Understanding Corporate Governance and Management

This assignment delves into the critical aspects of corporate governance, examining its principles, policies, and practices. It analyzes the influence of institutional investors on corporate governance preferences and explores how organizations manage risks and create shareholder value. The assignment utilizes diverse models, including the 5C Situational Analysis, Value Management framework, Action Plan, Kaplan & Norton's Balanced Scorecard, and the Performance Pyramid, to illustrate key concepts and provide practical insights.

Company report, review and
reflection

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1 THE COMPANY REPORT..............................................................................................1
A1 Introduction to company.......................................................................................................1
A2 Situational analysis to evaluate the current status of value management..............................2
A3 Proposal for improved VM and milestones for management...............................................7
A4 Risk to organisation on not implementing proposals..........................................................13
PART 2 EVIDENCE REVIEW.....................................................................................................13
B1 Critique of literature used in Part A....................................................................................13
B2 Potential DBA research perspective....................................................................................15
PART 3 REFLECTION FOR EMPLOYABILITY ENHANCEMENT ......................................16
C1 Identification of critical thinking and core capabilities needed to achieve this consultancy
task............................................................................................................................................16
C2 Evaluate knowledge and skills competencies in context of Part 1......................................17
C3 Review related leadership skills required for future personal development and career
accession...................................................................................................................................19
REFERENCES ...............................................................................................................................1

INTRODUCTION
The whole report is based on HSBC holding plc and this will be covering value of firm,
situational analysis in evaluating current status of value management. Improvement and
sustainability development of company among stakeholders and resource which are needed to
satisfy their need is called Value management (Aven, 2016). Assignment will further continue
with addressing the inefficiencies which are identified and formulating proposal for
improvement also risk to organisation on not implementing proposals. For any company it is
important to identify their key performance indicator both financial and non financial one so that
they can make sure about management of their value in market. Then it will be covering
literature review of all critique which is used in above mentioned part and at the end assignment
will conclude with employability skills which are needed for reflection.
PART 1 THE COMPANY REPORT
A1 Introduction to company.
Value management is very important for company in market which they are performing
or delivering services. As all the stakeholders of company who are linked with them some or
other way needed to judge it with different perspective and they define their own priorities to
stakeholder (Bell, Filatotchev and Aguilera, 2014). There are many stakeholders of a bank as this
is very important part of all the economies of world. Without bank within country they will not
be able to work and develop on global level. HSBC holding plc is most reputed British
multinational bank which is also providing financial service all over the world. This is a public
limited company which is operating in banking and financial service industry and was initially
originated in Hong Kong. With about total assets of $2.374 trillion in December 2016 HSBC is
seventh largest bank of world and 235175 number of employees in same year.
Hong Kong and Shanghai Banking Corporation also known as HSBC is having its home
market as UK and Hong Kong. HSBC is having its branches in 67 countries of world with about
1

3900 offices and is having 38 million customers. HSBC is operating in many segments which is
related to commercial, global banking, investment, retail banking, wealth management and
private banking globally (Cucchiella, D’Adamo and Gastaldi, 2015). Market capitalisation of
HSBC holding was about £102.7 billion in 2016 and was second largest company which was to
be listed in London Stock Exchange. It is very important for HSBC to manage the value of its
company and to attract more and more stakeholder and also to satisfy them.
A2 Situational analysis to evaluate the current status of value management.
Situational analysis is collecting of all method which will be used by managers of
company to analyse internal and external environment in understanding capabilities, business
environment and stakeholders of firm. This can be done by following two methods which are
qualitative and quantitative.
Qualitative:
This include various types of analysis which is made by company to understand all
capabilities and competencies which they are having and which can lead them a better profit in
market. Qualitative part of situational analysis include 5C analysis, risk management assessment
and corporate governance assessment (Dewachter, et.al 2015). Value management is achieved
with the help of formulating proposal for improvement of business process and financial
management of company this will also lead to designing a strategic management system that will
be implementing with financial and non financial KPI for ongoing performance improvement.
KPI are the key performance indicator of firm which will be defining that company is
having the capabilities of achieving important business objective. This will help the company in
tracking the record of all business area of firm and analysing that will company achieve the
target which it has set or not. This KPI will be helping company in management of its value in
market so that they can gain greater market share from others in market (Haimes, 2015).
Strategic management system will analyse that how can company formulate the plan for whole
year and achieve the financial goal of company.
5C analysis- this will be giving more and more information on internal, macro environment and
micro environment factors. This 5C analysis will be providing all sort of extensive and relevant
information about company that is why this is considered most useful and common way to
2

