This website uses cookies to ensure you have the best experience. Learn more

Management Essay

1683 words - 7 pages

BACKGROUND
In the fall of 2002, Joe Nacchio, the CEO of Qwest Commutations International was on trial after the board of Qwest, kicked him out when Qwest was caught in a multibillion-dollar accounting scandal (Gimein). Nacchio was asked to testify by a congressional panel regarding if Qwest and Global Crossing sold stuff they didn't need to each other so they could inflate revenues and keep stock prices high (Gimein).
EVENTS THAT OCCURRED
In 2000, Nacchio promised investors that Qwest’s revenue would increase at a rate of 15% per year and by 20% by 2005 (Gimein). To help reach those goals, Qwest execs thought they figured out a way to profits immediately, and allow Qwest to spread out the ...view middle of the document...

Another issue with the structure that led to the downfall was that when Joe Nacchio took over the company it was private. Within six months he made it public. When a company goes public, that means that it sells stock which is the primary reason that Qwest had to inflate its numbers. If the company had stayed private, there would have been fewer incentives to play dirty.
The main cause of the Qwest scandal was leadership or lack thereof leadership. The leadership at the top sets the tone for the whole corporation. In the case of Qwest, managers were terrified they wouldn't match Nacchio's expectations. In meetings he would pretend not to listen when he was unhappy, and then attack the weakest point of the executive's presentation, and scare them to death by yelling at them. Down through the hierarchy, Qwest managers believed they had to make their numbers in any way possible. Managers would say 'What can I do? My arm is being twisted. I just gotta do what the boss says,'" recalls Nesbitt." He said Qwest became a company where people would do anything for the boss (Gimein). When the leader of a company is basically threatening his subordinates to achieve his unrealistic goals, something bad is bound to happen. In this case, Qwest managers learned to drive up sales by asking companies that sold equipment to Qwest to buy services in return, which is what got Qwest in deep trouble (Gimein). When the leader of a company is scaring its employees into meeting extremely high goals, people are going to break the rules in order to keep their jobs, and in the case of Qwest that is exactly what happened.
A third organizational cause of the Qwest scandal was the organizational culture of Qwest. The culture of an organization is made up of the values and ideals a company wants to operate under. The culture at Qwest was certainly not a good one. Nik Nesbitt, a former Qwest senior vice president, had a few things to say about the culture at Qwest. He said the demands coming from up top were unrealistic. He said that he was asked to sell a certain amount of hosting services in 90 days, when the lead time to sell those services was 180 days. Nesbitt added that when you would ask questions, they told you not to. They would say do it or you are not part of the team. (Gimein). With an attitude of if you do not do your job of reaching an impossible goal you are not a team member, the company is asking for unethical and shady behavior. Qwest made it very clear to its employees that the only thing that mattered was the bottom line. As an employee of Qwest, the rational choice was to meet Nacchio’s goals at any cost, and rational choice theorists say that when a scandal occurs, it is because the employees breaking the law the the rational choice at the time(Bucy et al). With the attitude at Qwest, a scandal was bound to occur, and it did.
REGULATORY OR OVERSIGHT WEAKNESSES
A key factor of the Qwest scandal was the lack of proper auditing by the now out of practice...

Other assignments on Management

Management Essay

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Management Essay

379 words - 2 pages Assume that you’re a Financial Manager in your respective companies. Analyze the questions below and make a critical analysis to answer the given scenario. 1. Would our goal of maximizing the value of the equity shares be different if we were thinking about financial management in a foreign country? Why or why not? 2. Can our goal of maximizing the value of the equity shares conflict with other goals, such as avoiding unethical or

Management

1821 words - 8 pages and environmental protection equipment, consulting services, industrial investment and management, asset management, import and export. Its products have been exported to around 100 countries and regions in 6 continents. The export of products has also been changing to export of technologies, output of capital goods, and global business transformation. 1 2.2 Challenges Until now, CRRC has grasped all the train key technology –system integration

Management - 837 words

837 words - 4 pages a critical success factor in knowledge management and plays a dominant role in the decision-making process. However, a brief overview of the literature indicates that a variety of IT terminologies is used, along with range of differences in the use of data, measurement, sample size, selection of dependent variables. Evidently, findings show that some scholars claim IT can be a source of competitive advantage and its impact can be either direct or

