Stewardship and Governance

This article discusses the principles of stewardship and governance in organizations, with a focus on Peter Block's model. It explores the benefits and challenges of the model, as well as the advantages and disadvantages of business stewardship. The article also highlights the importance of external control and the principle of stewardship in managing control systems.

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Stewardship and Governance
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Introduction
Stewardship is choosing service over self-leadership. Peter block and Wilson
designed models in leadership that help in embracing contemporary leadership, visionary
leadership and customer driven business. Peter block developed a profound work that strikes
the popular rhetoric of management illusions and current fads to see real change in the
companies (Abbe, Bandeira, & Hall, 2016). Much of the enlightenment is experienced in
reality more than being cosmetic. Implementation of new philosophies and concepts is lost
perhaps because there is no management focus on the fundamentals. Wilson (2016) and
Block (1993) presented the models for stewardship that analyzed the potential challenges and
benefits that may occur while employing in an organizational setting. The block model
currently work in organizational setting which is a familiar analysis of the stewardship
principles (Farkas, 2016).
The principles of stewardship according to Peter Block revolve around wealth, power
and purpose. He also offers a concept of stewardship as a model of real reform. Stewardship
as choosing service over interest is not very easy. It is extremely well written and the model
has a well presented rationale. The model deals with control, freedom, service, self-interest
and governance. The model is about a harsh reality that includes the redistribution of power,
wealth and purpose. It is about choice and stewardship and especially the choice of
responsibility over entitlement (Fitzpatrick, 2014). It is about service and accountability.
The highlights in Block model serve as a significant model for the future of the
organizations. In stewardship, the stewards is entitled to hold something in trust for another.
It is the willingness to be accountable in service or in kind for the larger organization or
community. Changing the system of governance in leadership requires watching, planning ,

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evaluating and controlling actions of others. Integrating the management in stewardship
requires capacity building and governance of others (Glinkowska, & Kaczmarek, 2015).
The principle of external addition is a practical method of overcoming the incompleteness of
formal stewardships). This principle boils down to the fact that any control stewardship is
ultimately insufficient to accomplish the tasks assigned to it, but this drawback can be
eliminated due to the inclusion of a black box in the control circuit. For example, the
development of a production plan based on mathematical models always requires a certain
addition due to “external control” to adapt (correct) model calculations to conditions that are
not formalized or due to changes in some of them under the influence of the external
environment. The “external control” element is embedded in the decision making chain as a
“black box”, since it cannot be precisely defined (Harrison, 2018).
The principle of stewardship indicates that control is associated with several finite
paths or alternatives to the transition of the system to the final state. Understanding this
principle in the study of control systems extends the concept of optimal control to
optimization. This procedure is accompanied by the development of specific groups of
criteria for different paths of transition from the initial to the final state. In general, the
principles outlined are interrelated, complement each other and are the fundamental basis for
the study of the management system (Keribin, Brault, Celeux, & Govaert, 2015).
Block Model Principles
A Block model is a scientifically based assumption put forward to explain any
phenomenon or process that, after testing, may turn out to be true or false. The Block model
acts as the original wording, the draft principle or the law to be opened. With the Block

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model put forward, an approach to solving the problem is formed, the logic and algorithm of
the research is built, and a decision is made to choose an object model. The Block model is an
intermediate link between the theoretical part and the empirical actions aimed at achieving a
true result (James, Jennings, & Jennings, 2017).
The source of the Block model is the new facts and previous knowledge about the
subject of study. A Block model is advanced when there is not enough available theoretical
knowledge to explain a new fact or not at all. The goal of the Block model is, first, to narrow
down the mass of possible assumptions and conjectures in solving the problem posed;
second, to ensure the orientation of the research search to the expected result. The process of
putting forward model is beyond the governance description. At the same time, certain rules
were formulated for its formulation. The Block model is represented as generalizing and
asserting judgments. If the Block model acts as a preliminary draft solution to the problem,
then the bundle of problem - goal - Block model should have general concepts to be
explained; 3) the development of alternative solutions to the problem is the opposition of
competing hypotheses (Madison, Holt, Kellermanns, & Ranft, 2016).
In managing one of the main sources of information for hypothesizing is forecasting.
We describe reality and give a forecast for the future, based on certain assumptions. They,
like laws, act as the fundamental basis of research, as a reflection of the objective essence of
a phenomenon.
1. Stewardship of chance: there is no single recipe for optimal company management.

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2. The model is about the dependence on the external environment: the problems that the
external environment poses to the company determine the optimal model of the behavior of
firms.
Cooperation with a business can significantly affect the dynamics of business
processes. A good business steward can bring a lot to the company. On the other hand, a firm
can win from one boss if the stewardship is incompatible with the specifics of a particular
business activity or the partner does not have the necessary skills, knowledge, skills, qualities
necessary to succeed in running a business. If you are just going to become an entrepreneur,
then before starting a business, it is worth weighing the pros and cons of doing business alone
and with a business partner.
Benefits of a business stewardship in corporation
Efficient use of time- When you work not alone, but with a business partner, you as
a team can do twice the amount of work. The process of creating and managing a firm is
associated with the implementation of a large number of tasks - meetings with potential
creditors, tenants, investors, drawing up business plans, and performing basic business
operations (Rogers, 2015). At the initial stage, financial resources are too limited to hire
assistants and secretaries, so a partner can take on some of the work. Thus, time and human
resources for business development will be used effectively.
Variety of skills- The use of different, complementary skills can lead to a significant
increase in productivity and success. In addition, working with a business partner allows you
to distribute tasks in accordance with the strengths of entrepreneurs, saving time and
eliminating duplication of work.

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A side view The owner of the company needs an outside look to avoid a one-sided, one-sided
opinion about his case. You may believe that you have a brilliant business idea, but the
emotional component can often interfere with a sober, objective assessment. Successful
entrepreneurs firmly believe in their ideas, but they also recognize that an independent
opinion from the side is very valuable out of ten factors of successful business thinking on
thinking differently).
Sometimes it happens that, having started his business, an entrepreneur gradually
becomes sluggish, the motivation and the rhythm of life necessary in business
disappear.Because of their nature, some people find it difficult to maintain discipline. In the
case of stewardship, responsibility for the partner for effective performance of tasks, result,
mistakes appears. Thus, mutual support takes place in the right tone (by analogy, two
newcomers to the gym go to class together to keep each other motivated and disciplined).
Challenges
Even if you think you know your future business partner, you may not really know his
true face until he inflicts damage reputation, steals money or gets into any trouble. Lack of
experience. Some partners do not have enough experience or skills to do their job
successfully. When you take yourself a business partner, you expect certain results from him.
A business partner who cannot provide results can slow down the development of the
company or pull it to the bottom. Angry customers, overdue loans, lawsuits, problems with
the tax inspectorate, inefficient financial management - a typical list of problems that may
arise. # 3 Disagreements in strategy, advantages and disadvantages of business stewardships
Sometimes, even working with a talented, highly motivated, competent business partner can

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cause problems such as disagreements over the long-term goals of the company, its
development strategy, a common vision of the future of the joint business.
Conclusion
Proof (verification) of the Block model reliability becomes the main task of the
subsequent research. It is carried out using experiments and for studying and processing their
results by theoretical methods. The correctness of the Block model is verified by a systematic
and repeated study of the relevant facts through testing (Song, Van Hoof, & Park, 2017).
Confirmed hypotheses become new knowledge that can be built into a principle, a scientific
law, a pattern, dependence or a method, a method, a model, etc. Unsupported hypotheses are
either discarded or become the basis for proposing new hypotheses and new directions in the
study of a problem situation.

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