In the paper “Organizational Behavior at Fasco Motors” the author analyzes a breakdown of ethics caused by the behaviors of senior-level management. Fasco in Thailand was operating in an environment in which most business dealings with Thai officials…
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Fasco management should have been working continuously to create a culture of collectivism and loyalty, under a team methodology, to ensure that the business was aligned with Thailand customer needs and values. To the customers in Thailand, the concept of trust, ethics, and relationship was vital to establishing business relationships. The unethical behaviors, such as providing low-cost products to favorite customers and then adjusting accounting to hide this deception, was creating a culture of mistrust and greed. When it was discovered, by other managers in the leadership team, that these situations were occurring, failure to disclose this knowledge to senior-level officials showed the lack of integrity related to establishing a loyalty-based, family-oriented organizational culture. Positive organizational behavior demands that individuals in management or senior-level leadership roles model behaviors related to ethics, unity, and trustworthy business practices. There is a theory in social sciences referred to as social learning theory in which individuals observe role models and then learn what behaviors are appropriate based on whether they are rewarded or punished (Neubert, Carlson, Kacmar, Roberts & Chonko, 158). When the role model is someone attractive and credible, or hold high status in a firm, people will generally model these behaviors when they are not punished effectively (Neubert, et al). This is what was occurring at the organization as mid-level management viewed their leaders being rewarded for their false accounting practices. In fact, Allen Moot, the general manager, was receiving kickbacks for these efforts and thus it provided legitimacy to model these same behaviors by the other managers who were ultimately fired for their role in modeling these unethical business practices. In order to create a cohesive organization built on ethics and loyalty, there must be an establishment of affiliation between all group members. Creating a sense of team belonging is critical in organizational behavior in order to gain motivation and commitment. “Once the need for affiliation is satisfied, the individual desires more recognition and this can produce feelings of prestige, power, and control” (Gambrel & Cianci, 144). While the managers were receiving kickbacks for their improper business decisions, others were observing lack of punishment for unethical behaviors and thus an unacceptable type of affiliation was being created: one in which individuals were gaining financial rewards for dishonest business dealings. However, this indecent type of affiliation in the management ranks was providing perceptions of power, confidence, and control and thus people were willing to abandon business needs to satisfy their own financial objectives. To have a quality team, people have to come to identify with the group and psychologically join in order for there to be loyalty (Bush & Coetzer, 185). High ranking managers like Allen Moot were creating a new type of social identity related to groups by accommodating individual needs and forsaking business objectives in the process. Regardless of the unethical behaviors, team membership was being developed effectively, but for all the wrong reasons as it related to personal fulfillment and financial reward.
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