The Impact Of Organizational Culture On Enron s...

The tale of Enron presents a unique perspective on success. In the short span of 24 months, Enron transformed from being the top firm in its industry to one that filed for bankruptcy. The reflection about how the tides changed in such a short period uncovers many surprising truths. In its glory days Enron beamed billion dollar profits each quarter, however this success was all a part of an elaborate scheme. Behind the veil of smoke and mirrors was a series of deceptive and unethical accounting practices. For Jeff Skilling and Kenneth Lay it was always about outward perception and to them this revolved around the stock price. If the stock price kept rising, as far as they were concerned Enron was doing just fine. The case of Enron is the†¦show more content†¦The company did not consider whether the candidate would be a proper fit in the part of the company or work well in a team. They were solely hired based on potential profits they could earn for the company. Thus, highligh ting the low people and team orientation culture of Enron. Although Enron rated poorly on people and team orientation, they rated very highly on risk taking, aggressiveness and outcome orientation. The most salient aspect of Enron’s organizational culture is their risk-taking proclivity. Enron throughout the span of 24 months transformed from being the â€Å"Forbes most innovative company† to a company that was forced to file for bankruptcy and lay off almost 20,000 employees in part due to the risks they took. The corporation encouraged its employees to take risks at all costs as long it either improved the balance sheet or could be treated as a profit. The Darwinian culture at Enron cultivate a fiercely competitive environment. Employees saw one another as competition that they must beat to earn promotion and lucrative bonus. Due to this the traders at the company took numerous ill-advised risks and eventually gambled the company’s reserves away. The company’s emphasis on outcomes regardless of the steps taken p resented a unique conundrum. Per one scholar, â€Å"If corporate leaders encourage rule-breaking and foster an intimidating, aggressive environment, it is not surprising that theShow MoreRelatedManagement Course: Mba−10 General Management215330 Words   |  862 PagesManagement Course: MBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell LeadershipRead MoreDeveloping Management Skills404131 Words   |  1617 Pagescourses in Principles of Management, Human Resources, Strategy, and Organizational Behavior that helps you actively study and prepare material for class. Chapter-by-chapter activities, including built-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Kim S. Cameron UNIVERSITY OF MICHIGAN Prentice Hall Boston Columbus