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JAGANNATH UNIVERSITY
Department of Finance
Bachelor Of Business Administration
Welcome
To
Our Presentation
Presented By:
Epimetheus-I
Serial No:
Name of the members of the group
Roll Number
Designation
01
Sultan Ahmed Khan
091597
Group Leader
02
Md. Mynul Islam
091633
Member
03
Md. Mofazzal Hossen
091615
Member
Case Study on Chapter -16
Ethical Dilemma
Introduction
We do this to know the relationship between the directors & CEO of
the company. Both of them are higher official of the firm but their
view point is different. In general CEO report to the Board of
Directors to update themselves. For this reason Board of Directors
want to impose their power to CEO. Basically our purpose is to know
“How much should Directors direct?”
Ethical Dilemma (Cont.)
Every organization has an appreciable size & a board of
directors. In general all of the employee of the organization
have to report to his/her superior so as to CEO. CEO report to
the board of directors may be in daily/weekly/monthly/ basis.
We should remember that an active board of director is always
good for the organization. Again when directors are
empowered they become “free agent”. The final risk is the
responsibility that board of directors will micromanage a CEO
strategy.
Ethical Dilemma (Cont.)
It is related to the Organizational Behavior. In the Organizational
Behavior we learn how to treat with the employee of the
organization & how to maintain a good relation with the
employee of the organization. Here the importance of this are
proven again.
Ethical Dilemma (Cont.)
Question-1
How active do you think board of director should do?
Solution from Our analysis –
The board of directors should do the following activitiesa) They should remove the communication gap between them &
CEO to maintain themselves active in the organization.
b) Believe CEO & give requirement of an internal auditor.
c) Give the proper authorization to the CEO but make it sure that
Board of directors benefit must maintain properly.
Ethical Dilemma (Cont.)
Question-2
Should directors mix with employee to obtain company information
from the ranks? Why or why not?
Solution from Our analysis –
It should be “Yes”. The reason are given belowa) It will increase equality in the organization.
b) It will increase the accountability among all of the organization.
c) Faster the work movement in the organization
d) Increase the productivity of the organization.
e) Help in future plan of the company.
f) help in taking faster decision in the industry.
Ethical Dilemma (Cont.)
Question-3
When is the line between representing shareholders’ interests and
micro managing or second-guessing the CEO?
Solution from Our analysis –
The line between CEO & Shareholders’ are created in the following
situation.
a) When the price of the share are decreasing.
b) When accountability are rare between the parties.
c) When effective and efficiency is about in question.
Case -1
Introduction
We do this to know the importance of the organizational structure
in the organization. Steelmaker Nucor follows simple structure &
he is quite successful. But big organization gets it tougher . So
simple structure is good for quite small organization. Other
organizations of the industry follows more complex structure than
Nucor’s Organization though it’s leaner than this.
Case-1 (Cont.)
Steelmaker Nucor follows simple structure & he is quite successful.
But when the organization getting bigger it seems tougher for the
CEO to manage the organization. So he added a new layer in its
structure . Other organizations of the industry follows more
complex structure than Nucor’s Organization though it’s leaner
than this.
Case-1 (Cont.)
It is related to the Organizational Behavior. In the Organizational
Behavior we learn how works the organizational structure in the
organization especially the simple structure. When simple
structure is needed & how far it can be applied compared to
others. It teaches us in “Foundation of Organization Structure”.
Case-1 (Cont.)
Question-1
How does the Nucor case illustrate the limitations of the simple
organizational structure?
Solution from Our analysis –
The limitations of simple organizational structure are given
below:
 Complex to maintain when it gets bigger.
 Only suited for small organization.
 Low formalization





Works only in a centralized way
Slow decision-making
More risky
Wide span of control
Low layer of control.
Case 2- (Cont.)
Question-2
Do you think other organization should attempt to replicate
Nucor’s structure? Why or Why not?
Solution from Our analysis –
I think other organization should not attempt to replicate Nucor’s
structure because this type of structure can cope with only in
small organization. When its get bigger it starts facing problem
like Nucor Faces.
Case 1- (Cont.)
Question-3
Why do you think other organizations have developed much more
complex structures than Nucor ?
Solution from Our analysis –
We think a much more complex structure provide some better
opportunities such as:
 For big organization more complex structure is helpful
 Formalized rules & regulations often helpful
 Information exchanged in complex structure more
effectively than simple structure
 Narrow span of control.
 Proper chain of command
Case 1- (Cont.)
Question-4
Generally, organizational structures tend to reflect the views of the
CEO. As more and more “new blood” comes into Nucor, do you
think structure will begin to look like that of other organizations?
Solution from Our analysis –
No. Because Nucor likes to see works have done. So he is
following simple structure though its facing problem with
management.
Case 2
Introduction
We do this to know how a comparatively less complex structure can
work better than complex structure followed by big companies. We
can know that how too much hierarchy & bureaucracy stifled
creativity and adaptation. So the elimination of hierarchy &
bureaucracy can give us a better result.
Case 2 (Cont.)
Gore formed DuPont engineer during his 17 years career. He
eliminates hierarchy, bureaucracy & status differences altogether.
Employees are free but the number of employees are low enough to
share ideas. As a result organization is giving tremendous growth &
profit. This unique structure is quite tough for new employees but as
the day goes on he gets used to the structure.
Case 2 (Cont.)
Question-1
How would you characterized Gore’s organizational structure using
terms from this chapter? For example, is it mechanistic or organic?
How might this structure influence Gore’s strategy?
Solution from Our analysis –
This chapter suggests two kinds of organizational structure, Gore’s
organizational structure is organic. It’s flat uses crosses hierarchical
and functional teams, possesses law formalization and a
comprehensive information network but networking is not possible
due to the lack of employee and enough layer.
Case 2- (Cont.)
Question-2
Considering what you know about individual differences as
personality, what types of employees might respond more and less
favorably to Gore’s lake of hierarchy?
Solution from Our analysis –
Those who like over freedom, indifferent to work and low
formalized, they choose Gore’s strategy. On the other hand who are
energetic, structured and formalized is likely to be chosen
mechanistic organizational model.
Case 2- (Cont.)
Question-3
What are some advantages and disadvantages of Gore’s structures
from a company perspective? What about from an employee
perspective ?
Solution from Our analysis –
The advantages area) Narrow spam of control
b) No formalization
c) Cost minimization
d) No chain of command
The disadvantages area) No accountability
b) Lack of Bureaucracy
c) No job titles.
Case 2- (Cont.)
Employees Perception
Employees get freedom absence of routine work but when they are
in work they have no freedom to share ideas. Low formalization and
can know one another, talk freely about their knowledge and ideas
in Gore’s organization. As a result corporate structure has been
tremendous growth and profit.
Case 2- (Cont.)
Question-4
How might Gore’s organizational design affect its relationships with
external companies that are more hierarchical in nature?
Solution from Our analysis –
There is opposite relationship between Gore’s organizational
structure and that of others. Because, in Gore’s, there is lack of
hierarchy, formalized rules and routine task. Conversely, in complex
organization there is chain of command, narrow span of control and
organizational hierarchy.
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