11th Grade Essay - 896 Words

Essay Prompt 3 During the founding of the new nation, the United States, there were a number of influential people who made important decisions based on their various opinions. These people, the founding fathers of the United States, would set examples, ideals, and rules for many leaders to come. Our first president George Washington, our 3rd president Thomas Jefferson, and our first Supreme Court justice John Marshall were all very important and influential individuals. Together, their opinions and ideals helped shape the growth of our nation from domestic policy to the basis of the government’s operation. George Washington was the first president of the United States of America as well as one of its founding fathers.†¦show more content†¦One of the most important contributions he made for the Supreme Court was the concept of judicial review. After the case of Marbury vs. Madison, the Supreme Court was given the power to review laws, and court cases in order to determine whether a law or case was constitutional. John Marshall also extended the power of the Supreme Court to cover all matters not explicitly mentioned to be governed in the state. In short, he created most of the power that is invested in the Supreme Court today. The most influential of these three men was John Marshall. He was the most influential person because he created a strong judicial branch, something that is essential to the system of checks and balances. Without the power that currently resides in the Judiciary branch of the United States, the government would be an unbalanced system that would be able to create laws between the executive branch and legislative branch without any chance of rulings on constitutionality from the court. For example, in the case of Dred Scott vs. Sanford (a famous case regarding slaves’ Constitutional rights), the Supreme Court struck down several federal laws, including the Missouri Compromise, which was ruled unconstitutional. While most people today wouldn’t agree with the ruling given in Dred Scott, it still shows the power of the judicialShow MoreRelateduna‚Äà ²ÃƒÅ Ãƒ ²ÃƒËœ1561 Words   |  7 PagesDictionary A good quality thesaurus (optional but strongly recommended) A folder/portfolio to keep all work throughout the semester Grading/Assignments â€Å"Pop† Reading Quizzes or Group Work 10% Citation Assignment 5% Essay 1 10% Essay 2 15% Essay 3 20% Research Assignment 15% Exam 25% Note: Use of internet, cell phones and other electronic devices is not permitted during in-class writing or exams. 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Japanese Employment Practices Free Essays

string(245) " Sources of change Prior to summer of 1997, the Japanese system guaranteed easy access to low-cost capital and raw materials was supplied by a loyal and devoted labour force \(at the time of labour shortage\) which facilitated market expansion\." |International EMPLOYMENT RELATIONS | |TO WHAT EXTENT THE JAPANESE EMPLOYMENT PRACTICES HAS CHANGED AFTER THE ECONOMIC CRISIS? | | |[pic] | | | |SINTHIA NOVA | |Student ID – 2724881 | |14th May 2009 | Table of Contents INTRODUCTION3 TRADITIONAL JAPANESE MODEL OF EMPLOYMENT SYSTEM4 THE CHANGING NATURE OF JAPANESE EMPLOYMENT SYSTEM5 1. Sources of change5 2. Lifetime employment6 3. We will write a custom essay sample on Japanese Employment Practices or any similar topic only for you Order Now Seniority-based Pay and Promotion System7 4. Enterprise Unions9 CONCLUSION9 REFERENCES10 INTRODUCTION In the post-war period, Japanese manufacturing companies significantly increased their share of the global market of automobiles (Automotive News-Market Data Book, quoted in Womack, Jones, and Roos 1991, 69) as well as achieving more than 50 percent of the world markets in cameras, video recorders, watches, calculators, microwave ovens, motorcycles, and colour televisions (Oliver and Wilkinson 1992, 5). Much of this success was attributed to the forms of human-resource Management found in Japanese companies (Abegglen and Stalk 1987; Clark 1987; Dore 1990; Tachibanaki and Noda 2000). However, during the period of Asian Financial crisis and economic recession for most of the 1990s, the typical Japanese features that supported comparatively high performance until the late 1980s came in for severe criticism. Considering the high performance of the US economy in the 1990s, Neoliberals, based on the universal relevance of liberal markets, argue that the Japanese model is dead, and that Japan must (and will) adopt the US liberal market model (Lindsey and Lukas, 1998; Lin, 2001; Dornbusch, 1998; Krugman, 1996). By contrast, many theorists of institutionalism, based on contextualized efficiency and path-dependent national patterns, claim that Japan continues its path-dependent national model due to its unique culture – taken for granted within the culture – the interconnectedness of institutions and agents’ efforts to utilize the comparative advantages of their institutions (Dore, 2000; Green, 2001; Isogai et. al. , 2000; Chesbrough, 1998; DiMaggio and Powell, 1983; Hall and Soskice, 2001). However, neither the neoliberals’ argument for simple convergence towards a liberal market economy nor the institutionalists’ claim for the continuation of the original Japanese model can explain the dynamic changes