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Repeated Violations

Case Study: Repeated Violations, located in chapter nine on p. 190-191 in the READ section of
Crisis Management in the new strategic landscape / Crandall, W., Parnell, J. & Spillan, J. Thousand Oaks, CA: Sage. (2010)

In a narrative format, summarize the key facts and issues of the case in min of four hundred words.

Update the information in the case by researching it on the Internet. Focus your response on the specific issues in the case.

Conduct a search of the Internet for another organization that faced a similar crisis. How did that organization handle it? Was it more effective, less effective, or the same?

Discuss why team learning is as important as individual learning in crisis management situations. What is meant by the idea of building resilience through redundancy?

Assume you are a General Manager in a large firm. How can you develop a learning organization that will provide the environment and information that can continuously improve the skills of your human resources?

Solution Preview

There is a nonprofit organization in New York, whose administrators exploited the system for personal profits. They were successful because internal controls were not in place. The Board of the NPO did not monitor the internal controls. The administrators carried out illegal transactions. They duped the NPO through real estate transactions. The administrators were greedy and they started a Medicaid fraud. This fraud enabled the administrators to set up tax-free funds for themselves. One of the key culprits was the executive director who established interlinking corporate structure that owned properties which housed programs for the disabled. The interlinking company operated these programs. The earnings from the estate properties went into the pocket of the executive director. There was no supervision by the board over the interlinking corporate structure and the manipulations continued.

One day, the New York State certification agency decided to inspect the nonprofit organization. The visit was triggered when program deficiencies were brought to their notice. When the inspection was done several program deficiencies were found. The nonprofit organization said that it had no funds to comply with all the requirements of the program. The nonprofit organization was publicly funded and had to explain for the shortage of funds. The nonprofit organization was compelled to reveal the fraudulent real estate holdings and the ownership of the real estate holdings. The administrators ...

Solution Summary

Case Study, Repeated Violations is explained in a structured manner in this response. The answer includes references used.