Management and Leadership Self-Development Project - Enron Corporation - Case Study Example

Management and Leadership Self-development Project Name Course Name and Code Instructor’s Name Date Table of Contents Table of Contents 2 Introduction 3 Chapter 1: Management 3 Chapter 2: Evolution of Management 4 Chapter 3: Managing the Environment: Organisational Culture 5 Chapter 4: Managing Change and Diversity 6 Chapter 6: Managing Leadership 7 Chapter 7: Managing Motivation 8 Conclusion 9 References 10 Introduction Management and leadership self-development project unit has enabled me to understand better how management and leadership contributes to success of any organisation. Numerous organisations across the world are effective and efficient in their operations through sound leadership from the management (Adeniyi, 2007). However, some organisations have failed because organisations did not follow sound management strategies and also professional requirements. For the purpose of this analysis, Enron Corporation which collapsed in early 2000s can be utilised as an example of an organisation that failed in its managerial requirements and leadership fundamentals. In addition, I will utilise my extensive learning and information from my personal life and history in developing my understanding regarding this unit. Chapter 1: Management Before starting this unit, I understood partially requirements of management and what managers were supposed to fulfil. However, through the unit, I understood different capabilities and operations of managers. I did not know principal managerial functions such as planning, organising, leading and controlling were specifically attributed to managers. In the case of Enron Corporation, the management were not able to manage efficiently the four core functions of managers and may have contributed to the Enron scandal (DuBrin, 2008). Even if they knew what was happening, the organisation management were not able to address the issue. For example, the requirement for managers is to organise operations and control but Enron management were not able to fulfil these functions. The managers were not able to analyse and monitor accounting requirements and thus accounting loopholes were maximised on translating in failure of the organisation (Adeniyi, 2007). In addition, I have come to understand managers are responsible for the entire operations of an organisation. From the lower managers to the head of departments are responsible and all their activities revolve on the four fundamentals of an organisation. Also, I have come to understand globalisation is another force that management should embrace and ensure that an organisation maximises on benefits associated with internalisation (Lawler and Bilson, 2009). Therefore, the unit has improved my understanding on the requirements of managers and also what these managers should fulfil. Chapter 2: Evolution of Management Management has been around for a long time and it showed itself from different perspectives. Not only in human environment is that leadership seen but also in animals’ world. For example, a queen in a colony of bees defines and dictates the direction in which the colony should follow. Also, in history we read extensively about Pharaohs and historical leaders shaping future of their regions. This illustrates evolution of management from a period whereby it was based on environmental factors such as Kingdoms and Knights to a period whereby management is not only based on loyalty but also academic and experience credentials. In the unit, I have been able to trace management from scientific management theory to organisational environment theory. Information from lectures and numerous books that I have read have made me to realise that evolution of management has experienced different scenarios and theoretical challenges and benefits (Adeniyi, 2007). Some management theories and frameworks may have worked on a specific orientation but others may have been applicable to different environments. For example, it is difficult to utilise organisational environment theory with generation X employees. Conversely, it is also difficult to manage employees of Generation Y with ideas from scientific management theory. This illustrates the importance of ensuring human resource development is championed to factor into consideration these changes to ensure an organisation becomes successful. Moreover, through evolution of management, it has provided an opportunity in which maximisation of organisation resources is encouraged. Another important pointer of evolution of management is how tasks are completed and hence guides how management theories affect different periods. I have come to understand scientific management theory was favoured because of technological and environment requirements at that period. This can be compared with organisational environment theory, which factors advancement in technology and frequent changes in environmental requirements. Generally, learning of management theories has helped me understand better development of management approaches. Chapter 3: Managing the Environment: Organisational Culture Organisational culture is an important component that determines the direction of an organisation. I have come to understand is that organisations operate and employees accomplish their duties based on environmental nature of an organisation. For example in the case of Enron Corporation, the culture within the organisation of achieving short term benefits and also strategies cultivated were based on short term benefits. This is an aspect that contributed in the organisation collapsing resulting in huge losses to stakeholders (Adeniyi, 2007). Any employee being recruited into the organisation realised that a culture of bonuses and monetary compensation was important while another culture was maximisation of loopholes in accounting. The role of management is to ensure an organisation operates optimally but in the case of Enron, the organisation capitalised on maximising on weakness on the laws that governs organisations. I have been wondering why some things in an organisation are embraced immensely. For example, a monument of the founder of an organisation or an employee who contributed a lot to an organisation is usually found at a strategic place in organisation headquarters. This is a realisation that I have made and also I have been able to associate the monument with organisational culture. This illustrates the importance of artefacts and objects in relation to an organisation. In addition, I have witnessed numerous functions in different organisations and have come to associate these functions with the rites discuses in the lectures and contribution of these rites towards moulding the culture of an organisation. Generally, organisational culture can determine the direction in which an organisation can follow and outcome of the direction. Chapter 4: Managing Change and Diversity Change is inherent in any organisation especially at the current and turbulent business environment. Organisations have to institute measures to ensure changes does not affect negative the way activities are accomplished within an organisation rather changes should be gradual and other employees are involved and not only management (Burke and Friedman, 2011). I have seen numerous industrial disputes and misunderstandings in organisation especially at the time of recession and economic downturn. In some