happening within the Japanese model at the turn of the century. In this report, the recent trends of Japanese employment relations will be examined. Two questions have been addressed here. First, why the traditional Japanese employment system has been changed. Second, to what extent has ER system has been changed? To answer these questions we will first examine the traditional Japanese model and then after considering some issues relating to the reasons of this change, we will analysis the current trends to find out the extent of modification in a number of typical ER practices. A discussion of the implications of these changes is then be presented, followed by the conclusion. TRADITIONAL JAPANESE MODEL OF EMPLOYMENT SYSTEM Japan is a complex, dynamic society that has undergone enormous change in the past 125 years, converting itself from a feudal state into a modern industrialized nation and an economic superpower. In doing so, the Japanese have been able to copy Western technology, science, education and politics, while still keeping their unique cultural identity. One distinct feature of Japan that separated it from other Asian countries was it collective culture which has been carried over to the companies (Kashima and Callan, 1994). As an employee, an individual identity’s with a larger entity through which one gains pride and feeling of being part of something significant, tying an individual’s prestige directly to the prestige of his or her employer. Typically, the company is seen as a provider of security and welfare. To a large extent, loyalty to the company surpasses the family bond. The core principles of Japanese employment model is the so-called ‘‘THREE SACRED TREASURES’’ (sanshu no jingi) of Japanese management. 1)The lifetime/long term employment system (shushin koyo) The terms â€Å"long-term† or â€Å"permanent† employment are used synonymously to describe lifetime employment, which was established at many companies during the period of high economic growth during the 1960s. The concept of lifetime employment emerged as a result of the peculiar aspects of Japanese employer-employees relations that were supported by narrow labour markets during the post-war period when Japan experienced a labour shortage for the first time in her industrial history. This system developed and was established at many large and mid-sized companies during this period of high economic growth. With rapid technology innovation and expansion of businesses, large-sized companies hired inexperienced manpower directly from the labour market and through in-house training and development programs these workers developed various skills and techniques. (2)The system of seniority-based wage and promotion (nenko joretsu) Here status and seniority are tied to length of service, rather than to job duties or merit. According to this system, the decisive factors determining pay are the length of service, age and educational background, not the work performed. The system goes hand-in-hand with the lifetime employment. Traditionally, the seniority-based reward system had two different aims. The first was to advance an employee’s career and provide financial compensation based on a broad social considerations and personal qualifications, such as the age and education level of employees. The second was to make extensive use of non-cash fringe benefits for employees and their families. 3)Enterprise unionism (kigyobetsu rodo kumiai) Another important characteristic of Japanese employment relations are enterprise-based unions. In Japan, unions are organized at the enterprise level, collectively bargain with a single employer, and conclude collective agreements on the enterprise level. According to Inohara: â€Å"Enterprise-wide unionism specifically expresses the workplace in terms of union mem bership. In principle, it organizes all regular employees of a company indiscriminately into one union, i. e. it is an employee organization on the basis of where they work (company) and not what they do (occupation or skill). Such a labor union is not dominated by the company; it represents the workforce, and as such, enjoys appropriate prestige and benefits provided by the company. Relations between management and the union are between insiders, namely, all the members of the union are company employees. Intervention by outsiders such as industrial and national labor organizations, outside business agents, or attorneys is not tolerated. † THE CHANGING NATURE OF JAPANESE EMPLOYMENT SYSTEM Sources of change Prior to summer of 1997, the Japanese system guaranteed easy access to low-cost capital and raw materials was supplied by a loyal and devoted labour force (at the time of labour shortage) which facilitated market expansion. However, the market became saturated and the economy slowed down, these competitive advantages were turned into liabilities. Keiretsu banks found themselves saddled with bad debts from group companies, inter-group purchasing became barriers to cost reduction, and excess size of an albeit loyal labour force was viewed as a burden to struggling companies. Japanese companies were also reacting to the information revolution and were left behind by their American counterparts. Although, most Japanese companies have found change at a quick pace too much to ask they had to adopt