WorldCom

Running Head : WorldCom Failure

Organizational Behavior Principles and the Failure of WorldCom

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In 2002 , WorldCom collapsed and d for bankruptcy after it was overwhelmed by frequent decadence of their profits . In addition , the company was facing one of the greatest accounting fraud scandals reporting irregularities of up to 11 billion . According to Calkins and Romar (2006 ) WorldCom acquired a combined loss of 73 .7 billion which hastened its acquisitions which also contributed to the loss including other factors like poor leadership and

provision of individual loans to senior executive members . The emerging fraudulent and other unethical behaviors contributed to WorldCom 's fall from the helm of the telecommunication industry . It is evident that the organization 's leadership and management structure was extensively flawed making it vulnerable to failure . This seeks to evaluate organizational behavior principles which can illustrate why WorldCom failed as well as predicted its collapse

WorldCom 's leadership and management structures were largely responsible for the organizations ' failure . In assessing leadership and management behaviors within the organization it is evident that there existed a bureaucracy where leaders provided the final decisions and where they were not to be questioned . An effective organizational leadership ideology requires that all organizational members contribute to the organization 's goal setting and implementation . Miner (2002 br

.293 ) asserts that leaders should participate actively in the organization by portray firm but positive leadership . Leaders should not force decisions onto employees...