Case Study on Management Hubris

Farrow's Bank -- Case Study On Management Hubris

Case Study on Management Hubris, a report about 1920's Farrow's Bank.

VICTIMS RIGHTS MOVEMENT

Characterizing Farrow's Hubris

The steady rise and increase in Farrow's Bank's prominence boosted Farrow's confidence and determination. Farrow stopped seeing himself as just a banker, and became increasingly vocal regarding matters of industrial legislation and national policies. He took liberties by airing his views through the Bank's in-house publications and giving strong opinions on the government's way of doing things and ideas on how to make the British economy a competitive one. This was only the beginning to a more political aspect of his ambitions. In1916, he published more content on tactics and approaches to deal with the coming trade conflict. He preached to the government on how to stay dominant in the market. Farrow's tone of self-importance and boastfulness grew with the expansion of his bank and he increasingly referred to the bank as an establishment entity rather than merely a business. (Hollow, 2014)

Managerial Hubris abandons Moral Decision Making

The scope to which any one person's approach is molded by social stimulus rests largely on the value of this information to the concerned individual. This concern largely relies on whether the individual is rooted in an "individualistic" or "collectivistic" philosophy. The defining essence between the two approaches is concern with the self and others. In a collectivistic approach, others people and elements are factored in the process of decision-making and a great many of these decisions rely on a social consensus. In an individualistic approach, there is minimal, if at all any concern of what others think or say; decision making and ethics are entirely reliant surrounding the self (Li and Tang, 2013).

Factors leading to Ethical Bankruptcy

Ethical decisions tend to have more far-reaching consequences than those related to commercial/management issues, which is why it is a vital element of any business. Ethical decisions support the foundations of any business, especially for those that depend greatly on public opinion for their success. However, moral awareness in human being is susceptible to flaws and biases that can impair judgment in the best of us, in spite of best intention. Nonetheless, decisions made by humans, generally, are susceptible to systematic as well as predictable mistakes, presumptions, and prejudices that can harm moral consciousness. In order to counter the threat of managerial hubris, managers should constantly work towards the development of diverse and multifaceted executive teams that can offer more than one outlook to a problem and its solution. No one person should be given the authority to manage an institution and the flaws of one can be covered by the collective judgment of an active board of members, limiting or pre-empting the effects of managerial hubris.

To control hubris in the decision making process here are some tips of the trade that are as follows; (Brennan and Conroy, 2013).

• There must be an ability of to look a situation from an outsider's viewpoint.

• A strong capability to accept critique.

• Active board members.

• Incremental information that provides the good data for good decisions.

• Avoid Hubris; a self-deceptive bias subsequent in sub-conscious rational bias in corporate culture.