Enron and AIG

Enron and AIG

Introduction

Conflict is a situation in which each side seeks to take a position inconsistent and contrary to the interests of the other party. The conflict is particularly the interaction of individuals, groups, associations, which occurs when incompatible views, attitudes and interests. The conflict has both destructive and useful functions.

Communication within a company is corresponding with multiples and varied advantages in dealing with the personal productivity:

Coordinated action and teamwork, as opposed to working alone without a cooperative and coordinated interaction will help to achieve strategic objectives. The communication processes, enabling the organization to maintain coordination among the various parties.

Communication is also an instrument of change: the need to adapt to the changing environment in which the organization lives. In this context, internal communication allows the introduction, dissemination, acceptance and internalization of new values and management guidelines that accompany organizational development (Adkins, 2006).

Enron

Enron, like most economic disasters, confronted a series of mishaps and wrong turns inevitably initiating the crumble of an economic foundation in 2001. The truly unfortunate chapter in the Enron debacle is the loss of employee personal savings and investment plans. This incident left many people bankrupt from the perspective of economics, as well as emotional livelihood. Focus nor definition will be given to any one particular misstep, nor point to a single individual that lead this infamous charge. Enron was formed from the regulated gas utility industry in 1985. In the early 1990s Enron made a transformation from a local utility, to become a giant in the energy sector. The evolution of Enron's capacious growth was attributed to trading commodities on the open market. Enron was denoted as the lead designer of the commodity trading movement.

The Enron collapse has been linked to a failure of leadership, greed, and simple misappropriation of accounting principles. The Enron saga continues to unfold with a discovery of laws broken, misjudgment and perhaps, the truth behind the failure may never be known. The most important issue that surfaces within the research context is the loss of personal fortunes, with no way to recover from such a financial tragedy. The conflicts arise due to the following reasons.

1.Relationship conflicts and communication: This is due to strong negative emotions, to misperceptions or stereotypes, poor or lack of communication between the parties. Lead to a growing spiral of destructive conflict escalation.

2.Conflicts of information: This is due to the lack of information needed to make the right decisions so interpreted the situation differently and not to be assumed as the same ...