Free Essay

Throwing Away a Golden Opportunity

In:

Submitted By prassi18
Words 1774
Pages 8
1.0 Throwing Away a Golden Opportunity – Introduction - Prassanna

Roger Senevirathne the number one Sales person at ABC Company was highly predicted by other staff that he would become the Managing Director of the company one day. Roger had another opportunity to become the General Manager of the company and he was not sure whether to take it or not in another two years of time and at the same time there was another opportunity opened up for Roger to move to Europe to head the new branch of the ABC company over there. The current General Manager Sarath Silva discouraged Roger when he told him that he want to take up the Europe branch operations. Sarath stressed that Roger is doing really well in Sri Lanka and to continue the same over here and very soon he can become the Managing Director of the company.

Since Roger was not convinced with Sarath he approached their Managing Directress and she was very interested in Roger’s ideas about International marketing. She promised that she will recommend Roger to that respective International job but, at the end there was another person who was picked to head the Europe branch of ABC Company and the Managing Director tells Roger that Sarath has influenced the selection committee that Roger is really undecided about the entire international scenario and he’s not sure about the decision. Furthermore, Managing Directress stresses to Roger that he didn’t sell his idea properly to Sarath.

1.1 Question 1

Who had power in this organization? What type of power did Sarath Silva have?

Organizational power is referred to as the ability to get things done despite the determination and struggle of others to or the capability to win political fights and outmaneuver the opposition (Luthans, 2011). This has negative impact in many organizations because certain managers use their power and attempt to use organizational resources for their personal benefits and to achieve their personal goals at the expense of others goals.
Sarath Silva is a great example who used his power at the expense of Roger’s goal of moving to the Europe market by. It’s evident that Sarath Silva had more power at ABC Company than the Managing Directress because he was able to influence the board by manipulating them and have superiority over them not to pick Roger but someone else to head the Europe office of ABC Company.

Moreover, Sarath Silva had a Bureaucratic authority based on acceptance. According to Barnard (1938) authority is the character of a communication (order) in a formal organization by virtue of which it is accepted by a contributor to or members of the oraginzation. In this case Sarath Silva had the authority to convince the board not to pick Roger Senevirathne for the Europe office.

Robbins (1996) states that out of all the bases of power available, the power to hurt others is Coercive Power. The power Sarath Silva used at ABC Company. According to Luthans (2011) the person with coercive power has the ability to impose punishment or aversive consequences on another person to make threats that he believes will result in undesirable outcomes. When Roger first approached Sarath he totally discouraged him and has said that Europe is no place for him. Sarath from the beginning wanted Roger to listen to him and didn’t want him to go to Europe. In expectancy motivation terms, Sarath’s expectation on the part of Roger’s stay in Sri Lanka was challenged by Roger by the initiation of his Europe tour.

Moreover, when Roger mentioned to Sarath that he approached the Managing Directress and she encouraged him, Sarath didn’t like the one who worked under him (Roger) approaching his Boss (Managing Directress) about his Europe opportunity. He waited till the board meeting and used his coercive and personal power to influence the board that made the decision. Sarath has a lot of surveillance over the others. According (Bowdich et al. 1997) Sarath reacted used his power because he had fear that he will lose his reputation among the staff if Roger gets selected to go to Europe beyond his word.

1.2 Question 2

Do you think Roger played company politics well? If so, why didn’t he get the international sales job?

According to Rosenbloom (2005) Organizational politics is defined as the intentional behavior that is designed to enhance or protect a person’s influence and self-interest. Politic is not a simple process, beside the age of the participants, politics can vary from organization to organization and even from people to people (Luthans, 2011). To survive in an organization one should understand who has the power and play the politics accordingly.

Roger Senevirathne didn’t play the company politics well. When he approached his boss Sarath Silva about his plan of moving to Europe he didn’t realize who had the power in the organization. When Sarath discouraged his idea Roger thought he can use the politics wisely by approaching the Managing Directress of ABC Company. But, he failed to understand who had more power in the organization to use the tactics to target that person. In this case it’s Sarath Silva. The reasons why Sarath Silva was using his politics against Roger is given below with what went wrong from Roger’s side to secure his international sales job.

* Resources – There is a direct relationship between the amount of politics and how critical and scarce the resources are. In this case Sarath would have felt the scarce of skilled sales person like Roger and he leaving Sri Lanka would be a burden on Sarath Silva to handle the sales. Roger would have understood the possible scenarios of Sarath discouraging his ideas and gave him an assurance of coaching, training the existing sales staff/manager to full fill his tasks. This would have ensured his International sales job.

* Decisions – Pfeffer (1981) states that ambiguous decisions, which has lack of agreement, and uncertain, long term strategic decisions lead to more politics than routine decisions. The decision Roger made to move to Europe is a long term decision. Sarath on the other hand felt that Roger was uncertain about his decision of going to Europe or staying in Sri Lanka. Roger would have cleared this uncertainty in the beginning by talking to Sarath and making it a point of his interest towards international marketing.

* Goals – The more ambiguous and complex the goals become, the more politics there will be Pfeffer (1981). Sarath considered Roger’s goal of going into International marketing was crazy and he doesn’t wanted Roger to make some end runs. Roger would have immediately reacted on this by clearly defining his goals by using an Information Strategy by providing and lobbying his awareness and expertise on international marketing to Sarath. This would have made some impact. Failing to do so Roger has lost is Europe opportunity.

Moreover, Roger would have understood and be aware of that power and politics influence peoples behavior in ABC Company and he would have developed skills to be able to understand and manage them properly. The main issue was is ignorance of the power Sarath Silva had on the board. Roger should have analysed the source of power before he approached anyone in his function, division and organization. Failing to do so resulted losing his international sales job.

1.3 Question 3

At this point, what would you do if you were Roger? What political strategies could be used?

It’s very important to understand organizational politics. Feldman (1988) indicates that there are few very specific strategies can be identified to help members of organizations to more effectively acquire power and defense the politics. Part of using power organizations is engaging organizational politics to influence others to achieve ones personal goals. Roger would have used this to lobby the board members to vote for him in terms of his International sales job.

If the board knew his interest and clear vision of taking over the Europe branch of ABC Company they would have surely picked him for that respective job. He failed to understand the powerful people in the organization. The points given below indicate the various different strategies Roger would have used to secure his International sales job.

* Forming a winning coalition (Maintaining alliances with powerful people) – Arrangement of coalition is critical to the acquisition of power in an organization. Roger should have had good relationships with other important departments other than sales and top level management. He has only spoke to his Managing Directress about his International idea. If he would have spoken about this to the other board members they would have voted for him and Sarath Silva would have failed.

* Make a quick showing – this involves looking good on some project right away in order to get the attention of people. If Roger knew this before from the day he planned of moving to Europe he would have grabbed the attention of his board members. Once he gained the positive attention his task would have been so easier and secured his international sales job.

* Change opinions – Roger would have put some effort in finding out what’s Sarath Silva think about him moving to Europe through his collogues/friends. After he gets to know that Sarath is not favorable about his movement he then would have worked on ways to change his opinion. Because it’s always important to seek out the opinion of people who oppose ones opinion or discourage an idea. Roger failed to understand Sarath’s opinion beforehand.

* Exhibiting confidence – Roger would have shown enough confidence in his decisions and convinced Sarath on how deeply he’s interested in International marketing. Also, Roger would have shown his confidence, skills, expertise on International marketing to other board members as well to secure his job.

* Developing expertise – Roger has already proved himself as the best sales person in Sri Lanka but, failed to show any experience, qualification, and awareness about International marketing in Europe. If everyone at the ABC Company knows that he’s an expert in international marketing they would have voted for him in the meeting. And also he would have used some research data to support his knowledge on international marketing.

Other than the above mentioned strategies Roger would have used some tactics such as pressure tactics using demands, or intimidations to convince the board to comply with his request to head the Europe operation. Moreover, Roger would have used rational persuasion using logical arguments and factual evidence (Schein, 1977) to persuade Sarath to recommend him for the international sales job.

Therefore, it’s evident from the case that Roger hasn’t used any of the political strategies or tactics to secure his International sales job.

Similar Documents

Premium Essay

Stem Cell Research

...any power at all. If the majority of the public were to decide what each individual should do in every aspect of their life, our democratic system would be nullified. Our laws are written to recognize individuals’ capability to make their own decisions. We have the right to donate our organs, and that it is our choice. We have the right to donate our entire bodies to science postmortem, and that is our choice. Couples have the right to donate their eggs and sperm for in-vitro fertilization of another couple, and that is their choice. Women have the right to decide whether they want to conceive a child or terminate a pregnancy, and that is their choice. In each instance individuals are given the power to choose, they are not denied the opportunity, or forced into doing something they do not want to. The government does not deny your right to be an organ donor, or tell you that you have to conceive a child when another...

Words: 1454 - Pages: 6

Premium Essay

Business Ethics

...1. Why do we study ethics? Sometimes I feel to ask the question, why we don’t study ethics? Simply put ethics is about differentiating between right and wrong. This is going beyond following the rules and laws, it is more about how do we make choices and decisions in our daily personal and professional life. Like my employer allows me to use company’s internet for personal use, but the question is, would it be ethical if I download big files or stream high quality video especially during peak hours and bog down the network? The trend of telecommuting in companies is on rise and different companies have different policies about working from home. But it is ethical for some to misuse this privilege? During a personal discussion with family or friends or business discussion with coworkers or vendors is it okay to talk more and listen less? There are lots of similar questions about our and others behavior that we experience and observe daily and that we should be ask ourselves. In my opinion studying ethics is more like soul searching and finding out are we following the same basics that we learned in our first 10-15 years of life from our parents and teachers on how to be a good and responsible citizen in this global village we live in. We all hear about how businesses are doing unethical practices but in reality it is the people who are demonstrating the unethical behavior not the business. It is important for all of us to study ethics so we can make good choices and decisions...

Words: 2812 - Pages: 12

Premium Essay

Government Aided Fast Food Domination

...So much so, that it has been able to shape the American government in many ways that fit its central goal of gaining as much profit as possible. As Eric Schlossen demonstrates in his book, Fast Food Nation, the fast food industry has done this through a variety of techniques and have succeeded in changing many laws. It also has secured subsidies and tax breaks from American citizens. Most of what the fast food industry has done to change the American government has not been to the advantage of the general American public, but rather solely for their own selfish advantages. At the beginning of the fast food boom in America, our government was not concerned with helping the fast food industry grow, but they sure did help provide a golden opportunity for the the fast food industry to flourish. With the rising popularity of the automobile came our nation's need for speed, and with that came our need for speedy fast food. When congress passed the Interstate Highway Act in 1956, “the fast food industry took route,” and since this was taking place during a period when “the inflation-adjusted value of the minimum wage [began to be] declined by over 40 percent,” the fast food industry was able to take much control over the American public (Shlossen pg. 8). McDonald fast food restaurant entrepreneur, Ray Kroc, has long been the king of the fast food industry, and has used many techniques to get the American government on his side. For example, “In 1972, Kroc gave $250,000 to President...

