Impact of Situational Leadership on Performance and Motivation
Leaders are role models who influence the culture, values, thoughts and actions of the organization and its people. The leadership style practiced by managers greatly influences the performance and productivity at the work place. The situation leadership model encourages managers to flexibly use their leadership style based on the situation and thus achieve effective results. […]
Why the Present Situation in the Global Economy Resembles the 1990s
Most of us would not have been that old to remember the global economic conditions that were prevailing in the 1990s. Especially, the present generation that grew up later in the decade would not be conversant with the turbulence that the global economy experienced in during those times. For those who are in their thirties, […]
Political Economy Approach to Public Administration
We have read about the famous Wilsonian dichotomy of politics and administration and after the Second World War the diminishing relevance of this dichotomy. The above reference is vital to be kept in mind to understand this topic which brings together the science of politics and economic together to gain a detailed understanding of the […]
3 Modern Financial Management Techniques that Will Change Your Business
Whether you’re a business or an individual, you have to find a way to manage your finances now and in the future. The cost of everything continues to increase and there’s no sign that this trend of price increases will stop anytime soon. As a result, all entities have to develop a financial management system […]
Implementing Integrated Marketing Communication Plan
Integrated marketing communication plan blends essential components of marketing mix to promote brands effectively among end-users. Integrated marketing communication plan integrates various methods of marketing such as advertising, public relation, promotion through social networking sites and so on to create awareness of products and services among target audience. Brand communication methods instead of being used […]
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
Corporate Governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. Corporate Governance clearly distinguishes between the owners and the managers. The managers are the deciding authority. In modern corporations, the functions/ tasks of owners and managers should be clearly defined, rather, harmonizing.
Corporate Governance deals with determining ways to take effective strategic decisions. It gives ultimate authority and complete responsibility to the Board of Directors.
In today’s market-oriented economy, the need for corporate governance arises. Also, efficiency as well as globalization are significant factors urging corporate governance. Corporate Governance is essential to develop added value to the stakeholders.
Corporate Governance ensures transparency which ensures strong and balanced economic development. This also ensures that the interests of all shareholders (majority as well as minority shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights and that the organization fully recognizes their rights.
Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral, as well as ethical environment.
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