Power can be defined as the ability to get a person to do something wanted by another person. Power can be seen as exerting control or influencing people. Power puts people in position of authority that controls and affects the employees of an organization (Brown, 2010). People use power on people for different purposes to guide and direct their employees for higher purposes and to conform to the values of the organization; but also to achieve the goals of the organization. Power can be viewed from different aspects, power based on reward purposes, in situation where employees exert their power by rewarding their employees based on their performance whether good or bad. There is coercive ...view middle of the document...
Cooperate greed became their core value instead of integrity which was their core founding value. The leadership chooses to short change profit for values, turning a blind eye to ongoing fraud in exchange for the case they needed. This can be viewed as being transactional leadership because of the exchange of money for favors and work done. (Burns, 1978). Enron was described as a very arrogant place where there was flagrant disregard for the laid down rules of doing business with little or no consequences. Some of the employees observed that the organization was deliberately creating an atmosphere where rules and regulation was broken and ethics thrown out the window for the sake of financial inducements or rewards. The management put in place a painstaking appraisal performance process for its employees; where employees from the lower sector were fired indiscriminately and employees in the name of ranking did not provide a fair level ground for impartial assessment of performance of the employees thus individualism culture crept into the organization where the winner takes it all.
Even though Enron knew that they were in financial mess, they chose to cook book misleading the public and lost billions of dollars in unquestionable transactions that did not align with the business interest of the organization. At the end, Enron collapsed because of the leadership’s unethical and irresponsible behavior.
Management should ensure that the organizational culture which was founded on integrity should not be compromised whether it is the interest of the organization or not, employees should be constantly trained. Profit is not the bottom line but promoting an environment where culture of the organization will be effectively communicated to all.
POWER AND POLITICS
Management should develop policies to protect employees from intimidation or harassment of any sort. They must develop codes of conduct for the organization and failure on employee to observe or follow them attracts serious disciplinary...