Irregular practices at the

European Commission III

Brussels launches probe into
secret accounts
Mini Case 10.1
On page 218

How would you describe the effect that the

whistleblower's actions had on the
European Commission?

1.

The commission has responded by

initiating three disciplinary proceedings,
suspending all directors and ordering an
investigation into the work of some thirty
heads of unit.

2.

The modernization of the European public

service continued to progress

the Commission adopted complementary horizontal

reinforcement measures:
the September 1999 Code of conduct on the relations
between the Commissioners and their services was
revised in order to improve the Information
transmitted to Commissioners and to enable them to
assume their political responsibility.
a group of Commissioners including the President
ensured that all the relevant information and/or
allegations of fraud, irregularity and other
reprehensible acts cominq in particular from OLAF,
IDOC and the Internal Audit Service are the subject of
a rigorous follow-up.
The group of commissioners is assisted by a high-level
interdepartmental group.

In what way do you think the 'culture of

Eurostat might have been changed as a
result of the actions?

In

the long run (if No one had exposed the

illegal practice in Eurostat, the problem will
happen eventually) then maybe someday a
leader will react to difficult situations or the
crises. Then others will react in similar way
to the situations. So the problem will be
solved if the way of the systems and
procedures used are changed.

GM and Chrysler steer

different paths to recovery
Mini-Case 10.2 on page 222

Using figure 10.1, describe how GM Is

attempting to bring about changes to the
GM culture.
Answer :
1.

2. Which of Schein's 'mechanisms of change'

do you think are being applied at GM?
Stage : Organization Maturity
Destruction option : Bankruptcy and Reorganization
Fundamental cultural change
Change through replacement of people
Change Mechanism
Re-organization and rebirth

Group bearing the old culture is replaced

Design of organizational structure

Design of systems and procedures
Formal statements