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Essay about Enron's Organizational Culture

Decent Essays
“Enron’s organizational culture” Questions for Discussion

1. Explain how Enron's culture influenced practices outcomes, include advantages and disadvantages Answer: the advantages of Enron’s culture are that they were very aggressive (saying yes to other projects) and unethical (corruption, corners cutting), in that way the company can generate a quick grow. But the disadvantages are very high; they completely lost control of the company because they gave freedom to young and inexperienced people. Another problem was the way they gave incentives to their employees was wrong, that promoted a hostile environment controlled by their “star employees” who only had personal ambition, and they didn’t care about teamwork. Also
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This compensation strategy is a good idea only if companies has the right control over their people, and know how to effectively measure the overall performance of their employees. c) Also their unusual performance review system was completely wrong; skilling gave too much power to 20 people. They where the responsible to rank vice-presidents, directors, and managers of all Enron, and that rank was used as the measurement of compensation. 4. While your response to #3 might overlap to a degree, please be more specific here and describe the role of leaders in shaping Enron’s culture. Be specific (e.g., provide examples). * Jeff Skilling had a good idea of creating a new and flexible culture, so the company can adapt easier against economic changes or/and problems (globalization, resource allocation, etc.) but he didn’t execute well, and I personally believe that Skilling didn’t fully understood how to create teamwork in his company. For example, the culture was heavily built around star players, such as [Lynda] Clemmons, with little value attached to team-building. (The organization rewarded highly competitive people who were less likely to share power, authority, or information). * Also Jeff Skilling didn’t match the right employees with the right position, which ended in placing people to do tasks that they are not
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