Management Organization

1074 WordsMar 3, 20135 Pages
Management Organization In any business, leadership management’s responsibility is to provide a safe and comfortable working environment, using appropriate communication skills, operating with the highest possible ethical standards, being fair, provide compensation to the employees increasing motivation for the employees to work at his or her fullest potential. This paper will discuss Enron, and the business failure that occurred. At one time, Enron was one of the largest energy providers in America, based out of Houston, Texas. This paper will explain how specific organizational behavior theories could have predicted Enron’s failure. Also provide a comparison and contrast how leadership management and organizational structures…show more content…
Audit, analysis, and review of all transactions that took place, especially when working with excessive amounts of money, should have been a priority to the Board of Directors assigned at Enron. The fact that the numbers projected success, lead auditors to believe it was not necessary to investigate. No action was taken to ensure process and procedures were being done ethically, or to corporate and business standards. The lack of supervision on behalf of the board, supervisors, and auditors is what assisted in Enron’s downfall. Compare and Contrast how Leadership Management and Organizational Structures Contributed to the Failure The heart of any organization is its employees and the businesses accomplishments are dependent on its employees. The objective of any organization is to increase productivity, expand, be innovative, and initiate new standards. In Enron’s case, the scandal led the downfall of the business, employees loosing not only his or her money, job, but trust in management. As a result, the Sarbanes-Oxley Act of 2002 was passed by Congress. This Act is meant to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act mandated strict reforms to improve financial disclosures from a corporation and prevent accounting fraud of happening at the level of Enron, Tyco, and WorldCom ever again. Conclusion In business, it is leadership management’s
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