Fight at the Investment Club

Fight at The Investment Club Final Case submission.

Description. The “Fight at the Investment Club” case tells a short story about the Golden Years Investment Club (GYIC) that has a great track record of 34 years. The GYIC are made up of middle-aged professionals and retirees. David Korn , who became the newest member after attending Lenn Width’s (Group Leader) presentation at a business seminar about how his great investment approach. After joining the investment club for a year, Korn becomes frustrated that Width has not changed his investment styles and strategies. Even though the investments they made had always gone up, the group had been very conservative in their approach. Width would have to approve each stock they buy. Korn on the other hand wanted to take chances and take the group towards another direction (more riskier stocks). The tension between Korn and Width became so great that Width decides to take a vote to remove Korn from the investment group.

Diagnosis. It seems the disruptions between Korn and Width was caused generally by the rules within Golden Years Investment Club. There was no appointed officers or ‘regulations’ to govern its members. Width was able to become a dictator; ruling over the decisions of his club members and demanding his club members to follow him and his decisions. A club should have organizational structure. Business dictionary defines organizational structure as a “hierarchical arrangement of lines of authority, communications...determines how the roles, power, and responsibilities are assigned, controlled, and coordinated.” When a club has organizational structure the group members would possibly not be controlled by Width.

Yet, the power struggle derived from the fact that Width held this power and the opposing side wanted something new and different. Was Width addicted to power? Why is that? Is his human nature? An Inherent need for it? The underlying factor based off of the Theory of Needs established by psychologist David McClelland could be the fundamental factor in which Width could be who he is.

Theory. The root focus of turbulence and discontentment in the “Fight at the Investment Club” lay upon Width. The case mentioned that Width as a septuagenarian leader and the way we decide to buy and sell stock. The case also described him being a strict and conservative investors, only investing what ‘HE’ thinks is best for him and the group. Based on Widths behavior can be explained by psychologist David McClelland’s Theory of Need for power, need for achievement, and the need for affiliation.

McClelland’s described the need for power as two parts: personalized power or socialized power. Width would be described of having personalized power. People with high-personalized power may have little inhibition or self-control, and they exercise