BA Business: Organisational Theory - Union Carbide Case Study Analysis

This case study delves into the ethical issues and organizational behaviour of Union Carbide, examining the aftermath of the Bhopal gas tragedy. It explores the management dilemmas faced by the company, particularly concerning employee turnover, financial losses, and environmental sustainability. The analysis covers the effects of power, influence, and conflicts within the organisation, as well as the leadership style adopted by the CEO and the motivational methods employed. The report highlights the implementation of transformational leadership and Maslow's hierarchy of needs, along with the use of extrinsic rewards. It recommends the adoption of a laissez-faire leadership approach and policies related to employee safety. The conclusion emphasizes the importance of effective leadership and management styles for enhancing workforce effectiveness and achieving organizational goals. The case study draws upon various scholarly sources to support its findings and recommendations.

Ethical issues at union
carbide

Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Management dilemmas faced by manager for enhancing the organisational effectiveness...3
Effects of power, influence and conflicts within company....................................................4
Evaluation of leadership style along with motivation to make right decision.......................5
Recommendation....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7

INTRODUCTION
Organisational behaviour can be defined as a process which study the human behaviour
within company. Primary purpose of this organisational behaviour is to regenerate organisational
theory in order to improve concept of organisational life. In other words it tends to a study
related with group and individual performance in company (Samuel and Buchanan, 2020). In
which the present report is based on US union carbide, which is an American multinational
chemical corporation. They are the manufacturer of chemicals, petrochemical and related
products. Further, this report covers discussion about leadership, group dynamic, effect of power,
influence & conflict in organisation and motivation methods used by chosen company.
MAINBODY
Management dilemmas faced by manager for enhancing the organisational effectiveness.
According to the given situation, after Bhopal gas tragedy, it become difficult for the
manageget team of company to maintained the effectiveness of company as it was the world’s
largest disaster and over 500,000 peoples get exposed into MIC. And due which it individual get
afraid of working there. And this hamper the overall performance of company. The major
problem that is faced by the entities of union carbide company is increment in employee turnover
ratio. Most of the employee left the company due to disaster (Richards and Dignum, 2019).
Additionally, they will not able to recruit new candidates and they will also not wants to work
there. Company faces financial loss also and that all directly affects the effectiveness of
company. In order to combat with all situation management team of company need to take same
important steps and opt some policies that help employees and companies foe combatting with
all these issues faced by entities due to disaster. Along with along these issues that major issue
that is faced by company it affects the environment sustainability also as MIC is not good for
health, it creates eye irritation or blindness. Due to which the located nation of company become
warning sign for some time and due to which it profitability and productivity of company
affected. Manger of company faces so many problems in order to deal with all the issues.
Further, for the enhancement of effectiveness, it become vital for manger of company to
retain their position again by providing some benefits to all peoples of company such as life
insurance policy, safety measurements while working in production plant. Along with all these

need to made some policies and strategies for avoiding future uncertainties as well as policies
related with the safety. So that such types of disaster can be controlled and no loss will occurred.
Effects of power, influence and conflicts within company.
Union carbide is an American multinational organisation and the manufacturer of
petrochemical, pesticides and related products. This company has strong consumers base and
wish to expand their operation internationally (Moon and Nolan, 2019). In order to improve
operational efficiency, they are implementing some techniques.
Effects of power: For retaining the position in competitive world, union carbide maintain
collaboration and complete their task swiftly. So that their goal will be achieved & no one will
able to feel that they are exhausted. Union carbide uses various process in order to improve the
image and reputation of company after the world’s largest disaster. In which the manageget team
of company forecast future uncertainties and set objective on the basis for company so that they
will effectively able to attain that and will able to compete will all uncertainties. This is vital for
attaining high level efficiency for the survival at competitive world.
Conflicts- Every business unit faces so many problems and conflicts while dealing with the
daily operations. In context of union carbide, the major conflict face by this company is Bhopal
Gas tragedy as over five thousand peoples got exposed in methyl isocyanides. This totally affects
the operation of company. Afterwards they faces so many issues related with the recruitments,
management, and in turnover ratio of employees. For which the management team of company
need to provide same safety security to their employees so that they will feel secure while
working there. Dispute management related with conflicts and employee relation, it is important
to create healthy & positive workplace environment as well as engage employee towards their
task so that they will busy towards their task and will not divert their mind in the direction of
disaster.
Conflict management theory revolves around the determination of disputes that occur at
workplace. In context of chosen firm, its management team can use this for the same and
eliminates the disputes. Some of styles and approaches are as follow:
Co-ordination with supervisors- It includes formulation of objective with the help of
coordination with mangers and will able to figure out solution of different disputes. By which
each employees of company will get benefits and conflict will resolve easily (Toy-Cronin, 2018).
Conflict resolution theory- It is utilised by respective company and is mentioned below:

