Sunshine Fashions- Summary of Case Study

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Sunshine Fashion Case Study Questions

Q 1. What are the root causes – individual and contextual -- for the employee misbehavior at Sunshine?

Ans 1. Individual misbehaviour in any organisation is not only dependent on an individual’s psychology but is also affected by many variables such as the Organisation structure, Work environment, operating procedures etc. However, the phenomenon of misbehaviour can be better understood in terms of motives and opportunity. Employees commit unethical conduct because of one of the motives of - greed, financial benefit, or other individual motivations and these motives flourish in the absence of effective monitoring mechanisms and effective leadership in the work environment. Sunshine Fashions’ organisational hierarchy and work ethics provided ample motives and opportunities to the employees to indulge in fraud and misbehaviour. The specific root causes for employee misbehaviour at Sunshine can be listed as below:-

Root Causes for Individual Misbehaviour

(a) Lack of loyalty and belongingness - The employees of sunshine lacked loyalty and belongingness towards the company and this led to opportunistic behaviour. This may be attributed to poor organisation culture, selection process, training, and transparency in company working or leadership issues.

(b) Greed – The employees wanted to make quick money through the loop holes in the system.

(c) Poor leadership/role models

(d) Effects of witnessing similar acts committed by co-workers.

Root Causes of Contextual Misbehaviour

(a) Lack of transparency in company policies – It is evident from the fact that the year end bonus was decided solely at the discretion of the general manager.

(b) Lack of involvement of employees in goal/strategy setting.

(c) Lack of formalised and mutually agreed Standard Operating procedures – It is evident that there was no…...

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