Governance and Stewardship

This paper evaluates the Stewardship model of Peter Block and discusses its key elements. It also explores the benefits and limitations organizations may experience when applying this model. The Stewardship model emphasizes the importance of balancing power and fostering a cooperative sense of prospect in organizations.

Running head: GOVERNANCE AND STEWARDSHIP
GOVERNANCE AND STEWARDSHIP
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Introduction
Stewardship by Peter Block is identified as an umbrella concept which assures the
approaches of attaining major change in the way individuals operate their organizations.
According to Block (2018), stewardship is to efficiently preserve something in trust and
conviction for another. However, in past decades stewardship indicated the means to safeguard a
kingdom while the ones rightfully in accountability emphasized on governing for the sake of an
underage king. Glinkowska and Kaczmarek (2015) have noted that stewardship works as a
choice in order to control over the orderly sharing of power. Such a concept further implies that
individuals positioned at the lower hierarchy and edges of the organization preference over ways
to serve client or community. The following paper will evaluate the Stewardship model of Peter
Block and focus on its key elements. Furthermore, it will shed light on benefits and limitations
organizations will get if they apply this model.
Discussion
The underlying principle of Block’s Stewardship model is to reinforce the level of
commitment to service. Comprehensive studies of Block, Fisch, Lau, Obschonka and Presse
(2014) have highlighted the importance of balancing power among the employees engaged in the
organization. Calliou and Wesley-Esquimaux (2014) in their study have supported that good
stewards are eventually serve a role of bridge builders and relationship managers by aiming to
sustain their loyalty towards each employee, associate or collaborator who are likely to direct the
collective process. However, Glinkowska and Kaczmarek (2015) have noted that one of the
critical elements of stewardship model is that it disseminates and sustains a conviction that only
a centralized, chief–dominated, hierarchical structure can gain the proficiency to perform a task

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with utmost effectiveness and value. Moreover, Block’s model of stewardship emphasizes on the
way stewardship emphasizes on the increase the cooperative sense of prospect in a future that
while abating the ideas of individual risk connected to the development of the organization
through shared rights, social learning as well as collaborative performance. On the other hand,
stewardship model serving as a purpose to distribute power at an extensive level particularly at
the lowest levels of the organization further demands as to arrange workplaces relied on
relatedness as well as collaboration as an alternative approach to the bell-curve concept of
competitiveness which is implemented in order to assess patriarchy (Zehetner & Steinkellner,
2014).
Benefits of Block’s Stewardship Model
Studies have identified the role of managers in stewardship theory in capitalizing on the
organizations’ competence and ability to pursue continuing wealth attainment with
organizational as well as individual requirements best accomplished by assessing collective
ends. One of the major strengths of the model relies on the fact that it considers employees as
assets and specifically draws variances in the treatment of various employees of human nature’s
enthusiasm and ability of control. However, as per opinion of Margulies (2014) stewardship
model has argued on the issue regarding organizational structure supports and facilitates in the
management success of high corporate as well as organization performance.
On the other hand, while applying Block’s stewardship in Woolworths’ organizational
structure, the company manager will likely be motivated by the human need for intellectual
growth, achievement, and self-actualization, and by intrinsic rewards. In an agency theory, the

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power is institutionally directed while in the stewardship, it is based on personal ability and
power to run the particular organization (Trong Tuan, 2014).
Stewardship ideology primary proposes that corporate governance structures should
perform advanced and superior authority as well as prudence. Moreover, Ramaswamy and
Ozcan, (2016) have mentioned that increased level of power and prudence is primarily acquired
when the owner or CEO tends to take for granted the position of chairman of the board. However
comprehensive studies of Merrilees (2017) have identified an association between agency theory
and stewardship theory association. According to Powell (2015), individuals employed in
managerial positions of an organisation are likely to choose types of interest which increases
their enthusiasm and motivation level in engaging into decision making procedure as long as the
three following assumptions are supplemented. Firstly, decision must be collectively agreed
upon by both the principal as well as the agent. Secondly, the decision always shows a great
dependency on the context and thirdly there can be identified and involvement of the
expectations of the parties (Ots & Hartmann, 2015).
Application of Block in Business
At this juncture Powell (2015) has noted that the best application of stewardship
principles in the business world comes from Peter Blocks’ work in organisational development.
According to Merrilees (2017) businesses as well as other organisations which intend to maintain
a well- established positive relationship with their targeted population must persistently
safeguard and construct the principal and value of their brand equities. Moreover organisations in
recent times are liable for guaranteeing that brands must proficiently stand for the value
significance product services excellence as well as other attributes which it offers and must be

