Week 4 Discussion Responses – Organizational Behavior

Week 4 Discussion Responses – Organizational Behavior Week 4 Discussion

Identify the core assignment question or prompt, remove any extraneous instructions, repetition, or meta-information, and retain only the essential task: To write a comprehensive academic paper."""

The core assignment is to analyze and discuss issues related to organizational behavior, decision-making, leadership, ethics, and economic impacts, using the provided examples of JC Penney’s management mistakes, political issues impacting businesses, and a case study on Mylan’s pricing of EpiPens. The paper should explore these themes in depth, integrating credible sources and scholarly perspectives.

Paper For Above instruction

Organizational behavior is a vital field that examines how individuals and groups act within organizations and how these behaviors impact overall organizational effectiveness. In the current business landscape, understanding decision-making processes, leadership styles, ethical considerations, and external political and economic influences is essential for sustainable success. This paper analyzes several case studies and scenarios, emphasizing lessons learned and strategies for adaptive organizational practices.

Decision-Making and Leadership: The Case of JC Penney and Ron Johnson

The hiring of Ron Johnson as CEO of JC Penney epitomizes the importance of strategic decision-making and the pitfalls of not considering alternative approaches. Johnson’s prior success at Apple created high expectations, leading stakeholders to believe that his innovative retail strategies could be directly transferred to JC Penney. However, a critical flaw was the lack of comprehensive problem analysis; Johnson’s team replicated solutions that worked at Apple without adequately diagnosing JC Penney’s unique challenges (McShane & Von Glinow, 2015). This exemplifies a common cognitive bias in leadership—premature convergence on a solution based on past success without contextual adaptation.

Moreover, Johnson’s failure to incorporate employee and customer feedback underscores the importance of participative decision-making. Literature suggests that inclusive decision processes lead to more innovative and sustainable solutions by leveraging collective intelligence (Hill, n.d). The absence of experimentation, such as testing new store layouts or discount models, resulted in missed opportunities to learn and adapt, confirming the importance of iterative problem-solving and pilot testing in organizational change initiatives.

From a leadership perspective, Johnson’s reliance on past success and his insular decision-making style contributed significantly to the company's failure. Transformational leadership, which encourages collaboration and creativity, could have mitigated these issues by fostering an environment where insights from front-line employees and customers are valued (Bass & Avolio, 1994). Effective leaders recognize the need for situational awareness and adaptability, especially in turbulent markets.

Creativity and Innovation in Organizational Change

Linda Hill (n.d) emphasizes that innovation is a collective process involving 'collective genius.' Organizations should nurture environments where creativity is harnessed through collaboration and diversity of thought (Wujec, n.d). In the case of JC Penney, fostering a culture of experimentation and openness could have helped identify innovative solutions aligned with customer preferences.

For example, Johnson's impulsive decision to eliminate sales and discounts ignored the retail industry’s traditional demand drivers. Retailers depend heavily on promotional activities, and the absence of such strategies led to declining foot traffic and sales (McShane & Von Glinow, 2015). Therefore, integrating stakeholder feedback, conducting small-scale trials, and analyzing consumer behavior are crucial for informed decision-making.

Political and Economic Factors Impacting Business Operations

Political issues such as terrorism significantly impact organizational stability and national economic health. Terrorism’s destructive capacity manifests through physical damage to property, increased security costs, workforce disruption, and reduced consumer confidence (Larobina & Pate, 2009). The 9/11 attacks exemplify how geopolitical instability leads to economic downturns, including declines in tourism, stock markets, and international trade (Ross, 2016). Countries affected by terrorism face challenges in attracting foreign investment and maintaining supply chains, highlighting the importance of robust security and crisis management protocols (Larobina & Pate, 2009).

In addition, governmental policies influence business responses, especially regarding security, regulation, and trade. For example, targeted economic sanctions or increased tariffs in response to political conflicts can distort global supply chains, affecting prices and availability of goods. Understanding the political climate and engaging in strategic planning enhances organizational resilience against such vulnerabilities.

The Role of Ethics and Regulation: The Mylan EpiPen Pricing Controversy

The ethical considerations in corporate decision-making are vividly illustrated in Mylan’s pricing strategy for the EpiPen. Initially, Mylan capitalized on market exclusivity and increased prices over 500% without corresponding increases in production costs (Tuttle, 2016). This led to public outcry and regulatory intervention, emphasizing the necessity of balancing profit motives against social responsibility.

Governmental agencies, such as the Department of Justice, stepped in to address potential monopolistic practices and price-fixing, illustrating how regulation safeguards consumer interests and promotes market fairness (Weintraub, 2016). Ethically, corporate leaders are responsible for ensuring their pricing strategies do not exploit consumers or undermine trust (Lawrence & Weber, 2014). Transparent communication, corporate social responsibility, and engaging in fair competition are fundamental principles that help organizations maintain legitimacy and social license to operate.

The case also underscores that illegal or unethical pricing can lead to severe financial penalties and reputational damage, compelling organizations to adopt more ethical frameworks in their decision-making process (Weintraub, 2016). It highlights the importance of integrating ethical considerations into corporate strategy to ensure alignment with societal values and legal standards.

Conclusion

In conclusion, effective organizational behavior requires an integrative approach encompassing strategic decision-making, leadership adaptability, fostering innovation, understanding external political and economic influences, and adhering to ethical standards. The JC Penney case underscores the dangers of copying strategies without contextual adaptation, while the terrorism and economic impact segment illustrates external threats that organizations must prepare for through resilience and strategic planning. The Mylan case demonstrates the importance of ethics and regulation in maintaining corporate integrity and consumer trust. Building organizational capacity in these domains ensures not only survival but sustained growth in a dynamic global environment.

References

  • Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications.
  • Hill, L. (n.d.). The collective genius of innovation. Harvard Business Review.
  • Larobina, M. D., & Pate, R. L. (2009). The impact of terrorism on business. The Journal of Global Business Issues, 3(1), 15-22.
  • Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy (14th ed.). McGraw-Hill Education.
  • McShane, S. L., & Von Glinow, M. (2015). Organizational behavior: Emerging knowledge, global reality (7th ed.). McGraw-Hill Education.
  • Ross, S. (2016). Top 5 ways terrorism impacts the economy. Retrieved from https://www.forbes.com/sites/stratfor/2016/09/09/top-5-ways-terrorism-impacts-the-economy/
  • Tuttle, B. (2016). EpiPen prices: Mylan CEO Heather Bresch & big pharma scandal money. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2016-09-21/epipen-price-hikes-mylan-s-bresch-and-big-pharma-scandal
  • Weintraub, A. (2016). Mylan CEO Bresch admits 'full responsibility' for EpiPen price hikes. Reuters. Retrieved from https://www.reuters.com/article/us-mylan-prices/mylan-ceo-bresch-admits-full-responsibility-for-epipen-price-hikes-idUSKBN13N2U0
  • Wujec, T. (n.d.). The marshmallow challenge. TED Talk. Retrieved from https://www.ted.com/talks/tom_wujec_the_marshmallow_challenge

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