Research from Term Paper:
In an effectively functioning business, according to sociologist Robert Jackall (as cited in Cohan, 2002), power is targeted at the top inside the person from the chief executive officer (CEO) and is at the same time decentralized; that is, responsibility for decisions and profits will be shifted as far down the company line as it can be. At Enron the information would not go down the ladder, or perhaps up. Details did not go to the management staff or the table of administrators. “The table of Enron… appears to be analogous to the 17th century monarch – having absolute electricity in theory, yet cut off coming from access to info and thus manipulated by the ministers whom are their nominal servants. ” The hierarchal composition of Enron prevented employees from obtaining complete understanding required to produce informed moral decisions and from in fact knowing what component they performed in the wholeness of the business strategy.
At every company a certain culture is present that is followed by the majority of the people. This traditions goes hand-in-hand with the group process, or perhaps how the staff work or perhaps do not come together on making decisions and getting objectives. The task also stipulates how the innovator and followers work in concert. At Enron, there was a group emphasis of shared negativism toward strength regulation and other forms of government control. People who questioned the leaders’ entrepreneurship and issues of interest were labeled difficult employees who lacked foresight and perspective.
Humans happen to be programmed “to go with the flow” and “not to make waves. inch Their number-one need, according to psychologists such as Abraham Maslow, is always to survive. Struggling someone in power once recognizing this will likely only deliver defeat is usually not rational behavior intended for survival. Human beings on a complete also follow their frontrunners with the anticipations that these people know what ideal the organization. The moment Skilling overtook the company, people saw him as a very secure figure who knew what he was undertaking and might lead them in the right direction. There exists a tendency to take what commanders do instead of question it. Otherwise a person can be too conflicted.
Unfortunately, it was recognized way too late that Enron epitomized omnipotent control. Despite the fact that creativity and creative imagination was encouraged, the underlying structure was a competitive tradition run simply by breakdowns in internal communication, deception, scam and personal selfishness.
Schwartz, J. (Feb. 4, 2002) as Enron Purged Their Ranks, Dissent Was Hidden Away. New York Times. Log of Organization Ethics; Dordreeht; Oct 2002; John Alan Cohan
Cohan, J. A. (2002). ‘I didn’t know’ and ‘I was just doing my Job’; Features corporate governance careened out of control? A case analyze of enron’s information myopia. Journal of