Managerial Organization

Managerial Organization

Introduction

Throughout its existence, Enron Corporation signifies the extremes of an organization working in a global context and capitalist economy. Within less than a year, the firm departed from being a sign of “the most innovative company” model of ethics, social responsibility, and success driven, most focused and benevolent to an indication of greed, mismanagement and deception. It was regarded to represent as one of the best 21st Century organization in terms of economical and ethical.

A company with modest start, Enron started off in 1985 with a merger of two pipeline companies in Houston. Even though, this company has faced a couple of financially challenging years, but Enron managed to deal with it. In 1988, Enron redefined its business towards “energy broker” from “energy delivery” because of deregulation in electrical power market. Enron rapidly shifted itself from a surviving one to flourishing one (Adkins, 2006).

Organizational culture that led to Enron corporation “debacle”

Such organizational cultures that contributed to the failure of Enron Corporation are referred to as toxic organizational cultures. They include authoritarian-hierarchical, Competing-conflictive, Dishonest-corrupt as well as Rigid-traditional cultures.

Competing-conflictive culture

This refers to a situation, whereby there are conflicts between senior managers which can lead to an attempt by one to undermine the position, and authority of the other through political activity. In this form, of culture, the senior managers plot against one another. Cooperation does not exist in this form of organizational culture and more than often refrains from sharing information with one another as they fear that the information may be used against them. People struggle to gain power, and they usually sabotage one another so as to emerge top of the others (Matthias, 2009).

The mission statement of the organization is no longer regarded as the survival as well as safeguarding of personal interest's forms the order of ...