foreign practices and policies in order to survive. Deregulation is another force for change. It has made Japanese markets more accessible to competitors, foreign as well as domestic. In heretofore-protected industries like financial services, distribution and agriculture few firms are prepared for the onslaught of competition and uncertainty (Lincoln and Nakata, 1997). The aging population also has clear implications for corporate employment relation practice. With an aging workforce, the permanent employment and seniority system burdens firms with rising numbers of higher-paid and less productive workers. Previously, these systems were more suitable to employers, since the steep seniority escalator resulted in less payment for the relatively young workforce and the permanent employment norm reduced the uncertainties and costs of high staff turnover. Furthermore, the transition to a service economy combined with socio-cultural and socio-economic changes has had a profound effect on Japan’s employment institutions. Even though leading-edge manufacturers are still competitive, their contribution to Japanese domestic employment and income is shrinking, in favor of the emerging service sector as the next great engine of jobs and wealth. Employment practices of sales and service firms are different from those of manufacturing. Their younger workforce is more mobile, less committed to work and the firm. Furthermore, since the organization of work in service firms is less team based, individual performance is more easily evaluated. Also, occupational skills are valued over firm-specific skills, so that broad job experience becomes the main driver of wages and performance rather than loyalty to one employer (Debroux, 1997; Lincoln and Nakata, 1997; Ornatowski, 1998). Lifetime employment One of the distinct features of the Japanese employment relations system is lifetime employment. Japanese workers joins companies at a young age, and spend a larger portion of their life in the company compared to other countries. The figure below can show that Japanese workers in terms of length of service, average number of years and median years compared to workers in other countries was much higher . Table1: Comparative Length of Service [pic] Source: Adopted from Current Labour Economy in Japan. Notes: 1, 2 and 3: Average length of service based on OECD Report, 1995. Other figures from the respective country. From the middle of the economic crisis till 1990, there have been ongoing debates to reform the lifetime employment system. Company attitudes were gradually changing due to increasing labor costs, employees’ age, a growing rise in the number who unable to cope with the rapidly developing new technology and changing globalized markets. Employers now need staff with readily usable skills and workers who have specialized abilities in order to respond to stiffer competition and handle more complex specialized operations. The older workers employed with lifetime contacts are not able to adjust rapidly to new developing technologies typified by information technology. Many companies have begun to adopt more diverse hiring practices over past few years, taking on experienced employees in mid-career in addition to new graduates. Employers prefer to hire mid-career and non-regular workers both in large, mid- and small-sized organizations. The rate of hiring of midcareer workers in non-clerical positions is higher in small businesses. Hiring mid-career workers, on the one hand, minimizes training costs and, on the other hand, companies get workers with ready-made skills who can work with developing technology. In fact, employers are now seeking staff with readily available skills and workers with specialized abilities who can handle more complex and specialized operations so they can respond to stiffer competition. Many employers are arguing for some partial adjustment to the prevailing practice of lifetime employment. The table below shows how companies are changing their attitude toward lifetime employment practices: Table 2: Companies changing their attitude toward lifetime employment practices: Attitude Response |Percentage | |Partial adjustment is inevitable |40. 0 | |Will basically maintain the practice |36. 1 | |Fundamental review is necessary |15. 3 | |Do not have lifetime mployment practice |5. 2 | |No response |3. 3 | Source: Labour Situation in Japan and Analysis 2004-2005, p. 26. According to the Ministry of Labour Special Survey, about 30 percent of all employees in Japan are non-regular as of 2000 (Japan Labor Bulletin, 2000: 1–2). According to the table below, the r ecent trend Table 3 : Changes in Regular and Non-Regular Employees during Recession (10,000) |1985–6 |1991–4 |1997–2001 | | |Regular Non-Regular |Regular Non-Regular |Regular Non-Regular | |Female |24 |15 |47 |64 |-82 |151 | |Male |16 |2 |119 |10 |-89 |55 | |Total |40 |17 |166 |74 |-171 |206 | Source: Wakisaka (2002). towards using non-regular workers is in contrast to the traditional pattern in which non-regular workers decreased during recession while regular workers maintained their jobs due to their skills accumulated through in-house training. In 1997–2001, the number of regular employees in Japan sharply declined by 1. 71 million, while the number of non-regular workers increased by 2. 