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Who Ruined Enron Company Part 1

There are different opinions on the reasons for Enron's bankruptcy. But it is sure that it is the result of various factors. Among these factors, the decayed culture of the company should be the profound reason for Enron's failure. Because the corporate culture is melted into the thought of the employees and governs the behaviors of them.New 3d glasses Shape for February

Individualism gave rise to the bureaucratic Enron.Natalie Portman is Found in Yearning audio accessories

Enterprise should allure prominent talents, and it should ensure employees` unceasing improvement as well. Due to this, Enron set up a performance estimation system. In 1997, the CEO of Enron, Jeffrey Skilling applied a performance evaluation system in the whole company: transverse compare would be made among employees on the same level. Employees and managers will repeat the assessment process every six months, and the company will sort out these data in about three weeks or so,and the the results decide the fate of the staff even bonus. In 2000, Skilling said while talking about the performance estimation system: [If you expect to make innovation, you should unify the employees."

While things went contrary to his wishes, the evaluation system formed such a corporate culture that individual over and above team. "People finished their work independently," the old staff of Enron said, "The reason is simple: if John and I are competitors, then why should I go to help him?" Under this circumstance, the Enron culture resulted in flooding individualism which suppressed the cultivation of team spirit.

With the new economic recession, to make an outstanding performance was more and more difficult with the inside competition increasing fierce. While when this tendency was becoming more and more obvious, such kind of pressure-pull performance evaluation system also gradually changed into a kind of bureaucratic system. Some managers begin to fabricate problems, tamper records and drive away those employees they dislike. Being lack of team spirit has become the fatal wound of the progress of the company, while the team spirit is a necessary condition of realizing innovation.

Winner takes all " created a papered Enron

After Jeferry Skilling set up that performance evaluation system, the unqulified employees were fired without delay, at the same time,employees who made good were rewarded with high bonus. In Enron, the failed people were often dismissed half way, while the winners would retain. Those who were expected to do a big deal even could get a bonus of millions of dollars. This is the Enron culture of "winner taking all". And this culture lays the mark of "only success, not failure" to employees. Failed employees would be fired instantly, which made them try every possible way to cover their mistakes, also leaving no chance for employees to practice.

Some employees of the company in the past and now pointed out that keeping the pressure of a constant rise of Enron`s stock price tempts the senior managers to take bigger risks. The result was false income and more and more conceal debt, and eventually leading to the current situation. Using the words of former manager Margaret Coney, Enron was "a house that made of cards".