Enron Impact The Human Behavior Of Those Who Were Employed By The Company

Decent Essays
1. How did the structure of Enron impact the human behavior of those who were employed by the company?
The organizational structure of Enron was a calculated one with a clique that was thought as being the “smartest” guiding the rest of the workers. It included Kenneth Lay: Chairman, and Chief executive officer, Jeffrey Skilling: President, Chief operating officer, and CEO (February–August 2001), and Andrew Fastow: Chief financial officer. With the leaders known to be wise and smart, the workers and traders believed in them. They did what was asked of them by the employers. The clique ensured money was not an issue for the workers and subsidies were allocated to them at will. This in itself encouraged the workers to be hardworking and yet
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This structure establishes the power allocated to the leaders, it ensures what leaders say, goes. The leaders in Enron made the decisions and the others were expected to follow the new rules. Another structure employed by the fallen company was Professional Bureaucracy. This was what made Jeff Skilling to acquire his position and the respect he attained. The structure supports the technostructure of a company so that analysts, technicians and the other tech-knowers attain the higher table in the company. Since the company was focused more on the end result, the divisional structure might be also applied. This structure leans towards where employees in the various departments within the organization did what they had to do to deliver on their responsibilities. Divisionalized structure offers economies of scale, resources, and responsiveness while controlling economic risk, but it also creates other tensions. One is that the headquarters and division were battling between each other. It could be one of the weaknesses that was exploited, which lead to a lack of accountability and trust. The result of this action was a manipulation of the books of accounts to impress stakeholders.

3. Chapter 5 lists six characteristics of high-performing teams. Which of those do you believe were present at Enron and which were not? Explain your responses.
For an organization to succeed, the company must elaborate these characteristics as expressed
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