Thursday, October 17, 2019
Questions and Answers Case Study Example | Topics and Well Written Essays - 500 words
Questions and Answers - Case Study Example The leaders were Jeffrey Skilling, former Enron President and CEO, Kenneth Lay, CEO and Andrew Fastow, Ex-Chief Financial Officer. 2. How did leadership influence the organizational culture at Enron? Jeffrey Skilling and Andrew Fastow were instrumental in changing the organizational culture of Enron. They gave the perception that Enron was very innovative and very profitable. Enron has a dysfunctional corporate culture which was obsessed with short-term earnings so that the bonuses will be maximized. The employees began looking at high volume deals even if it meant disregarding the quality of the cash flows and profits. The employeesÃ¢â¬â¢ actions were reflective of their leadersÃ¢â¬â¢ values and beliefs. Extravagant spending was common among its executives. The excessive stock options and corporate compensation gave EnronÃ¢â¬â¢s executives too many incentives to manipulate the financial accounts and the stock price of the company. Corporate values and principles seemed to disa ppear at Enron at the time of their leadership. 3. Did the performance evaluation system at Enron support or undermine the companyÃ¢â¬â¢s business goals and leadership beliefs? Yes, the performance evaluation system at the time of Skilling supported the companyÃ¢â¬â¢s business goals and leadership beliefs.