The implication of poor managerial performance for the collapse of Enron Corporation
Now it is necessary to find out and analyze whether operationsmanagement of Enron Corp performed all the functions mentioned above and what was the quality of their activity.
The Enron did have operations management department, which, according to their officialsource, fulfilled the following functions: setup accounts and notify utilities, agency agreement from customer, verify the format of invoice, setup invoice data transfer, test algorithms of invoice andfile transfer to the customer, determine the reporting requirements of the customer (Enron Energy Services, 2000). As it is seen from the source, the functions of very operations management departmentare very limited. There are other management departments which perform the functions of operations management stated above: operations facility management, commodity management, energy assetmanagement, financial operations, and capital management. Though, most of functions performed by these departments, according to the source, are purely executive and lack integration, systematic vision,responsibility, control and creative aspect. Besides limited scope of functions assigned to operations management in Enron Corporation, another important point concerns the quality of their performance andoverall corporate culture and atmosphere created within corporation. As it was mentioned above, ideally, the functions of operations management include creating ethic values, integrity, competence andclear accountability within the organization. Enron's management failed to comply with these tasks.
WorldCom's efforts to integrate MCI illustrate several areas seniormanagement did not address well. In the first place, Ebbers appeared to be an indifferent executive who "paid scant attention to the details of operations."16; For example, customer service deteriorated....