Running head: DISCUSSION 1

ENRON Analysis Discussion in terms of Leadership Styles

Name

Institution
 Discussion

Success of any business organization largely lie on the hands of the central

management. From the analysis of collapse of the ENRON organization, it is evidenced that

the central management played a greater role towards its downfall. The leaders of the

organization openly manifest their greediness and management skills towards the organization

success. They only base their actions towards satisfying their own financial lusts.

Consequently, the organization’s employees get frustrated and work profusely to maintain their

job. This makes the employees to stop thinking critically and creatively. Any organization

where employees do not develop critical thinking and creativity in their work is mostly

subjected to failure and ENRON is not an exception. The employees’ frustrations are brought

about by the styles of leadership deployed by the central management (Puni, Agyemang and

Asamoah, 2016). ENRON organization management can be vividly described as autocratic or

dictatorship.

In authoritarian style of leadership, the central management consult least from their

employees or in severe instances such as the ENRON organization, there is absolutely no

consultation. The management majorly use threats such as firing off employees, demotions,

salary retention and salary decrease among other job security related factors. When an

organization uses this, the subordinates feels unvalued and work with frustrations with fear of

facing the adverse consequences thus stopping creativity and critical thinking. In return, the

organization quality of production depreciates and consequently collapses as evidenced with

the ENRON. Therefore, success of any organization entirely depends on choice of the

leadership style by the central management. The use of leadership styles that denies employees

the freedom of expression and threatens their job security should be avoided (Puni and Bosco,

2016).
 Reference

Puni, A., & Bosco, D. K. J. (2016). Leadership style, corporate culture and organizational

performance. Research Journal of Social Science & Management, 5(10), 83-90.

Puni, A., Agyemang, C. B., & Asamoah, E. S. (2016). Leadership styles, employee turnover

intentions and counterproductive work behaviours. International Journal of

innovative research and development, 5(1), 1-7.