Problem
Resolving Ethical Business Challenges:
CrudeOil, a subsidiary of a major energy conglomerate that manufactures oil drilling parts around the world, experienced a lag in sales. The board of directors brought in a new manager to revamp the company. They recommended Lee as the new manager because he had an impeccable reputation for achieving results, and top managers in the industry liked his personality. After 18 months, Lee was successful in increasing the company's sales and profits. He began his tenure at CrudeOil by laying off several salespeople who had not performed according to his high standards. This made those who stayed with the company uneasy, and they responded in different ways. Some tried to get on Lee's good side, while others focused on achieving their sales goals and avoiding any type of interaction with him.
The problem was Lee's management style which was harsh and unpredictable. When a mistake was made, he blamed salespeople he disliked even if it was not their fault. On one occasion, Maria, one of the newest salespeople, brought in an unusually big sale. Rather than giving her positive feedback, Lee acted like it was a normal occurrence. What was ironic was one of the company's core values was to treat everyone with respect. It was considered so significant it was printed on a banner and hung at the front of the office for all to see. When Lee lost his temper, it often happened while he stood in front of all the employees underneath the banner.
His personality really came out when he got angry. At several meetings, he randomly picked out salespeople and engaged in intimidating behaviors such as staring at them for long periods of time, discounting their ideas, and simply ignoring them. Lee treated all of the employees with intimidating behavior, even the ones he claimed to like. Every so often, Lee picked out an employee and made snide comments over the course of several days. He made no excuses for his behavior.
One day, when one of the employees finally broached Lee about the matter, he announced to the entire office, "I pick out the employees who are underperforming. I am the boss, and I need to make sure you people make as many sales as possible." He paused and looked at the expressions on the employees' faces. He then continued, "Actually, you should make more sales than that!" Lee turned toward his office, laughing as he shut the door. The employee who spoke up was given the subsidiary's lesser sales accounts.
Amy, who was hired as a salesperson a few months before Lee took control of the company, was continuously in Lee's crosshairs. He told her even though she made her sales quota, it was not satisfactory. Furthermore, he took credit for her performance at meetings. When her numbers did not meet the quota, he spread rumors suggesting she wasn't meeting her goals because of problems in her personal life.
One day, Thomas, another salesperson, approached Amy and asked her how she was doing. Amy looked at him confused and responded, "I'm as fine as anyone else here. Why?"
Thomas answered, "Lee told me you had been in the hospital lately and you might be suffering from a serious illness." Amy was taken aback. "Thomas, Lee is just saying that because my sales numbers were low this last quarter. Believe me, I am fine." Amy sat there infuriated that Lee would be spreading rumors about her.
Amy knew initiating a conversation with Lee would not be the way to resolve this issue. She felt, if she confronted him about his behavior, she would be fired or demoted, like the other employee. She tried talking to others Lee had bullied, but many feared for their jobs and preferred to remain silent. She also considered speaking with the board of directors, but she did not know any one of them well and she knew they had a good relationship with Lee. Some kind of action had to take place because Amy could not work in an environment like that much longer. Besides, other employees' tolerance would wear out soon, and the company as a whole could suffer lasting consequences. As Amy walked toward the front door at the end of the day, she avoided looking at the banner featuring CrudeOil's most important value.
Task
a) Describe the organizational culture at CrudeOil. How does it contribute to the current situation?
b) How is CrudeOil violating its core value of treating others with respect? What are some ways it could reincorporate this core value into its organizational culture?
c) If Amy cannot report her problems to her immediate supervisor, what are some other ways she can handle the situation?