1. What types of work behaviors did AIG intend to encourage through its retention bonus plan? CASE STUDY: AIG Controversial Retention Bonuses at AIG American International Group (AIG), a behemoth insurance and financial services company, became notoriously famous in early 2009 for the payment of $165 million in retention bonuses to employees in its Financial Products unit. This was the same unit that was instrumental in bringing AIG to its knees and necessitating the infusion of billions of dollars in U.S. government bailout money. Although the near-collapse of AIG was significantly influenced by “soured trades entered into by the company’s Financial Products division,” the operations of other AIG units, such as the financial gambles of its Investments unit, helped cripple the company as well.
I think that a business leader needs to act and conduct themselves in the best interests of their employees, and clients. This paying of multi million dollars spent on bonus for the executives is a huge ethical dilemma. The tax payers didn’t even get their money back prior the disbursement of the bonuses. This is the type of leadership that is stewardship but with bad unethical decisons As a leader, you can put the needs interests, and goals of others above your own and use your personal gifts to help others achieve their potential. The questionnaire in Leader’s Self: Insight 6.2 enables you to evaluate your leadership approach along the dimensions of authoritarian leadership, participative leadership, stewardship, and servant leadership.
Contractors have often over-bid the price on projects. It is believed that contractors should unbalance the bid/front-end load of the project even though they collect money in a timely manner. If a contractor, particularly a subcontractor, doesn't unbalance the bid, the difference in cash disbursed against cash received on a project can be enormous, and no one would notice, because most accounting systems do not detect it,” he says. “When examining the job, you will find that you are funding labor and other costs but you're not being paid in
The paper will also compare and contrast how leadership, management, and organizational structure contributed to the company failure. Organizational behavior theories Organization behavior is defined as a “field o study that investigates the impact of individuals, groups, and structures within an organization” (Robbins & Judge, 2007). Which organizational behavior definitely pertains and includes leadership and management. The Boeing Company has a few issues with organization behavior, especially with leadership, management and employees not communicating. The company engineers are blaming the outsourced supply chain for the poor quality parts arriving from subcontractors which are not in the Boeing view.
Both normative and instrumental force played an important role in all three cases. Normative forces is based on organizational pressure and expectations while instrumental force is based on personal interest and beliefs (Ivancevich, 208). Every company have expectation that they want all their employees to adhere too. In each case the CEO’s resigned due to allegations of engaging in inappropriate relationships even though none of it could be proven ((Ivancevich, 227). “This case demonstrated that managing employee misbehavior (and the perception of misbehavior) is important and challenging goal for managers and leaders” (Ivancevich, 229).
This led to QLFC calling for a meeting with Huston to address concerns. The way Hegret described the meeting makes it seem like Huston brushed off QLFC’s concerns entirely. It seems that QLFC could sue Huston based on the fact that there is a conflict of interest in Huston being both the supplier and the franchisor of QLFC. After lawsuits were filed Huston requested a meeting with Hegret and those of QLFC. This could be because Huston had maybe realized that they invested a lot into this company and that a solution was not that far off.
Case Analysis: Utiliscan Webster University HRMG 5000 March 6, 2013 Case Analysis: Utiliscan Introduction By looking at the survey conducted by Paul and his team at Utiliscan, we can see several areas that need to be reviewed for improvement by the management there. Talented employees are difficult to attract and some would say even more difficult to retain. Unless solutions are found to the problem areas facing the company, we can surmise those difficulties could become more challenging to resolve. Since profits have been reinvested at the company, the financial position is dire, and now the management must decide how much of the actual profit can be put invested back into making the working conditions better without forcing other key areas of the business to do without, or deal with shortages. These concerns would be especially hard hitting on the R&D division of the organization.
Individual auditors are responsible because they made unprofessional decisions that tainted the integrity of auditors. Lastly, I feel that the leadership of the Anderson firm focused too much attention on the practice development activities at the expense of the Enron Corporation. 2. In the recent years audit firms have provide other services besides auditing services to their audit-clients, some of these other servicer are: Financial information design and implementation, Bookkeeping or other accounting record statements needs, and some Management functions. For an audit firm given management function advice o their audit clients it could threaten the auditor’s independence by having to evaluate the work of someone that they recommended.
These cost are result of companies either not paying their workers compensation insurance premium or under paying, by lying about the size of their work force. For example in California a construction company would deliberately misreport wages paid to its workers to avoid paying all of the payroll taxes and state insurance premiums. According to the deputy District attorney Paul Flick, “if an employees salary was $11/hour and worked 40 hours/week, the company would report it as the employee was paid $22/hour and worked 20 hour/week to save more than half of worker compensation insurance cost for that employee.” Across the map on the east NY state alone employer committing worker compensation insurance fraud is costing 1 billion a year. This causes a cycle effect that leads to the honest companies to make up for the lack of premium paid and as a result they end up paying higher premium. Also some injured workers don’t receive the worker compensation benefit that they are entitling to which leads to raise in medical costs.
- It was identified that the management who were making the aggressive accounting decisions, were also posting the journals to the general ledger, and reviewing and approving the reporting. - Pressure was placed on personnel who did not support the aggressive targets. - A great deal of focus was put on “team work” and being a strong “team player”, which is said to have been a strategy to reduce dissenting opinions, eventually leading the organisation to follow a “groupthink” attitude. - In 2000, the telecommunications industry entered a downturn and WorldCom‟s aggressive growth strategy suffered a serious set back. However, due to the accounting measures used, by Q3 in 2000, the company managed to meet the Wall Street expectations.