Discussion Paper 7-1: The WorldCom - What Happened?
Communication and group dynamics are important elements within the leading facet of the P-O-L-C framework. Read the following article from
http://money(dot)cnn(dot)com/2005/03/15/news/newsmakers/ebbers/
CNN describing Bernie Ebbers' downfall as CEO of WorldCom: Ex-WorldCom CEO Ebbers guilty.
Based on what you read in the article, in your initial post, identify which two barriers to effective communication were most prominent within WorldCom and explain how these barriers led to the downfall of the company. Be specific and identify the communication barriers based on the information in Chapter 11 of your text.
In responding to your peers, comment on whether you believe the concept of groupthink may have played a part in the downfall of WorldCom, especially as it pertains to its board. How you would overcome the communication barriers and groupthink to ensure organizational success?
WorldCom: What Happened?
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WorldCom: What Happened?
In March 2015, Bernard Ebbers, one-time CEO of telecommunication company WorldCom, was found guilty of accounting fraud that led to the company going bankrupt. The scandal resulted in the largest case of bankruptcy in the history of the United States. WorldCom’s downfall was a result of several barriers to effective communication within the organization.
Personal barriers are among the most prominent ones that contributed to Worldcom’s bankruptcy. Specifically, these are barriers related to superiors and are about fear of challenging authority as well as a lack of confidence in subordinates. According to Austin & Pinkleton (2015), higher-ranked superiors often think that lower-ranked employees are less capa...
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