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Essay / Research Paper Abstract
This 5 page paper looks at the way in which organizational behavior theory may be used to explain the failure of Enron. The paper starts by identifying relevant theories, including escalating commitment and assesses how this was seen within Enron. The bibliography cites 8 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEOBenron.rtf
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Unformatted sample text from the term paper:
the real issue can be considered in terms of the organizational behaviour that was in place and the patterns of behavior that emerged. Before looking at the failures specifically at
Enron some approaches that may be considered as useful should be discussed. Organisational behaviour can be defined as "The study of the
structure, functioning and performance of organizations, and the behavior of groups and individuals within them" (Middleton, 2002). It is therefore possible to see how the collective of individuals who make
up the organisation can have an impact on the way in which the challenges are met within the commercial world and how decision may be made and supported. It
is seen within Enron that there were several people were involved in the decisions to misrepresent the account, and make the mistakes we will look at later. For this we
may look at the way different organization operate as social systems, where there is peer pressures and as Mayo noted in the Hawthorne studies where there are pressures it is
possible for these to result in an employee acting against their own self interest. Mayo noted that the employees did not act as individual isolated actors, but they acted as
part of a group reflecting loyalties to colleagues and their commitments which were stronger than their individual self interests. Effectively the work undertaken reflective collective norms for the group and
then complied with those norms, one may argue that the norms for the executive management became skewed, with the presence of escalating commitment.
The ability of the leadership to get away from some previous transgressions would have an impact of gradually impacting on the culture at the executive level, with the
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