analysis market environment (Kallala and et.al 2015). This include company, competitors,
customers, collaborators and climate.
Illustration 1: 5C Situational Analysis
Company- this include the evaluation of objective, strategy and capabilities of company and will
be indicating strength of business model. Will also be telling all areas which need improvement
and how well company is fitting in external environment. Analysing goals objective of firm are
the aligned to mission and vision of company and analysing marketing strategy of company also
of marketing mix. This will also be including performance of company and then analysing
effectiveness in achieving mission and goal of firm which they have already stated.
Competitors- this will be taking all potential competitors of firm within market which can be
threat to profit and market share of company. The main aim of competitor analysis is to identify
all potential competitor in market, their position and growing capabilities so that they can
prepare themselves against competitors (Lam, 2014). Company first need to identify competitors
in same industry, assessment of competitors to see their goal and objective and then lastly
3

predicting future initiatives of competitors. Identification of competition in industry means
analysing whether they are providing the same service or product to customer as the company.
Customers- this is most essential one as can involve many parts in it and can be vast and
complicated one. This will involve demographic area in which company is operating like market
size, motivation, distribution channel, quality of purchase and income level of customer.
Customer are divided according to the income level and market size company need to motivate
them to buy the product.
Collaborators- these are helpful as they allow and increase creation of idea and gaining in
likelihood of more business opportunity (Larcker and Tayan, 2015). Collaborators can be person
like agency, supplier of firm, their distributors and partners who are working with them to earn
profits and share losses. They must be having that many capabilities to identify the supplier and
agent of firm which will be providing the product to end use customer so that they are happy
with the service of company.
Climate- this will be helping in business climate and environment and all factors which are
affecting business. This will be including PESTLE analysis of company which are political,
economic, social or cultural, technological, legal and environmental analysis.
Risk management assessment:
This is the effect of uncertainty and the assessment of risk which will be followed by
identification and prioritisation of risk (McCahery, Sautner and Starks, 2016). Risk management
also include coordination and economical application of resources which will be minimising and
monitoring probability or impact of unforeseen events. Identification and assessment of risk is
very much important which will be coming from various sources like financial area, project
failure, natural causes or uncertain events. All the different type of risk are having different
effects and causes measures related to them are also of various kinds.
Implementation of risk management for some type of company need time and resources
which will be difficult for the company to complete the given project. There is a difference
between risk and uncertainty as risk is calculating to impact and probability of happing of the
uncertain event. If the company is not able to assess the risk and prioritise it then this will lead to
waste of time and energy as well (McNeil, Frey and Embrechts, 2015). If they are taking too
4

