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The role of leadership values and beliefs in effective governance

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Added on  2021-02-20

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SUMMATIVE REPORT - SEMINAL THEORIES TABLE OF CONTENTS INTRODUCTION 1 MAIN BODY1 Keytheoriesofgovernancewhichcontributestoorganizational effectiveness 1 Contributions of Stewardship theory in general to effective governance in profit and NPO3 Discussion of relationship between leader's values and beliefs to effective governance in organisation. MAIN BODY 1 Main theories related to corporate governance which contributes to effectiveness of organisation The important theories of corporate governance which contributesto effective working operations of organisation are: Agency theory

The role of leadership values and beliefs in effective governance

   Added on 2021-02-20

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SUMMATIVE REPORT -SEMINAL THEORIES
The role of leadership values and beliefs in effective governance_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Key theories of governance which contributes to organizational effectiveness.........................1Contributions of Stewardship theory in general to effective governance in profit and NPO.....3Discussion of relationship between leader's values and beliefs to effective governance inorganisation.................................................................................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
The role of leadership values and beliefs in effective governance_2
INTRODUCTIONCorporations in Australia and all over the world has become very powerful institution.These corporations want to adopt law and regulations in their structure and working operations.Corporations became stronger whereas government has to look out to its manipulations anddominance. Hence this assessment will focus on range of theories that affect and contributes toorganisational effectiveness. The theories in governance starts with theory of agent and principalthat expanded to theory of stewardship and theory of stakeholders. Moreover it will discussabout the stewardship theory and its contribution in profit and non profit organisations.Furthermore, it will add relationship between values and ethics of leader in relation witheffective governance in organisation.MAIN BODYMain theories related to corporate governance which contributes to effectiveness of organisationThe important theories of corporate governance which contributes to effective workingoperations of organisation are:Agency theory – The theory deals with relationship between the principal and the agent.The principle includes shareholders of the company whereas the agent includes managers andcompany executives (Zhang, 2015). Under this theory the principal hires the agent to work ontheir behalf. The manager and executives work for shareholders of the company. The other factoris employees or manager of the organisation can be self centred. Under theory of agency,shareholders expect their agents to act on their behalf and make decisions in their interest. On thecontrary it is not always possible that the agent will take decisions in the interest of principals.The agent can be self centred and can have opportunistic behaviour which can affect theaspirations of the principal. The risk differs in this approach on the basis of understanding.Although even with these limitations, the theory was introduced as a separation of ownership andcontrol. It was argued that agents only focus on projects which gives high return and fixedmoney without any incentives and bonuses (Sørensen, 2016). It will provide true and justanalysis but will not remove misconducts in corporate. In short, the model of an employeeportrayed in the agency theory is more self interested, individualistic and self centred. Thistheory depicts that employees are accountable and answerable for their tasks and responsibilities.Employees need to have good governance structure than just providing the need of shareholderswhich can be challenging for governance structure. The agency theory has encouraged company1
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