Words: 1559 - Pages: 7

Free Essay

Business Mgmt

...“GET FIT” Youth Athletic Program Curriculum Middle School & High School Ages 11-17 Athletic Director: Darian Witherspoon Table of Contents Section 1 – Mission and Philosophy Statement………………………………………………........................3 Section 2 – Goals and Objectives…………………………………………………………………………………………..….…...4 Goals………………………………………………………………………………………………………………………………………………4 Objectives……………………………………………………………………..………………….…………………………..……………6 Section 3 – Instructional Model……………………………………………………………………………………………………….8 Basketball…………………………………………………………………………………………………………………………..……….8 Flag Football…………………………………………………………………………………….………………..……………….....…10 Soccer…………………………………………………………………………………………………………………………………………...12 Volleyball…………………….………………………………………………………………………………………………….………….14 Floor Hockey………………………………………………………………………………………………………………………..……16 Softball………………………………………………………………………………………………………………………………………...18 Section 4 --Discussion Model…………………………………………………………………………………………………………….19 Obesity…………………………………………………………………………..…………………………………………………………….19 Bullying…………………………………………………………………………………………………………………………………………26 Section 5 --Personal / Social Responsibility and Participation Model………………………..27 Section 6 --Drugs and Alcohol……………………………………………………………………………………….…………………..28 Section 7 --Positive Impact of Athletics……………………………………………………………………………………….29 Section 8 – Program...

Words: 8158 - Pages: 33

Premium Essay

Fight at Inv Club

...Fight At The Investment Club It started with a fight over Big Macs.  The members of the Golden Years Investment Club rarely disagreed with each other about where to put their money. In fact, most times they left the final decision to Lenn Width, the septuagenarian leader of the group, whose 34-year track record with Golden Years had led Business Week to call him "a dazzling role model" for individual investors in a cover story last May.  But on this crisp October evening in 1992, one of the newest members -- David Korn, a young architect who had joined the 26-member club a year earlier -- decided it was time to dump one of the group's longtime holdings.  "We should sell McDonald's," Korn announced. "It's a stagnant company."  Width was taken aback. He'd been a loyal McDonald's shareholder for years, and had no intention of bailing out now. "It's a growth company," he countered angrily.  "Brinker International and Buffets -- those are growth companies," Korn shot back in a voice that now carried an unmistakable tone of condescension. "They're growing at 20, 30 percent a year."  The other members sat in shocked silence; no one ever talked to Width this way.  "They're too speculative," Width said, his voice rising.  Finally, Korn couldn't take it any longer. "I despise McDonald's," he practically shouted. "The bathrooms are filthy, and the food isn't that great."  This is not the sort of exchange that you normally read about in the press coverage of investment...

Words: 3828 - Pages: 16

Premium Essay

Wynn Resorts Ltd

...W Y N N RESORT make their lives' fortune in "Sin City"; Steve Wynn is one of the lucky few who has. He went from humble beginnings in a family-run bingo parlor in Maryland to Chief Executive Officer (CEO) and Chairman of Wynn Resorts, Ltd. premium-destination world-class casinos and resorts. Seen by many in the entertainment industry as a visionary, Steve Wynn has revolutionized the city of Las Vegas one casino at a time.1 He started with small stakes in the Frontier Hotel in 1967 as a newcomer to Vegas to upping the ante with a complete renovation of the Golden Nugget from a dingy downtown Vegas casino to a four-star resort and gaming facility. Mr. Wynn was not satisfied with his accomplishment of attracting high networth clientele to downtown Vegas; he had dreams of expanding his casino empire, starting with a twin Golden Nugget resort in Atlantic City, a rival gambling destination. IAISO on his repertoire of great successes are the magnificent Mirage (1989), Treasure Island (1993), and the breathtaking Bellagio (1998). After what was considered the largest merger in the gaming industry's history, the Mirage became a part of M G M , Inc. for $6.4 million. Steve Wynn stepped down as Chairman and CEO of the Mirage and set his sights on developing his largest casino resort yet, the Five Diamond Wynn Las Vegas. Wynn Resorts, Ltd. owns and operates the Wynn Las Vegas and the Wynn Macau, a casino resort located in the Macau Special Administrative Region of the People's Republic...