much time in assessment of risk which is involved in doing certain project then this will delay
the time to start the project.
Corporate governance assessment:
This system ensures the relationship between board of directors and stakeholder of firm
this also help management to direct and control systems in organisation. Corporate governance is
the system which will be important as see how will decision marker of company be acting, how
them can be monitored and how they could be held responsible for the decision which is been
taken by them only. This will be helpful in situational analysis of company and will be telling
whether decision makers are capable in doing their work and can they be useful or not for future
decision making of company. Auditing of the company and its record are also the essential part
of corporate governance assessment (Tricker and Tricker, 2015). As if the company is healding
its yearly audit of the company then this will be attracting more number of stakeholder towards
the company. UK is using a laid down code of the best practice which is commonly called as
comply or explain which is associated with corporate governance assessment. Auditing in HSBC
holding is of very importance as for a bank this is required that they all do the auditing of their
books and journals each year. This is also required for corporate governance of company so that
more and more investors are directed towards them.
Quantitative:
This will be including the comparison with prevailing competitors in market who are
sharing market share and profitability with HSBC holding. As the bank is providing all kind of
service to customers all over the world like that of financial service, commercial banking,
corporate investment and market private banking. In UK some of major competitors of HSBC
bank are Barclays and Royal Bank or Scotland (Vogel, 2014). They both are also performing
very good in market and earning higher share of profits giving tough competition to HSBC in
UK itself. The growth prospect of HSBC is very good at market and is showing steady and
frequent growth in share price in both stock exchange over last 5 years. As compared to its
competitors in market HSBC is having more capabilities in identification of need of customer
and that of investors. Bank is deriving its 22% of profits from Hong Kong only as this is the
operational centre of company and is growing to emerging market like that of Asia and Pacific
region.
5

Market metric-
This is the key performance indicator of firm which is determining greater precision and
tracking the performance of firm over a particular time say for a year. Market metric can be
derived form market value, market to book ratio and price earning ratio of HSBC holding which
will be as comparison to competition like that of Royal Bank of Scotland.
Market value-
The market capitalisation of HSBC holding was about £ 152,856.06 million and the price
of its share was 751.50. Revenue of the year 2016 was $47.96 billion and profit was $2.479
billion.
Financial analysis-
Profitability ratio 2015 2016
Assets turnover 0.03 0.03
Return on assets 0.5 0.05
Return to equity 6.64 0.71
Price earning ratio 10.7 38.3
Price to book ratio 0.8 0.9
Investor ratio
Earning per share 3.2 0.35
Dividend 2.5 2.55
Payout ratio 67.5 242.9
Liquidity ratio
Working capital 2.67 13.32
Sale growth will be 59836-71092/71092= −0.15 which is the current years Gross profit
subtracted by last years gross profit and divided by current year gross profit (Cucchiella,
6

D’Adamo and Gastaldi, 2015). As it is clear that last year gross profit was more than that of
current years so the growth of sale in HSBC bank is decreased. This means that the company is
in loss in regard to the sale from last year.
The price to book ratio of company is the value of its current market share prices of
company. The book value would be the part or portion which is with the shareholder of company
not actually the market price. In the year 2016 the price to earning ratio of HSBC was 38.3 which
was more than that of last year which was about 10.7.
Liquidity ratio will be denoting how much company is having capabilities to repay all its
creditor of firm from its total cash and is dividing total cash by the short term borrowing (Laudon
and Traver, 2013). So the working capital ratio which is the part of liquidity ratio of HSBC
holding for the year 2016 and 2015 was 13.32 and 2.67 respectively.
The profitability ratio of firm is the clear measure of performance of company as
compared to that of its competition in market and this is the left over income after deducting all
the cost and taxes or expense of firm. This can also be used to compare last year and current year
profit of the firm and this can be done by taking out all the profit and loss of the firm after
deducting the taxes, cost and expensed which are made during the year.
Identification of inefficiencies in above qualitative and quantitative analysis:
If the company want to take out all the ratios than they need to do analysis of all the cost,
revenue, taxes, profit and its loss for the year. They need to identify its all customer and
competition which are there in market and this will be taking so much time and work will be
increased.
They also need to analysis that hat is the future contract of business on the basis of which
they need to do the planning.
The collaborators of firm should be satisfied by the growth and profit of the firm as they
are one who are investing in company (Haimes, 2015). To satisfy customer of company is the
most basic and important task of management.
Value management in market will be possible if the customer or supplier of firm are not
happy.
7

