Examining Enron's Failure

Examining Enrons Failure LDR/531 Examining Enrons Failure organisational-behavior theories help to understand the effects of leadership, objectives, exclusive characteristics and action, and employee behavior and attitudes within an organization. It also apologizes the effects of internal environments, such(prenominal)(prenominal) as culture, the expression of the organization, resource and task allocation, and external environments such as rival or government regulation. These factors contribute to the performance, victory or failure, and excerpt or fall of an organization. Organizational-behavior theories help to explain the collapse of Enron and how leadership, management, and organizational complex body part contributed to its failure. Organizational Structure With a market capitalization of just virtually $74 billion, Enron was one of the worlds leading brawniness companies by the late 1990s. However, it had gained this status through the perpetration of ineligible activities at the very highest levels of the organization. Enrons fall was because of the organizational-level corruption that grew from its construction and trickled slash to the collective behavior of its employees.

Enrons top-down, hierarchical complex body part by unit grouping meant that the top management team up either directly or indirectly through their subordinates influenced the actions of the organization. For example, the organise of the accounting department allowed it to disregard legal requirements through geomorphologic secrecy that Enrons executives could exploit (Beenen & Pinto, 2009, p. 283). As part of its arrangemen! t to grow its business, Enrons leadership engaged in defiant political lobbying to convince the government to deregulate its business activities (Kulik, OFallon, Salimath, 2008, p. 706). Organizations like Enron, whose activities are controlled by external factors, such as the government, tend to centralize power at the apex of the structure and to formalize the organizations behavior, which in the...If you want to survey a full essay, order it on our website: BestEssayCheap.com

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