Words: 5298 - Pages: 22

Free Essay

Qwerty

...of risk. I must not only punish but punish with impunity. A wrong is unredressed when retribution overtakes its redresser. It is equally unredressed when the avenger fails to make himself felt as such to him who has done the wrong. It must be understood that neither by word nor deed had I given Fortunato cause to doubt my good will. I continued, as was my wont, to smile in his face, and he did not perceive that my smile now was at the thought of his immolation. He had a weak point -- this Fortunato -- although in other regards he was a man to be respected and even feared. He prided himself on his connoisseurship in wine. Few Italians have the true virtuoso spirit. For the most part their enthusiasm is adopted to suit the time and opportunity, to practise imposture upon the British and Austrian millionaires. In painting and gemmary, Fortunato, like his countrymen, was a quack, but in the matter of old wines he was sincere. In this respect I did not differ from him materially; --I was skilful in the Italian vintages myself, and bought largely whenever I could. It was about dusk, one evening during the supreme madness of the carnival season, that I encountered my friend. He accosted me with excessive warmth, for he had been drinking much. The man wore motley. He had on a tight-fitting parti-striped dress, and his head was surmounted by the conical cap and bells. I was so pleased to see him that I thought I should never have done wringing his hand. I said to him --"My dear...

Words: 6237 - Pages: 25

Free Essay

Holidays in China and Yemen

...list the holidays in Yemen Public holidays in China There are currently seven official public holidays in China. There was a major reform in 2008, abolishing the Labour Day Golden Week and adding three traditional Chinese holidays (Qingming Festival, Duanwu Festival, and Mid-Autumn Festival). A notable feature of mainland Chinese holidays is that weekends are usually swapped with the weekdays next to the actual holiday to create a long vacation period. January 1 New Year 元旦 Sun 1-Tue 3 January[ 1st day of 1st lunar month Chinese New Year 春节 Sun 22-Sat 28 January] 5th solar term (April 4 or April 5) Qingming Festival 清明节 Mon 2-Wed 4 April May 1 Labor Day 劳动节 Sun 29 April - Tue 1 May 5th day of 5th lunar month Dragon Boat Festival 端午节 Sat June 23 15th day of 8th lunar month Mid-Autumn Festival 中秋节 Sun September 30 October 1 National Day 国庆节 Mon 1–Wed 3 October Transferred holidays In all these holidays, if the holiday lands on a weekend, the days will be reimbursed after the weekend. The Chinese New Year and National Day holidays are three days long. The week-long holidays on May (Labor) Day and National Day began in 2000, as a measure to increase and encourage holiday spending. The resulting seven-day holidays are called "Golden Weeks" (黄 金周), and have become peak seasons for travel and...

Words: 4495 - Pages: 18

Premium Essay

The Facts of Life

...about a group of friends having a picnic on a riverbank. Suddenly, the group hears the sound of crying and looks up, shocked to see a baby floating helplessly in the river. They immediately dive in to rescue the drowning baby. To their horror, the group notices another baby floating towards them. They rush to save that baby, but no sooner is that baby pulled to safety; they see another baby floating. By this time a vicious cycle has started and soon the river is full of drowning babies. Again and again, the group dives into the river, trying to save the seemingly endless flow of drowning babies. One of the people gets out of the river and begins running upstream. A friend shouts “Where are you going?” “I’m going to find out who is throwing the babies into the river and make them stop!” the heroic man yells back, as he runs upstream. The homeless animal problem is very similar to this fable. Animal shelters and rescue groups try hard to save the homeless animals in the “river”. However, this will never solve the problem. Millions of dogs and cats are killed annually as the result of unwanted, unplanned litters that could have been prevented by spaying and neutering. According to the article “Early-Age Spay/Neuter before Adoption,” “With seven to ten million cats and dogs destroyed each year in shelters, it is clear that overpopulation is the greatest killer in the nation of cats and dogs and is the major cause of animal pain and suffering.” The greatest hope for...