06 million. The fact that non-regular workers are replacing regular workers indicates that Japanese companies have changed their traditional values of high skills based on in-house training and employees’ loyalty supported by lifetime employment, instead considering labour costs and the flexibility of the labour market. As a Joint Labour Management 1998 survey documents, workplace morale has declined as the number of non-regular workers has increased (Morishima, 2001). Seniority-based Pay and Promotion System Another important characteristic of Japanese employment relations system is the seniority-based pay and promotion system. To understand the main concept behind the seniority-based wage system it is important to know the wage theory presented by Koike. year) where wage refer to: a) salaries that increase in accordance with age and length of service; b) the rewards that are not paid on the basis of the job performed; and c) that are unique to Japan. The main salary determination factor s are seniority and the number of years the employee has been working at the company. Salary increase based on seniority is a general labour practice, and not a â€Å"system. † Japanese companies rarely evaluate academic degrees such as doctorate. Yamanouchi and Okazaki-ward had tried to explain the history and practices of the evaluation system in Japan. They argue that Japanese companies had gone through different turning points in the evaluation system for the sake of pay and promotion. The American system of job analysis and job classification was introduced as a modern, rational management system to rebuild Japanese management in the 1950s which marked the first turning point in the Japanese system. The second turning point came between the 1960s and 1970s when companies introduced a competency-ranking system which almost 64 percent of the organizations followed until 1974. The third restructuring occurred in the 1980s when the competency-ranking system did not work effectively due to the effect of an increase in the value of yen; globalize business activities, deregulation, the maturation of the economy, and an aging workforce. Keeping senior employees became more costly than employing younger employees, particularly those over 40 years old in 1990 due to the recession. This was driven by the need to cut cost. In recent years, growing numbers of companies are clearly evaluating ability and performance over tenure and age in salary decision. Since the early 1990s, some companies have introduced a system of job ability-based wages focusing individual worker performance over one year compared with goals set at the beginning. This new system is quite close to a true performance-based pay system. It has been termed â€Å"Annual Salary System† and has been introduced by about 10 percent of large companies. This system is primarily used for managers and general managers, not for lower level employees. The monetary benefits to employees, if any at all, are typically small (Debroux,1997; Lincoln and Nakata, 1997; Ornatowski, 1998). The attempt to shift to performance pay shows the dilemma between companies who worry that the resulting inequities will destroy morale and unity. Besides, most companies may be do not like to see younger people supervise older ones. Also, there are fears that individual merit pay will ruin the Japanese system of team-based production, where stronger team members assist weaker ones for the good of the performance of the team as a whole (Lincoln and Nakata, 1997). The continuities in the Japanese employment systems are as striking as the changes, especially when one looks at the depth and length of the economic recession. Based on data from 1,618 firms, Morishima (1995) highlights three different types of attitudes and actions of firms toward employment system reform. One group of companies tries to change their wage system from seniority based to performance based and these firms try at the same time to use the external labor market to recruit workers. Although they represent the highly publicized trend away from traditional Japanese employment practices, these companies only make up 10. 8% of the sample. Most firms (56. %) have retained the traditional employment system representing the majority force of continuity. A third group (32. 4 %) shows a mixed picture consisting of firms that are reforming the wage system, while maintaining long-term employment practices. These findings highlight the striking resilience of traditional practices as well as some important changes. Enterprise Unions Japanese unions are organized on an enterprise basis, with only permanent, fulltime employees of the company eligible to join the union. This structure has led Japanese unions to defend job security and the working conditions of their members through company-based mechanisms. The union’s chances of success through such mechanisms is, at this time, somewhat diminished. This has led unions to focus on job security rather than pay increases, which has lessened their appeal to young people, and has alienated unorganized nonregular workers in large companies and the vast majority of employees in small companies (Debroux 2003a). With the decline of lifetime employment and the increase in the number of non-regular workers, not only enterprise unions but the entire union movements are now declining. For example, the unionization rate (union members divided by number of employees) declined from 34. 