Failure at Tyco Examining Essay

Pages: 3 (1072 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

He had his accomplices but without Kozlowski, they would not have dared to cheat. We can also consider the theory of Ethical Decision criteria to explain Kozlowski's behavior. Cavanagh, Moberg, and Valasquez (1981) argue that individual use three decision criteria's in making ethical choices. The first criterion is the criteria of utilitarianism. It states that decisions are considered explicitly on the basis of their aftermath. Kozlowski ignored this fact when he practiced unjustly. He was unable to provide maximum benefits to the maximum amount of people. The second criteria is the criteria of focusing on rights. These criteria states that we should protect fundamental rights of other individual as well as ours. Kozlowski failed to follow this too as he stole the money of Tyco's shareholders. The third criterion is to focus on justice. Kozlowski did not follow this principle and involved himself in unjust practices.

We can conclude that Dennis Kozlowski was not alone is this mega scandal. All of the top management was involved with him allegedly; Kozlowski could not have accomplished it without the help of his accomplices in crime. These accomplices were none other than some of the employees as stated by Galvani et al. (2002).Get full Download Microsoft Word File access
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Therefore the organizational structure of Tyco aided Kozlowski in his scheme. Daft (2004) stated that there are six key elements that managers need to address when they are creating an organization's key organizational structure; work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Work specialization refers to the degree to which activities in the organization are subdivided into tasks. Departmentalization is the criteria by which different jobs are made into a group. Chain of command is the line of authority that extends from the boss to the lowest echelon. Span of control is how many employees one manager has under his command. Centralization and decentralization refers to the delegation of authority. Formalization is the standardized criteria for jobs. All these elements worked together with the leadership and management structure of Tyco to result in its downfall. Tyco follows a vertical management structure therefore employees were under the command of Kozlowski. Kozlowski allegedly with the help of top management managed to take the profits beyond 30 million dollars but doubled the long-term debts to over 10 billion dollars. The span of control of Kozlowski allowed him to carry out his scheme. The management structure was vertical as well therefore CEO Kozlowski was not accountable to anyone except the board of directors of Tyco. Therefore, Kozlowski was able to conceal the corruption from the board of directors with the help of his employees as stated by Galvani et al. (2002).


The failure of Tyco international was due to fraud on a mega scale and corruption. All the corruption started after Dennis Kozlowski joined Tyco as CEO in 1992. Although Kozlowski was the CEO when the fraud occurred, by using the theories mentioned above, we can state that Kozlowski was not the only one responsible for what happened to Tyco International.


R.L. Daft. (2004). Organization Theory and Design (8th ed.). Cincinnati, OH: South-Western Publishing.

G.F. Cavanagh, D.J. Moberg, M. Valasquez (1981). The Ethics of Organizational… [END OF PREVIEW] . . . READ MORE

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APA Style

Failure at Tyco Examining.  (2012, March 10).  Retrieved December 4, 2020, from

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"Failure at Tyco Examining."  10 March 2012.  Web.  4 December 2020. <>.

Chicago Style

"Failure at Tyco Examining."  March 10, 2012.  Accessed December 4, 2020.