Tyco International
Tyco’s corporate culture would have been led by the CEO, Dennis Kozlowski. Since Kozlowski enjoyed the more extravagant luxuries in life he incorporated that into his leadership of the company. By doing so he set the cultural foundation of the company. The leader of any company has control of the corporate cultural. If a leader values his own income and lifestyle above what is best for all others than that is going to have a negative impact on the company as a whole not just him. Had Kozlowski been more concerned with the positive welfare of the company and its stakeholders he would not be spending the rest of his life in Prison. Being a selfish leader will only has dire consequences that not only impact one’s self negatively but it impacts the entire company as well.
Mr. Kozlowski ran a decentralized company, allowing for high autonomy and an entrepreneurial culture. Executives were empowered to act in the company’s best interest and received compensation based on the company’s growth targets, whereas non-executives got rewarded based on their individual performance. Consequently, it incentivized all employees to perform well. In addition to motivating employees to meet growth targets, Mr. Kozlowski initiated many acquisitions and in some cases to smooth out the earnings of Tyco, because it was smaller acquisitions that did not need to be reported. The functioning of the board started out well, where all parties enjoyed the loose corporate culture, but eventually this structure triggered misconducts in the top management.
In the event of trying to pull things back together, Kozlowski caused the company more harm. According to Kay, (2002), “The American-based conglomerate Tyco International Ltd. is in deep crisis following a wave of revelations concerning the corrupt practices of the company and its top management.” As things worsened, Kozlowski resigned while the stock was plummeting. A bankruptcy for Tyco International would mean that 240,000 employees
Mr. Kozlowski ran a decentralized company, allowing for high autonomy and an entrepreneurial culture. Executives were empowered to act in the company’s best interest and received compensation based on the company’s growth targets, whereas non-executives got rewarded based on their individual performance. Consequently, it incentivized all employees to perform well. In addition to motivating employees to meet growth targets, Mr. Kozlowski initiated many acquisitions and in some cases to smooth out the earnings of Tyco, because it was smaller acquisitions that did not need to be reported. The functioning of the board started out well, where all parties enjoyed the loose corporate culture, but eventually this structure triggered misconducts in the top management.
In the event of trying to pull things back together, Kozlowski caused the company more harm. According to Kay, (2002), “The American-based conglomerate Tyco International Ltd. is in deep crisis following a wave of revelations concerning the corrupt practices of the company and its top management.” As things worsened, Kozlowski resigned while the stock was plummeting. A bankruptcy for Tyco International would mean that 240,000 employees