Essay on Enron's Organizational Culture

979 Words Oct 19th, 2010 4 Pages
“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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* Another problematic that Skilling didn’t solve or control was the performance review system that was formed by 20 people because Jeff Skilling truly believed that 20 people was the solution to the rank and compensate effectively their top managers! The only thing he created was more corruption and fear among their employees. For example: Andrew S. Fastow, the ex-chief financial officer, had the reputation for exploiting the review system to get back at people who expressed disagreement or criticism. That means that top executives had influences over the performance review committee.

5. How would you change the culture at Enron if you were its new CEO? Provide three specific recommendations. (Please use material from the case to guide your recommendations.) * My first recommendation for Jeff Skilling is that he shouldn’t be that aggressive only in earnings growth, he should encourage everyone in his company to work in teams. Teamwork not only make your employees to work better, it also helps with the control of the company ( personal ambitions doesn’t affect the company, and also when people work in teams they naturally think that someone inside the group if checking on everyone) * I also believe that Skilling needed to align better their values with their norms, also

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