A3 Proposal for improved VM and milestones for management.
A) Financial management
As per Rappaport in year 1986 mentioned that there are 7 drivers in business which will
be managing to create value of firm they are as under:
Growth in sale, increase in operating profit margin, in competitive advantage period and
reduction in cash tax rate, working capital investment, in fixed asset investment and weighted
average cost of capital (Gordon, Jorgensen and Linthicum, 2017). All these things if
implemented then that will lead to increase in shareholder value and value management of firm.
Illustration 2: Value of shareholder and value management
[Source: Gordon, Jorgensen and Linthicum, 2017 ]
In order to achieve shareholder value in capital value gains and dividend form there are
some important valuation components which need to be considered impacting financial
profitability. Some are as under:
I) Cash flow
The amount of cash which is given by the company to meet out payments to creditors and
used to analysis liquidity position of company is known as cash flow. This cash flow is derived
from net sales revenue, revenue growth realised margin and its protection, working capital
8

management and also selected investments. In cash flow there are some outlines which need to
be considered (Shah, Kim and Choi, 2017). They are:
Strategic financial objective- this is the outline of whole year's plan which company need achieve
to sustain in business for long time. Like for HSBC it could be to increase net cash flow from
business operations by 10% during current financial year of 2017-2018 and by 20% in coming 3
years.
Key value drives- these are some factors which will be affecting business from within and
outside of business company need to focus on these as will be impacting performance. As for
HSBC holding it could be net revenue growth, reduction in operating cost of company and
rationalisation of capital expenditure.
Strategic actions needed- this is the plan which will be helping company to communicate
objective of goal of organisation.
9

Illustration 3: Action plan
[Source: Shah, Kim and Choi, 2017]
II) Lowering cost of capital
Cost of capital of the firm means all the available cost of making specified investment by
firm measured in rate of return of company which could be earned by investing some money in
particular investment. This cost of capital is derived from cost of equity held or acquired, cost of
actual debt impacted by capital structure and strategic corporate finance decision (Moradi,
Mousavi and Vahdani, 2017).
There are some challenges which arise in generating positive shareholder value amounts
to:
 Capital structure is optimal and also capital gearing is manageable by monitoring debt to
equity relationship.
10

 Through effective cost management and working capital management improvement of
cash flow.
 To decrease cost of capital and effective relationship management with supplier and
creditors.
In cash flow there are some outlines which need to be considered. They are:
Strategic financial objective- this is the outline of whole year's plan which company need achieve
to sustain in business for long time. Like for HSBC it could be to reduce cost of capital by 5% in
2017-18 and 7% over the coming 3 years.
Key value drives- these are some factors which will be affecting business from within and
outside of business company need to focus on these as will be impacting performance (Gans and
Ryall, 2017). As for HSBC holding it will be debt cost reduction, capital structure review and
strategic corporate finance decisions
Strategic actions needed- this is the plan which will be helping company to communicate
objective of goal of organisation. Like that to review debt profile, risk assessment protocol
review, optimisation of capital utilisation etc.
B) Improving business process
To appraise the business they need to consider some core factors which are known as
CSF and KPI which are core metrics. In order to achieve successful business outcome critical
success factors are there to perform well. The factors like that of client, process, technology and
people or staff of company the critical success factors of firm. While KPI or key performance
indicators will be measured in order to achieve critical success factors these must be well defined
and quantitative, communicated to organisation and should be applicable in line of business or
department. KPI in terms of financial perspective will be growth in sale, increase in operating
profit margin and competitive advantage and decrease in cash tax rate, working capital and fixed
asset investment (Tieskens and Verburg, 2017). Whereas, non financial will be customer, process
and people metrics.
C) Designing a strategic management system
There are some common strategic management system which firm can follow which are
Kaplan and Norton Balance scorecard, Performance pyramid, Fitzgerald and Moon's Building
11

