Nancy improperly used her power as a customer service representative to directly ship parts to a distributor and bill them, which broke company rules. As a result, Nancy should write an apology letter and be fined to discourage future rule breaking. The company needs to clearly define rules, punishments, and appropriate use of power and authority to prevent misuse of power by employees. Nancy misused her power, which goes against organizational ethics and structure, so she must be held responsible for breaking the rules.

1. Organizational Behavior and Management
Solution Nancy’s Case
Part 1
As a manager of Xemas Company, an action regarding the actions of Nancy
should be taken. Although, Nancy’s action were for the interest of the company, she did
not have the power to conduct direct shipment and then bill the distributor. Nancy who
has broken the company rules by abusing her power should be responsible for her
actions. As a manager, Nancy should write an apology letter to the supervisor in the
billing department and the president of the company apologizing for her action. A fine
should also be charged to her to discourage such action in the future by her or other
employees in the organization. Rules and regulation in the organization should be
defined clearly to the employees and punishment for breaking each of them should also
be described. The use of power and authority should also be defined and the
responsibility that comes with power.
Part 2
The solution to Nancy case relates to the theory of power in the organization.
Power should come with responsibility. Breaking of rule and regulations occurs as a
result of misuse or abuse of power is in any organization, and this is considered
ethically wrong. Nancy in her capacity as a customer service lady misused the power of
customer care and carried out direct shipment of the part to the dealer. This was against
the organizational rules and regulation. To ensure that power in the organization is
efficiently used, punishment should be imposed

2. Part 3
Power is the capability of one party to influence the action of the other party.
Power in an organization is created by the organization structure, which specifies the
role of every member in the organization. There are three structures of power, which are
access to resources, ability to affect decision making process and access to relevant
and important information. To ensure effective use of power in organization, employees
of the organization are governed by code of conduct and organizational rules and
regulations. This is also enhanced by consultation where the use of power is not very
clear. Breach of organizational rules and regulation result to misuse or abuse of power.
Therefore, Nancy should be held responsible for misuse of power and breaking the
organizational rules and regulation.