Enron's Corporate Culture: Doomed for Failure
Organizational culture can be defined as the system of attitudes, beliefs and values that are collectively expressed in support of organizational structure. Organizational culture is a pattern of shared basic assumptions that dictate the behavior of individuals within an organization. Culture determines which practices are appropriate and which are not, effectively developing standards, guidelines, and expectations for individuals within an organization. Although they work hand in hand, there is a definite distinction in the beliefs and the values that make up organizational culture. The beliefs of an organization are assumptions of the way things are, while values are an assumption about the way things should be. By that definition, beliefs constitute the day-to-day actions of a company (how things are run and why they are run that way), while values project those beliefs on future considerations (what is important to the organization and how those things should be maintained).
Status distinctions, ideologies, language, symbols, rituals and myths are all byproducts of the development of organizational culture. All of these things can then be effectively used as agents to reinforce culture within the framework of that organization. Pettigrew describes culture as “the source of a family of concepts” in which the offspring of the concept of culture are symbol, language, ideology, ritual, and myth. In examining these agents of cultural reinforcement, it becomes possible that all of the “offspring” are symbols in their own right, representing the beliefs and values of the company in their own form of expression. For example, the language or vocabulary that is created exclusively within the context of inter-organizational relationships is symbolic because it represents the values of the organization. Rituals, or prescribed activities that reinforce the culture of an organization are a form of symbolism as well, representing the individual commitment to
Status distinctions, ideologies, language, symbols, rituals and myths are all byproducts of the development of organizational culture. All of these things can then be effectively used as agents to reinforce culture within the framework of that organization. Pettigrew describes culture as “the source of a family of concepts” in which the offspring of the concept of culture are symbol, language, ideology, ritual, and myth. In examining these agents of cultural reinforcement, it becomes possible that all of the “offspring” are symbols in their own right, representing the beliefs and values of the company in their own form of expression. For example, the language or vocabulary that is created exclusively within the context of inter-organizational relationships is symbolic because it represents the values of the organization. Rituals, or prescribed activities that reinforce the culture of an organization are a form of symbolism as well, representing the individual commitment to
References: Ager, David. "Organizational Culture." Sociology 25. Harvard University. 20 Feb. 2008. Chandra, Gyan. "The Enron Implosion and Its Lessons." Journal of Management Research 3 (2003): 106-110. Hamilton, Stewart. The Enron Collapse. International Institute for Management Development. Lausanne: IMD, 2003. Pettigrew, Andrew M. "On Studying Organizational Cultures." Administrative Science Quarterly 24 (1979): 570-581. Sims, Ronald R., and Johannes Brinkmann. "Enron Ethics (or: Culture Matters More Than Codes)." Journal of Business Ethics 45 (2003): 243-256.