Management: Enron Essay
The main purpose of this report is to identify and briefly describe the concepts of efficiency and effectiveness in organisations. The whole report will be focusing on the functions of management i. e. Planning and organizing so as to increase efficiency and effectiveness in Enron Company. The content of this report has been obtained from various sources such as books, journals, company magazines and internet. In addition, this report analyses effective ways that managers should adopt when planning their business and key steps to be taken and various ways of leading and motivating employees in the company.
Besides, the report also explore ways in which planning and organizing affect the image of the company either positively or negatively and how it can be used a tool of attracting and retaining customers. This is very important as it is expensive to attract new customers than to maintain. Human resource manager should address ways of motivating employees and organizing them in the company so as to achieve the objectives of the company. Apart from this, this report has been used as guideline on how training can be used as a motivating factor to employees in the company.
Finally, the report offers conclusions which highlight
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Also the company should also address the issue of developing customer care to attend and solve the problems of the customers in the company Table of contents Table of contents 3 Introduction 4 Discussion 4 Planning 4 Organizing 7 Constraints 9 Conclusion 9 Recommendations 10 References 11 Introduction Background In the year 2001, the world was met with the news that Enron, which is a multi-billion company was in the verge of collapsing. It had thousands of employees and large invested capital. In the midst of the confusion that occurred in the whole process of this, there was need to have the real cause of the failure of the company.
There were many factors to be put into considerations. As the real causes were brought to book, many accounting faults were realised that. The primary objective of this report is to identify, discuss and evaluate the main ideas concerning how the Enron has used management to move to achieve more in their endeavours. These functions of management which will be analysed in this report include the planning and the organisational model of the company. It further clarifies ways in which managers can use these functions to increase efficiency and effectiveness in the company (Kintrya, 2010).
This paper will look at the management issues that should have been taken into account, and also those that should be adopted to avoid future crises. Discussion Planning According to Deng (2009) planning can be defined as the continuing process of developing the mission of an organization so as to achieve its goals and objective. He further emphasise that the mission of an organization can only be achieved by implementing the vision statement which has already been set. Most literatures define vision as the strategies used by an organization to achieve the mission or long term goals of the company.
The managers of the Enron Company acknowledge that planning is the main determinant of the success of their company. Other functions of management cannot work effectively without planning. This means that planning is the key pillar in an organization and the main function of management which supports other functions such as organizing, leading, staffing and controlling The managers of Enron Company can utilise strategic planning to maximise the importance of various employees in the company. They can use planning to ensure that the employees are assigned to work in their talented field.
This is necessary because the company deals with technical issues ranging from software to hardware. Specialization is very important because the products and services delivered by the company will satisfy the customers needed beyond the expectation of the customer. This will influence the customer to trust the company in term of quality product and can even offer referral to other customers. The company will also benefit from this because of the customers loyalty which will be developed. There will be cross selling in the company because of new customers who will be eager to know the kind of the business which the company is involved in.
Planning will also help the company to grow because it will address the main strategies which should be used in order to obtain a large market share. The human resource manager of Enron Company should plan how to address the problems facing employees and means of solving them. Employees are very important tool in the company because they deal directly with the customers. It is more important for the Enron Company because employees interact with customers a lot especially when they are demonstrating how to use most of the products found in the company. Planning can be used by the Enron Company to increase efficiency and effectiveness in Enron.
This can be done by planning on how the employees will be trained on how to develop and manufacture products tat will increase productivity, how to network computers which are indifferent places and networking hardware. Furthermore, the human resource manager should identify employees who will be trained on specialised sections of the company so that there is choreographed alignment. Such planning will increase efficiency and effectiveness of the employees in the company. Scientific managers such as Fredrick Fayol have developed 14 principles of effective way of managing an organization. From these 14 principles, planning was one of them.
The scientists also believe that planning is very essential in any company regardless of the structure which the company has adopted. Since Enron Company is well known in manufacture and sale of personal computers and computer accessories, they need to plan on how to deal with competitors in the market. To deal with such a problem effectively the human resource manager with other top official should plan and strategise on various ways of making their products known. They will need to plan on how to carryout promotion which will differentiate the company from other companies offering the same products in the market
One of the key strategies is planning on how to establish customer service in the company. Since the company is offering technical related services, they should ensure that they are online 24 hours so that they can attend the customers at anytime anywhere. The company serves international market and therefore make sure that they attend the customers’ problems from all over the world. This is where the company is headed as it has a portal where the company store repository of information that are valuable to the clients globally. The human resource should plan for the training programme for the customer care person in the company.
This planning should be attended by other managers from different department such as the finance department. The reason for this is because training programme will require some finance to be set a side. The next step after planning is implementation. Management of the Enron Company should ensure that strategic plans are implemented and monitored closely so that they can reduce the misuse of the resources in the company. Implementation process is very important in the company and it is advisable that proper communication be put in place so that everyone in the company could know what is expected of him or her.
Likewise, managers should release the required funds to finance the implementations of the set plans. At such moments the managers needs to work with the employees as a team irregardless of the position so that employees will feel appreciated and valued. In such situations, employees will be free to air their views, comments and compliments on the activities going on in the company. Lastly, the officials should be appointed to monitor the implementation process to ensure that the objectives of these plans are achieved.