Block model and Performance prism. Strategic management systems are linked to corporate
strategy, measure the financial and non financial performance and motivate managers and
employee.
Illustration 4: Kaplan and Norton balance scorecard
[Source: Tieskens and Verburg, 2017]
Kaplan and Norton Balance scorecard- this is having four important perspective which are
customer, innovation and learning, internal business process and financial perspective. The CSF
and KPI of company should be in alignment with vision and strategy toward achieving overall
strategic objective. In order to successfully implement these activities company need to make
strategy explicit, choosing measures, defining and refining and then dealing with people.
Performance Pyramid- this is the hierarchy of financial and non financial measure which is
having 4 levels they are as under.
Level 1- corporate vision on how long term competitive advantage will be achieved.
12

Level 2- achievement of an organisation's CSF in market related measure and financial
measures.
Level 3- linking marketing and financial strategies to customers satisfaction.
Level 4- improvement of quality, delivery, reducing cycle and waste.
Illustration 5: Performance Pyramid
[Source: Tieskens and Verburg, 2017]
A4 Risk to organisation on not implementing proposals
As the proposal is based on flexibility which is according to customer satisfaction by for big
company's like that of HSBC holding satisfaction of all need of customer will not be easy
(Mintrom and Luetjens, 2017). They need to investment huge amount in functioning and
processing with various kinds of policies and strategies. So modification will not be that much
easy for company.
It takes too much time and resources in this long process in order to complete the desired
process. It will not be that much easy to point out problems in all departments of company like
that of HSBC and also to analysis the strategies of competition would be not that much easy.
All cost and revenue that are to be calculated are there for one year only and showing present
condition of company but if they want to take long term process changing of decision can lead to
change in cost structure.
13

If proposals are not implemented then the company will not be able to cope up with the existing
condition which are prevailing in market and then profitability of company will be hindered
because of this which is not good.
PART 2 EVIDENCE REVIEW
B1 Critique of literature used in Part A
As per Altmeppen, Hollifield and van Loon, (2017) value management is that process
which is followed by company so that they can satisfy need of customer and of stakeholder and
by managing all the cost and revenue of firm as well. There is main economic perspective
according to Collings, (2014) like that of production and then goods and services that are valued
at cots it takes to create and distribute them. In the year 1920 neoclassical idea of profit
maximization as objective of enterprise leading to equilibrium conditions were criticized by
Schumpeter. As Kim and Kim, (2014) said that innovation is the main aspect which will be
required to improve production and economic growth. The theories which are used by firm are
contractual theory, transaction cost theory, resource based theory and non economical
perspective.
According to Bezemer, Zajac, Naumovska and Volberda, (2015) contractual theory said
that there are number of contract like owner contract with their employees are there in firm.
While Kim and Kim, (2014) said that transaction cost theory of firm will be there if firm are
organising their all transaction and lowering cost than market place. According to Carter, Alcott
and Lattuca, (2016) in resource based theory will argue that profitability of industry will
determine by entry and exit barriers. Fernandez and Steffen, 2015) also said that profitability of
firm will be determined by how well its strategies matched market conditions. As per
Altmeppen, Hollifield and van Loon, (2017) of contemporary firm can b e taking that form of
tacit and organisation embedded knowledge will be said as source of dynamic capabilities.
In part A qualitative and quantitative methods of situational analysis has been carried 5C
of analysis. According to Collings, (2014) these 5C which are customer, company, competitors,
collaborators and climate which will help company to analysis whole situations external and
internal factors. Qualitative will be helping company to easily understand core competencies and
capabilities of firm as per Hathaway, Rosen, Myers and Laws, (2017). Key performance
indicator will be telling the firm about their main key area of firm which will be measuring value
14

