fi
fi
Organizational Behavior
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
fl
fi
fi
fi
fi
fi
the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
fi
fi
fi
companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
fi
fl
innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
fi
fl
higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
fi
fi
as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
fl
fi
fl
fi
the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
fi
fl
fl
fi
ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
fi
micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.Organizational Behavior
fi
fi
Movie Analysis
The Wolf Of Wall Street
Jessica Young, Michael Counihan,
Ana Tineo, Nancy Chang, Aziz
Alsuhaim
The Wolf of Wall Street
, directed by Martin Scorsese, is a 180
minute thrill ride
through the life of infamous stockbroker Jordan
Belfort. During his tenure on Wall St,
Jordan Belfort was known for his antics and for
the unconventional way he conducted
business. His brokerage
rm, Stratton Oakmont, was home to the most
abrasive and
uncouth employees ever to work on Wall Street.
The “Strattonites”, as Jordan had so
appropriately titled them, were the pawns in his
great money
making machine. These
individuals were often High Scho
ol or College dropouts with a thirst for the big
bucks
and would stop at nothing to ful ll their lust for
power and money. They pledged their
fi
fi
opportunity to evaluate this company p
fi
fi
undying allegiance to Jordan and Stratton in return for a
shot at material success. With an
army at his disposal,
Jordan Belfort took Wall Street and the American
Financial System
by storm, making such enormous pro ts that it turned
the heads of many larger nancial
institutions and regulatory boards. After years under
the spotlight, Jordan Belfort was
indicted and
found guilty of Stock manipulation and money
laundering, ultimately
causing the downfall and eventual closing of his
brainchild, Stratton Oakmont.
As budding Organizational Behavior theorists, we
were asked to apply OB
principles to our
examinati
on of the rise and fall of Stratton Oakmont. Based
on our
observational ndings of this company, we have
come to the conclusion that
irresponsible management was the root cause of the
rm’s ruination. Had we had the
fl
fl
rior to its implosion, we would have made several
recommendations regarding structural, organizational,
and cultural changes. Since the
company is no longer in existence, we will
examine the role of management at Stratton
Oakmont, their code of conduct and
the overbearing in uence they had on their
employees and how this shaped the ethos of the
corporation; the reasons how and why
the employees bought into the management’s
philosophy; and lastly the resulting effects
of subscribing to the inherently awed
company. Following our assessments we will
provide a brief recommendation as to how these
problems might have been avoided or
corrected in a timely fashion.
Management plays a vital role in the workforce
largely in part because they set
the direction in w
hich their employees move.
Journal of Experimental Psychology
says
that,
“Leaders in organizations often use visions
aspiring articulations of an
organization's purpose and direction
-
to motivate employees. Scholarly work on vision
has associated it with
followers’ sense of collective identity, enthusiasm,
and
commitment to their group or organization.”
In the case of
The Wolf of Wall Street
this statement holds true. Stratton Oakmont’s
management team consisted of Jordan Belfort and
his accomplice Donnie
Azoff, who
was Jordan’s closest friend and most loyal companion.
Before touching upon how Jordan
chose to lead his band of mis ts, it is important for us to
highlight where his respective
management philosophies were developed.
Early into the lm, the a
udience is introduced to a variety of Jordan’s
addictions:
drugs, sex, and, most importantly, money. Categorizing
Jordan’s motivation proved to be
a simple task, as McClelland’s Theory of Needs,
particularly the need for power and
fi
fi
fi
achievement, de ned Jord
an’s ambitions. One could argue that his need for
achievement
fi
fi
fi
subsequently developed his need for power. As he rose
through the ranks of stockbrokers
on Wall St, his motivation shifted from becoming a
successful securities broker to
becoming THE one and on
ly most successful securities broker. This
motivation
ultimately led him to develop a Machiavellian
esque personality, where he saw
employees and customers as cogs in his ponzi
scheme.
An example of this can be seen in two instances, the
rst is with th
e customers he
chooses to focus on. When the brokerage rst opened,
Jordan provided an exact script for
his employees to use when on the phone with
potential customers, but not without rst
proving its effectiveness. In this particular scene
Jordan cold
called an individual, who
Jordan deemed as wealthy, and proceeded to recite the
deceitful script, manipulating the
customer into purchasing stock about which he
knew nothing about. This act of
persuasion truly highlights the manipulative nature
of Jordan B
elfort and is further
highlighted in the next example.
One can see how Jordan manipulated his employees
by his management style. He
chose to lead through example. How does one
lead through example? In the case of
Jordan he simply insisted that their employ
ees live outside their means and do whatever it
takes to solely focus on shallow and materialistic
possessions. This is evident in the IPO
monologue delivered by Jordan prior to the release
of Steve Madden. He urged his
employees to focus on “big tits”, an
d “$10,000 suits and gold watches”. At this point,
employees were not interested in whether the
means to an end were ethical; but rather
how they could live up to Jordan’s expectations.
