At whizz point of 2001, Enron was the seventh largest fraternity in the US, valued at $70 one million million million by the stock market with an ambitious deal to be the world`s largest company. Instead, its demise made it as one of the most analyzed cases, and one of the biggest failures in the business world. This composing will explain how leadership, management, and organizational structures contributed to its failure and how some organizational- conduct theories could have predicted that fate.
The role of leadership, organizational structures, and management in Enron`s failure
Leadership; Kenneth take down, Jeffery Skilling, and Andrew Fastow were the main reason for Enron`s monumental give way because of their toxic leadership tendencies that produced a cultic like leadership manikin in the following aspects:
1.Charismatic and cult like leadership culture that viewed the CEO as the unchallenged authority, with a life-style similar to that of a cult leader by enjoying a much greater luxury then the subordinates, and subordinates who have substituted the potency in the reliability of their own perceptions with a total trueness to the leader.
Enron leaders cultivated a captivating self-image to the point where Kenneth Lay was dubbed as a latter day Elvis and expound by fortune magazine as a revolutionary, whereas, Jeffery Skilling was cognise internally as Darth Vader from Star Wars with the same ability to catch people`s minds. Even the prestigious Harvard Business schooling made 11 case studies about Enron, citing its success and commending it as a business model for others to study.
2.Compelling vision that preached a high degree of followers` commitment to totalistic vision convinced them that they were serving a world leading company transforming the ways of conducting business for the common good. Intense workloads up to 80 hours a week was a normal price to net for that higher purpose.
3.Enron had recruitment rituals...If you want to get a rise essay, order it on our website: Ordercustompaper.com
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