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feedback. This system is important because if new employees are not carefully managed,early adjustment problems may lead to them to quit, or result in dysfunctional or deviantbehavior should they choose to stay (Jenkins, 1988; Robbins, 1992)).Discussion and suggestionsThe focus of the contemporary business world is no longer on creating a stable organization,but instead on continuously increasing profit at any cost. Organizations are now trying to findnew and ‘‘creative’’ ways to achieve their financial goals. Slowly, scandal after scandalexposed organizations that tried to be too ‘‘creative’’. Without knowing it, the greed of theshareholders has created a toxic culture within organizations. In this environment, bothleaders and employees are rewarded for their short-term accomplishments, which lead to anincrease of competition between employees, unethical practices, and a disregard forPAGE 24jCORPORATE GOVERNANCEjVOL. 7 NO. 1 2007
co-workers. It would be foolish to presume that this toxic culture was responsible for deviantbehavior exhibited by the organization’s leaders and employees. Organizations, whetherthey are cognizant of it or not, may be promoting and nourishing these deviant behaviorseven at unconscious levels. The era where all organizations, their clients, and shareholderswere seen as big happy families based on trust, honesty, and morals are memories. Today,most organizations can be perceived as large dysfunctional families that are characterizedunfortunately with lying, backstabbing, and cheating. Also winning the bottom line isultimate.The question remains: how did organizations let this happen? Research has suggested thatpeople respond more quickly to negative behavior than positive behavior with strategizedmotivators to support this. However, this is only a short-term effect, employees will eventuallyresist these tactics and either quit, or become corrupt or disinterested. Nonetheless, peopleexhibiting deviant behavior was placed in high power positions where they would havesignificant control over the organizations operations. Of course, they did not modify theirbehavior once reaching the top but were rewarded for their accomplishments which in turnjustified their behavior. Their toxic behavior, which is now justified (at least in their ownminds), will now trickle down and affect everyone in the organization. The major problemhere is that in the long run the organization will be damaged by the behavior and decisions ofthis toxin and may continue to suffer even after the toxin is removed. This becomes theproverbial vicious cycle.While it is clear that a toxic organization cannot exist without toxic leaders, it is also clear thattoxic organizations need certain conditions in order to remain toxic. A toxic leader in ahealthy organization will most probably not last very long. The glue that keeps this toxicitytogether is the culture of the organization. The culture (system of values) of an organizationappears to be dependent on the behavior of all groups within the organization. Obviously,

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Term
Spring
Professor
Miss N
Tags
Management, Steven H Appelbaum, Ruthless,

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