Theories of Governance for Effectiveness in Organization

Running head: STEWARDSHIP AND GOVERNANCE
Stewardship and Governance
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THEORIES OF GOVERNANCE FOR EFFECTIVENESS IN ORGANIZATION 2
Introduction
Organization’s successes depend on the structure and application of governance. This is
augmented by the use of effective leadership rooted with values and beliefs so that the
organization can achieve and sustain goals as well as ensuring quality in the process of service
delivery (Ladeur, 2017). Despite this endeavour, there are increasing complexities emanating
from the change of trends in the society, and push for products that need ethical leadership. In
the eyes of the stakeholders, ethical leadership, as well as good governance, is a requirement that
a successful organization needs to possess (Argenti, 2018).
The globalization nature of business has become the dominant and powerful making
organization spread all over the world in different capabilities, sizes as well as influences. The
manners in which they are governed have influenced economies and the social landscape in a
different scale. Despite this, there is increased deterioration and minimal control that calls for the
need for accountability (Young & Ghoshal, 2016). Therefore governance has come to be an
essential component in the management of the organization in the present complex global
environment. For better understanding, it is of paramount importance to describe governance.
Even though there is no particular definition, it is generally described as a set of arrangement,
procedures, as well as rules employed in the control, organization as well as directing an
establishment (Ladeur, 2017). Besides guidelines, the rules also govern the association between
the stakeholders, management and shareholders. There are many interpretations but it is
essential to take into considerations the impact of the firm or what it affects the firm in order to
get a clear understanding of governance. In view of the man influential factors, models of
governance get flawed as every interested social scientist form their own choice and concerns
(Muldoon, 2018).

THEORIES OF GOVERNANCE FOR EFFECTIVENESS IN ORGANIZATION 3
Therefore in this paper, a number of fundamental theories underscoring governance get
reviewed. The paper critically analyse different theories of governance that lead to effective
leadership in the organization, their contribution and examine the influence of stewardship
theory. Additionally, the paper examines the relationship of values and beliefs of a leader with
ensuring effective governance and end with a conclusion.
The Major Theories of Governance for Effectiveness in Organizations
Governance Theories and Models
In the public management, governance is a concept that is still not mature in the
community domain Debate has been going on for the last three decades of whether it is a practice
or a theory owing to its nature of dynamism, time-bound, and culture-linked. As per Bekkers,
Dijkstra, & Fenger (2016), the idea of governance is diverse and multifaceted and whose
theoretical underpinning touches on a number of numerous theories. In this regard, a conceptual
insight of governance is elucidated in four standpoints (Bekkers, Dijkstra, & Fenger, 2016).
Katsamunska (2016) asserted that there are five complementary broad propositions under
the theory of governance. The first is that it is a set of players as well as organizations that lead
organizations and emanate from the public as well as the private entities. Secondly, governance
identifies boundaries and roles employed in dealing with social as well as economic problems,
third are that governance distinguishes dependence on power involved in relationships between
organizations, fourth is that governance is autonomous and lastly acknowledge the ability to let
things done which is spanning way beyond the command and authority (Glinkowska, &
Kaczmarek, 2015).
It is further argued that every proposition is connected with critical issues or a dilemma.
The first proposition is that there is disparity between multifaceted decision-making and

THEORIES OF GOVERNANCE FOR EFFECTIVENESS IN ORGANIZATION 4
governance employed in the justification of governance; the roles may lead to scapegoating; the
dependence on power aggravates the issue of unplanned consequences for the organization; the
self-sufficient networks that are emerging bring accountability difficulties; and governance is
deemed to fail even in situations where the organization operate in a flexible manner. These
underpinnings present the canvas of the dynamic management and stresses on centralization of
power and inclusion of other departments in the process of governance (Glinkowska, &
Kaczmarek, 2015).
With the blurring conceptual confusion of governance depicted, Asaduzzaman &
Virtanen (2016) proposes that the following models: administration as network model,
administration as machine model, the virtual management model, normative control model as
well as the-performance control model suffice as a solution (Asaduzzaman & Virtanen, 2016).
In relation to the administration as machine, the administration is taken as a mechanism
having instructions, and principles. There is no flexibility and not tackling people initiatives. The
government-as-network suggest an intertwining structure of interrelationship, communication,
and collaboration of solving issues as they arise; however, it is holographic since the system
works as a whole. The performance control model assumes that an organization is a unit with
different sections each assigned with different tasks to perform and that in each unit there is a
control person accountable to the top unit. Thus it is flexible, ensures creativity, and initiative on
a personal level (Asaduzzaman & Virtanen, 2016). The virtual government model overrides the
limitations of machine model where microstructures no longer exist in the government but tasks
are done by the private sector through the processes of privatization, contracting, and
negotiation. The normative control models assume the role of values as well as norms in the
organization instead of system and structures. The elements within it are selection, socialization,