StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Case study: Enron - Term Paper Example

Comments (0) Cite this document
Summary
Human resource management is an essential element of organization’s management because of its sensitivity to employees’ environment. This paper reviews a case study, on Enron’s human resource management strategy and the problem that faced the company…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Case study: Enron
Read TextPreview

Extract of sample "Case study: Enron"

Case study: Enron November 23, Case study: Enron Human resource management is an essential element of organization’s management because of its sensitivity to employees’ environment. This paper reviews a case study, on Enron’s human resource management strategy and the problem that faced the company.
Summary of the case
The case outlines history of Enron that begun as a small organization and abruptly expanded before its collapse in the year 2001. Central to the temporary success was the company’s employee recruitment strategy, Employee Value Proposition, which focused on the organization as a dealmaker and expected its employees to facilitate the goal. It restructured its human resource to allow employees’ freedom towards the objective. This ensured continued growth of the organization that attracted quality employees. Enron however collapsed in the year 2001 because of malpractices among its top employees.
Enron’s recruiting strategy and why it worked
Enron adopted Employee Value Proposition as its recruiting strategy, a strategy that focuses on employees’ productivity and rewards employees for their contribution to its realized objectives. It used the strategy to attract high profile employees who could facilitate its deal-making goal. The strategy worked because the organization was growing to its prime and was therefore attractive to employees, and the organization offered a flexible working environment that could allow employees to be creative towards achieving desired values (Ivancevich, 2012).
Enron’s overall recruitment EVP and strategy and the problems that resulted in the company
The organization’s employee value proposition and strategy played a significant role in Enron’s consequent problems. The strategy facilitated the problem that was misrepresentation of financial information and application of the misrepresented information to make deals for the company. The strategy’s scope desired achievements of the organization’s expansion objective and success in manipulating the statements or using them meant employees’ recognition and reward from the company. This therefore motivated employees to engage in fraud, leading to the problem (Ivancevich, 2012).
Importance of creating recruiting message that is attractive but does not oversell the company
Creating a recruiting message that is attractive but does not oversell the company is important because a recruiting message establishes recruits’ expectations, should they succeed in joining an organization. An overselling message may for example attract employees who can do anything to meet an organization’s objectives, whether the action is good or bad, legal or illegal. A fair statement therefore attracts moderately rational personnel (Catano, 2009).
Possible recruiting strategy for attracting employees should Enron decide to reconstitute
One possible recruitment strategy for the organization, should it decide to reconstitute, is the use of independent recruiting agencies. This approach is free from potential conflict of interest that may lead to management’s interest in recruiting and selecting employees who can be used to implement any objective, whether such an objective is professional of not professional. Such a strategy would ensure employees who can withstand management’s pressure to avoid the kind of problem that Enron underwent (Philips and Edwards, 2008).
Conclusion
Enron’s expansion and eventual collapse was therefore initiated by its management and facilitated by its recruitment strategy and selected employees. The most appropriate solution to the problem would therefore be application of a recruitment agency that is independent from management.
Reference
Catano, V. (2009). Recruitment and selection in Canada. Ontario: Cengage Learning.
Ivancevich, J. (2012). Human Resource Management. New York, NY: Irwin/McGraw Hill.
Philips, J. and Edwards, E. (2008). Managing talent retention: An ROI approach. New Jersey, NJ: John Wiley & Sons. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Case study: Enron Term Paper Example | Topics and Well Written Essays - 500 words”, n.d.)
Case study: Enron Term Paper Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/management/1609301-case-study-enron
(Case Study: Enron Term Paper Example | Topics and Well Written Essays - 500 Words)
Case Study: Enron Term Paper Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/management/1609301-case-study-enron.
“Case Study: Enron Term Paper Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/management/1609301-case-study-enron.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Case study: Enron

Video Case Study

...?MGT 4302 Ethics in Organizations Video Case Study ______ __________________________________________ Enron: Smartest Guys in the Room With regard to the film, identify examples of ethics concepts from Chapters 7 and 8 including: 1. “Multiple ethical selves” Multiple ethical selves is the idea of being in the position of playing conflicting roles. In the movie Enron: Smartest Guys in the Room, Jeff Skilling and Ken Lay—the president and CEO of Enron respectively-- had multiple ethical selves. These two men were consistently playing dual roles of responsible business men and gambling risk-takers. At several points in the film, Skilling and Lay claim that...
3 Pages(750 words)Essay

