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Theory and Behavior in Business Organizations – MGMT 650

Organizational Behavior Concepts

Denuel Thomas Fonseca Patricia Hawthorne James Tesfay Zembaba

United Nations

August 3, 2010

Presentation Outline I.  Introduction II.  History III.  Team Work IV.  Management Style & Leadership V.  Ethics VI. Recommendation

History •  Deloitte was initially started in 1849, by William Deloitte. •  William Deloitte started his auditing company after successfully auditing the Great Western Railway in London.

History •  In 1893, Charles Haskins and Elijah Sells implemented an auditing system with the US government that saved thousands of dollars in wasteful spending. •  After successfully assisting the US government, both Haskins and Sells offered their services to the general public in 1895. •  Between Haskins and Sells founding in 1895 and 1970, the company had merged with 26 other accounting firms, including a merge with Deloitte in 1952, in which the company was renamed to Deloitte Haskins & Sells.

History •  As the demand for public auditing increased in London, George A. Touche established an accounting firm, Touche Niven, with Ballantine Niven in 1898. •  In 1900 Touche Niven established its first office in the US, located in New York City.

History •  In 1929, the US stock market crashed and eventually led to the Great Depression. •  As a result of the Great Depression, US Congress required mandatory independent audits for all corporations in 1933 .

History •  As the economy rebounded and grew rapidly, George Bailey opened his own accounting firm in 1947. •  Bailey’s company experienced remarkable success during its first year, which ultimately led the merger with Touche Niven, forming Touche Niven Bailey & Smart. •  The company grew more rapidly and later became Touche Ross Bailey & Smart in 1960 and renamed Touche Ross in 1969.

History •  During the 1980’s, Deloitte Haskins & Sells and Touche Ross requested their accountants to provide professional advice and technical support to give the companies a competitive advantage. •  As clients of both Deloitte Haskins & Sells and Touche Ross rapidly grew, both companies agreed to merge Deloitte & Touche in 1989. •  In 1995, Deloitte & Touche developed Deloitte Consulting to provide professional services to their international clients. •  Today, Deloitte & Touche has 651 offices in 111 countries around the world, employing more than 169, 000 professionals.


1849: William Deloitte opened his own auditing company in London



Charles Haskins and Elijah Sells opened their own auditing company in the US

George Touche and Ballantine Niven open their first office in US, located in New York, NY

1933: Congress requires independent auditing for all corporations The SEC is created by US government




Charles Haskins and Elijah Sells audited the US government, ultimately saving the government thousands of dollars

George Touche and Ballantine Niven open their own auditing company in London

US Great Depression

1947: George Bailey opens accounting firm due to rapid US economic growth

Timeline 1947-1948: Bailey’s firm experiences tremendous growth and merges with Touche Niven to become Touche Niven Bailey & Smart

Today: Deloitte has 651 offices around the world in 111 different countries with 169,000 professionals employed

1989: Deloitte Haskins & Sells merged with Touche Ross, becoming Deloitte & Touche

1952: Haskins & Sells merger with Deloitte, becoming Deloitte Haskins & Sells

1995: Deloitte & Touche created Deloitte Consulting to provide services to their international clients

Team Work •  Teamwork at Deloitte is a key part of the business. •  Every member of the audit staff is assigned to teams that will serve Deloitte’s clients in a scheduled period of time.

Team Structure

Team Work Issues •  Communication •  Cross-functional teams •  Conflict •  Trust issues

Team Work Recommendations •  Communication: Partners should let team members comfortable to speak out. •  Cross-functional teams: increase frequency of interaction and develop a sense of mutual accountability •  Conflict: encourage communication and feedback between team members •  Trust issues: training where the coach is the senior or manager

Management Style and Leadership •  Influence the effectiveness of alternative approaches to conferencing and reporting •  Deloitte has a very rigid vertical hierarchical culture •  Lot of pressure on each lower level of individuals

Recognition •  At Deloitte, a lower team spends most time at client site under a senior’s supervision •  The manager normally works with senior only. •  The contact of the manager with the staff is minimal, as well as the contact of partner with staff and senior. •  The career advance potentials are very high

Recognition •  Commitment to excellence is a priority But sometimes,

•  Career opportunities are not fairly spread amongst the staff, •  It can create frustration and great disbelief in the meritocracy aspect •  Solution: Senior management should use the employee commitment surveys to look at what needs improvement.

Image •  The audit industry is very much concerned with the image •  Audit companies are a very competitive work place •  One’s progress in the company is strongly related to the image he conveys to others.

Work-Life Balance •  Highly respected brand on the audit and consulting market •  Highly efficient methodologies •  Very motivating and exhilarating working environment

Work-Life Balance BUT •  Your attention can be monopolized and your time absorbed •  The higher you go up the ladder, the greater the expectations •  The family or the job •  Solution: Rotation programs and adjusting expectations

Ethical Environment •  The Big Picture –  The Code of Ethics •  Simply having ethic code has no effect on employee behavior –  It must be communicated, provided training on what it means –  Put system’s in place

–  Ethical officers-post Enron scandals •  Sharon Allen- Deloitte Compliance officer •  Annual Ethic and Workplace Survey

2010 Ethics & Workplace Survey

Ethical Decision •  Personnel goals vs. code of ethic •  Underload-Overload Continuum •  Long work hours •  High level of stress •  Inflexible work schedule

The Outcome: Model Behavior

•  Lack of leadership •  Lack of transparences •  PCAOB Audit Findings

Thank you

Questions & Answers


United Nations - Deloitte  

Recommendation for the Theory and Behavior in Business Organizations MBA class at Winthrop University Fall 2010.

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