There are various versions on the reasons of bankrupt of Enron. But we can affirm that multi-aspect factors brings the result. Of which corrupted corporate culture may be the underlying cause for its failure. For corporate culture is incorporated with employees' minds, dominating their behaviors.Design cheap bridesmaid dresses on Doll's Festival
Individualism contributed to a bureaucratic Enron. Last Week My Father Chose wedding flower girl dresses for My Mother
It is not enough for the company to attract the best talented people, and it must ensure continuous progress of employees, so, Enron has established a performance evaluation system. In 1997, CEO Jeffrey Skilling performed a company-wide evaluation: to compare the staff laterally in the same ranks. Employees and managers had to go over this evaluation course every six months. About three weeks, the company would finish the evaluation and the result would decide the bonous even the destiny of the employees. Up to 2000 when Skilling was talking about this performance assessment process he said that [if you want to be innovative, you have to tightly unite your staff."
However, it did not wen as he wanted, Enron's performance evaluation system actually formed a culture that the individuals are important then the team. "People finish all their work independently, "an old Enron's employee said," The reason is simple: if John and I are competitors, then why should I help him? " Under this circumstance, Enron culture encouraged individulism and curbed the development of team work spirit and commitment.
With the recession of new economy, it was hard to make outstanding achievements. And the competition in company was more and more 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 started to concoct problems, distort records and drive away those employees they disliked. 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.
The phenomenon of [Winner Prevails All" led to vague Enron.
After Jeffrey Skilling set up a performance appraisal system in the company, timely knocking out the unqualified staff, while investing much money in rewarding staff`s achievements. InEnron, the defeated was always kicked out in the midway and the winner would stay, people who were hoping to make the biggest deal even could get millions of dollar of bonus. Above-mentioned was Enron`s culture of [Winner Prevails All", and such culture resulted in the principle of [Only Success, No Failure". Employees who made mistake would be fired immediately, the result was that those who made mistakes would try to cover their mistake,and it also made employees lost many chances.
Employees former and present said that pressure of maintaining the rise of stock pushed senior manager to risk higher. The result was that it told the wrong number of income and covered more and more debts. Finally the current situation is caused. The former manager Margaret Chekoni once said, "Enron is a house made of paper cards."