Ken Lay’s Authority

While reading Smartest Guys in the Room, I find myself completely enthralled with how the CEO and creator of Enron, Ken Lay, used his authority, and how his influence shaped how Enron was managed. Authority allocation and style within a organization is fundamental to the success and efficiency of the organization. In order to fully comprehend the managerial styles and theory, I went back to our Organization and Organizing text to find answers.

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Concepts: Chapter 2

This post discusses the concepts of Rational-Legal Authority (Scott and Davis, p. 47) and Formal Rationality (Scott and Davis, p. 52) from Chapter 2 of Organizations and Organizing.

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