Write an essay on Leadership.
The case study will be helpful in defining the different issues in the Enron, which highlight the various aspects related to the customers, employees and the working strategy of the organization. There are various examples which are also defined in the case study, which are helpful in defining the working strategy and the working structure of the organization. The purpose of the case study is to define the culture, the conduct of the chief executives and the other defined issues in the organizations. To solve the different situations and to provide the suitable aspects to manage the issues, there are various theories and the models of leadership defined. The influence of an appropriate leadership also matters a lot. The suitable leaders may also help in managing the suitable flow of the process in the organization (Wolinski, 2010).
The different models or the theories are defined to solve the issues. The classic view of the management is defined by the Fayoll, which possesses the four steps in the process which are named as the controlling, organizing, planning and directing (Sarker & Azam Khan, 2013). The classic theory helps in solving the issues related to the cultural aspects related to the organization. Other than this, the other theories are also defined for the organization which can be helpful in improving the current aspects of the organization. The two different theories are named as the transactions and the transformational theory or the model which possesses the different features in comparison to the other theories (Human Synergistics International, 2012). The transformational theory mainly focuses on the participative and relationship oriented aspects, while the transaction aspects mainly focus on the task oriented and the product centered approaches. To improve the financial and the revenue issues related to the Enron, these theories are helpful in various aspects.
In the case study, the cultural aspects related to the organization are also defined on the wide level. The culture of the organization consists of the individualism, innovation and unrestrained pursuit. So, to manage the culture of the organization in an appropriate manner, it is essential to follow the definite type of leadership which is named as the Contingency leadership theory. This theory mainly depicts the situational factors related to the organization. In contingency theory, the more mature model will be helpful in defining the more prominent aspects.
The power influence is also considered as the most prominent type of the leadership theory which is helpful in solving the issues related to the Enron. The legitimate power, coercive power and the reward power are the main elements related to the power influence. This theory is also helpful in managing the performance and the reward system related to the organization. These theories will be helpful in providing the suitable assistance to Enron. These theories and the models not only help in creating the positive influence, but by the help of these theories, the suitable framing related to the organization may also become possible on a large scale. According to the Nicholson, the leaders are responsible for framing the future aspects, so the implementation of the suitable theories and management through the theories will also help in managing the suitable aspects (Nicholson, 2013).
The culture and the aspects related to the culture play the important role in the organization. To manage the culture is essential. The prominent theorist of the culture named as the Edgar Scheidn argued that the creation and the management of the organizational culture are done by the leaders according to their theory of belief and the values. It is defined in the case study that the risk taking culture and the various incentives will be helpful in generating and manipulating the profit estimates. The culture is considered as the shared phenomenon and is also divided into two parts which are the deeper and the visible. The deeper part can only be managed by the appropriate leadership skills. The culture is divided into various types and according to that, the leadership types will also be decided. The different type of culture is the Clan, Adhocacy, Hierarchy and market. On the basis of the culture, the different type of leadership is also defined (Drucker, 2007).
The leadership influences the culture of the organization in various manners. To manage the culture, the different type of leadership is also defined which are named as the transformational, charismatic, authentic, servant and spiritual leadership. All these leadership has their different aspects and the process of carrying the aspects. Both, the positive and the negative impacts of the leadership are noticeable (House, 1999). The different types of leadership and their impact on the organization are defined below with the help of the table: –
|
Type of Leadership |
Positive Influence of the culture. |
Negative influence on the culture. |
|
Transformational |
Provides the employee retention, Job satisfaction and the emotional intelligence to the employees which are helpful in promoting the organization. |
Lacking in intellectual stimulation and Individualized consideration. |
|
Charismatic |
This leadership will be helpful in providing the smooth and strong culture of the organization. Mainly based on the trust and the beliefs. |
The negative aspect is that only believe is not sufficient, other developmental aspects are also essential for culture. |
|
Authentic |
The authentic leaders are well known for their definite aspects and also define the suitable task for the future too. It provides the definite and well defined working structure for the culture. |
As the leadership is related so takes an appropriate and well defined time in completing the process. |
Rather than the impact of the most prominently defined leadership, the other impact of the leadership on the organizational culture is defined below.
