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Case study The 1920 Farrow’s Bank Failure: A Case of Managerial Hubris.”

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For this assignment, read the case study, “The 1920 Farrow’s Bank Failure: A Case of Managerial Hubris.” This case is located in the ABI/Inform Complete database found in the CSU Online Library (see reference below). Hollow, M. (2014). The 1920 Farrow's bank failure: A case of managerial hubris? Journal of Management History, 20(2), 164-178. Regulators evaluated Thomas Farrow as being inflicted by managerial hubris at the time of the bank’s collapse in 1920. With this scenario in mind, address the following questions, with thorough explanations and well-supported rationale. 1. How did corporate culture, leadership, power, and motivation affect Thomas’ level of managerial hubris? 2. Relate managerial hubris to ethical decision making and the overall impact on the business environment. 3. Explain the pressures associated with ethical decision making at Farrow’s Bank. 4. Do you think that if Farrow’s Bank had a truly ethical business culture, the level of managerial hubris would have been decreased? Could this have affected the final outcome of Farrow’s Bank? Explain your position. Your response must be a minimum of three double-spaced pages. References should include your textbook, the case study, and a minimum of one additional credible reference. All sources used must be referenced; paraphrased and quoted material must have accompanying citations, and be cited per APA guidelines. Information about accessing the Grading Rubric for this assignment is provided below.

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Running Header: FARROW’S BANK FAILURE

LECTURER’S NAME


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, Running Header: FARROW’S BANK FAILURE

1. How did corporate culture, leadership, power, and motivation affect Thomas’ level of

managerial hubris?


Organizational culture, corporate leadership, power, and the leader’s motivation level are

among the factors that impact heavily on the managerial hubris of a manager. Farrow bank

provided a supportive environment for the thieving of these factors in a way that resulted in

an increase in behavior patterns that define the hubris syndrome. Farrow’s bank culture, for

instance, was informed by the need to provide lower earners with credit facilities as a way of

ending what Farrow referred to as chronic usury in the banking sector. The corporate culture

in this sense was developed in a resistant spirit; challenging the status quo, which fanned

Farrow’s defiant approach and a feeling of being above the law. The culture of his

organization played a key role in making him believe that he knew that he knew everything in

the banking sector and that no one could challenge him.


Given that he was the managing director of the entity, his position served to redefine his

approach and cemented the defiance he had. As a matter of fact, his power lacked effective

monitoring and therefore it accentuated his hubris contact. Motivation plays a key role in

sustaining behavior. The fact that Farrow’s bank was noted as a highly performing entity

motivated Farrow to carry on with his hubris behavior. He believed that the success of his

business had an intricate relation to the defiant and arrogant approach on issues. This provides

an explanation why he messed up statistical figures of the bank for his entity to appear

successful.




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