AES Corporation is a global power producer that has recently been challenged by the largest of their Latin American investments, Eletropaulo Metropolitana SA. The company, the largest electricity distribution company in Latin America, has been accused of colluding with Enron, and purposely driving down their stock prices. Their default on payments on a $1.2 billion loan from National Development Bank of Brazil means the bank could seize the company, which, in the end, would actually improve the AES balance sheet, according to Hamilton (2003). This individual problem demonstrates a greater challenge for the company, organization wide. This paper overviews AES' organizational culture, their structure, and why the organization is going through major restructuring.
Managing the Organization's Structure
AES Corporation is a global power producer that has recently been challenged by the largest of their Latin American investments, Eletropaulo Metropolitana SA. The company, the largest electricity distribution company in Latin America, has been accused of colluding with Enron, and purposely driving down their stock prices. Their default on payments on a $1.2 billion loan from National Development Bank of Brazil means the bank could seize the company, which, in the end, would actually improve the AES balance sheet, according to Hamilton (2003). This individual problem demonstrates a greater challenge for the company, organization wide. This paper overviews AES' organizational culture, their structure, and why the organization is going through major restructuring.
Kilmann, Saxton and Serpa (1985) indicated culture is common philosophy, ideology, values, belief, hypothesis and norms for mankind. Organizational culture refers to those some facets applied specifically to a singular organization. AES' culture is unique and derived from their global presence. Traditionally, the company
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