organisations, I have seen and heard salary cuts suggestions and retrenchments which affects immensely employees of the organisation. Through the unit, I have realised change is a compulsory issue but should addressed in a manner that one group is disadvantaged. It is also important, though extensive reading and lectures, to involve all or most of the stakeholders before deciding on pursuing a change that can affect an organisation negatively such as retrenchment. Apart from change, it is also important to manage diversity (Spellman, 2011). Diversity can be viewed from numerous angles ranging from religion perspective to persons with disabilities. I appreciate diversity because today’s organisations must operate in environment that incorporates diverse cultures and requirements (Armstrong and Stephens, 2005). For example, globalisation has made many Australian and international companies that base their views on Western philosophies start operating in Middle East, which bases their business operations in different ideologies. Thus, managers are responsible for ensuring diversity is embraced and utilised in maximising benefits associated with diversity. Therefore, it is important to understand operation environments and formulate diversity policy that maximises diverse backgrounds and interests of people involved in ensuring an organisation becomes successful. Chapter 6: Managing Leadership Leadership is an important factor in determining the direction in which an organisation can follow. Leadership comes in different styles and attributes. For example, some examples of leadership styles may include transformation and servant leadership. Like management, leadership has evolved based on environment changes. Before studying the unit, I was not able to clearly different how some leadership utilised their attributes towards achieving a goal or objective. Nor did I understand why some leadership styles were more beneficial compared to other leadership styles (Adeniyi, 2007). Moreover, leadership style can directly be compared with behaviour of an individual. For example, servant leadership requires behavioural characteristics that champion both organisational requirements and employees requirements. In addition, I have come to understand that an effective and efficient leader should be intelligence and should respect the requirements of gender in ensuring employees are satisfied. Gender representation and effective leadership style ensures that employees are motivated towards making an organisation successful (Manion, 2011). Leaders should balance the requirements of an organisation with means in which employees are satisfied. For example, monetary compensation e.g. increase in salary can ensure employees operate optimally. Thus, it is important for leaders to understand what motivates different employees. In addition, I know leadership cannot operate without power. Power can come in different forms that may include being legitimate, based on reward or been coercive (Rothstein and Burke, 2010). It is important for leaders to choose the appropriate power to ensure that they achieve the goal intended. For example, a leader should not force an employee to accomplish a task that is not within the portfolio of that employee. I have also learned that power and respect should go hand to hand since a respectful leader has a better chance of becoming more powerful and thus lead an organisation to achieving its aims and goals. Chapter 7: Managing Motivation I usually see my parents waking up early in the morning and they go work for the whole. I sometimes see my parents coming home with some tasks stating that they have to complete the work within certain period. In those days, my parents kept on urging me to complete my homework as how they ensured that the complete work in the office. I kept on asking why I should complete the assignments and homework. My parents said that I will pass and to a better high school and college and later in life I will fulfil my dreams of achieving certain objective or goal e.g. being a manager. After participating in this unit, I associated homework and later occupations with employees completing organisation roles for either financial or in kind benefits (Armstrong, 2012). Generally, motivation drives an individual towards achieving certain goal and may either be extrinsically or intrinsically achieved. One employee may be satisfied by having vacation time while another employee may be satisfied by having more financial benefit. This means employees are satisfied with different motivational components and hence it is important for management to analyse each scenario and formulate strategies that ensures certain goal is achieved. For example, in the case of Enron Corporation, management utilised bonuses to ensure employees formulate and implemented strategies that generated revenues for the organisation. However, the business offered by Enron Corporation were not consistent with laid down organisations objectives and also did not consider ethical and moral outcome of any strategy sanctioned by an employee. This means it is important to equate needs and objectives to ensure a clear motivational strategy is formulated and implemented (Rigolosi, 2012). It is also prudent for organisational management to analyse different means to ensure employees are not disadvantaged when it comes to motivation. Conclusion Studying has played an important role in developing my understanding ion what is happening within different environments and circumstances associated with it. In the unit, I have learned how organisations operate through management and leadership and factors that determine whether the organisations operate optimally. I have also understood the contribution of managers and leaders towards the success of the organisation. In addition, I have learned the requirements and importance of employees in determining the direction in which an organisation should follow. Thus, understanding evolution of management, management strategies, leadership styles and behaviours and introduction of supportive factors such as motivation has enabled me to understand better the business environment. References Adeniyi, M. 2007. Effective Leadership Management: An Integration of Styles, Skills & Character for Today's CEOs. London: AUthorHouse Armstrong, M. 2012. Armstrong's Handbook of Management and Leadership: Developing Effective People Skills for Better Leadership and Management, 3rd Ed. London: Kogan Page Publishers Armstrong, M., and Stephens, T. 2005. A Handbook Of Management And Leadership: A Guide To Managing For Results. London: Kogan Page Publishers Burke, R., and Friedman, L. 2011. Essentials of Management and Leadership in Public Health. London: Jones & Bartlett Learning DuBrin, A. 2008. Essentials of Management, 8th Ed. London: Cengage Learning Lawler, J., and Bilson, A. 2009. Social Work Management and Leadership: Managing Complexity with Creativity. London: Routledge Manion, J. 2011. From Management to Leadership: Strategies for Transforming Health, 3rd Ed. New York: John Wiley & Sons Rigolosi, E. 2012. Management and Leadership in Nursing and Health Care: An Experiential Approach, 3rd Ed. London: Springer Publishing Company Rothstein, M., and Burke, R. 2010. Self management and Leadership Development. London: Edward Elgar Publishing Spellman, R. 2011. Managers and Leaders Who Can: How you survive and succeed in the new economy. London: John Wiley & Sons Read More