Question

Andrew Fastow, the former chief financial officer (CFO) of Enron who was convicted of wire and securities fraud, explains that the culture of an organization starts with the behavior of the top executives. Employees do not follow empty rhetoric though: Employees imitate the behavior and decision-making processes of top management (Useem, 2016). Based on what you have learned in this unit, do you believe this is an accurate statement? How big of an effect can empty rhetoric have on organizational behavior?

Answer 1

Walk the talk practice by leaders actually motivates employees to a greater extent. Example of Enron company management practices created cut throat competition and a toxic environment inside the organizational culture. The resultant effect was employees was only considering their personal goals and thus, compromised ethical values. Enron debacle happened because top management involved in fraudulent accounting reporting practices with Arthur Anderson and employees followed commands of top management even they knew about accounting malpractices. This evidence suggests that employees imitate top management actions and do not follow empty rhetoric. One example of this is Google leadership. Google top management practices ‘walks the talk’ approach and therefore, Google Company has become one of most innovative companies. It is due to commitment of top leaders such as offering delegation of power to employees, fair performance appraisal system, and offering significant benefits. Google company top leadership applies the same guidelines that it makes for its employees.

Thus, leadership shapes the actions of employees. Leading companies often have great leadership that demonstrates ideal leadership values. Such leaders practice self restraint practice, honesty, integrity, and ethical values. Therefore, whole organization adopts these values. Top leaders actual practices shape behavior and attitudes of employees.

Empty rhetoric impact on organizational behavior

Empty rhetoric does not contribute any positive change to organizational behavior. Employees do not feel motivated to adopt empty values that leaders require from them. Empty rhetoric only loses credibility of leadership. Such rhetoric loses its value and employees start violating ethical norms when they see their leaders are involved in such practice. Difference between rhetoric and real practice makes employees de-motivated and they may leave organizations or involve in unethical practice. Prime examples are Enron and WorldCom companies scandals where employees were involved in unethical practices. Empty rhetoric does not introduce positive changes in the organization until leadership assimilates those values that they recommend for employees. Therefore, it can be said that empty rhetoric does not change organizational behavior in positive way.