Question

As CEO of Avani International, Hetman headed the growth of a corporate giant. At its peak, Avani was gobbling up 200 companies a year. Under his leadership, the value of Avani increased 70-fold. In 2011, Hetman proclaimed his desire to be remembered as the world greatest business executive. Things turn sour when Hetman and his former chief financial officer were accused of running criminal enterprise within Avani. The two were charged stealing $170 million directly from the company and pocketing an additional $450 million through manipulated sales of stock. Hetman’s action has almost destroyed the company where he worked for 25 years. In 2012 alone the value of the company’s stock dropped $90 billion. Hetman spent his early years in humble circumstances. He grew up in the 1960’s in Jackson, Alabama. He said he was the son of a cop. It was only after he was accused did it come out that his father was never a police officer in Jackson or anywhere else. However, his mother did work for the Jackson Police Department as a school crossing guard. His father, in actuality, was a wheeler-dealer who was a practiced deceiver and an effective persuader. He had a strong personality but for the most part kept his misdeeds to little white lies. Friends remember Hetman as an easygoing kid who did well in school without trying very hard. He was elected “class politician” by high school graduating class. He went on to Samford, paying his way to college by playing guitar in a band. He served in Bangkok held a few accounting job, and eventually joined Avani in 1980s. Over the course of the 1990s, Hetman’s happy-go-lucky character disappeared. As he climbed the ladder at Avani, he became a corporate tough guy, both respected and feared. He eventually became CEO in 2001 and administered the rapid expansion of the company. Meanwhile, Hetman learned to live big. He had a $18 million apartment in Los Angeles, a $35 million mansion in Georgia, and a $20 million yacht. He spent $25 million on art for his luxury homes. He took extravagance to the extreme, for instance, spending $5, 000 on a shower curtain. The more he made, the more he spent, and the more he allegedly stole. Although his total compensation was $160 million in 2008, it wasn’t enough. He manipulated the company’s relocation fund and Employee Loan Program to take hundreds of millions in interest-free funds. In 2010 for instance, he gave his wife $1.5 million to start a restaurant, spent $2 million on birthday party in the Hawaii Island for his wife, and gave away $50 million in corporate funds to make humanitarian contributions in his own name.

1- Which motivation theory do you think best explains Hetman’s behaviour and work performance? Justify your answer.

- Discuss two (2) factors present in the case study that most likely influence Hetman’s perception of achievement

. - Discuss what Avani International should do if symptoms of groupthink exist in the company.

please i need some extra line to answer these questions. each contain 15 marks

Answer 1

1.

McClelland’s theory of needs could have influenced him in doing all these fraudulent activities. This theory states that every individual has one of three main driving motivators, ie the need for power, achievement, or affiliation. Hetman’s need for power led to his fraudulent behavior as he wanted to be the world’s greatest business executive.

2.

Hetman’s easygoing nature and achieving success without much effort and happy-go-lucky character present in the case study most likely influence his perception of achievement. His need for power, the way he spent money, etc also plays some role in influencing his perception of achievement. Some might disagree, but the board of directors influenced this as well as they should have controlled their CEO.

3.

Some symptoms of groupthink are self-censorship, unquestioned beliefs, illusions of invulnerability, belief in the inherent morality of the group, etc. Avani should have thought how could a CEO with such a payment lead such a lavish lifestyle with his salary and not so influential family background. They should have clearly looked at the lifestyle and the spendings of Hetman. Avani can also use motivation strategies to deal with such a situation.