The Rise and Fall of WorldcomThis case study is about Bernard Ebbers CEO of Worldcom, Inc. and Scott Sullivan CFO of Worldcom, Inc. once they were boosted the company growth and they got awards. Later on they made frauds by using their influential tactics on employees and company’s board. Those are
Assertiveness: it involves applying legitimate and coercive power to influence others by threatening or giving punishment. This tactic was used by sullivans office where they berated and intimidated employees who opposed head quarter’s decision and questioned for more information. When one employee refused to change in accounting entry, worldcom’s controller threatened him and made him to make changes in accounting entry.
Information control: It involves manipulating other’s access to the information and restricted access to the valuable information. By using information control Ebbers inner circle restricted flow of all financial information. Accountants didn’t have access to computer files in which fraudulent was made and they were not allowed even to prepare accounting files.
Persuasion: persuasion is to influence people with their virtual facts, logical arguments and emotional speeches to change and manipulate another person’s attitude and behaviour. Ebbers was persuaded the board of directors and changed their mind even though they knew that he was misrepresenting information. As a result board of directors didn’t oppose to Mr.Ebbers recommended action of course.
Silent Authority: it involves influencing employee’s behaviour through legitimate power without negotiation, threats, pursuation or other tactics. Ebbers and Sullivan used their silent authority power to influence their employees to change company files and financial information.Group 7 Team Members:
Leeladhar Ponnagani
Anan El-Mubasher
Arpit Patel
Herbert Pierre