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Case Analysis Of Texaco

Decent Essays

1. Identify the ethical culture problem at Texaco in the mid-1990s. Based on the case analysis, the ethical cultural problem at Texaco during the mid-1990’s included racism and discrimination against the minority community of African American employees as part of which these employees were confronted with racist language and lower pay. 2. Based on the facts in the case and what you have learned in Chapter 5, evaluate the culture change effort that is underway. What cultural systems have been targeted in the cultural change effort? What systems are missing, if any? Does the culture appear to be in alignment? Misalignment? What else might management do that they have not already done to make the culture change successful? On the basis of information presented in the case study, the most important effort that Texaco as an organization witnessed was the commitment of the CEO, Peter Bijur, towards introducing the cultural change. The CEO restructured the organizational culture by showing commitment towards diversity by implementing changes in hiring policies, decision making hierarchy/process, reward system and other related rules and policies. As part of the …show more content…

For instance, unlike Merck, where every new marketing campaign was evaluated by legal counsel and the associated regulatory team, TAP practiced a completely different process where only numbers mattered. In addition, Douglas also personally listened to the conference call where sales representatives were openly discussing bribing urologists with an up-front “administration fee” to doctors who prescribed Lupron, the company’s new drug for prostate cancer. Therefore, it was easy for Douglas to figure out the deficiencies and tomfoolery in the TAP’s culture that was completely different to what he had

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