Management - 609 words

609 words - 3 pages making for management of “Unico”. (LO 3.2) 3.3 Assuming that you are a representative of Access Lt., prepare a business presentation using suitable software and techniques to provide information to the top management of Unicoeffectively (LO 3.3) 3.4 Prepare formal business report relevant to the presentation you have made in task 3.3 (LO 3.4) Learners are encouraged to concentrate on M 3.3 and D3.1in order to achieve distinction and merit

Management - 504 words

504 words - 3 pages MBA 503C Finance Management Christopher Skirvin Week 2 Discussion What is an opportunity cost and how can it be measured? An opportunity cost is the rate of return you could earn on an alternative investment or similar risk. It can be measured by the benefits of the investment you decide to make. Would you rather have a saving account that pays 3% interest compounded semiannually or one that pays 3% interest compounded daily

Management - 611 words

611 words - 3 pages Introduction to Management: Assignment 1 Case Study – Marking Rubric Criteria Fail Pass Credit Distinction High Distinction 1. Case Analysis: Analyses the case identifying the key issues and/or problems. Clearly indicates and explains one priority issue or problem that is to be managed.  Too brief; inability to identify issues raised by the question; may show superficial treatment; insufficient knowledge or

Management - 268 words

268 words - 2 pages [kVA] Voltage [Volt] Speed [Rpm] Frequency [Hz] Power Factor [PF] Insulation Protection (also available medium voltage) Accessories Radiator Cooling Digital Control Panel, consist of : MTU 16V 4000 G23 (Germany) : 1798 : 2000 : 1500 : 50 : 16 : 76.3 : 170 / 210 : Common Rail System with electronically controlled high pressure injection. : 16.5 : 1 : Electronic Engine Management System “ADEC” : Water cooling with Radiator : 300 : STAMFORD PI

Management - 4274 words

4274 words - 18 pages . However, (Cuddy & Callanan, 2004) also suggests that a large portion of management qualifications are at a PLC level when compared to Degree and Post Graduates. This which may lead towards a reluctance to work and share knowledge with their competitors as they do not see this as a part of their strategic planning process. (Cuddy & Callanan, 2004) Long term growth potential may also be inhibited through a lower level of upskilling of

Change Management

944 words - 4 pages Change Management MGT 426 July 29, 2013 Change Management The roles of managers and individuals in change management are often intertwined; the organizational arrangement consistently seeks to engage both individual employees and his or her management teams in the course of organizational change. The goal of this is to engage employees and encourage them to adopt a new way of functioning in their careers, and it often falls to the

Earning Management

1173 words - 5 pages Earning management is good or not? Introdcution This essay is to examine whether earning management is it good or bad. Though there is so many debate about whether it should be accepted to be good rather than bad, however, this essay will explain the both side of earnings management. Earnings management reduces the quality of financial reporting, it can interfere with the resource allocation in the economy and can bring adverse consequences

Similar Documents

Management Essay 9111 Words

9111 words - 37 pages Strategic Management: A Competitive Advantage Approach, 14e (David) Chapter 10 Business Ethics/Social Responsibility/Environmental Sustainability 1) Many people consider it unethical for a firm to be socially irresponsible. Answer: TRUE Diff: 1 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles

Management Essay 1366 Words

1366 words - 6 pages Financial Management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized functions directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. It has been defined differently by different experts in the field. It

Management Essay 433 Words

433 words - 2 pages 23/7/2015 Oxford University Press | Online Resource Centre | Multiple choice questions We use cookies to enhance your experience on our website. By clicking 'continue' or by continuing to use our website, you are agreeing to our use of cookies. You can change your cookie settings at any time. Continue Find out more Combe: Introduction to Management Chapter 1: Multiple choice questions Instructions Answer the following questions

Management Essay 858 Words

858 words - 4 pages Achieving Project Goals Simulation Maria Algarin University of Phoenix MGT 437 Project Management Simulation It is important for project managers to not only make the best project plans, but to be also suitably prepared to tackle contingencies and minimize their impact on the project (Achieving Project Goals Simulation, 20011). In my opinion, there is a misconception as to the role of a project manager. The main challenge is to