What was the organizational design of Enron like?

organizational structure. The previous section mentions that a weakness in one element of the organizational architecture can lead to the failure of the corporate governance system. However, a research of Brickley, Smith and Zimmerman [3] indicated that all the three architectural elements at Enron were at fault. read more

“Organizational design” seems a bit vague a term. The business structure of Enron was, surprisingly enough, quite straightforward. A holding company, with a number of wholly owned subsidiaries, some of which would be created as the opportunity arose. read more

The motivation for the organizational to reach its goal reflects a singular interest in a work-related behavior. Enron’s organizational goals focused on fast growth and high profit margins. This singular interest was the reason that Enron’s made a critical mistakes that contributed to its failure. read more

In the case of Enron, the authors explained that a flawed organizational design led to the firm's downfall. The first flaw was to flatten Enron's management structure, which caused decision making authority to be delegated down to lower level employees who did not have proper upper level management oversight. read more