Difference Between Business Governance, Leadership and Management Practices

This document discusses the differences between business governance, leadership, and management practices. It explores the importance of good corporate governance, effective leadership styles, and efficient management practices in the success and growth of organizations. The document also provides examples and references to support the discussion.

Business Governance: Business
governance refers to a system in
which the company is managed and
controlled by the management and
Government in the interest of the
shareholders and others ensuring
greater transparency and better
reports. When a country has a
effective corporate governance , the
capital flows in the right direction as
investors and shareholders are getting
timely information regarding their
investment (Becker,2018). In case
there is a poor business governance,
there is a high chance of capital being
flowed elsewhere because poor
quality of information makes the
shareholders to go for better
investment options. The major
benefits of good corporate
governance are mainly, more access
to Foreign Direct Investment, low
interest rates on loans and advances,
improves the performance of a
company, high firm valuation and
reduces the risk of uncertainty.
It is the responsibility of the Board of
Directors to provide material and
immaterial information to the
shareholders for enabling them to
oversee the management of the
company's business.
Recently Tesla has cut down its
employment of BOD from 11 members
to 7 members which increases the
effectiveness of the decisions making of
shareholders.
For example, Tesla's BOD sets
high standards for corporate
governance as BOD provide
timely information to the
shareholders which was
prepared by the management.
It helps the organisation to
raise huge funds for expanding
the operations of the business.
International Business
Difference Between
Business Governance,
Leadership and
Management Practices
around the world
Business Governance, Leadership and
Management Practices

Due to this, there is a less time
being consumed in discussion
among the members of the board
regarding the operations of the
business before conveying it to the
investors for the compliance of full
disclosure.
Leadership: Leadership refers to an
ability of an individual to influence
and motivate others towards the
accomplishment of organisational
goals. Leaders has their own
followers which makes them
distinct from the others.
Leadership involves a working
relationship with their subordinates
for the purpose of motivating and
directing them towards the
achievement of organisational
goals. Mainly, leaders has to
influence his team with their
consent as it has to be done through
willingness if subordinates are
willingly wants to follow they will
do it efficiently. Moreover it is a
continuous process as subordinates
need the consulting of the leader
throughout the operations in which
they are engaged. There are 3
leadership styles : autocratic style,
transformational style, democratic
style, democratic style and laissez
faire style. In autocratic style,
leaders themselves takes decision
without taking any inputs from their
subordinates.
In democratic style, leaders takes
the decisions related to operations
by taking inputs from their
subordinates also whereas in
laissez-faire style, subordinates
have the ability to take decisions
on their own regarding their
operations (Ladkin, 2020). For
example, Elon Musk inspires his
team. One of the point of
transformational leadership is
having a vision and getting others
to not only believe in it but
inspired enough to help make it
happen. Elon musk always face
his challenges rather than avoiding
and if there is any failure , he
learns from that to make
improvement in the future. He has
a work attitude of achieving more
success for which he thrives
continuously which drives him to
perform better.
Management practices:
Management practices refers to
the methods and innovative ideas
implemented by the managers for
increasing the efficiency of the
employees. Most commonly used
methods are empowering staff,
training staff, introducing schemes
for improving quality and
introduction of new technology.
By applying these practices,
managers are able to achieve their
personal goals as well as the group
goals along with the optimum
utilisation of resources which
helps the organisation to reduce
the cost involved in the process.
Moreover, it also contributes to the
welfare of the society as efficient
operations generates more growth
which in turn results into more
improved economic conditions which
ultimately improves the standard of
living of the people (Pruzan and et. al.,
2017). For example, Tesla uses
operations management (OM) best
practices to maximize productivity
while minimizing costs, based on the 10
strategic decision areas. This optimal
operational condition contributes to
Tesla's ability to sell its products at
reasonable prices, given current market
forces and cost of materials.
Management has also applied various
quality assurance plans to ensure the
quality of the products which results
into higher customer satisfaction.
Similarly, the management also have a
separate plans and procedures to
improve the performance of the
employees which contentiously adds to
the growth of their career.
REFERENCES
Books and Journals
Becker, G.K., 2018. Moral leadership in
business. Contemporary Issues in
Leadership, pp.237-257.
Ladkin, D., 2020. Rethinking
leadership: A new look at old questions.
Edward Elgar Publishing.
Pruzan, P. and et. al., 2017. Leading
with wisdom: Spiritual-based
leadership in business. Routledge.