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In an effectively functioning organization, according to sociologist Robert Jackall (as cited in Cohan, 2002), power is concentrated at the top in the person of the chief executive officer (CEO) and is simultaneously decentralized; that is, responsibility for decisions and profits is pushed as far down the organizational line as possible. At Enron the information did not go down the ladder, or up. Information did not go to the management team or the board of directors. "The board of Enron...appears to be analogous to the seventeenth century monarch - holding absolute power in theory, but cut off from access to information and thereby manipulated by the ministers who are its nominal servants." The hierarchal structure of Enron prevented personnel from obtaining complete understanding required to make informed moral decisions and from actually knowing what part they played in the totality of the corporate strategy.
At every company a certain culture exists that is followed by the majority of the people. This culture goes hand-in-hand with the group process, or how the employees work or do not work together on decision making and reaching objectives. The process also stipulates how the leader and followers work in concert. At Enron, there was a group emphasis of shared negativism toward energy regulation and other forms of government control. Those who questioned the leaders' entrepreneurship and conflicts of interest...
Fighting someone in power when recognizing this will only bring defeat is not rational behavior for survival. Humans on a whole also follow their leaders with the expectations that these individuals know what is best for the organization. When Skilling took over the company, people saw him as a very strong figure who knew what he was doing and would lead them in the right direction. There is a tendency to accept what leaders do rather than question it. Otherwise a person would be too conflicted.
Unfortunately, it was recognized way too late that Enron epitomized omnipotent control. Despite the fact that innovation and creativity was encouraged, the underlying structure was a competitive culture run by breakdowns in internal communication, deception, fraud and personal arrogance.
References
Schwartz, J. (Feb. 4, 2002) as Enron Purged Its Ranks, Dissent Was Swept Away. New York Times. Journal of Business Ethics; Dordreeht; Oct 2002; John Alan Cohan
Cohan, J.A. (2002). 'I didn't know' and 'I was only doing my Job'; Has corporate governance careened out of control? A case study of enron's information myopia. Journal of Business Ethics
Leadership is defined as the procedures that individuals use as authority over others to achieve an objective. The action also provides direction in a manner that makes an organization more coherent and cohesive. Three-Skill Approach This approach refers to three skills including human, technical, and conceptual, which form the fundamental personal skills required in leadership. Technical skills involve proficiency in and knowledge about some defined activities or work. It includes analytical ability,
Part 1 History of Modern Leadership Studies Since 1900 The evolution of modern leadership studies begins with the Great Man Theory, which originated in the 19th century and carried over into the 20th century. It came about as people looked at the world’s greatest leaders who stood out from the run of the mill individuals of their time and made a significant difference upon the course of human history. Individuals like George
Obviously, everyone wants to be seen as an innovative, risk-taker, but having a vision is necessary to decide what risks are worth taking. Although it is unstated, your subject, Stephen Czarowski, the music and choir director at your church, St., John the Baptist in Silver Spring must have a (realistic but challenging) vision of how the music people are playing should sound, which he urges people to realize. Although
Leadership Self-Assessment Analysis In the wake of the corporal scandals of Enron and the Arthur Anderson Company, there have been increased calls for strong ethical leadership. Leadership had always been regarded as a key factor in ensuring the effectiveness of any organization. However, new models are also being developed to challenge the limitations of the prevailing classical theories of leadership. This paper argues for a tempered approach, one that combines effective leadership
Strategic leadership influence culture organization eventually organization succeed fail. Show examples Air Asia, Apple Enron (Failure). I limit references subject matter Edgar Schein's theories culture organization business management authors. The influence of strategic leadership on organizational culture and the ultimate success or failure of the organization The focus on strategic leadership and organizational culture has been increasing exponentially throughout the past recent years, in both the academic community, as well as among
The reason why, is because the attitudes that they are embracing will have an effect on the work environment. As staff members will look to executives based on: the actions and attitudes of managers. In those situations, where executives are only concerned about themselves, this will have adverse consequences upon productivity. With employees taking, a similar kind of approach as, the attitudes of supervisors. Once this occurs, it will