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Case Analysis: I. Problem Statement

The document analyzes the case of Enron Corporation's collapse due to mismanagement, corruption, and a toxic work environment. It identifies problems like a "rank and yank" system that stressed employees and prevented them from reporting issues. This allowed problems to accumulate and lead to massive debt. The document recommends alternative courses of action like abolishing the ranking system in favor of positive reinforcement to improve productivity. It also suggests increasing transparency of transactions and being more humble to build trust with other companies. The overall goal is to prevent future collapses by addressing workplace culture and transparency issues.

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Phillip Joshua Gonzales
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Download as DOCX, PDF, TXT or read online on Scribd
30 views

Case Analysis: I. Problem Statement

The document analyzes the case of Enron Corporation's collapse due to mismanagement, corruption, and a toxic work environment. It identifies problems like a "rank and yank" system that stressed employees and prevented them from reporting issues. This allowed problems to accumulate and lead to massive debt. The document recommends alternative courses of action like abolishing the ranking system in favor of positive reinforcement to improve productivity. It also suggests increasing transparency of transactions and being more humble to build trust with other companies. The overall goal is to prevent future collapses by addressing workplace culture and transparency issues.

Uploaded by

Phillip Joshua Gonzales
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE ANALYSIS

I. Problem Statement

Enron Corporation was once a leading company that came crashing down

due to mismanagement, deceit, corruption, and a toxic work environment which

resulted in mountains of debt with the company filing for bankruptcy.

II. Statement of the Objective

● To improve work productivity by improving the work environment

● Exercise transparency in the company in regard to all transactions

● Increase and improve relationships with other companies

III. Areas of Consideration

IV. Assumptions

Enron Corporation’s employees are under a lot of stress due to the “rank

and yank” system that they’ve developed and exercised in the company. This resulted in

the undisclosure of the employees about problems which may compromise their ranks

inside the company. All of these unreported and undisclosed problems piled up and

resulted in a mountain of debt and a situation in which the company could’ve prevented

earlier on. There may have also been corruption inside the corporation itself, as partners

may have pocketed and benefitted from dealings and company transactions. Arrogance

was also one of Enron’s problems, the company boasted and had a deep-seated belief
that they can handle increased risks without any danger, this resulted in them going over

their heads and overlooking major problems.

V. Alternative Courses of Action

● Abolish the “rank and yank” system and create and environment using positive

reinforcement. This will improve work productivity and the employees will stop

pulling each other down due to the fear of being ranked at the bottom and be forced

out of the company.

● The managers and HR should see to it that every transaction is clean, that every

move be reported in order for every problem no matter how small, be solved

immediately. This will prevent problems from going unnoticed or unreported thus

saving the company a lot of time, money and resources.

● The company should be humble, it should strive but it should not be arrogant. The

company should improve its relationships with other companies by building trust

and showing other companies that they can rely on Enron in order for the

company’s network to grow and thus gaining more resources and room to grow.

Values and principles such as honor, honesty, diligence, intelligence and prayer

must be the core of the company, all of these must be embedded in each employee

for they embody the company itself.

VI.

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