Words: 4099 - Pages: 17

Premium Essay

Apple Inc.

...STRATEGIC MARKETING MANAGEMENT APPLE INC. By Jeremy Emmanuel B. Joya April 2012 Abstract: I. Context This is a written report exclusively for my BTEC Level 7. This organization that I’ve chosen is one of the great example. Apple Inc. (formerly known as Apple computer Inc.) founded in April 1, 1976 (incorporated January 3, 1977) by the late Steve Jobs, Steve Wozniak and Ronald Wayne. Their employee is about 60,400 (as of 2011) worldwide and their revenue is running a US$ 108.249 Billion (based on their FY 2011). This is the company that is best known in their hardware products like the Macintosh line of computers, the iPod, the iPhone and the iPad. The word “Computer” was removed from its name on January 9, 2007 as its traditional focus on personal computers moved towards consumer electronics. A brief history of two powerful companies… Apple Inc. (formerly known as Apple computer Inc.) founded in April 1, 1976 (incorporated January 3, 1977) by the late Steve Jobs, Steve Wozniak and Ronald Wayne. Their employee is about 60,400 (as of 2011) worldwide and their revenue is running a US$ 108.249 Billion (based on their FY 2011). This is the company that is best known in their hardware products like the Macintosh line of computers, the iPod, the iPhone and the iPad. The word “Computer” was removed from its name on January 9, 2007 as its traditional focus on personal computers moved towards consumer...

Words: 3660 - Pages: 15

Free Essay

Dante

...introduction 'Earthly life passed before the half, I found myself in a dark forest ... "- With these lines begins one of the greatest and most brilliant works of world literature - "Divine Comedy" by Dante Alighieri. "This is a poem about the Dante," danteida, "and at the same time, a poem about a man who, descending and ascending the ladder of the universe, cleaned, and acquires perfect knowledge." People at all times sought to know the universe. And he could not. Maybe that's why his "comedy" to this day loved by ordinary readers and critics, and researchers are still hotly debated around her, every day, opening in this work, something new, not yet solved. "" Comedy "- it's poetry, which has become itself the judge, interpreter, and the key to unlocking secrets" - rightly remarked Alexander L. Dobrokhotov in his book "Dante Alighieri". The theme of my work - "The conductors and the twins Dante and their functions in the" Divine Comedy. '"I think for most of its first full disclosure should understand that in general it is a product. First, the genre of "Comedy" - a vision. The entire poem - a "journey to the underworld, this poet in a vision." However, it is worth noting that "in the" Divine Comedy "the central character - not an abstract" I "and Dante with all the features of his personality and life events of the past ... At the same time," Comedy "is a fiction that develops on the literary laws." Dobrokhotov draws our attention to the fact that "the combination of...

Words: 4891 - Pages: 20

Free Essay

Spirituality

...Environmental Pollution Environmental pollution is one of the biggest problems the world faces today. It is an issue that troubles us economically, physically and everyday of our lives. The contamination of the environment is also being linked to some of the diseases that are around currently. Yet, most people do not know about this problem. This shows that environmental pollution is becoming an increasingly worse problem that needs to be taken care of as soon as possible, not only for the good of the environment but also for the people that live in it. Many factors are present for why environmental pollution has become such a large issue in the world. However, if the people of the world were to address the issue it would definitely help both the environment and it’s people. There are many activities that can be done by both the common citizen to the governments of the world, which could severally improve the world’s environmental problem. On the other hand, if the current way the world’s environmental problem is being handled continues, catastrophic consequences can follow for the future population. http://www.exampleessays.com/viewpaper/12389.html Nowadays environmental problems are too big to be managed by individual persons or individual countries. In other words, it is an international problem. To what extent do you agree or disagree? An essential problem of the 21st century is world pollution. Currently the environment is so much contaminated that urgent measures...

