WorldCom Case Study: Leadership, Ethics, and Organisational Theory

This case study analyzes the leadership of Bernard Ebbers at WorldCom, focusing on his bureaucratic and transformational leadership styles and their impact on the organization. The analysis examines the unethical practices employed to achieve success, the influence Ebbers exerted over his employees, and the motivational theories that underpinned his approach. It explores the importance of perceived fairness and trust in supervisors, key elements that were both present and absent in the WorldCom case. The study references relevant literature to support its arguments and offers insights into the consequences of unethical behavior and the critical role of ethical leadership in organizational success. The analysis highlights how Ebbers' leadership style, while initially effective, ultimately led to significant problems due to a failure to control unethical behavior within the company. The case study provides a comprehensive overview of the organizational dynamics at play, including the importance of ethical considerations and the impact of leadership decisions on employee behavior and overall organizational outcomes.

Organisational theory and
Practice

Table of Contents
QUESTION 1...................................................................................................................................1
QUESTION 2...................................................................................................................................1
QUESTION 3...................................................................................................................................1
QUESTION 4...................................................................................................................................1
QUESTION 5...................................................................................................................................2
REFERENCES................................................................................................................................3

QUESTION 1
Bernard Ebbers was CEO of WorldCom which is telecommunication company. He was
running organisation with help of 4-5 people. He done more than 70 mergers and acquisitions.
Unethical practices was done by him to gain success and growth at marketplace. From above
case study it has been analysed that Bernard is using Bureaucratic style of leadership which
means manager has to mange entire things and entire work complete as per specified process.
This has been observed that entire power was in the hands of top authorities. Another people
added after acquisitions and they examined that they are not having a proper structure for doing
business or persons are not much professional. They claimed that organisation is like a start- up
(Trevino and Brown, 2005).
QUESTION 2
From case study, this has been analysed that Ebbers influencing power was much
effective; therefore, he will easily convince others to do work. In this manner, he told his
managers and staff members if they adopt any unethical practice then, this will aid them to gain
better or positive outcome. As he had much leadership and convincing abilities so he easily
influenced others to embrace unethical practices. In the meetings, he utilized many philosophies
which help to influence subordinates. He told others, if they do work according to him then, this
assists to reduce cost.
QUESTION 3
Ebbers's leadership style is linked with motivational theory. He knew that right factor
which can influence employees (Tavender and et. al., 2015). He knew that some employees get
motivated by earning more more so their basic needs can be met while other get motivated by
getting promotions and awards. When a leader has bureaucratic leadership style then he/she do
not have much control on others working. In present case, Ebber failed to control unethical
behaviour of employees which lead of greater problems at the end.
QUESTION 4
Ebber adopted the transformational leadership style where individual and subordinates
raise each other so that they could gain better return. This leadership style define and enable the
manager s to take decision on their behalf. Thus, their values define that risk need to be carried
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down recklessly without thinking twice. Thus, key managers used to take decision by their won
which define the chances and options of such accounting fraud. Although, key ethical managers
perform their roles and responsibilities properly at WorldCom where all goals and targets could
be accomplish on time. This was the major reason behind company success and sustainability
which promote and support better return.
QUESTION 5
Certain number of characteristics which need at the time of working for managing
diverse number of things are define as follow:
 Perceived fairness where leaders and managers have to define things properly and in fair
format so that they could determine the better and effective outcome.
 Trust in supervisor stated that subordinates have to maintain an appropriate and suitable
trust on each and every individual which facilitate in defining the things properly and
effectively (Burrell and Morgan, 2017).
Yes, Ebber opt these characteristics at workplace of WorldCom which enable them in deriving
better and effective outcome. Although such aspects enable in define that subordinates have faith
on their supervisor so that better return could be define.
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REFERENCES
Books and Journal
Burrell, G., & Morgan, G. (2017). Sociological paradigms and organisational analysis:
Elements of the sociology of corporate life. Routledge.
Tavender, E. J. & et. al. (2015). Developing a targeted, theory-informed implementation
intervention using two theoretical frameworks to address health professional and
organisational factors: a case study to improve the management of mild traumatic brain
injury in the emergency department. Implementation Science, 10(1), 74.
Trevino, L. & Brown, M. (2005). The Role of Leaders in Influencing Unethical Behavior in the
Workplace. In R.E. Kidwell and C.L. Martin (Eds.) Managing Organizational Deviance
(pp. 69-96). California: Sage Publications.
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