Fight at the Investment Club

Description

The case "Fight at the Investment Club", describes what happens to the Golden Years Investment Club as it tries to increase its membership. The Golden Years Investment Club is an investment club with a 34 year track record made of up middle-aged professionals, retirees, and homemakers who are considered amateurs in the investment world. After a presentation given by the clubs unofficial leader Lenn Width at an investment club seminar he meets David Korn who becomes the clubs newest member. One year after David Korn joined the club a disagreement arose between him and Lenn Width in regards to the direction the club was headed. The club had up until then had been very conservative and only invested in stocks that Lenn Width approved. David Korn wanted to take chances, drop old stock and invest in new ones. The tension between David Korn and Lenn Width continued to grow until David Korn after a vote was taken was asked to leave the club.

Diagnosis

The underlining cause for the disruption between David Korn and Lenn Width is that the Golden Year Investment Club did not enforce or have bylaws. Merriam Webster's collegiate dictionary defines bylaw as "a rule adopted by an organization chiefly for the government of its members and the regulation of its officers." Bylaws would have defined the officers and their duties and would have not allowed Lenn Width to run the club unless he was elected to an office that allowed him to do so.

Theory

In the case "Fight at the Investment Club", the underlying focus of the turmoil and discontent in the group was Lenn Width. Lenn Width was described in the case as the septuagenarian leader of the Golden Years Investment Club and his strict investment policy was used by the club regarding the purchasing of stocks. Based on Lenn Widths behavior can be explained by David McClelland's theory of needs. David McClelland's theory of needs categorizes people in terms of their needs which include the need for achievement, need for power (personal and institutional) and the need for affiliation. Lenn Width demonstrated the need for both personal and institutional power by his actions that occurred during the case. Lenn Width demonstrated person power by stating in many ways it is his club. Lenn Width demonstrated the need for institutional power by the fact that he crafted the strict investment philosophy and that even though it was a democratic club Lenn Width dictated what stocks would be purchased and for how much. Both types of the need for power is perceived as undesirable by people who have to interact with them.

Prescription

Short-term: What needs to be done right now before other members of the Golden Years Investment