In fact, in the organization, the culture is also influenced by the gender differentiation in terms of the leadership activities. By the researchers and the philosophers, it is also identified that the women are considered as the best in providing the coaching, managing, processing and communicating. So, it can be possible that not only the males, but the females can also able to manage the most appropriate aspects related to the leadership skills. The women leaders also can able to create the positive impact on the working culture of the organization and also boost up the employees in performing well in the organization. By all these aspects, it becomes easier to manage the suitable aspects.
While going through the case study related to the Enron, with the positive aspects some of the negative aspects related to the Enron are also reflected. It is mentioned in the case study that during the transfer of the energy, out of California, first the blackouts were done. After this, the sudden rise in the price will provide the inappropriate feedback by raising the price of the electricity. By this, it is clearly shown that the organization followed the unethical behavior. To remove this aspect of the organization and to make the smooth management of the organization, it is essential to perform the ethical practices in the organization and for this, some of the appropriate recommendations are also provided (MacDonald, 2008).
The executives and the senior management play the important role in carrying the appropriate ethical behavior in the organization. By their positive and innovative efforts, it will become easier to eradicate the unethical behavior of the employees in the organization and the smooth flow of the culture can also be managed. The leaders and the managers set the effective agendas and try to provide the best and appropriate results of the organizational culture. In fact, in the case study it is also defined that the senior executives and the managers also set the core values and the mission of the future perspectives. By this, the cultural management is also becoming very easier (AE Team, 2016).
According to the Karpin, there are various challenges which are faced by the leaders while bringing the change in the organization. The major challenges are the management of the relationships; lead an organization, to design the quite different design. The leaders have to manage the various aspects as per the requirement of the organization and the culture. The major strength which may help in bringing the ethical behavior in the organization is the most appropriate strength possesses by the leaders (Douglas, 2012). The strength is the hard working, technically sound, independent, genuine and most approachful, honest and ethical too.
One of the unethical behaviors which are also mentioned in the case study is related to the performance issues of the employees. During the year, approximately 15-20% of the employees are fired due to their inappropriate performance. But, this includes the unethical behavior carried out by the leaders. It is recommended that the suitable rules and the guidelines should be made for the organization to fire the candidate. It is also mentioned in the case study that the internal conflicts among the board of directors will also lead to the unethical behavior towards the employees. There are total 17 directors in the organizations, but due to their unethical behavior in the organization, 7 of them quit the job and the remaining is 6 of them were sued form their current job. By these, the sponsorship and the relationship of the stakeholders were also reduced. It is recommended that to manage the issues related to the organization and to remove the unethical behavior, the leaders or the head of the organization has to switch towards the “Guanxi”, which plays an important role in developing the personal and the social networking in the organization. The Guanxi consists of three dimensions named as the Ganging, trust and credibility and face. This will be helpful in further developing aspects. By following these recommendations, it will become easier to manage the culture and the values related to the organization.
AE Team. (2016). Unethical Behavior – It’s Impact on Today’s Workplace. Unethical Behavior.
Douglas, E. (2012, October 31). 7 Practices to Prevent Unethical Behavior. 7 Practices to Prevent Unethical Behavior.
Drucker, P. (2007). Management: Tasks, Responsibilities, Practices. Transaction Publishers.
Fermin, J. (2014, July 23). Leadership’s Influence Company’s Culture. Leadership’s Influence Company’s Culture.
House, R. J. (1999, July 23). How Cultural Factors Affect Leadership. How Cultural Factors Affect Leadership.
Human Synergistics International. (2012). The Impact of Leaders on Culture. The Impact of Leaders on Culture.
MacDonald, H. (2008, March 11). Active Listening. Active Listening.
Nicholson, N. (2013, May 14). THE INVENTION OF LEADERSHIP. Business Strategy Review, 24(2), 14–29.
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