7 percent in 1975, to 28. 9 percent in 1985, 23. 8 percent in 1995 and 22. percent in 1998 (Shirai, 2000: 20). In addition, the role of conflict resolution traditionally played by Japanese enterprise unions, also declined despite the formal existence of enterprise unions. Recently, individual labour–management conflicts have increased. For example, the num ber of cases concerning workplace disputes over daily employment and working conditions, dealt with by the Labour Standards Inspection Offices, increased to 20,000 in 1994. Similarly, the number of cases of consultation that the Labour Administration Offices and the Women’s and Young Workers Offices deal with have also exceeded 75,000 and 10,000, respectively (Shirai, 2000: 119). It is important to note that since the economic contribution of temporary workers is increasing, it’s necessary to recognize their representation in the labor market by protecting their rights. With increased cost-cut measures adopted by employers due to rising competition, there has been a substantial increase in the employment of non-regular workers in the last few years. The unionization rate of these workers is only three percent. At the same time, employers have become increasingly interested in performance-based systems on the enterprise level. These developments should influence the future role of unions in the regular wage negotiation process. CONCLUSION This report has explored the changes taking place in ER in Japanese firms. A period of sustained economic decline, increased global competition, a rigid employment and business system, a banking system on the verge of collapse, and the occurrence of the Asian financial crisis meant that the 1990s was a catalyst for change and regeneration. While these factors were influential in providing the impetus for change, other factors, such as the aging population, declining birth rates, and the short-term horizons of younger workers, were also important. Overall I have found evidence of the flexibility in distinctive features of Japanese employment relations system, which are lifetime employment, seniority based system and enterprise-based unions. The number of employees under lifetime contract is now in decline as Japanese companies have started to adopt more diverse hiring practices, such as: taking on experienced employees in mid-career in addition to new graduates, recruiting contingent workers e. g. part-time and other types of non-regular employees has overtaken employment of lifetime employees in recent years. In 1982, 84% of full-time workers were â€Å"regular† workers— with long-term careers and good fringe benefits at one company. But 20 years later, the regular workers’ share had shrunk to 68%. Companies attitudes towards seniority based system have been changing as well. Many companies have changed their wage systems to reflect individual performance. They are now adopting â€Å"PAY SYSTEM BASED ON PERFORMANCE,† which represented by the annual salary system and â€Å"JOB-BASED SALARY,† which mainly focusing on people occupying managerial positions or higher. An increasing number of companies are putting a stop to their practice of periodic salary raises based on seniority and introducing systems in which bonuses are influenced by evaluations. Another important characteristic of Japanese employment relations are enterprise-based unions, which is now under threat because of the decline of lifetime employment and the increase in the number of non-regular workers. Moreover, given today’s strict economic climate in which wage increases are difficult, the SHUNTO is shifting from its former policy of seeking wage increases as the highest priority to â€Å"job security and maintenance. † No matter whether it regards performance pay, the elimination of management titles, or reductions of the workforce, the change of employment practices in Japanese companies seems to be slow and incremental, carefully avoiding unexpected or shocking breaks with the past. Furthermore, they are not changing the typical Japanese model completely, trying to make it more effective by modifying them according to the new trend of highly competitive globalized market. REFERENCES Bamber. G. J, Lansbury R D, Walies. N . (2006) International and Comparative Employment Relations: Globalization and the developed market economies. 4th ed. SAGE Publications Ltd, London. BENSON, J and DEBROUX , P (2004) The Changing Nature of Japanese Human Resource Management: The Impact of the Recession and the Asian Financial Crisis. vol. 34, no. 1, pp. 32–51. Int. Studies of Mgt. Org. [online] Available from: Xpert HR. http://xperthr. co. uk [Accessed 28 April 2009] Benson, J. and Debroux, P. – Th e Changing Nature of Japanese HRM: The Impact of the Recession and the Asian Financial Crisis. International Studies of Management and Organization, 34 (1) 2004: pp. 32-51 Selmer, J. (2001) Human resource management in Japan :Adjustment or transformation? Volume: 22 Issue: 3 Page: 235 – 243, MCB UP Ltd [online] Available from: Emerald. http://www. emerald-library. com/ft [Accessed 10 May 2009] Hattori, R and Maeda, E. (2000) The Japanese Employment System (Summary). Issue-January 2000, Bank of Japan Monthly