1. Bernard Ebbers was a transactional leader who managed to influence and garners the support of the employees, the executive members and stimulate high employee performance. Influencing stakeholders to support his initiatives to acquire and merge 70 companies, (Trevino, L. and Brown, M. (2005)), is a great indication of his influence. Unlike transformational leaders who adopt the theory of values, Ebbers was rather a transactional leader, he focused on his personal image creation. He influenced his followers into defiant behaviors: - loaning top executives without putting these loans into writing. This is a sign of favoritism and normally brings resentment among workers especially those at lower level. Another defiant behavior is shunting other executive members who joined the company through mergers and acquisitions. He also influenced the fabrication of profitable numbers and incorrect classification of money. 2. …show more content…
As a leader of WorldCom, Ebber had the mandate to ensure that all the stakeholders uphold the values and ethics of the company. However it can be noted that he approved the loans of the executive members without putting it in black and white. For transparency, accountability and for future reference sake, there is need to document all the company’s transactions. Fabricating profitable numbers as a way of exaggerating stock prices is a fraudulent and defiant behavior. As a leader, he was supposed to encourage his subordinates to record and make presentations of the actual figures of performance. This could have assisted the company to take note of all the performance gaps and rectify where
The question or issue presented to the court and the date oral arguments are scheduled to be heard On Tuesday December 8, 2015 the Supreme Court examined if “one-person, one-vote rule” affords eligible voters any reasonable protection? The question for the case was as follows: Does the Equal Protection Clause of the Fourteenth Amendment require that districting take into account the number of voters rather than the total population? The Parties in the case Plaintiffs:
Overall, the company smoothed over all the problems by keeping the true numbers of the business
Beyond disputes, the persuasive influencer, chairman Richard Branson takes a pivotal role in corporate leadership strategy. The profound understanding of employees, interaction on a personal level, elevates the business. Overall, managers dedicated help their subordinates to succeed, provide the constructive feedback, which is an essential part of the Virgin’s corporate culture. The transformational leadership lessons, which are possible to learn from the Virgin Atlantic Airways venture: disruptive rethinking of business strategy; people are the major asset of the business, have to be treated respectively; to transform ideas into constant innovations.
Question 1 Peter Loescher was hired by Siemens when the company was experiencing extremely difficult times. After the bribery scandal, the main goal was to gain back the trust and respect from the customers and partners, as well as building a new vision. The company’s board of directors decided that they needed a person from outside of the company, who had no connection and loyalty to previous vision, and no affiliation with previous management team. In my opinion, the company owners hired Loescher for a specific purpose to change the overall team perception of how work is supposed to be done.
Performance gap of the action plan How you would address these issues to facilitate the continuous improvement to meet the designed
The term "transactional" refers to the fact that this type of leader essentially motivates subordinates by exchanging rewards for performance. A transactional leader generally does not look ahead in strategically guiding an organization to a position of market leadership; instead, these managers are solely concerned with making sure everything flows smoothly today. Advantages As stated above both leadership styles are needed for guiding an organization to success, and it was thanks to that approach that Fight Club was such a successful organization.
In order to increase strength in the position of transformational leadership. In terms of business, Lou Gerstner, the present chairman and CEO of IBM is one of the best examples
The destructive behavior of regulatory problems, deflated stock and disgrace. He focused obsessively on keeping down costs. He questioned why expensive bagels, rather than cheaper food, were served at company meetings He keep the company revenue as high as Wall Street predict to keep stock price with fake financial report; U.S. regulatory agencies stepped in, claiming that WorldCom was attempting to monopolize the industry. (Bernard Ebbers: Innovative Leader or Reckless Risk Taker,2004,
Transactional or Transformational Leadership Style Gates was both a transactional and transformational leader. As a transactional leader, he made sure to visit the new products teams and inquire challenging questions to the point that would make him satisfied and ensure that the team are on track and have a clear understanding about the aimed goal (Pamela Spahr, 2014). He is well known for his emphasis on rigid structure, hierarchy and his system of reward and punishment to achieve outcomes. His strict standards of what he wants is what made Microsoft successful and he ensures that his employees do not deviate from these standards (‘’Mindvalley academy blog’’, n.d.). In addition, Gates has a transformational leadership style.
1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million, along with 2% interest rate.
Rhetorical Analysis of Leader Language In my point of view, I found Bill Gates as the most promising leader throughout the globe. Bill Gates was the youngest, wealthiest CEO of all time, but this success was not only achieved by luck. His inspiring charming personality and effective communication skills made him the real “BILL GATES”. One of his talks on the teacher’s feedback is much of an importance.
Ebbers leadership style changed from ethical to unethical during the downturn of the stock market and the effects it had on WorldCom shares. Ebber leadership style created an environment that left for little room for error. During telecommunications stock downturns Ebber was unable to come up with a strategy that would turn things around. During the initial phases of the Commission investigation into WorldCom’s accounting practices, Ebber was questioned concerning several low-interest loans he acquired from the board of directors. Shortly after Ebber was forced out by outside board members.
“Good units walk a thin line between indiscipline and ineffectiveness. Ignore the rules too often and you’ve got a mob, but enforce the rules too strictly and you’ve got a herd.” by Henry V. O’Neil represents the notion behind an effective organizational behavior. In an organizational settings, how well the employees are managed and understood depends on the leadership style exhibited by the leaders. Finding the right balance between being too strict or too easy with the employees not only create an ideal work environment but also increase productivity and reduce employee turnover.
Introduction The focus of this written paper is to introduce a successful business person in the world and analyze the person's unique events or stories with an appropriate organizational behavior theory. We would like to explain in detail with applications and discussions of how the chosen leader has demonstrated the critical criteria of a certain theory. Richard Branson, who is the founder of the Virgin Limited is seen by us as a famous leader in the business sector. His open-minded leadership style has fully demonstrated the transformational leadership theory. Bernard Bass (1985) stated that transformational leaders care about the development of followers, improve the organization through inspiration and stimulation and engage in the betterment
Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.