ASSESSMENT : CASE STUDY

"A group is defined as any numbers of individuals who interact with each other, are psychologically aware of each other and perceive themselves to be a group" (Schien 1988)

Example of ineffective Team Work

Enron declared the largest corporate bankruptcy in history. Enron suffered from mismanagement. It is also clear that Enron's demise resulted from a combination of unethical practices that created an unhealthy, cutthroat business climate and that the company's top executives had the power, gave the orders and found loopholes in the law to justify their unethical behaviour Most people are under the impression that the "rank and- file" employees were the victims of top management control.

Several Enron employees, including some high-ranking executives, attempted to warn Enron CEO Kenneth Lay of serious accounting issues. One person's claim was apparently taken seriously but no changes were filed; another key advisor was removed from his job; and a former employee was promised an investigation-which never came.

Lesson learned:

As an employee, have the courage to raise or question potential problem issues. When you have a good team of people telling you that there is something wrong, never ignore or retaliate against legitimate concerns- listen and take appropriate action. So in relation to Argyris theory Enron showed bad team work and mismanagement, there were no plans, no strong leaders to rely on and a lot of people where afraid of what was actually going on and this resulted in the collapse of the corporation. So in reality the Enron management team was a myth

Discuss following:

• What policies and procedures were used to ensure that each person took responsibility for their own tasks?
• Identify the variety of issues involved in either scenario
o Teamwork positive/negative
• What do you believe are the key requirements for fostering and supporting full commitment in a team situation?