Enron Essay -- essays research papers

Integrative Case The Downfall of EnronPart I1.Ken rest served as CEO and chairman and Jeffrey Skilling also served as CEO. They both were responsible for planning, organizing, controlling and leading the society. They set goals for the company and organized how they would be achieved. Kays social occasion was as the figurehead and the leader. He also served as the spokesperson for the company and made many of the decision on the future of the company. As CEOs they both possessed effective communication skills, where decisive, which was evidenced by their vision for the company and refusal to admit wrong even at the end, and visionary. Throughout Lays tenor the company continued to grow and prosper at a fast pace.2.The challenges faced were those of a changing men, competitiveness, and globalization, as well as morality and social responsibility. While many companies were downsizing in the mid-1980s, Enron continued to grow and expand despite their lofty goals. They ventured ou t into foreign markets to be more(prenominal) competitive. The workforce also became more diverse and the characteristics changed. Employees during Enrons tenor were less devoted to long-term career prospects instead they were more interested in financial further at any cost. Ethics seemed to be a secondary thought for most people during Enrons time. To meet these challenges Enron executives had to make working for their company more attractive and lucrative.3.The contributing factors to their ineffectiveness were poor planning and leadership. The company grew to quickly. In their desire to grow and expand, the companys senior management did not realize and follow ethical practices that would sustain the company. Controls were not established in key places, such as, accounting practices and principles. Senior management failed to appropriately manage the activities of lower direct managers and set a bad example. Part II The People1.Enron sought out young, ambitious, recent coll ege graduates and placed them in entry-level positions and then gave them the autonomy to make vainglorious trade decisions. The few star performers were promoted very(prenominal) quickly. Taking this hiring approach benefited the company because it kept labor costs low due to the employees inexperience. It also ... ...y grew and prospered very quickly. Employees were motivated to be creative and come up with the next great idea or innovation to increase revenue. These values also hurt the company because it put constant pressure on employees to achieve and constantly pushed them to excel in order to produce more revenue for the company and advance in the company. This forced employees to use unethical practices. They were often left to use their own devices to achieve the aforementioned results. There were no checks in balances in place with take to be to managing subordinates.3.Organizations must change in order to meet the needs of the changing workplace, environment, technol ogy, and economy in order to be competitive. Change is good for an organization if it is through in a controlled and structured manner. Change is also risky because it is often met with resistance. For example, people may feel threatened and fear power loses and subsequently, resists the change. Change open fire also be ineffective if it is narrow and doesnt concern itself with people and is over determined. In Enrons case, the organization was constantly changing with no corporal rhyme or reason.