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Enron Corporate Debacle Essay

2705 words - 11 pages

Coursework Individual Written PaperTable of Contents1. Introduction.....................................................................p.32. Main Body.......................................................................p.4-103. Conclusion.......................................................................p.114. References........................................................................p.12-14"Enron Corporate Debacle"The "Enron Corporate Debacle" is still the hardest and the largest bankruptcy of the American history. Enron was a company that was known by many people. It revealed a big "ethical deficit" of corporate level, with greed, political influences, conflict of interests and an issue about power and being rich.This essay critically analyse the Enron organisation culture that eventually led to "Enron Corporate debacle". It is essential drawn on relevant theories related to the organisation. It will start with a broad description and analyse of "organisation culture", and then the issues related to sub-culture of "organisation structure, power & control and motivation & management". These sub-issues will help understand the organisation culture of Enron and their analysis will be directly connected to its analysis drawn on evidence from the case study.Organisational CultureSchein (1984) defined organisational culture in terms of three levels as : "a pattern of basic assumption which a group has invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration… and which have worked well…are considered valuable". The current debates about culture suggest, "That a strong culture was a powerful lever for guiding workforce behaviour. They conceived of a company's culture as consisting of values and beliefs, myths, heroes and symbols that possessed meaning for all employees."(Huczynski & Buchanan, 2007, p.624). Accordingly, Deal & Kennedy (1982), explain that organisational culture means, "The way we do things around here".According to Reimann and Wiener (1988) "Increasingly, managers are recognising that: 'while corporate strategy may control a firm's successes or failure, corporate culture can make or break that strategy'". Ray (1986) explains, "Managers see the possibility of using organisational culture as an effective control tool-affecting what people think, believe and value".Harrison (1972) described four basic types of organisational cultures: power, role, task and person. According to the facts relevant to this case study, the type of culture that is evident to Enron is the power culture. Their strong leadership from a central power source, where "corporate leaders encourage rule-breaking and foster an intimidating, aggressive environment" (Simms & Brinkmann, 2003, p. 247) demonstrates this culture. A culture, characterised by competition and challenge, where "employee were expected to perform to a standard that was...

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