Faulty Organizational Behavior in Tyco International Ltd
Faulty Organizational Behavior in Tyco International Ltd
LDR/531
Faulty Organizational Behavior in Tyco International Ltd
Most employees travel to and from the workplace each day with the ultimate goal to successfully perform their assigned job according to company standards. These company standards may include agendas, mission statements, professional conduct guidelines and even a code of ethics. How employees choose to follow company standards may govern their overall progress or success. While some may deviate from standards and fail, others may find themselves slipping through cracks unnoticed. Either way, the rules were broken. This paper will examine the failure suffered by Tyco International Ltd where leadership, management, and organizational structures were compromised.
Let us start with the aftermath. According to MSNBC (2005), “Kozlowski and Swartz were accused of giving themselves more than $150 million in illegal bonuses and forgiving loans to themselves, besides manipulating the company’s stock price” (Corporate Scandals, para 14). Clearly, a scandal had hit Tyco International Ltd. Not only did former top executives slip themselves extra money, but they also toyed around with the stock prices. These actions had made the powerful men very wealthy. They also affected the lives of other individuals. During the trial, Kozlowski and Swartz pointed out that unlike WorldCom and Enron, Tyco continued to thrive as a company after the scandal (MSNBC, 2005). While this may have been a valid point, we cannot dismiss the fact that stealing, fraud, and self-indulgence had been present in the company. Now we will examine how the management, leadership, and organizational structure of Tyco International Ltd contributed to this failure.
Robbins and Judge (2007) explain how managers coordinate social units of an organization in order to achieve common goals. Management performs several functions in a company that may include: planning, organizing, leading, and
LDR/531
Faulty Organizational Behavior in Tyco International Ltd
Most employees travel to and from the workplace each day with the ultimate goal to successfully perform their assigned job according to company standards. These company standards may include agendas, mission statements, professional conduct guidelines and even a code of ethics. How employees choose to follow company standards may govern their overall progress or success. While some may deviate from standards and fail, others may find themselves slipping through cracks unnoticed. Either way, the rules were broken. This paper will examine the failure suffered by Tyco International Ltd where leadership, management, and organizational structures were compromised.
Let us start with the aftermath. According to MSNBC (2005), “Kozlowski and Swartz were accused of giving themselves more than $150 million in illegal bonuses and forgiving loans to themselves, besides manipulating the company’s stock price” (Corporate Scandals, para 14). Clearly, a scandal had hit Tyco International Ltd. Not only did former top executives slip themselves extra money, but they also toyed around with the stock prices. These actions had made the powerful men very wealthy. They also affected the lives of other individuals. During the trial, Kozlowski and Swartz pointed out that unlike WorldCom and Enron, Tyco continued to thrive as a company after the scandal (MSNBC, 2005). While this may have been a valid point, we cannot dismiss the fact that stealing, fraud, and self-indulgence had been present in the company. Now we will examine how the management, leadership, and organizational structure of Tyco International Ltd contributed to this failure.
Robbins and Judge (2007) explain how managers coordinate social units of an organization in order to achieve common goals. Management performs several functions in a company that may include: planning, organizing, leading, and
References: MSNBC. (2005). Ex-Tyco executives get up to 25 years in prison. Retrieved from http://www.msnbc.msn.com/id/9399803/ns/business-corporate_scandals Robbins, S. P., & Judge, T. A. (2007). Organizational Behavior (12th ed.). Upper Saddle River, NJ: Prentice Hall. Verschoor, C. C. (2006, April). Tyco: An Ethical Metamorphosis. Strategic Finance, 87(10), 15-16.