Finance - Assurance and Audit

..., Simon & Hatherly (2003, p. 107) argues that one of the main short term benefits of external auditing is that the firm detects and quickly corrects any operational deficiency. Besides, a company relying on its financials for tax filings will hedge tax penalties and interest because of auditing in case the financial statement had errors. In the long run, external auditing has benefits in that it gets management assurance through the effectiveness of the financial controls that the directors employed. The firm also gets confidence and approval from the investors, firm regulators and the public in general. Case study Enron This was an American corporation dealing with...
5 Pages(1250 words)Essay

Multi-Paradigm Programming Languages

3 Pages(750 words)Essay

Enron Scandal Case study

...?Enron Scandal Case Study Table of Contents Introduction 3 Enron Case 4 Role of Auditors in Enron’s Case 5 Role of External Auditors 5 Governance Structure 5 Main Actors 7 The Role of Organisation 7 Legal Context 7 Prevention 8 Conclusion and Recommendation 9 References 10 Introduction Businesses all around the globe are adopting concepts related to corporate governance in order to enhance the efficacy of their business practices. It is a well recognised fact that for a company to be successful it needs to protect the interest of the stakeholders, employees, internal as well as external customers and the environment in...
5 Pages(1250 words)Essay

Business Ethics Enron case

...prices. People say that this issue can happen again in the future, but I believe if people become more aware of this issue, business will instead pursue honesty at work that there will be no more second Enron case. References Gibney, A. (2005). Enron: The Smartest Guys in the Room. New York, NY: Magnolia Pictures. Hamilton, S. (2003). Case study: The Enron collapse. In Ethical issues in business: A philosophical approach, 8th ed.. Edited by Thomas Donaldson and Patricia Werhane. Upper Saddle River, NJ: Pearson/ Prentice Hall. Hartman, L. P., & Desjardins, J. (2011). Business ethics: Decision making for personal integrity and social...
5 Pages(1250 words)Essay

Enron Case: Accounting Controversies

...Accounting Controversies INTRODUCTION They say that accounting is the language of business. A German investor would be ably informed of how the United States company Kentucky Fried Chicken or any other enterprise has performed in terms of generating profits. The accounting language has its own set of technical words that a person studying basic accounting would easily understand. Accounting is governed by United States generally accepted accounting principles. The External auditor issues an opening as the fairness of the financial statements. The following paragraphs explain that some persons preparing the accounting statements do not follow the U.S. GAAP. BODY The Enron and Arthur Andersen hit the...
5 Pages(1250 words)Essay

Enron

..., with Ken Lay taking over as CEO of the now Enron Corporation. Houston Natural Gas Company Headquartered in Houston, Texas, HNG was a utility gas company acquired by InterNorth in 1985. With InterNorth CEO EnterOn or Enron Soon after settling the debt incurred as a result of the purchase of HNG by InterNorth, Kenneth Lay came up with the idea of using ‘EnterOn’ (in Camel case) as the name for the new company. As it was about to be released after printing all the stationary, they realized that the word when translated into Greek meant “intestines”, the name was quickly changed to Enron. Enron soon emerged into the market as a leading energy distribution...
10 Pages(2500 words)Research Paper

Enron case

...frameworks. The auditing procedures prior to the Enron fraud were sufficient to ensure that there is high audit quality, but in some cases fails to identify misappropriations (Hodgetts & Luthans 33). There have been significant changes in accounting regulations after the collapse of the Enron Corporation with the main objective of ensuring veracity of the financial statements. This is because most corporations faced accounting issues and poor quality of audit procedures. One of the new accounting regulations after the collapse of the Enron Corporation is the Sarbanes-Oxley Act passed during 2002 and incorporated numerous strictures on audit and accounting policies and...
4 Pages(1000 words)Essay

Enron

...sentences. A review of the involvement, charges and present status of the key players directly involved with the company is given below; Jeff Skilling, CEO of Enron (February 2001- August 2001) Before taking over as chief executive officer, he was the COO (chief operating officer) and president of Enron. Skilling has been charged with insider trading and fraud and is currently serving a jail term of 24 years. While the former CEO is still fighting for innocence, his case been met with only failure so far. Another blow in his life came when his 20 year old son, John Taylor died in 2011 and Skilling could not attend the funeral (Financial News, 2011). Ken Lay Key lay was the chairman...
20 Pages(5000 words)Research Paper

The Enron case

...The Enron case Enron Corporation was based in Houston, Texas and was an American energy-trading and utilities company. At the height of the scandal, the company was the seventh largest corporation by revenue in the United States. Enron employed about 20,000 staff making it one of the largest in the industry it operated. However all these were before its bankruptcy on December 2, 2001. Enron shares traded at $85 initially and after the fraud was discovered it plummeted to $0.30 in the sell-off immediately the fraud was exposed (Armour and McCahery, 38). The fraud exposed the corporation and it was realized that their reported financial condition was...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Case study: Enron for FREE!

Contact Us