The Virtuous Manager Enron was the model for rapid growth in the 1990s, but some of Enron's culture and ethos were disturbing. Falsified documents, cut-throat competitiveness among employees, and accounting schemes that hid the truth about the company's indebtedness were just a few examples of the lack of business ethics within the organization. Perhaps a more virtuous management team could have saved Enron from collapse. Enron's Culture: An Indicator of Corruption Enron's management style was evident from the organization's early years. In 1987, New York traders manipulated transactions to make it appear that the volume was higher. The falsified transactions significantly increased traders' bonus payouts. A truly virtuous manager would address unethical behavior by quickly firing those involved. Unfortunately, Chairman Kenneth Lay and his management team chose to keep the traders on the payroll because they “claimed the company needed revenue” (Fowler, 2002). This event may have been the first indicator of unethical behavior within the organization. Performance Reviews When Jeffrey Skilling took on the role of President, the culture became more aggressive as the company established the Performance Review Committee (PRC) to evaluate employee performance. In an article written for TIME magazine, John Greenwald wrote about Enron's PRC. Arguing behind closed doors for up to two days at a time, bosses compare and contrast workers' performance over the previous six months and rate them on a five-point score. scale, with the highest 5% labeled “superior” and the lowest 15% labeled “needs improvement.” In between are "excellent" (30%), "strong" (30%) and "satisfactory" (20%). You don't want to be in the cellar: whoever describes... middle of paper......2002, October 20). Enron's corporate collapse was long overdue - Houston Chronicle. Houston news, sports, business and entertainment - The Houston Chronicle on Chron.com - Houston Chronicle. Retrieved March 23, 2012, from http://www.chron.com/business/enron/article/Enron-s-corporate-tumble-was-a-long-time-coming-2083723.phpGreenwald, J. (2001, 11 June). Rank and fire - TIME. Breaking News, Analysis, Politics, Blogs, News Photos, Videos, Tech Reviews - TIME.com. Retrieved March 23, 2012, from http://www.time.com/time/business/article/0,8599,129988,00.htmlJones, D. (2010, February 15). CEO Loescher Uses His Moral Compass to Lead Siemens - USATODAY.com.News, Travel, Weather, Entertainment, Sports, Technology, US & World - USATODAY.com. Retrieved March 23, 2012, from http://www.usatoday.com/money/companies/management/advice/2010-02-14-siemens-CEO-advice_N.htm