Fundamental Management Principles in the Enron Case Essay (Article)

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Improper management and decision-making by Enron led to great problems. Because of this, it is particularly necessary to study the fundamental principles of company management. They emphasize three most important aspect such as the planning, organization, and control of activities. Based on this information, management planning is a valuable part of the functioning of the organization. However, it may change the fact that not all changes and decisions of the company can be met without resistance from employees. Another performance indicator is the relationship between management’s performance and employees’ perception and organization.

This aspect plays a unique role for the organization since good employee relationships and diversity in the workplace are critical for making the most profit. Communication and various barriers associated with multiculturalism can affect the inability to increase the performance indicators of employees. This may manifest itself in the impossibility of adequate and correct communication of people among themselves, which requires the introduction of special measures to unite the team. Among them, the first may be the creation of a favorable atmosphere in the workplace (Lan et al., 2020). This measure implies the introduction of various team-building practices and the division of work tasks between groups.

Management Plan Recommendations

First of all, it should be emphasized that with the help of the fundamental principles of management, the company can not only improve its key performance indicators and profits but also gain a leading position in the market. In addition, it will help in creating comfortable conditions for employees and will have a positive impact on the decision-making process and result in increased performance. Factors that can negatively affect management are the lack of qualification of specialists, resistance on the part of employees, and the unwillingness of the company to change for the better. An essential step in the implementation of fundamental principles is organization and phasing to avoid negative consequences.

Maintaining and monitoring the application of ethical principles to fundamental aspects of management is also critically important for business. For a better understanding of this process, it is necessary to take into account the rational decision-making model. It assumes that employees will work to increase benefits for themselves and the company while minimizing costs (Koechlin, 2020). Therefore, monitoring can mainly be carried out using surveys or analysis of key performance indicators for a given period of time.

Conclusion

Management changes, which are based on the fundamental principles of management, can have a significant positive impact on organizational success. Their implementation can also significantly affect the efficiency of the staff and bring the company a leading position among competitors. For example, such a principle as a discipline can be implemented as harsh measures, such as fines and reprimands, or by spreading awareness on this topic through training with employees.

Another vital principle may be the unity of command principle, which implies that an individual employee should receive tasks from only one boss at a time. In addition, this employee must provide the results of the work done only to the designated supervisor. Thus, the possibility of demanding situations for the staff is limited. However, with incorrect implementation, the pessimistic mood of people in the company can significantly increase, and the level of resistance will increase. Thus, other fundamental principles can help with solving this problem quickly and productively. In conclusion, it is worth emphasizing that management makes it possible to better cope with workplace situations and reduce the harmful consequences for the company.

References

Koechlin, E. (2020). Human decision-making beyond the rational decision theory. Trends in Cognitive Sciences, 24(1), 4-6. Web.

Lan, Y. L., Huang, W. T., Kao, C. L., & Wang, H. J. (2020). The relationship between organizational climate, job stress, workplace burnout, and retention of pharmacists. Journal of Occupational Health, 62(1), e12079. Web.

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IvyPanda. (2023, January 11). Fundamental Management Principles in the Enron Case. https://ivypanda.com/essays/fundamental-management-principles-in-the-enron-case/

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"Fundamental Management Principles in the Enron Case." IvyPanda, 11 Jan. 2023, ivypanda.com/essays/fundamental-management-principles-in-the-enron-case/.

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IvyPanda. (2023) 'Fundamental Management Principles in the Enron Case'. 11 January.

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IvyPanda. 2023. "Fundamental Management Principles in the Enron Case." January 11, 2023. https://ivypanda.com/essays/fundamental-management-principles-in-the-enron-case/.

1. IvyPanda. "Fundamental Management Principles in the Enron Case." January 11, 2023. https://ivypanda.com/essays/fundamental-management-principles-in-the-enron-case/.


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IvyPanda. "Fundamental Management Principles in the Enron Case." January 11, 2023. https://ivypanda.com/essays/fundamental-management-principles-in-the-enron-case/.

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