Governance in Globalization World 1 Governance in Globalization World 8 Governance in Globalization World
Added on 2020-05-01
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Running Head: Governance in Globalization World 1Governance in Globalization World Institution Lecturer StudentCourse Date
Governance in Globalization World 2Question one.Organizational management should follow a strict laid down procedures and high level of professionalism. As a manager in a top organizational structure, high performance is required forthe continued sustained success of a business entity. And for this may also call for measures of regular changes of management to avoid cases of complacency. Regular organizational changes are necessary for the positive progress of an organization. It injects new ideas and brings in new energy which boosts the general morale within the working environment. The overstaying on management positions often results in a deep in performance of most managers as they sometimes lose their managerial spark [ CITATION IAAnd \l 1033 ].Cooption may as well be among the board members who have overstayed on their positions. It refers to the situation whereby, a board member is forcefully reallocated to a new role within the organization to create a new space for new board members. From the article, the changes are seemingly being undertaken to tackle the several scandals in regard to money laundering. Such moments calls for immediate changes in management, and the organization has the right to change its board members often, to avoid occurrences of unwanted image-damaging scandals. It is important to understand that, while some individuals in management may have a certain goal in terms of leaving reputable legacy after some duration; some will only take up roles for their own selfish personal interests [ CITATION Havnd \l 1033 ].The Agency theory and the Stewardship theory have been best used to explain these organizational management dynamics, behavioral perspectives management and further clarity on organizational influences that results from the management activities. While both of the theories address management dynamics, they slightly differ in their approach to management andelaboration they give in management activities [ CITATION Mdi14 \l 1033 ].
Governance in Globalization World 3The Agency theory focuses primarily on relationships between the two important parties, and that is the owner referred to as the principal in this case, and the agent. This theory analyses relationships from a behavioral point of view as well as the structural point of view. In this study,it is suggested that, in association between the principal and the agent; the latter will always act in a way that addresses only his self interest, a situation that may differ from the principal’s own interest. As such, the principal would devise regulatory measures to keep the agent’s behavior in check and hence making agent align to the organization’s interests [ CITATION Nyb10 \l 1033 ].The Agency theory pinpoints the management woes that may arise as a result of continued overstaying by the managers in a managerial position. A manager with self-interests will most likely be complacence and most likely to create rules and regulations that can only advance his/her self-interests while trying to block every sign of threats to their positions. The agency theory’s outcome is mostly concentrated on the high desired results at a lower cost as possible. The theory suggests that, the agency problems are created when the ownership and management of an organization are separated from one another [ CITATION Lub07 \l 1033 ].On the other hand, the Stewardship theory primarily deals with the employment relationship between the principal (owner) and the steward. The theory also employs behavioral and structural perspective in the examining the relationships of its tenets. The stewardship theory suggests that the steward and the principal enjoy a warm association and that the steward acts in a manner that advances the interests of the principal. This relationship is guided by the principle of equality between the principal and the steward, and is ideal for a harmonized organizational ideals and the environment. The stewardship theory proposes a better scenario for maximum organizational performance and profitability. Both parties work for the interests of the principal towards the same goal.[ CITATION Pea11 \l 1033 ].
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