Why this is so detrimental to an
organization is because:
“Ethical beh
avior is needed in an organization because
employees are likely to
regard their employing organizations as the legitimate
source of right and wrong
fl
fi
within the business environment. As a
consequence, ethical behavior will be
de ned using the organization a
s the arbiter of what is morally correct.”
An organization, such as Stratton, who blatantly
disregards ethical behavior often run the
risk of destroying their business. Examples of this
can be seen with Enron in 2001 and
the Lehman Brothers scandal in 200
8.
Employees were ambitiously engaged in such extent
that did not realized the way
they were associated in morally wrong actions. They
would follow every step Jordan and
the other leaders would take.
Jordan hammered home his point by stating “If you say
th
at
I’m materialistic go work for McDonalds, you
worthless (expletive).” By having his
employees live outside their means it enabled him
to motivate them to work harder and
continue working ruthlessly to maintain their standard of
living. Ultimately, one ca
n see
the inherent aws with Jordan’s managing style. This
management style was not one of
camaraderie and employee satisfaction. Jordans
management style was used to further his
personal ambitions and to manipulate his employees
into thinking that they w
ere helping
themselves, rather than solely bene tting him.
Now one must ask, “Were there negative repercussions
of this management style
on his employees?” The simple answer is, yes. Due to
Jordan’s manipulative nature, he
was able to persuade his employ
ees that they were the makers of their own
destiny and
that through his expertise they could live the quote
un
quote “rich life”. Because of this,
employees joined Stratton and took on large sums of
debt to buy cars, clothes, etc to live
this lavish lifest
yle promoted by Jordan. As a result of this the
employees were trapped.
fi
They could continue to work and live a life they could
not afford, or quit and default on
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the loans they had taken out. Unfortunately, due to their
lack of education and experience
in
the industry, they were oblivious. Scorsese alludes
to this in the penny stock scene
when Jordan talks about motives for getting on the
phone. Jordan is well aware of his
band of mis ts nancial situation, but does nothing
to stop it. In the eyes of the
employees, they were making tons of money and living
the American dream; in reality it
was the paycheck from Jordan that kept them a oat.
In addition to persuading employees to live a lavish
lifestyle, Jordan’s type A
personality and manipulative manage
ment style pushed employees to be competitive,
impatient, and aggressive. Employees were focused
on making as much money as
possible and they didn’t like the idea of leisure time.
Jordan’s impact on his employees is
exempli ed in the Steve Madden IPO scen
e. During the scene, one employee was
cleaning his sh bowl a few minutes before Steve
Madden Co. was to be publicly traded.
The senior vice president, Donnie Azoff,
approached him and yelled at him for taking
leisure time even though he had nished all
his work. This scene successfully portrays
how Jordan’s personality impacted his employees.
Jordan’s personality not only impacted the behavior of
his employees, Jordan’s
personality also shaped employee perceptions of
themselves. Employees deemed
themsel
ves much more important in their new of ce
locations than they felt when they
were working in the garage. Jordan was able to
change employee perceptions of self
worth by transforming employees from average
salesmen to potential CEO’s. Jordan told
his empl
oyees that their hard work would lead them to
own their own brokerage
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companies under his guidance. Additionally, Jordan had
his employees suit up in order to
change their perceptions of their jobs. He even allowed
tailors to come to the of ce.
The organi
zational culture at Stratton Oakmont is easily
identi able given the
strong characteristics that conform it. As mentioned
previously, the Stratton Oakmont
management team sought to create a culture that
is shaped by a high encouragement to
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innovate and ma
ximize outcomes. Undoubtedly, ambition plays an
important role in the
values that mold the employees attitudes. By
disregarding the smallest sign of unethical
practices, they continued to take risks driven by the
obsession for money: A means to an
end. Thi
s self
interested approach of working was inherited by Jordan
Belfort and the co
founders. The managers jointly introduced a
passion for exponentially growing their
pro ts by doing whatever it was necessary. With such a
strong personality coming from
uppe
r management, the employees’ perception of the
company’s culture was easily
in uenced and adapted to suit the overall set of
goals. Since organizational culture
“
refers to a system of shared meaning held by members
that distinguish the organization
from o
ther organizations
”, at Stratton Oakmont it gave a strong personality that
rapidly
caught the attention of the market. This strong
culture became the unbreakable link that
everyone within the company shared; and that
eventually developed devotion and
uncon
ditional loyalty. This sentiment grew by the effects
of organizational climate,
reinforced by a common perception towards Stratton
Oakmont.
Stratton Oakmont’s organizational culture also played
an important role in the
continuous development of the company
.
A strong organizational culture is one where
the majority of employees hold the same basic beliefs
and values towards their respective
organization. A strong culture that engages
employees and changes their view of work
will bring extreme amount of benef
its to the organization. Employees with high, core
self
evaluations believe in their inner worth and work ability.
These employees will have
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higher job satisfaction since they are more likely
attracted to a challenging job with their
ambition.
