The paper "Level of Responsibility Management Has for the Business Failure" is a perfect example of a case study on business. From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response. Management forms the heart of every organization. This means that if the top management level fails, the entire organization is also bound to fail. For example, the failure of Lehman may be attributed to management failure. Management has the following levels of responsibility that may lead to business failure namely; poor planning, forcefully imposing their will, blaming others for their own mistake and failing to acknowledge their failure.
Planning is the first level of management responsibility when managers fail to establish proper plans they are more susceptible to fail. Secondly, management has the responsibility of using power and authority to ensure success is realized. However, leaders may forcefully use their powers and authority to achieve personal goals rather than organization goals hence, leading to organization failure. In addition, management has the responsibility of delegating duties to the right people; however, management may fail if they assign responsibilities to people who do not have the right skills.
Moreover, management has the responsibility of ensuring high ethical standards are upheld. If management fails to effectively execute this responsibility organization is more likely to fail (Harvard Business School, paras. 11-18). A list of three best practices that not only would have helped the company you researched from failure but would also apply to the rest of the industry your company was part of. Some of the best practices that Lehman and other companies could adopt to prevent failure include; Proper prior planning, involving the right people, and creating a common vision.
Having the correct financial and strategic plan is a critical part of any success. The company should define what is to be achieved and within which time frame within its plans. Moreover, involving the right people in making and implementing decisions may help to prevent company failure. Conclusively, management should establish a common vision that is to be achieved and also influence the efforts of other people to work towards realizing that vision (Kelsey, Sigrid, and Marjorie, p.258).