that how effectively firm is achieving business objective as mentioned by Jambari,
Asma’Mokhtar, Ishak and Yaakub, (2015). Customer will be the most important part of 5C as
they will be enabling company in achievement of overall objective and then they require
satisfying customer in all perspective said by Bezemer, Zajac, Naumovska and Volberda, (2015).
If the company is not using value management proposal then they will not be able to
improve business process or lower down their cost. As per Tricker and Tricker, (2015) cash flow
is the sum total of all cash which are coming and going outside company in order to satisfy
creditor of firm. The main inefficiency of qualitative and quantitative analysis is their rigidity
towards firm decision making. The shareholder value management will be helping company in
determining all its core and important shareholders so that they can be useful to firm whenever
they are needed. Larcker and Tayan, (2015) said that HSBC holding is one of the most profitable
institution of UK which is providing all type of service to customer like that of banking, financial
services, investment advices and wealth management. HSBC is also providing its service all
across globe so for such a large company it is very important to manage its value and shareholder
in market which will be leading them. Company will also be using many types of ratios which
will be helping firm to measure its performance as compared to others in market and then telling
them at which part firm will be in need to change. The ratio like that of profitability will be
indicating how much profit company is earning as compared to their competition.
But Van der Heijden, Gorgievski and De Lange, (2016) criticized that not all ratio will be
helpful to company in making out their performance in market some are there which will be
telling company how stable they are as comparison to their rivals. Liquidity ratio will be helping
company in measuring its working capital and the amount of money they are having with them to
carry day to day functioning. Whereas, Kim and Kim, (2014) said that price to book ratio will be
determining share price of company in market and how many shares of company are with its
shareholders.
B2 Potential DBA research perspective
DBA is the qualification which will be allowing any individual as professional to conduct
practice based research with any organisation which stands for Doctorate of Business
Administration. All the candidates who are enrolling in this program of DBA will be having with
specified problem in mind which initially be submitting of about 2000 word count research
15

proposal on any topic or problem related to business. Towards the end candidates will be able to
write about 50000 words thesis upon specific professional practice research which they have
undertaken. There are some key facts which will be enabling them to combine workshop and
research based activities like:
focusing on own participating organisation and its challenges in new way;
developing action research and learning approach to organisation problems;
encouraging critical engagement with consultancy and research process;
Empowering to improve own personal practice.
The structures of research proposal consist of six parts which are having different word count on
each of the sections.
Title of research- this is having word count of 8-12 words and will be telling what will be
research be about and what will it be impacting.
Aim and purpose of research- will be having word count of 200-300 words and will be
focusing on specifically on research and what do practitioners hope to achieve from undertaking
it.
Research objectives- in this there will be list of 3-5 objectives of what actually will be
investigated in report and will be of 3-5 sentences of maximum of 50 words.
Literature review- of about 800-1000 words covering all current views, topics and critical
research will be done in this part.
Research methodology- will be having 500-700 words in which research topic or problem
would be analysed.
Proposed outcomes- list of 3-5 bullet points of maximum of 50 words and contribution to
knowledge and practises.
References- citing all the references which are used in research proposal make sure that
contemporary references in chosen research topic.
16

PART 3 REFLECTION FOR EMPLOYABILITY ENHANCEMENT
C1 Identification of critical thinking and core capabilities needed to achieve this consultancy task
Employability is process of creating value at work, getting the payment of work and then
learning at same time. For all the employees it is required that they posses some level of
competencies and skills in achieving all task that are mentioned by their employer. For all
employers it is important that they should provide that working environment which will be
giving employee opportunity to develop professionally and personally. If anyone wants to
perform value management or take out ratios of firm then they should be having certain core
competencies so that they can do that work properly. They need to have certain skills and
abilities so that they can perform this particular task. This core competencies are need to fulfil
three criteria which are as follows:
Difficult for competition to copy or imitate them.
Providing access to market on wider range.
Making significant contribution in perceiving customer benefits of end product.
These core competencies will be enabling them in their career development plan and also
enhancing employability skill. The employability skill which employee are having need to be
improved and enhanced which will be further developing employee and helping company as
well.
They must be having special knowledge about market and must be having skill to use ratios as
well.
They require capabilities and skills like that of shares and know who are potential customer of
firm.
They must be knowing all competition in market and on global level as well so that they can
analysis market and grow.
First and foremost they must be having knowledge about company in which they are working
and then they can work further in company.
Must be having knowledge about key performance indicator of firm so that they can analysis at
which area they need to keep track on and on which they need to develop the company.
17

