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Rise and Fall of Enron Essay

Decent Essays
The rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices, the influence of leadership through management can ultimately lead the company to fail.

Enron’s code of ethics prided itself on four key values; respect, integrity, communication, and excellence. Codes of ethics should be a reflection of what the owners, investors, and employees work towards as an organization. Executives overlooked those values as they deliberately corrupted Enron by engaging in
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Motivational goals may come from promotions, raises, long term careers, or working for a great company. Self-concordance reflects in the way people reason in practicing goals that are in line with their interests and values. Enron offered those goals to their employees and in returned hired the most qualified, experienced, and self driven people to attain those goals. Working for a very prominent and successful company gave employees the sense of comfort and dependability that breathed prosperity. However, it was those goals that had false hopes. Enron had high aspirations that joint ventures in trading energy with investors in the new virtual market place would be successful but failed and lost millions of dollars. Enron continued to press forward and kept all employees on track but if they were not able to obtain their goals, for the sake of keeping the company above water, they were let go. Once employees dedicate and committed themselves to a strictly structured organized culture, they have a tendency of enduring ethical judgement that is later rationalized in one form or another.

Strong leadership, management and organizational structure is what every business should be governed around. The neglect and abuse of that leadership, management, and organizational structure was the ultimate contribution to the failure of Enron. The executives displayed leadership in
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