Stronger com
panies with constructive cultures often have a
strong sense of
unity and vision within the company.
Ritual is another key to reinforce values of the
organization. It creates a shared
identity among employees of an organization. In
the movie, Mark Hanna mee
ts Jordan
for lunch and performs a ritual by humming and
beating his chest. This performance is
considered a warm up ritual for Mark that serves
as a source of encouragement and
motivation for Mark and his employees.
Rewards can also serve as encouragemen
t for employees. Rewarding employees
helps to create a positive organizational culture and
outcome. Janja Lalich argues that,
“Cult leaders also make it dif cult for people to leave.
They set up interlocking
systems of in uence and control that keep
followers obedient and prevent them
from thinking about their own needs. Cult
leaders may offer "rewards"
-
sometimes material, more often ephemeral
that keep followers committed to the
leader and to the organization's goals.”
In the movie, Jordan makes
sure to encourage his employees with rewards.
He
encourages his employees by rewarding them with a
grand celebration after they achieve
a new goal. For instance, in the beginning of the movie,
Jordan throws a celebration party
with midgets, women, and othe
r entertainment features. Not only did this celebration
act
as a reward for the employees, the celebration
served as a way to reinstate the peculiar
personality of Stratton Oakmont.
This celebration party also emphasizes the
loyalty and dedication of the
employees within the company. During the party, the
secretary agrees to shave her head
for $10,000. The secretary was willing to shave her
head because she needed the $10,000
for plastic surgery. Throughout the scene, the woman is
holding the money in her
hands
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as her head is unevenly shaved. Ultimately, this
scene exempli es how
effective
leadership can enhance the performance and job
satisfaction of subordinates through
motivation. Jordan Belfort enjoyed the process of
persuading employees, from query to
trust. His ultimate goal was to control his employees
with supreme power. In this scene,
the woman expresses how satis ed she is with her job.
This job satisfaction gives her the
courage to make the decision to shave her head. In the
end, her decision is
based on her
faith and trust in Jordan and the company.
An excellent example of the employees’ devotion to the
organization and worship
to its’ leaders is found towards the end of the movie
when Jordan gave his resignation
speech. In this scene, Jordan st
arts by saying that the day has come when he has to
move
on. From the beginning of the speech, the spectator
can automatically infer that Stratton
Oakmont’s employees are not pleased with the decision
the CEO seems to have made.
Nevertheless, they show app
roval of the direction the company will go and
the
managerial adjustments made. As the speech takes
an extremely sentimental path,
sentiments of con dence and trust start to ourish while
applauses and tears are noticed
among the crowd. Suddenly, Jordan
retracts himself by deciding not to leave the
company triggering an explosive and collective
reaction of euphoric celebration.
Although there are several scenes in this move where
strong positive sentiments towards
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the company are evidenced, this one in sp
eci c seems to expose them with greater
emphasis.
As described in the aforementioned sections, we see
the inherent aws associated
with Jordan Belfort’s management style.
In response to this we have provided a
suggestion to point Stratton Oakmont’s mor
al compass in the right direction. Our
suggestion would be to implement a board of
directors or overseers to watch over the
direction that senior management is taking the
company. This board of directors would be
responsible for approving: all company busi
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ness transactions; weekly, monthly, and
yearly brokerage sales meetings and speeches; and
lastly company sponsored events. This
would ultimately reduce the ability of management
(Jordan) to in uence the workforce.
Diminishing Jordan’s in uence on the sal
es staff would take away Jordan’s con dence,
bringing him back to the state in which he entered
Wall Street. Monica M. Sharif and
Terri A. Scandura state that,
“Research has found ethical leadership to predict
employee satisfaction with the
supervisor, d
edication, willingness to report job problems to
management, and
perceived leader effectiveness.”
This nding supports our recommendation to hire a
board of directors . Ultimately, if
employees are no longer under the manipulative control
of Jordan, they
would realize the
implications of their business practices and could work
to make appropriate changes.
Due to Jordan’s autonomous nature and sole
ownership of Stratton Oakmont, it is
unlikely that our suggested solutions would be
successfully implemented
. It is unlikely
that Jordan would be willing to step back as a
leader and allow a board of directors to
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micromanage his company. Although, a board of
directors may provide the best route for
Stratton Oakmont, Jordan’s self
pride is likely to get in the wa
y.
To conclude, Jordan’s manipulative management style
had a huge impact on the
company’s employees, as well as, the company's
culture. Jordan was able to lead by
example and train his employees to follow in his
footsteps. Employees were led to live
lavis
h lifestyles and were taught that money is the
answer to all problems. These lavish
lifestyles led employees to become dependant on
their jobs which fueled employees
loyalty to Jordan and Stratton Oakmont. Our
analysis concludes with one nal point.
Ultim
ately, Jordan’s manipulative management style
caused many ethical, as well as,
legal implications that led to the demise of Stratton
Oakmont.