BUS 374 Lecture 11: How do organizations respond to failure?

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Rajiv Kozhikode

Document Summary

If firms within your bracket valuable ethical standards, your firm will less likely take part in unethical/illegal activities: when partner care about integrity, then the propensity to act illegally reduces. This produces constructive conflicts and better reponses: the firm will dig deeper rather than jump at the first mistake they notice. Heterogeneity can aid deeper causal analysis: deeper causal analysis is often important to understand how future issues can be avoided. They need only learn within an incident but also across incidents: heterogeneity leads to fewer instances of blame the operator" and therefore fewer operator errors. Previous experience suggests otherwise: specialist organization dependence is narrower, they also differ in their organizational forms. Generalists deal with a wider range of issues. Complexity may also make it difficult for them to learn. Arthur anderson we saw in the last class: why do high-status organizations involve in illegal activities, to avoid loss (they do have a lot to lose).