These officials should be professional in that field so that they can be giving out their opinion in case of any problem. When the implementation process is over, official should measure the results and compare with expected plans so that they will know whether the objectives were achieved. In case the plans fail to meet the expected standards, then the managers should be very flexible to adopt other strategies which will meet the planned result. The managers can also interview the employees concerning the results of the implemented plans so that they know what the employees are thinking regarding the same issue.
Organizing According to Kintrya, (2010) organizing is defined as a process of developing the internal structure of an organization. Management scientists have also recognised the art of organisation as one of the most important function of management in an organization because the managers are in a position to identify the employees who can handle delegated work. Delegation is an important practise because it makes all the employees to know what the company is doing and avoid the act of depending on one employee.
Delegation is also important because it prepares the future leaders in an organization. This will also ensure a smooth succession plan in case the top managers will retire or move to other companies. Most literatures view organizing as an important function of management because it focuses on coordination and control of work in the company so as to ensure that the company’s objectives are met. As a result of organizing employees effectively in the Enron Company, the company will benefit in the following ways. Firstly, HP will use organizing as a basis for dividing work into units and departments.
This will be done basing the ability and the professional background of the employees (DuBrin, 2009). This will result to specialisation and the employees within the company will be in a position to deliver quality services because everyone will be doing what is best talented in. Secondly, organising will reduce the mishandling computers in the company because he or she working in the field is best talented. Thirdly, managers of HP will be in a position to identify the hardworking employees for promotion and training using organizational structure as the benchmark.
HP will also benefit from this function of management because involve organization of employees in terms of the duties they will performed and thus reducing the problem of confusion or rises of job ambiguity. The management of Enron Company needs to increase efficiency and effectiveness in their organisation by having competent employees who are cable of carrying diverse work of the company. The board of Enron Company should organized refresher courses for managers who have served for a longer period in the company so that their management skills can be refreshed and the modern ways of managing the employees.
Of the two types of organisational structures, Enron uses mechanistic structure is the most effective because of it flexibility and can function well if these functions of management are exercised. Mechanistic structure enables the managers to implement their functions without any difficulty since the system is flexible. It is also believed that the system will be beneficial to Enron company because there will be understanding between the managers and the employees.
This kind of structure is very important than the organic structure which restricts the employees from participating in most of organizational issues such as decision making. Mechanistic structures alloy employees to review the planned decision and to comment on them either positively or negatively. Besides, the human resource manager should know that all employees do not have leadership qualities and therefore group of employees who are learned be selected so that they review the decision made (Dewey & Bowker, 2010). Psychologist such as McGregor commented on the behaviour of the employees.
He believe that employees characters will never be the same and it is therefore important for the human resource manager to study his employees so that he can established the best way of dealing with them. Constraints In every company, there are common problems such as the additional cost which is caused by the getting specialist to appraise the company’s performances. The human resource manager of the company should also plan for the training of employees so as to equip them with the necessary skills. This is very important when it comes to handling of customers in the company.
It is for this reason that the company should strategies on how to implement the proposed plans without facing the listed problems in the company. The implementation process should be taken seriously because it is undertaken for the benefit of the company (Pride, 2009). Conclusion Enron Company should develop an effective human resource manager which will implement the two functions of management so as to increase efficiency and effectiveness in the company. The company had already developed effective strategies that had boosted the company’s performances and positioning the company well in the market.
According to Kurtz, (2008) motivation is the key factor which will stimulate the employees to work extra harder than before. The managers should therefore consider all the proposed plans so that the necessary funds will be set aside. This will help to reduce the cases of shortages of funds during the implementation process. Furthermore, funds which will be used to train employees should be set aside to ensure the success of the program. This training of employees should be done together with the training of the supervisors and the refresher training for the managers.
This is an expensive program and the company needs to plan for in term of funds and duration which will take to train the employees. Lastly, the company needs to evaluate the major goals and the strategies which will be required to be used so as to achieve these goals. Recommendations To achieve the company’s goals and objective, the company needs to implement some issues. First, the company should plan for the training program of the employees in the field of new ways of customer handling and management. The company has in the past suffered the problem of succession whenever the manager quits the company.
The second recommendation is the organizing the duties of every department i. e. department dealing with the software and the other dealing with the hardware issues. The company should also address the issue of developing customer care in the company. This department will be attending and solving the problems of the customers in the company. For effective delivery of services and products, the company needs to develop a mechanistic structure which will emphasize safe working practices are maintained in the company.
Lastly, Enron Company should create a system which the customers can suggest or comment on the way they were served. This will help the company to know whether they services are appreciated by the customers or not. References Busch, P. (2008). Tacit Knowledge in Organizational Learning. Idea Group Inc (IGI). Dewey, M. , & Bowker, R. (2010). “Planning and controlling” American Library publication, Library journal, vol 122, p 23 DuBrin, A. (2009). Leadership: Research Findings, Practice, and Skills. Cengage Learning Pride, M. W. (2009). Business. Cengage Learning
Kintrya, D. (2010). ‘Functions of management’ The National Association of Corporation Training and American Management Association, Volume 7, p 36 Kurtz, D. L. (2008). Contemporary Business 2009 Update. Cengage Learning Pearce, (2009) Strategic Management 10E. McGraw-Hill Education (India) Pvt Ltd “Planning function of management” Retrieved on 14th May, 2010 from <http://www. managementstudyguide. com/planning_function. html “Organizing function of management” Retrieved on 14th May, 2010 from <http://www. managementstudyguide. com/organizing_function. html>