All kind of risk which are prevailing within company and outside company they must be having
full knowledge about risk assessment management. The all type of uncertainty and risk need to
be managed effectively so that they can be either avoided or dealt in most effective manner.
C2 Evaluate knowledge and skills competencies in context of Part 1
Knowledge before doing any type of research work is very much important without
having knowledge about the topic or market no one can perform in better ways. The various type
of knowledge about market, company, competition, government, customer and collaborates are
very much important.
About market- this knowledge will be helping them to sustain in industry where in company is
working. Market research will be done to analysis whole situation of market in which the
company is operating they will come to know the latest trends and technological changes which
are taking place. They can also come to know the price, demand and supple of their company's
products is there inflation in economy or not. They will also come to know about new entrance
and exit from market.
About company- this is the most important knowledge which they must be having that is about
their own company under which they are working. They need to know vision, mission, objective,
core competencies and product development skill of firm. They should also keep track of
companies last performance and communicate all important information about company to all its
employees.
About competition- this is the outside factor of company which will be affecting them and their
profit in industry where they are working. Competitive analysis must be done of the firm so as to
analysis all relevant competitor of company. Not just analysing competition in market is now
sufficient they also need to try to analysis their visions and mission of company and what are the
factors which are distinguishing them by their competition.
About government- as all the policy and procedure of firm will be affected by the government
under which they are working (Kearns, Livingston, Scherer and McShane, 2015). Role of
government in decision making process of company is very important aspect in organisation
which is affecting company and its sales in market.
18

About customer- without them company will not be able to count on its success and failure in
market. Customer will be helpful in achievement of goal and objective of firm so they must form
decision as per the need and want of customer which are essence of business. Company need to
have a look on all its potential customers and what will be the preferred purchase channels.
About collaborates- they are suppliers and stakeholder of company which are there to help
company whenever company is in need of help. Collaborates are the outside source or third party
forming an important part of company and their decision making.
C3 Review related leadership skills required for future personal development and career
accession.
For future career and personal development of individual will be helping them so that
individual can grow. Leadership skill also need to be there so that they can guide their
subordinate and subordinate can learn from their leader. Some leadership skill which need to be
there for future personal development and carer accession are as follows:
Communication- leader need to communicate all important direction and planning of senior
management to its employees who are working under them. Leader is responsible in explaining
what are objective of firm and this explanation should be clear and concise.
Motivation- this is the second most important task or skill which need to be there in leader as
they are the one who are responsible to make best out of their employees who are working.
Motivation is the best way out which will be helping employee to be able to work properly this is
inner force which will be driving individual in order to achieve both organisational and
individual goal.
Delegation- is also the skill which need to be there in leader so that they can make out work
form all employees who are under them (Hazenberg, Seddon and Denny, 2015). Delegation is
the process of decentralization of duty and work to others or distribution of work according to
skills and competency of an individual. Leader should know all skill and qualification of their
employee so that they can easily delegate the role and responsibilities to individuals.
Responsibility- it is the whole responsibility of leader to motivate them, delegate the work and
communicate important task and policy to subordinates. Leader is always responsible for the
19

work of their subordinate and themselves as well as they are the one who will be asked for future
development of employees.
These are some skills which need to be there in leader of company as this will be helping
company in future personal development and career accession. For all individual and company it
is very important that they are growing and developing company as well as company in which
they are working in which will be in tern making company more and more profitable. The
company will be growing as according to whole competitive market and can easily adopt
technology. This will be only possible if company is having very good team of professional
personal and if they are contributing in growth and success of business.
20

