Reference no: EM132605570
Enron was a very powerful company that was doing very well in the market. The value of its share was high and the company was enjoying an overall healthy position as a business. The employees were happy and new recruits would have killed to get a job at Enron. However, this was not to last. Enron enjoyed so much success that it got to its head and it started making all sorts of problems. Enron decided to change its organizational structure by employing new people at high posts who were given the opportunity to make big decisions that could directly affect the organization. Thus, their organizational design was altered. The reward system within the organization was also changed since the top performers were given the opportunity to receive many bonuses and stocks options. This new system was to be controlled by an internal controlling authority but this did not work well because the people who were reviewing and those who were being reviewed were working on the same levels and this caused them to form alliances among themselves. They all looked out? for each other and were not honest with their reviews, and everyone was given good reviews. Employees were scared to do something that would anger their superior and this is why they all became "yes men". This created a very unstable culture that was based on dishonesty and this caused Enron downfall.
a. Was the choice to hire new employees a good judgment? Elaborate.
b. If you are the CEO of Enron before the new hiring began, what is the strategy you would have made to move the company to the next level of success?
c. How will you improve the situation in Enron? Elaborate.
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