BMAL 710 LIBERTY UNIVERSITY Case Study Jim Beam Scenario _ESSAY_ASSIGNMENT_2024.pdf

Case Study: Jim Beam Scenario

Odalys Perez

School of Business, Liberty University

Author Note

Odalys Perez,

I have no known conflict of interest to disclose.

Correspondence concerning this article should be addressed to

Odalys Perez. Email: [email protected]

In the legal confrontation initiated by the State of Kentucky against the prominent figure

in the alcohol industry, Beam, the focal point of contention was a grievance filed by the local

union that represents the workforce of the company. The heart of the complaint revolved around

the regulations established by Beam concerning employees taking what was perceived as

excessive bathroom breaks. At the core of Beam's defense was the perennial issue of

management perceiving potential abuse of break and lunch periods, which, in turn, could impact

productivity during the peak hours of business operations. Conversely, the union vehemently

contested this viewpoint, presenting a counter-narrative. Both parties articulated compelling

arguments, passionately advocating for the validity of their respective positions. In an earnest

this specific scenario is Herbert Simon's administrative behavior theory.

Disputes involving unionized labor are a widespread occurrence, often originating from

employees seeking enhanced compensation and benefits. Concurrently, organizations place a

premium on productivity and overarching objectives. As emphasized by Singh and Amish

(2021), "Organizations are striving for their existence and therefore continuously evolving to

achieve high performance, competitiveness, and effectiveness" (p. 75). The focal point of this

case study delves into the conflict at Jim Beam, where the company vehemently challenges

allegations put forth by employee unions regarding the established policy governing bathroom

breaks. Employees contend that this policy poses a threat to occupational safety, particularly

within Beam's warehouse. Despite Beam's inclination towards a top-down management

organizational structure. Particularly evident in organizations adopting a top-down approach, this

theory raises concerns about the potential neglect of individual needs, concerns, and the intrinsic

self-worth of employees. Examining Beam's business through the lens of the rational system

unveils a myriad of components, encompassing operational constraints, power dynamics,

regulatory frameworks, command structures, performance evaluation programs, and the

establishment of formal goals and work environments. The detailed exploration within the case

study illuminates how organizational leaders effectively communicate and implement

regulations, offering tangible evidence of the intricate goal setting and formalization concepts in

action. However, it is crucial to note that an excessive use of power to formalize or enforce goals

may inadvertently result in employee alienation, a phenomenon explored by Scott (2015) who

assert that the exploitation of power, rather than the work itself, serves as the primary source of

alienation. This nuanced perspective sheds a compelling light on the allegations against Beam's

organization.

Drawing profound insights from Scripture, the narrative of Solomon, divinely granted

leaders as the verse reads “God gave Solomon wisdom and very great insight, and a breadth of

understanding as measureless as the sand on the seashore” (New International Bible, 1978/2011,

prioritize the company's benefits over the well-being of its employees. Schwartz et al., (2022)

noted “Administrative Behavior”, deeply rooted in the realm of decision-making within

organizational boundaries, delves into the intricacies of how decisions manifest in specific

circumstances (p. 903). Herbert Simon's administrative behavior theory, in challenging the

conventional belief in purely rational decision-making, underscores the formidable constraints to

rationality faced by modern managers (p. 904). In light of these considerations, the adaptation of

Herbert Simon's administrative behavior theory emerges as a potentially more advantageous

approach for Beam's company, placing the well-being of its staff at the forefront of strategic

decision-making. A goal which all organizations should aim to meet as positive employee well

being can play a powerful impact in business success.

Organizations that truly stand out and achieve lasting success distinguish themselves not

solely through profit margins but by the caliber of their workforce. Prioritizing staff translates into

heightened productivity and the retention of high-performing personnel. The existence of

numerous federal laws safeguarding employee rights underscores the imperative to never disregard

individual staff rights to the extent that legal intervention becomes necessary. Incorporating the

administrative behavior approach suggests that evaluating leadership styles within an organization

Servant leadership emerges as the style most congruent with the administrative behavior

approach. Aboramadan and Dahleez (2021) describe servant leadership as characterized by

employee loyalty, and satisfaction are all positively influenced by this leadership style, wherein

leaders prioritize the needs of their employees, uphold values, and provide motivation.

Professional ethical behavior is a cornerstone of servant leadership, and leaders lacking these traits

may struggle to inspire motivation and dedication from their teams.

Instances of lacking values are prevalent in organizations where leaders attempt to conceal

mistakes and inefficiencies by imposing peculiar changes to established regulations, diverting

attention from actual issues. Artz and fellow scholars (2017) highlight the positive correlation

between management and their team allows for the identification of impractical regulatory changes

before implementation. In the context of the Beam case, a collaborative approach between leaders

and employees could have avoided the entire dispute.

Divinely aware of our intrinsic need for companionship, the Creator foresaw the value of

brotherhood, forming a cohesive and impactful collective. Moreover, this collaborative spirit

empowers us to achieve far beyond the limitations of individual efforts. As employees and

managers join forces in a unified team, they not only share in the joy of collective achievements

goals. The biblical principle expressed in 1 John 1:7, "But if we walk in the light, as he is in the

light, we have fellowship with one another, and the blood of Jesus, his Son, purifies us from all[a]

The success or failure of an organization is intricately tied to its employees. Rather than

imposing strict regulations, such as limiting bathroom breaks, companies should instill

confidence in their employees' ability to discern right from wrong. Trusting the workforce can

lead to a more harmonious and productive work environment, fostering a culture of mutual

respect and understanding.

Aboramadan, Mohammed & Dahleez, Khalid Abed. (2021). The impact of perceived servant

leadership traits and safety climate on task performance and risk-taking behavior in times

of crisis. Leadership in Health Services, 35(2), 210-227. doi:10.1108/LHS-05-2021-

Artz, Benjamin M, Goodall, Amanda H & Oswald, Andrew J. (2017). Boss competence and

worker well-being. ILR Review, 70(2), 419-450. doi:10.1177/0019793916650451

Merida, Tony. (2015). Christ Centered Exposition: Exalting Jesus in 1 & 2 Kings. Nashville: B

& H Publishing Group. ISBN: 9780805496703

New International Bible. (1978/2011). Retrieved from The NIV Bible:

https://www.thenivbible.com/(Original work published 1978).

Schwartz, Gary, Christensen, Tom & Zhu, Xufeng. (2022). Bounded rationality, satisficing,

artificial intelligence, and decision-making in public organizations: The contributions of

ISBN: 9780131958937.