REFERENCES
Books and journals:
Altmeppen, K.D., Hollifield, C.A. and van Loon, J., 2017. Value-Oriented Media
Management: Decision Making Between Profit and Responsibility. Springer.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research. 253(1). pp.1-13.
Bell, R. G., Filatotchev, I. and Aguilera, R. V., 2014. Corporate governance and investors'
perceptions of foreign IPO value: An institutional perspective. Academy of Management
Journal. 57(1). pp.301-320.
Bezemer, P.J., Zajac, E.J., Naumovska, I., and Volberda, H.W., 2015. Power and paradigms:
the Dutch response to pressures for shareholder value. Corporate Governance: An
International Review. 23(1). pp.60-75.
Carter, D.F., Alcott, B. and Lattuca, L.R., 2016. Co-curricular connections: The role of
undergraduate research experiences in promoting engineering students’ communication,
teamwork, and leadership skills. Research in Higher Education. 57(3). pp.363-393.
Collings, D.G., 2014. Toward mature talent management: Beyond shareholder value. Human
Resource Development Quarterly. 25(3). pp.301-319.
Cucchiella, F., D’Adamo, I. and Gastaldi, M., 2015. Financial analysis for investment and
policy decisions in the renewable energy sector. Clean Technologies and Environmental
Policy. 17(4). pp.887-904.
Dewachter, H., et.al 2015. A macro-financial analysis of the euro area sovereign bond
market. Journal of Banking & Finance. 50. pp.308-325.
Fernandez, C.S., and Steffen, D., 2015. Moving the needle: A retrospective pre-and post-
analysis of improving perceived abilities across 20 leadership skills. Maternal and child
health journal. 19(2). pp.343-352.
1

Gans, J. and Ryall, M.D., 2017. Value capture theory: A strategic management review.
Strategic Management Journal. 38(1). pp.17-41.
Gordon, E.A., Jorgensen, B.N. and Linthicum, C.L., 2017. Flexibility in cash-flow
classification under IFRS: determinants and consequences. Review of Accounting Studies.
22(2). pp.839-872.
Haimes, Y. Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Hathaway, S.B., Rosen, J., Myers, A.L. and Laws, R., 2017. Leadership Development: An
Integrated Approach to Changing Trainee Leadership Attitudes, Skills, and Beliefs
(Descriptive Abstract). Academic Pediatrics. 17(5). p.e2.
Hazenberg, R., Seddon, F. and Denny, S., 2015. Programme recruitment and evaluation: The
effect of an employability enhancement programme on the general self-efficacy levels of
unemployed graduates. Journal of Education and Work. 28(3). pp.273-300.
Jambari, D.I., Asma’Mokhtar, U., Ishak, H.Y. and Yaakub, M.R., 2015. Information
Technology Graduate Employability Enhancement Model: Case Study in the Faculty of
Information Science and Technology, Universiti Kebangsaan Malaysia. Asia-Pacific
Journal of Information Technology and Multimedia. 4(2).
Kallala, R. F., et.al 2015. Financial analysis of revision knee surgery based on NHS tariffs and
hospital costs. Bone Joint J. 97(2). pp.197-201.
Kearns, K.P., Livingston, J., Scherer, S. and McShane, L., 2015. Leadership skills as construed
by nonprofit chief executives. Leadership & Organization Development Journal. 36(6).
pp.712-727.
Kim, M. and Kim, Y., 2014. Corporate social responsibility and shareholder value of restaurant
firms. International Journal of Hospitality Management. 40. pp.120-129.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons
Larcker, D. and Tayan, B., 2015. Corporate governance matters: A closer look at
organizational choices and their consequences. Pearson Education.
Laudon, K. C. and Traver, C. G., 2013. E-commerce. Pearson.
2