Critical Management in Global Context Question Answer 2022

Running head: CRITICAL MANAGEMENT IN GLOBAL CONTEXT
CRITICAL MANAGEMENT IN GLOBAL CONTEXT
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Answer to question 1: Shareholder Value maximization and organizational governance
Introduction
Organizational governance practices are grounded on the multi-faceted factors of
organizational performance while operating in different environments. The shareholder value
and the engagement of the stakeholders in the different organizational practices are the major
factors that generally empowers the organizational performance.
Analysis
Need for value maximization of the shareholders
The maximization of the shareholder value in an organization empowers the confidence
and trust of the shareholders like investors in the organizational processes. The growth of the
shareholder value in an organization might result to increased scope of growth of the
organization in terms of investment capital. The organizations take the initiative of improving the
rate of dividends that are paid by the same to the investors with the objective of improving their
rate of confidence on the organizational propositions. The alterations in the organizational
operations are based on the investments that are made by the shareholders. In this relation, the
increase in the shareholder value, in the form of dividends, would encourage the investors in
developing their trust on the organizational operations.
The CSR activities of the organization and the accurate reporting of the organizational
financial position empowers the rate of investments that are made by the investors or the
shareholders (Parmar, Keevil and Wicks 2019). The increase in the shareholder value thereby
enables an organization in encouraging the maximization of the investments that are made by the

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shareholders on the changing business processes, contributing to the growth and expansion
related scope of the businesses.
Impact of value maximization of the shareholders
The maximization of the shareholder value in the organization might restrict the
organization in increasing the profitability of the same. In this connection, the organization might
take the initiative of curtailing the workforce for minimizing the operational expenses. The
decision of the organization towards maximizing the value of the shareholders would thereby
affect the interests of the stakeholders while minimizing the productivity of the business. Clarke,
Jarvis and Gholamshahi (2019) opined that the increase in the value of the shareholders
empowers an organization in gaining the confidence of the same while doubling their
investments on the R&D operations for growth and expansion of the business in different
markets. However, Bessler, Conlon and Huan (2019) argued that the maximized value of the
shareholders might affect the interest of the stakeholders, restricting the productivity for a
business.
Evaluation
The organizations must take the initiative of balancing the value of the shareholders with
the motif of adhering to the major interests of the stakeholders for upholding their business
performance. In this connection the business governance practices in an organization would be
backed with the consideration of balancing the interests of the stakeholders. It has been noted
that increasing the value of the shareholders through enhanced rate of dividends might affect the
profitability of an organization. The maximized value of the shareholders would force the
organization in undertaking layoffs for supporting their economic sustenance related motif, while
experiencing reduced productivity curtailing their performance. On the other hand, the

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minimized value of the shareholders might restrict the empowerment of growth and expansion
related objectives.
Conclusion
Therefore, organizational governance is characterized by upholding the balance between
the different interests of the stakeholders and the shareholders in order to improve their
profitability and sustenance while making business expansions. The organizations take the
initiative of upholding the confidence of the investors or the shareholders of the business through
appropriate reporting of financial status. On the other hand, the organizations also take the
initiative of maintaining a stable profitability ratio in close correlation with the needs of the
venture.
Answer to question 2: Intersection of gender with caste, class, race and the like resulting to
privileges or oppression in a workforce
Introduction
Discrimination in the workforce creates a sense of exclusion and isolation among the
oppressed employees. On the other hand, the inclination of the management towards certain
groups, due to favoritism, creates a situation of discrimination in the workplace. The research
will take the initiative of idealizing the different aspects of discrimination in the workplace while
evaluating their impact on the organizational governance practices.
Analysis
Intersection of gender with caste, class, race and religion
The intersection of gender with caste, class, race and religion might take the form of
discrimination in the workplace. Discrimination between the members of the workforce creates

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chaos and clashes while influencing situations of biased decision making from the side of the
supervisors or the hierarchy of management. de Paula Couto and Rothermund (2019) opined that
discrimination among the employees on the basis of differences in caste, religion and sex reduces
the faith and loyalty of the employees towards the organization. Situations has been observed
where the organizational management discriminated between the workforce based on their caste,
creed, gender, race and the like which affected their motivation.
Privileges or oppression in a workforce
Roscigno (2019) opined that discrimination is a situation in an organization where the
biased approach of the management towards the employees is a result of their inclination towards
a particular sect, caste or gender. The discrimination in the workplace of a diverse workplace
scenario might affect the potency of the management in upholding inclusiveness and integration.
The employees that are favored by the management based on their caste, creed, religion,
background or gender feels privileged (Dunham and Leupold 2019).
On the other hand, the employees who are not favored by the management irrespective of
their specific set of skills and are not given recognition for their contribution to the
organization’s success feels excluded and oppressed. In this relation, reference might be taken
from the research of Plexico et al. (2019) stating that in an male dominated organization, where
male employees are mostly favored, the female employees feel excluded and deprived.
Therefore, in most of the cases the discrimination based practices of the management influences
privileges or oppression among the same workforce.

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Evaluation
The favoritism of the management and the inclination towards a particular sect religion,
culture or gender influences privileges or oppression among the workforce. Discrimination in the
workplace might result to reflection of the management’s inclination towards a particular caste,
religion or gender which might result to oppression in the workforce and minimizing
productivity of the organization in the global context.
Conclusion
Therefore, from the above assessment it might be stated that the corporate governance
strategies should focus on curtailing the discrimination related practices in an organization while
influencing the operational outcomes of a business.

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References
Bessler, W., Conlon, T. and Huan, X., 2019. Does corporate hedging enhance shareholder value?
A meta-analysis. International Review of Financial Analysis, 61, pp.222-232.
Clarke, T., Jarvis, W. and Gholamshahi, S., 2019. The impact of corporate governance on
compounding inequality: Maximising shareholder value and inflating executive pay. Critical
Perspectives on Accounting, 63, p.102049.
de Paula Couto, M.C. and Rothermund, K., 2019. Ageism and Age Discrimination at the
Workplace—a Psychological Perspective. In Vorurteile im Arbeitsleben (pp. 57-80). Springer
Gabler, Berlin, Heidelberg.
Dunham, C.R. and Leupold, C., 2019. Third Generation Discrimination: An Empirical Analysis
of Judicial Decision Making in Gender Discrimination Litigation. Elon University Law Legal
Studies Research Paper.
Hermalin, B.E. and Weisbach, M.S., 2019. Understanding Corporate Governance Through
Learning Models of Managerial Competence. Asia‐Pacific Journal of Financial Studies, 48(1),
pp.7-29.
Parmar, B.L., Keevil, A. and Wicks, A.C., 2019. People and profits: The impact of corporate
objectives on employees’ need satisfaction at work. Journal of Business Ethics, 154(1), pp.13-
33.
Plexico, L.W., Hamilton, M.B., Hawkins, H. and Erath, S., 2019. The influence of workplace
discrimination and vigilance on job satisfaction with people who stutter. Journal of fluency
disorders, 62, p.105725.

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Roscigno, V.J., 2019. Discrimination, Sexual Harassment, and the Impact of Workplace
Power. Socius, 5, p.2378023119853894.