The success of AES, as one of the most powerful power generator companies in the US, during difficult times for the energy industry in the 21st century is certainly a remarkable story for all companies. It is intriguing to know that AES adopted a different methodology of doing business while no other company dares to follow. With no HR department, personnel department, executives pressure, administration, overtime or shift schedules, AES staff (over 30,000 employees) are still able to run the AES plants successfully even with the global expansion. I believe the success of AES is mainly attributed to the commitment and devotion to its values; integrity, fairness, social responsibility and the relaxed “fun” atmosphere at work. However, this kind of commitment can be complicated and costly and sometimes resulting in fewer profits and missed opportunities. Another reason for the success of AES is people empowerment. Even with no strategic HR direction, AES has been also successful in aligning its practices with the corporate objectives towards global expansion and being socially responsible.
Unfortunately, the fallout from Enron, September 11, and California power crisis brought challenges to AES and its ability to maintain its values and achieve its objectives. Faced with reduction in capital spending and selling some existing business such as Cilcorp and withdrawal from some markets in such as the UK and Latin America, AES had to alter its operation strategies and reduce its expenditures. Also some organizational restructuring were also permitted such as the executive office that was created to enhance operating performance of regional plants. By 2002, it was inevitable for the industry to change as organizations continued to grow and the level of competition in t ...