Words: 3474 - Pages: 14

Premium Essay

Talent Management

...Microsoft: Competing on Talent (A) Christopoher A Bartlett Summary of Case In summer 1999, a front page article on Wall Street Journal reported that: “Tired of grueling deadlines, frustrated by the bureaucracy that has accompanied Microsoft’s explosive growth, or lured away by the boom in high tech start ups, dozens of the company’s most capable leaders, all around 40, have opted out – at least temporarily….” Foundations of Microsoft’s human resources philosophies, policies and practices Recruitment: attracting the best and the brightest Bill Gates had long recognized that it took exceptional people to write outstanding software. In the initial stages, they recruited “smart friends” extremely intelligent but not necessarily experienced, new college graduates. In 1992, Gates acknowledged that “Take our 20 best people away, and I will tell you that Microsoft will become an unimportant company”. He considered helping his managers hire the best of all possible candidates as his greatest accomplishment. For Gates, acquired knowledge was less important than “smarts” – the ability to think creatively, and experience was less important than ambition – the drive to get things done. And, to raise the bar continually. One of the prime responsibility of Steve Ballmer, since he was hired in 1980 as assistant to the President was recruiting coordinator. Steve’s mantra was: ...

Words: 4612 - Pages: 19

Premium Essay

Good One Bad One

...C A.$£~ 3 Jack Brandon's initial idea has not panned out, and the cash is nearly gone. But he's got a new plan. Will you back him a second time? HBR CASE STUDY Good Money After Bad? by John W. Mullins From a rocky perch overlooking the sparkling lights of San Francisco, Christian Harbinson gazed across the bay to the hills above Sausalito. "There's nothing like a vigorous hike;' he thought, "to clear the mind before a crucial meeting:' It was a mild March evening, and the 35-year-old venture capitalist was reflecting on the recommendation he would have to make to his firm's investment committee the next morning about Jack Brandon's young company, Seven Peaks Technologies. Seven Peaks had developed an innovative device for cauterizing blood vessels during electrosurgery, and although the feedback from surgeons had been excellent, sales had been slow. The Palo Alto-based venture capital firm where Harbinson worked, Scharfstein Weekes, had invested $600,000 in Seven Peaks from its newly raised second fund of $100 million. SW's current investment strategy focused on early-stage medical technology companies, and Seven Peaks was a typical investment for the firm, which liked to get in on promising ideas modestly and then follow with additional rounds of capital after technological and market milestones had been met. The $600,000 was nearly gone; Harbinson and his colleagues had to decide whether to put more into the struggling company. Seven...

Words: 2760 - Pages: 12

Free Essay

Article About Internal Fraud

...THE CROOKS in your company have never been so tempted. The spread of technology that makes office work easier can make white-collar crimes almost laughably simple. Laser printers can forge documents with breathtaking fidelity, and color copiers can reproduce them. Imagine a dishonest executive boarding a plane and carrying a laptop computer with a modem. Using the on- board telephone, he hooks up to the mainframe at headquarters and transfers $50 million to his Swiss bank account -- as he jets toward Rio. Such new opportunities, plus the spirit of an age that encourages rather than represses the natural lust for wealth, are greatly intensifying the allure of ripping off one's employer. The amounts being stolen from companies appear to be growing dramatically. In the past several weeks a former General Electric Capital manager, allegedly in cahoots with a bank vice president, was charged with taking $30,000 in kickbacks as part of a scheme that resulted in $4.5 million of fraudulent loans. A Continental Illinois vice president went on trial charged with approving $1 billion of bad loans in exchange for $585,000 in kickbacks, loans that allegedly cost the Chicago bank $800 million and helped trigger its 1984 collapse. FDIC investigators say internal fraud was the major cause of one-third of all bank failures over the past two years. To some extent the victims have themselves to blame. A company with shoddy financial controls or badly trained internal auditors practically begs employees...

Words: 2951 - Pages: 12