Down Fall of Enron

Down Fall of Enron

  • Submitted By: baseball
  • Date Submitted: 01/31/2009 11:09 AM
  • Category: Business
  • Words: 1356
  • Page: 6
  • Views: 1

Jason Thorne

Organizational Leadership/531

Mr. Richard Bowman


Enron operated a highly effective management control system from 1986-1996 under “Doctor Discipline” Richard Kinder (Mitchell Stein. 2007). Enron organization behavior theories, organizational structures, leadership and management would predict the rise and fall of Enron in the transition of leadership to new President CEO Jeffery Skilling.

Managers have four functions planning, organization, leading and controlling.

Jeffery Skilling plan for Enron workforce to have employee’s understand importance of

rewards and status with compensation plans, a powerful sharper Enron culture, to enrich

executives. The plan was to set goals of being the most innovated company in the industry. . Enron put a huge banner in the front entrance workplace to engage in process transforming Enron as “Worlds Leading Energy Company – To the Worlds Leading Company” (Mitchell Stein. 2007). Enron organize employees taking the necessary approach to make profits and win at all cost trading. Skilling in 1999 managed to indoctrinate an illusion of being one of the best CEOs, employing the most talented, and America most innovated company in quality of management (Fortune 1999).

Skilling was a manager who leads people to follow the company guidelines. The company culture was based on performance. Jeffery culture brought a high turnover rate. Unlike Coke-Cola strategy to enacted continually through decisions that are made by every member of the organization –by middle management especially. The decentralized, bottom –up process strategy emergence may lead to formal, top down strategy approach. Unlike, Enron Jeffery Skilling leading management culture was to control by bringing...

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