Submitted by: Submitted by claracuty83
Views: 1090
Words: 1120
Pages: 5
Category: Business and Industry
Date Submitted: 12/13/2010 07:21 PM
Enron |
Examining Enron’s Failure |
Organizational Behavior |
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Purpose
It’s easier to destroy or break than building something. Enron was a successful corporation that turned its revenue from five billion to sixty five billion dollars in less than a decade by Ken Lay and his associates. The purpose of this paper is to describe how specific organization theories could have been predicted or explained the company’s failure, the contributions of leadership, management and organization structures.
Organizational Behavior Theories
Organizational behavior is the study and application of knowledge about how people, individuals, and groups act in organization. It interprets people-organization relationship and its purpose is to build better relationship by achieving organizational objectives. Enron’s organizational behavior relates to its business ethic. Its ethic was to gain more revenue by any means necessary. Organization behavior focuses on productivity, management and absenteeism. Enron’s productivity and management was based on how much money they can get even if it means hiding the truth from the customers and shareholders.
Contribution of Leadership
The success and failure of Enron were due to its leaders. Enron had important leaders who were CEO, senior leader, board director, auditor, financial adviser. Each member had a purpose, but their main goal was to make money by any means necessary overlooking their business ethic. However, not one of these important leaders was able to stop what they were doing. Kennet Lay, CEO, formed Enron in 1985, and later he hired Jeffrey Skilling who hired a staff of executives who were able to hide debt Enron had through poor financial reporting, greed and arrogance.
Jeff Skilling started first as a consultant for Enron. Through good works, he later became president of Enron. Under Skilling, “Enron adopted market to market accounting, in which anticipated future profits from any deal...