Tyco International Ltd is a diverse manufacturer who grew tremendously in the 1990’s and early 2000’s. The company had big ambitions with an aggressive program of acquisitions during this period where they spent an estimated $62 billion to purchase more than 1,000 companies. However, unbeknownst to the shareholders of Tyco and the world, Tyco was led by a management team and CEO (L. Dennis Kozlowski) that did not use wise or truthful business practices and organizational behavior. In the following paper, I will examine the failure that occurred at Tyco, compare, and contrast contributions of leadership, management,
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“Organizational behavior is concerned with the study of what people do in an organization and how their behavior affects the organization’s performance.” (Robbins and Timothy, 2007, p. 10). A healthy organization responds to globalization and increasing market share by understanding its’ foreign assignments, people from different cultures, managing diversity, and foreign implications. Tyco quickly made acquisitions and developed offshore networks that were managed by executives that did not enforce an ethical code of behavior. Tyco falsified accounting records in order to meet U.S. standards and profitability. Tyco set their sights on strategies that would improve growth and investments, with disregard to any type of business code of ethics or standards. Complications surfaced that the company was not handling money correctly and top management was to blame. Either the company did not properly train their management (especially those who handled the financial aspects of the business) or management was not governing themselves by company policies and procedures that would make the business successful. It appears Kozlowski and his top executives were able to persuade many employees to overlook company policies and procedures to pursue high margins of profitability. This demonstrates that the organizational culture and management behavior was overlooking their ethical obligations to the shareholder, company, and employees of Tyco. They were willing to
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