Examining Business Failure Paper

Examining Business Failure Paper
University of Phoenix
Professor: Diana Avery
March 17, 2010

Enron Corporation a well known energy company based in Texas, the seventh largest company in America valued at over 2,500 million dollars goes down.   Which started out as a small company with ethical values and beliefs suddenly loses it edge.   Scandals linking crooked accounting procedures lead to this failure.   Enron’s fall in value transpired after it was exposed that many of its revenue and profits were the outcome of deals made with limited partnerships which was controlled by the company.   Enron was hiding its losses from the public by not reporting them in its financial statements.   Enrons’ officials at this point had taken its eye off the purpose of operation and begun focusing on becoming the best energy company to exist.   Enron would become part of the largest company fraud ever.   Officials of Enron not only participated in the fraud of the company but encouraged its employees to go along with the scam.   Executive and others would receive bonuses equivalent to base salary and above.   Owners and all additional staff had the options of purchasing shares of the company at a lesser price than normal.  
Organizational Behavior, Leadership, Management, and Organizational Structure
Organizational Behavior (OB) is the study and knowledge of how people in a group and as individuals act within an organization.   According to Robbins and Judge “OB includes the core topics of motivation, leader behavior and power, interpersonal communication, group structure and processes, learning, attitude development and perception, change processes, conflict, work design, and work stress” (Robbins and Judge).   Such behavior identifies the ways in which people operate in relation to the effectiveness of the business.   Managers must realize that its employees play an important part in what gets done within the organization. Employees’s watch and learn the behavior...