Organizational Failure That Caused the Term Paper

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Emphasis was placed on resource allocation, remuneration of the top managers -- through sometimes luxurious premiums and bonuses -- or financial sufficiency -- often created through loans.

2. The leadership style

At the level of the leadership style, a distinction has to be made between management and leadership in the meaning that leadership refers to people, whereas management refers to technical details -- such as resource allocation, financial consideration and so on. As a general specification, the Enron leadership style was that of the follower. The employees were not encouraged nor empowered. Transparency was virtually inexistent. Whenever conflicts or intriguing findings would arise, they would be hushed up.

3. The organizational structure

The organizational structure at Enron was complex and it lacked an adequate control and audit system.

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It failed to adequately delegate responsibilities and it also failed to implement and demand accountability. The company did not keep an account of these problems when it continually increased in size, which subsequently led to the deepening of the problems. "Enron wanted to be bigger, better, and more progressive than all other companies and it seemed to be well on its way but the company did not a top manager (Kenneth Lay) with the right interest at the right time in his company's objective and mission" (Hunter, 2007)......

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