Bulletin, [online] Available from: www. boj. or. p/en/type/ronbun/ron/research/data/ron0001a. pdf [Accessed 10 May 2009] Hyeong-ki Kwon (2004) Japanese Employment Relations in Transitio,. Economic and Industrial Democracy 2004; 25; 325, [online] Available from: SAGE . http://eid. sagepub. com/cgi/content/abstract/25/3/325 [Accessed 10 May 2009] Adhikari, R (2005) National Factors and Employment Relations in Japan. Japan Institute of Labour Policy and Training, Tokyo, [onli ne] Available from: http://www. jil. go. jp/profile/documents/Adhikari. pdf [Accessed 10 May 2009] Kambayashi, R Kato, T (2008) The Japanese Employment System after the Bubble Burst: New Evidence, [online] Available from: http://faculty. hicagobooth. edu/brian. barry/igm/TheJapaneseEmploymentSystem. pdf [Accessed 10 May 2009] Economist (2005) The sun also rises, [online] Available from: http://www. economist. com/displaystory. cfm? story_id=4454244 [Accessed 10 May 2009] Economist (1998) Fallen Idols, [online] Available from: http://www. economist. com/displaystory. cfm? story_id=4454244 [Accessed 10 May 2009] Ornatowski, G. K (1998) The End of Japanese-Style Human Resource Management? Sloan Management Review, [online] Available from: http://sloanreview. mit. edu/the-magazine/articles/1998/spring/3937/the-end-of-japanesestyle-human-resource-management/ [Accessed 10 May 2009] How to cite Japanese Employment Practices, Papers

How an Organization Would be Without the Establishment of any form of

Question: How an organization would be without the establishment of any form of leadership? Answer: Introduction Think of how an organization would be without the establishment of any form of leadership? What would be experienced is an instance where there is inefficient allocation of resources, poor communication and coordination in the business, fraud instances in the accounting record, there can also be theft of company resources because of the in availability of any leadership process. Hence, the establishment of leadership tends to be the primary spine in the conduction of daily business activities for the purpose of customer satisfaction. Different definitions have been brought up to at least try and define what leadership entails. According to Mitchell (2015), leadership allows the collaboration and assessment so that there can be an understanding how the developments tasks challenge constraints, while they explore new possibilities so as to ensure there is accountability and support for the purpose of business aims and sustainability development. Tartell (2014) defines leadership as an individual or persons whose responsibilities are selecting, equipping, training and influencing individuals who are in possession of diverse abilities, skills and gifts for the purpose of attainment of business mission or objectives. Therefore, leaders use their ethical means and seek greater good of their employee so that they can be develop, process and implements their actions steps. Hence, in this study my aim is on the providing a detailed scenario about Enron Scandal. Founded in the year 1985, it was one the global leading firm in electricity, natural gas, communications, pulp, and paper firms before its collapse in late 2001. Thus, its annual revenues had risen from about $9 billion as of 1995 to more than $100 billion in 2000. Therefore, during the end of 2001, it was revealed by its annual reports that the financial condition had been sustained sustainably through institutions, and it was a systematically and creatively planned accounting fraud. According to Amara (2007), Enron stock dropped from $90 per share in the mid of 200 to less that $1 per share as of 2001. In this case, the shareholder estimated a loss of close to $11 billion. After they had revised their financial statement for the last five years, it was certain that the company had lost more than $586 million. As a result, this triggered the fall to bankruptcy on December 2001. Perhaps, it would be of significant purpose to at least try and outline some of the major problems that might have led to the downfall in this case study, they include: It was identified that the chief finance officer has more than $30 million for self-dealings. Hence, it was regarded that the CFO had taken money for his personal usage which was a not good according to the governance of the company (Bryce, 2002). There was also the disappearance of $700 million total net earnings. As a result, such a scandal means that the accounting system has some form of fraud, thus leading to the bankruptcy of the company (Bryce, 2002). A total of $1.2 billion shareholders equity got lost in the accounting process. There were also hidden liabilities by the accountants which were close to $4 billion. Hence, many of the recorded assets and profits in Enron Company were inflated or perhaps there was also some fraudulent and non-existence in the records. In the case of debts and equities, entities they were recorded offshore and werent included in the final companys financial statements (Bryce, 2002). There were also some sophisticated financial transactions that took place between Enron and other firms which were used in the elimination of unprofitable entities in the companys books (Amara, 2007). Hence, such acts are deemed to have been the problems that faced the firm. Thus, in this study our focus will be primarily focused how leadership plays a major role in order to build the organizational culture as well as behavior. In addition, it will still focus on highlighting why leaders in such a firm like Enron need to maintain their ethical practice and proper leadership models that would direct the company. 1. How can be explained by some of leadership theories happened at Enron? Contingency model theory- the theory tends to offer theoretical model that focus on leadership based on leaders character and situation. Therefore, the situational factor tends to interact with the leaders traits and behaviors so that there can be some form of leadership effectiveness (Normore Fitch, 2011). Therefore, the theory outlines that the leaders can be effective in terms of task orientation and relationship orientation. As for our case, it is a total different case. For instance, it is observed that management characters and relation to the employees wasnt effective (Amara, 2007). Therefore, such factors may be the escalating factors to what happened at Enron Company. Thus, using the theory leaders should ensure that they are up to task and they have a good relationship between them and the employees so that there can be free communication and respect. Path goal theory- this theory focuses on how leaders motivate their followers so that they can achieve their desired goals. Hence, it tends to focus on the relationship between the leadership style and characteristics of the followers in the organization setting. Hence, the leader is imperative to use a leadership style that meets the followers motivation. All this is possible if there is complementation of what is missing in the work setting. Therefore, leaders try and enhance the followers to the goal attainments (Goethals, 2004). Considering our case, leaders of Enron failed to motivate their employees in any manner towards the attainment of desired goals. For instance, we observe Mr. Skilling a leader promoting a culture of fraud, so most of the employees embraced this fraud culture and failed to accomplish the desired goals. Other employees who at least tried and make claims that there were emerging issues because of fraud were dismissed. Hence, it meant that the leaders failed to motivate employees towards the desired goals; as a result this led to the continued escalation. 2. In what ways does leadership influence culture? Whether a leader comes up in any organization or is brought from the outside of the organizations, different ways emerge on how leaders impact the company culture. Hence, I will briefly look at some of the ways in which leaders can influence the culture of an organization. Walking the talk- as a leader people tend to observe what you say, do and the values you posses, not just in a way that you say it. Looking at the then Enron CEO, Kenneth lay and his management group they were stealing from their shareholders, thus a lot of traders were laughing at them because of how they were going bankrupt little old ladies so that they can heat their bills. Such an instance tends to be very tough for a leader; this is because a lot of people fail to have respect for them (Normore Fitch, 2011). Hence, there is the need of developing a culture by the Enron leaders where they focus on doing something that they say and ensure that they follow it through. Rewards and enforcements- as a leader there is the need of valuing what we recognize. Therefore, Enron leadership may adopt a new culture where they reward and recognize employees. Thus, they will be a collaboration and team work culture compared to before where employees where working against each other for the purpose of safeguarding their job (Bradley, 2011). There is also an instance where employees in Enron Company worked towards the maintenance of their jobs rather than focusing on the achievement of organizational goals. Hence, this developed the culture of fraud, but we observe that the current leadership of the firm has decided to reward effective employees. Therefore, if people are promoted the leadership influence will have conformed in a successful way that creates a hierarchical culture. Being passionate- passion tends to be contagious and most people often like to be associated with it. As some scholars argue on leadership programs, people can follow you because they have to or because they want to because of your capabilities (Elliot, 2002). Therefore, if one has the capabilities to inspire people for change you tend to reprogram their brains thus they will take some form of ownership so that they can ensure success in the firm objectives. Communicating efficiently- it may sound obvious but if there is no clear communication, there is the likelihood of unclear and informal communication (Smith, 2009). Consider the case of Enron Scandal, poor communication culture in the firm was a escalating factor to downfall. Looking at an example, there was no evidence because of poor communication culture by the leaders that when the CEO told the employees that stock would rise that he could disclose that he was selling stock. Hence, it meant the duty was owed to one's good faith and disclosure (Bradley, 2011). Moreover, in this case, the employees would not have known of the stock sales within days or weeks in such an