Enron's Organizational Failure

Enron’s Organizational Failure Aretha Gonzalez University of Phoenix LDR 531 Elliot Ser, PhD. 8/16/2009 Enron’s Organizational Failure Enron’s organizational fashion as well as its creative accounting and atypical leadership lead to one of the biggest corporate scandals in business relationship (docstoc.com, 2008). To understand how such a promising and diverse federation was lead into bankruptcy, one has to understand the effect upper air’s direction and terminations played into the follow’s downfall. In 1985, InterNorth merged with Houston Natural Gas to formEnron. By 1989, Enron began trading in natural gas commodities. Chief Executive Officer Kenneth fundament was in charge. By December 2000, Lay was the Chair blase concern of Enron and Jeffrey Skilling took everywhere as Chief Executive Officer. Skilling kept up(p) his position until he resigned in August 2001 (Corportaenarc.com, 2009). Whereas, Lay returns a s CEO. The corporate structuring of Enron do such corporate musical chairs possible. decentralisation was the key construction Enron used to operate. Emphasis was placed on flexibility and creative thinking not accountability and match (docstoc.com, 2008). According to Mintzberg, decentralization is the sprinkling of power among many individuals in spite of appearance an organization.

Due to Enron’s dissimilar units, all the information unavoidable to operate the company could not be comprehended by the CEO. Therefore, division heads had a broad deal of autonomy. However, the CEO and chairwoman of Enro n still should have been sure of major deci! sions which affected the company (Mintzberg, 2003). One such decision which had far-reaching consequences for Enron was made by Jeffrey Skilling in 2001. On February 12, 2001, Skilling became CEO of Enron and received $132 million dollars for the year. Skilling, who was known as an arrogant and brash man by associates, adopted the dedicate of adopting mark to market accounting. This is tabulating expect profits...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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