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able to sustain it for an extensive period. Stewardship theory in this context explicitly
implements to the concept of brand building (Margulies, 2014). Reports of Calliou and Wesley-
Esquimaux (2014) have stated that the increasing recognition of decentralized organisations have
been minimizing the fundamental influence over the use of corporate possessions such as brand
equity. This however indicates that several brands in the market are often left to be disregarded
and the increasing pressure and demands of producing short term and immediate financial results
have also shifted brand management to focus on cultivating brand equity rather than indulging in
its reconstruction. In the view of Block, Fisch, Lau, Obschonka and Presse (2014) brand
stewardship of Peter Block thus most efficiently is supported by a holistic brand management
procedure which uses an organised approach of upholding as well as developing an
organisation’s brands.
However in this case while applying the brand stewardship in the context of Woolworths
‘brand development the organisation has the propensity to encounter certain challenges and time.
On the other hand authors have claimed that while applying Peter Blocks’ stewardship model in
the brand stewardship process of Woolworths, the company will engage it executive leadership
in expressing the organisations vision and outlook for fundamental marketplace associations and
further engage the entire organisation in strengthening the brands ‘dedication to every possible
action performed by the organisation at internal as well as external level. Furthermore using a
new brand stewardship process will require Woolworths to develop and embrace a universal
language. However at this stage the company must focus on taking a primary step in the brand
stewardship procedure and obtained a common language in order to articulate the company's
brands as well as brand building strategies (Zehetner & Steinkellner, 2014). However for brand
stewardship to take into account an organisation branding strategies must focus on constructing a

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solid framework in order to support the brand strategies implemented by the organisation. Such a
strong framework explicitly defines that primary milestone which will facilitate continuous
growth of brand equity and further can be articulated in the perspective of universally accepted
brand management techniques.
However, Calliou and Wesley-Esquimaux (2014) have noted that one of the critical
challenges which Woolworths might be encountering while establishing the brand stewardship
framework is that majority of organisations do not perform each step on a recurrent basis and as
part of a thriving brand management regimen . As a result organisations aiming to use Peter
Blocks’ brand stewardship model will execute these brand management strategies and further
attempt to acquire these strategies in a compressed an unrealistic time frame (Margulies, 2014).
As a result companies like Woolworths or other leading organisations in the Australian market
must engage in the activities involved in the framework in order to guarantee the prominence of
their brands. Woolworths through the use of Blocks’ stewardship model will be able to
efficiently express the dimensions of each of its brand identity which is the basis for integrated
communication between the company and its clientele. Furthermore, the brand management
strategy mentioned in this model will highlight the organisations marketing performance on
intensifying the brands purposed desires and obligations (Trong Tuan, 2014). It is at this point
where this model meets reality whereby much of the contention in brand management tends to
sustain and where the brand steward’s outlook, vision and direction and can offer accurate value
and outcome to the organisation. As a result, Ramaswamy and Ozcan (2016) have emphasized
on putting significant importance to the accurate brand stewardship balance that depends on
evaluating the brands performance and contribution in the marketing mix strategy in opposition
to the way the marketing mix is contributing to the growth of the brand equity.

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Moreover while applying the stewardship model in Woolworths brand management
process it is important for the company to get sufficient support and investment from the senior
management team in order to create real as well as relevant ideas for developing the brand
identity (Merrilees, 2017). Meanwhile, Woolworths must use current internal publications in
order to demonstrate the brand story to its customers and emerge as a reliable source of reference
material on areas of brand management strategies and subjects.
Conclusion
Hence to conclude brand stewardship comprises a superior purpose where it emphasizes
on the dedication and promise which further facilitates individuals to make an enduring
contribution as well as difference in the organisation. It is important to know that brand loyal
customers primarily depend on brands towards thus enhancing the brands value and help the
company to gain competitive advantage in the market.

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