How did the corporate culture of Enron contribute to its bankruptcy.

May 13th, 2015
Studypool Tutor
University of Portland
Price: $25 USD

Tutor description

The organizational culture at Enron was very strictly oriented that evaluated the performance of the employees after every six months.

Word Count: 707
Showing Page: 1/5
Enron: Questionable Accounting Leads to CollapseQuestion 1: How did the corporate culture of Enron contribute to its bankruptcy? The organizational culture at Enron was very strictly oriented that evaluated the performance of the employees after every six months. The element of pride and arrogance clearly defined the behaviors and attitudes of the executive leadership towards lower level employees in the workplace. The employees had no source of motivation and production teams had no direction towards creation of self-managing teams. The appraisal programs and compensational benefits were composed in a way to get more money and benefits to the executive class and there were no concerns attached with the middle and low level employees. The interests of the shareholders were not considered primarily during compensational policy making. The prime focus of the management was to evaluate the employees and those who could not stay at the top of the performance and had to stay at the bottom of the list were fired from their positions. As a consequence to this ineffectively strict policy and culture, the competition among the employees raised to the maximum level and the purpose of functioning for each individual was to get ahead from the other workers. When the employees had no way to increase their performance to stay in their jobs with good salaries and benefits were compelled to incorporate illegal activities in their functioning which in response exploded as a ba

Review from student

Studypool Student
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors