The director’s cut also shows the greediness and the erroneous administration of the top management composed by Kenneth Lay, the founder of the business, Jeffrey Skillings and Andrew Fastow, all of them are considered as the smartest guys in the room including their accomplices. The film shows video tapes or footage and audio records that reveals the immorality of Enron’s employees and management and the non-existence of corporate values and proper leadership.
#THE SMARTEST GUYS IN THE ROOM MOVIE MOVIE#
The movie is about a crime story and the bankruptcy of ENRON, one of the most successful and even considered as the 7th largest corporation in America, due to the fraudulent acts by the top management. Next, the dimension of predictably describes Enron’s use of the performance review committee.The movie entitled “ENRON: Smartest Guys in The Room is based on a book with the same title written by Bethany Mclean and Peter Elkind. Enron had to maintain control in order to succeed in the stock market. Equally important, The Enron Corporation appeared to be a financially sound company to outside world, but internally it had perfected a decentralized financial control structure, this made it difficult to get a good understanding of the company’s daily activities and how it actually operated. Enron was actually controlling the cost of power by abusing California's deregulated market where they created false power surges to increase pricing of energy costs. For example, during the California wild fires executives were said to have chanted “burn baby burn” while they were stealing money from the people who were paying unaffordable and high utility bills. Secondly, Enron proved time and time again that the executives were unethical, and were involved in unethical behavior. Skilling was controlling the employees and the traders.
On the trading floor at Enron, employees would work twelve hour days and they often stepped on each other to get ahead and receive bonuses. The Enron Corporate retreats were often involved engaging in extreme sports and the tough guy persona was rewarded in the company. Ritzer (2004) stated that there was danger in progressive rationalization and it can become irrational when a company loses sight of their ultimate …show more content… Gibney (2007) stated that Skilling encouraged the aggressive culture and risk taking. Similarly, to maintain efficiency, the company took the rationality of the workplace and made it into irrationality by manipulating the stock market. They also used the future value of potential profits to drive profits up for the current day which should have been against the rules due to the ethical standards of business. An additional example of efficiency by Enron was inflating the numbers which provided the desired efficiency and predictability that investors wanted.
This type of work ethic coincides with efficiency our first dimension of McDonaldization. Lay had ambition and knew his life could be better, his ultimate goal was to become rich. Gibney, (2007) stated that Ken Lay grew up poor but he learned the value of hard work. In addition, ENRON’s use of efficiency, calculability, predictably and control, which are the four dimensions of McDonaldlization helped them succeed in the business world …show more content… Enron was an energy, stock exchange, and services company.
ENRON’S aggressive culture and risk taking contributed to their collapse. However, its collapse affected thousands of employees and bankruptcy left investors with worthless stock. ENRON was superior at energy deregulation and became one of nation's ten largest companies. Progressive rationalization can actually result in some irrational consequences. “The process of rationalization causes society to put a great deal of emphasis on efficiency, predictability, calculability and control”. Show More ENRON: The Smartest Guys in the Room film reflection According to Ritzer, (2004).
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