Arthur Andersen And Organizing Function

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Abstract Human resources and technology are used by companies as organizing resources to help managers achieving successfully their goal. But what happen when technology become more important than human resources? What happen to a company that spend all the effort in technology field while forget the importance of the monetary and emotional stability of its employees, at the same time that forget how important ethical and moral value are in the healthy development of every company? This paper will show how organizing function of the manager succeed in the technological field while failed in the human resources field. Arthur Andersen and Organizing Function Arthur Andersen LLP, the biggest accounting firm within United State and around the world, with more than 85,000 employees in 84 countries, 7$ billion in revenue and 88 years of existences; until 2002 when the company was involved in a ethic scandal and convicted for obstruction of justice in the case against Enron (one of Arthur Andersen’s biggest clients); Arthur Andersen managers always knew the importance that technology plays in every company development at the same time that disregarded the importance of human resources value. Until 1947 the company was lead by its founder Arthur Andersen and when Leonard Spacek took over the company after its founder death, his planning strategy was to make the company grew from regional into an international organization with offices around the world, and in this way increase the revenues of the firm. As an organizing function in the “1950s the company made its first move into consulting by helping large corporations installs and uses their first computer system at the same time the firm was the first company branching out into production control, cost accounting, and operations research through the implementation of computers” (Business &

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