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Organizational Culture In Enron

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According to (Organic Workspaces, n. d) an organization’s culture refers to the observable, powerful forces in any organization, usually constituted by the employees’ shared values, beliefs, symbols, and behaviors. The organizational culture ideally influences its decisions and actions (Tharp, n. d). (Watkins, 2013) also defines organizational culture as a consistent and observable pattern of behavior in organizations. An organization’s culture channelizes individual decisions and actions at a subconscious level, and thus, can have a potent effect on an organization’s success. Organizational cultures facilitate the existence of a common ground for all stakeholders, particularly the employees and managers in addressing various issues within an organization. It reduces uncertainty thus providing a sense of direction and vision for the organization. Organization’s cultures can be observable in its people, processes and products as well as leadership’s embraced values in shaping its operations.
The (Harvard Business Review, 2013) states that an essential intent of an organization’s culture is to help orientate its employees to realism in a manner that provides a basis for alignment of purpose and shared
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Although his leadership style to some extent exemplified the organizational culture at Enron, most aspects negatively impacted on the company. He managed to grasp control of all the facets of the company from human resource management to accounting. He transformed the accounting procedures in a manner that they became prone to kneading to match expectations. His penchant to use Special Purpose Entities and reserves for contingencies as well as mark-market accounting accentuated the desire for short term results at the expense of the risk exposure of the company. His use of rewards and status was inappropriate and incompatible with the compensation package of
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