ordinary case. Thus, only the under investigation after the bankruptcy was it known that the CEO is selling stock. Perhaps, such a factor could be stated that it increased the level of bankruptcy. Therefore, people tend to appreciate if there is honest and straightforward communication to them even if it is negative so that they could at least try and develop a positive influence. All these can be possible if only the leadership system decides to adopt an effective communication culture. Leadership and employees engagement leads to innovation- having an amazing form of leadership makes people motivated in the success of achievements. More importantly, you have the freedom to undertake any duty and this creates some form of redundant task that you would have to normally do (Normore Fitch, 2011). Based on this, a leader who engages his employees brings some positive atmosphere in an organization and makes the work a lot simpler. Know think of a company where the employees are disengaged along with poor leadership (Lumby Coleman, 2007). What is likely to be seen is an instance similar to the Enron Scandal. Here, we are likely to experience instances of negative results, as a result the company becomes awry, work become gruel and tasks become daunted, rather than a place where people can develop an learn new things. Therefore, it is up to the leaders to make decisions on what shape they would like their work place to be, this is what separates great companies from the bad companies. Therefore, to make positive cultural influences those are objective to the organization aims leader should be transparent, clear and fun company that most people often feel to go and work for (Lumby Coleman, 2007). Hence, leaders should maintain that they influence cultures that make companies to thrive. 3. How should unethical behavior be reduced at the workplace? What should be the recommendations? In our case scenario, we observe that weakness of human beings. The executives in this company were smart guys, but unfortunately they destroyed the fortune they had built for 16 years because of unethical characters. Unethical characters tend to develop some disastrous consequences in any organization. Therefore, as a leader there is the dire need of avoiding such practices from happening (Normore Fitch, 2011). Hence, Enron should consider avoiding some of the unethical behaviors within the organization. These are as follows: Proper corporate culture Firms should critically look at their corporate culture because the culture found in an organization will affect the decisions made by the employers and employees in any ethical dilemma (Koletar, 2003). Considering our case study, Enron culture led to bad result which increased levels of fraud and bankruptcy. It is also noted that Enron had competitive environments and rigorous performance in evaluating their standards. Besides that they focused more on their financial goals. Therefore, if Enron had given more job securities to their employees, instances of cheating could have been less. Therefore, the employers could not have made decisions if they cared about the interest of their employees and stakeholders. Hence, building a healthy corporate culture tends to be a necessity for the firm. Robust ethics infrastructure There is the need of establishing a robust ethnic infrastructure that should be followed daily. Therefore, having ethical codes tend to be far from enough (Normore Fitch, 2011). For instance, our case company had written code of ethics, but there were many unethical behaviors still happening. Hence, when firms write down their codes of ethics they should also communicate it effectively to all employees. Hence, leaders should make sure that a companys ethical standards are common to each persons mind. Establishment of business ethics theories and models Businesses need to learn the significance of business ethics theories and models because of their capability to reduce levels of unethical characters. For instance, in these models and theories, impacts for your decisions and interest tend to be emphasized. Hence, the ethics models develop good ways in which you balance the interest of all parties, so that they can assist in the making of a right decision in an instance of ethical dilemma (Elliot, 2002). Hence, having proper business ethics theories and models lower levels of unethical dilemmas once you know what should be done. Hence, to avoid any other case of Enron, firms should opt whether they possess a healthy business culture, whether they have their written codes of ethics and if they follow the codes, and if they employers and employees have sufficient knowledge about the business ethics (Normore Fitch, 2011). Conclusion In this study there is an in-depth understanding on how proper leadership is the spine towards the conduction of business process. There is also observation of how leaders can influence the culture of an organization to either the positive or negative side (Normore Fitch, 2011). Lastly are recommendations of how companies can handle instances of unethical behaviors. Therefore, effective leadership is a significant necessity for any firm in the business world. References Tartell, R. H. (2014).A test of the path goal theory of leadership. House, R. 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