Enron was founded in 1986 in the Houston, Texas as operator of natural gas pipeline. Enron had expanded the business from providing the products and services of natural gas, electricity and communication. North (2002), “Enron was named the most innovative company in America for the sixth consecutive year by Fortune magazine” (¶9). And Enron was referred to role model as innovative corporation in the academic communities, business markets and public.   What made the most innovative company collapse? Financial fraud was the main reason for collapse.   When Enron’s senior management perpetually denied for any knowledge of fraud or illegal acts, people wondered what management did.   And people assumed that the lack of leadership of senior management and organizational structure were the factors of its collapse. If senior management was not aware of daily operation in the organization, what did management do?
So research paper will focus on how leadership, management and organizational structure affect the failure of the Enron.
Organizational structure and culture
Enron was obsessed with profitability and business success. The virtue of Enron was “bold, innovative, smart, ambitious, accomplished, adventurous and undaunted” (Cruver, 2002). At Enron, professional and adventurous employees worked in a decentralized structure with no supervision. Seeger (2003) stated, “In the decentralized structure had the additional benefit of reducing the leaders’ level of direct knowledge. When company gave the authority to execute multimillion-dollar deals with little or no oversight, management lost track of company operation”(p.73).
Enron was applied entrepreneurial organization. Entrepreneurial organization emphasizes the aggressive growth and rapid exploitation by breaking existing rules.  
The Enron encouraged employees to be innovated and created in creating new chances for company’s revenue. The Enron’s culture allowed employees to make risky and ethically questionable...