Recognition: it includes recognition of gap in between plan and disputes & it is related
with the situation when individual motivate other member.
Self-formulation: It is related with the exchange and involvement of required results
among respective members and understand their positions in order to gather the resources that
are required to eliminate disputes.
Dispute elimination: This is related with the elimination of negativity from individual
emotions by agreeing and hunching disrupts and negativity.
Discussion: In this step, ideas and opinion of employee will be taken by management team
in order to collect data about feeling related with the disputes and then considered their ideas.
Evaluation of leadership style along with motivation to make right decision
CEO of union carbide adapt transformation leadership style in order to motivate and
encourage their employees as well as to adopt new changes of external environment. For which it
is important to formulate new strategies and that requires coordination among employees of
company so that they will able to sustain at competitive environment. The transformational
leadership style includes various stages such as team, division and departments. Hence for
developing new ideas and devising right decision, they caries out intellect stimulation
(Montreuil, Martineau and Racine, 2019). For developing effectiveness in working they carries
out forwards thinking as its makes improvement in employee performance and help company to
achieve its goal.
Further, to motivate the employees of company entities use Maslow motivational theory. It states
that there are basically five basic needs of an individual and that need to be satisfied in order to
survive. In which the primary is related with psychological need, it concerns with the biological
needs of human being and needed to survive. Next is concern with safety need, all individual
within company wants safety and security while working there. In relevance to this union carbide
firm need to provide some security or life insurance policy to their employee for addressing their
safety measurements. After that is belongingness, in which interpersonal relations is required and
wishes all workers of company that they have good relation with the peer groups and friends for
achieving personal gaol along with organisational goal. Then comes esteem which ensures that
individual within company are able to perform their task in effective manner and will able to
accept complex & challenging task. Last is self-actualization, in this all individual will think they
are able to perform their task with full efficiency as well as will able to help out other who are

helpless (Thomas, Duessel and Meier, 2017). So after the disaster, union carbide uses this
method of motivation to motivate their staff as well as use extrinsic rewards system by providing
various benefits such as life insurance security, bonus, performance appraisal, encouragement
and so many other benefits. All these factor or resources helps company to improve their
efficiency to contribute in the direction of company growth and success.
Recommendation
For the improvement of efficiency of employees the best leadership that will be opt by the
manageget team of union carbide company is laissez-faire as it is more into delegation of
authority to team members and provide complete freedom to tale decision for achieving
objectives while the leders provide resources & tools to their team.
After disaster, management team of company need to opt some policies related with the
safety of employees as well as offer them some life insurance benefits while working in
company (Mason, Crossley and Bond, 2019). So that they will able to feel secure and carry
forwards their work without any fear.
CONCLUSION
From above discussed report it has been analysed that appropriate leadership and
management style helps company for enhancing the effectiveness of workforce. For which it is
vital to adopt effective and suitable leadership style. In which the best style for petrochemical
companies would be laissez-faire styles as it relies to allocation of delegation to all members of
team and give them complete right to task decision for accomplishment of organisational goal.
Apart from this, employee encouragement and motivation is also required so that their efficiency
will get improved and they will able to perform their task in effective manner.

REFERENCE
Books & Journal
Mason, M., Crossley, M. and Bond, T., 2019. Changing modalities in international development
and research in education: Conceptual and ethical issues. International Journal of
Educational Development, 70, p.102080.
Montreuil, M., Martineau, J. T. and Racine, E., 2019. Exploring ethical issues related to patient
engagement in healthcare: Patient, clinician and researcher’s perspectives. Journal of
bioethical inquiry, 16(2), pp.237-248.
Moon, B. L. and Nolan, E. G., 2019. Ethical issues in art therapy. Charles C Thomas Publisher.
Richards, D. and Dignum, V., 2019. Supporting and challenging learners through pedagogical
agents: Addressing ethical issues through designing for values. British Journal of
Educational Technology, 50(6), pp.2885-2901.
Samuel, G. and Buchanan, E., 2020. Guest editorial: ethical issues in social media research.
Thomas, G., Duessel, P. and Meier, M., 2017. ETHICAL ISSUES OF USER BEHAVIORAL
ANALYSIS THROUGH MACHINE LEARNING. Journal of Information System
Security, 13(1).
Toy-Cronin, B., 2018. Ethical issues in insider-outsider research. The SAGE handbook of
qualitative research ethics, pp.455-469.