Discovering Organizational Hierarchy through a Corporate Ranking Algorithm: The Enron Case

Table 6

Frequency of Enron’s employees in occupational categories by A. CorpRank score, B. PCA K-means, C. PCA hierarchical cluster (PCA HC), and D. K-means. Chi-square’s value compares the results with the expected values assuming that there is independence between the occupational categories and the clusters generated by each algorithm.

Algorithm	A. CorpRank score			B. PCA K-means			C. PCA HC			D. K-means
	High	Medium	Low	1	2	3	1	2	3	1	2	3
Senior managers
CEOs-President	7	2	0	3	2	4	2	4	3	3	4	2
Executive VP	2	0	1	0	1	2	1	2	0	0	2	1
Managing Director	4	2	1	0	3	4	3	4	0	0	3	4
Vice President	15	5	4	1	8	15	8	15	1	2	7	15
Middle managers
Director	5	10	7	0	18	4	18	4	0	0	3	19
Manager	6	8	12	0	20	6	20	6	0	0	3	23
Attorneys-legal asst.	6	4	0	0	4	6	4	6	0	0	2	8
Trader	2	15	17	0	29	5	29	5	0	0	0	34
Employee	3	4	7	0	11	3	11	3	0	0	2	12
Total	50	50	49	4	96	49	96	49	4	5	26	118
Chi-sq. value