Subject category:
Human Resource Management / Organisational Behaviour
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
Topics:
Arthur Andersen; Andersen Worldwide; Audit partners; Consulting partners; Dysfunctional organisational culture; Andersen Way; Arthur Anderson Business Consulting Group; Barbara Ley Toffler; Accenture; Enron; Worldcom; SEC (Securities and Exchange Commission) investigation into Arthur Andersen
Abstract
Arthur Andersen''s culture, popularly known as the ''Andersen Way'', made it one of the leading consulting firms in the world. The ''Andersen Way'' represented a culture of integrity and ethics in business. The case discusses the evolution of this culture and also its deterioration (over the decades) due to internal conflicts (between the audit and consulting groups) and changing business dynamics during the 1990s. It examines how and why one of the world''s most respected auditing firms got entangled in a web of controversies and accounting scandals by the early 2000s, which eventually led to its demise. The case is designed to enable students to: (1) study the evolution of the culture of a large organisation and the key elements shaping and strengthening it; (2) understand the role played by organisational culture in an organisation''s success (or failure); (3) examine how internal conflicts in an organisation affect the organisation''s performance and lead to a deterioration in the value system of its employees; (4) understand the role played by external factors in shaping an organisation''s culture; (5) understand the effect of a radical change in the existing culture on the morale, motivation and performance of an organisation; and (6) understand the role of top management in the maintenance of the culture of a firm for its long-term success and survival. The case is intended for MBA/PGDBM level students as part of the human resources management and organisational behaviour curriculum. The teaching note does not contain an analysis of the case.
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Abstract
Arthur Andersen''s culture, popularly known as the ''Andersen Way'', made it one of the leading consulting firms in the world. The ''Andersen Way'' represented a culture of integrity and ethics in business. The case discusses the evolution of this culture and also its deterioration (over the decades) due to internal conflicts (between the audit and consulting groups) and changing business dynamics during the 1990s. It examines how and why one of the world''s most respected auditing firms got entangled in a web of controversies and accounting scandals by the early 2000s, which eventually led to its demise. The case is designed to enable students to: (1) study the evolution of the culture of a large organisation and the key elements shaping and strengthening it; (2) understand the role played by organisational culture in an organisation''s success (or failure); (3) examine how internal conflicts in an organisation affect the organisation''s performance and lead to a deterioration in the value system of its employees; (4) understand the role played by external factors in shaping an organisation''s culture; (5) understand the effect of a radical change in the existing culture on the morale, motivation and performance of an organisation; and (6) understand the role of top management in the maintenance of the culture of a firm for its long-term success and survival. The case is intended for MBA/PGDBM level students as part of the human resources management and organisational behaviour curriculum. The teaching note does not contain an analysis of the case.