Agency Theory and Corporate Governance

Agency Theory and Corporate Governance Introduction Stakeholders, management, and employees are fundamental parties of organizations, who work collectively to achieve the same goals. The shareholders, who are the main owners of organizations, have a working relationship with the managers, as they always urge the management to strive towards achieving the organizations’ goals and objectives. The agency theory elucidates the relationship that exists between the shareholders and the executives of the company. Shareholders and principals are concerned with daily activities of organizations.Advertising We will write a custom essay sample on Agency Theory and Corporate Governance specifically for you for only $16.05 $11/page Learn More Conversely, many shareholders perceive that managers do not work towards achieving the goals of organizations. Instead, shareholders hold that managers use their positions as opportunities of achieving their personal goals. Therefore, a values conflict arises betw een the owners and the principals of organizations. Consequently, the conflict compels shareholders to control and oversee the operations of organizations through corporate governance. Thus, the purpose of this essay is to analyze the conflict of values between the shareholders and the managers. The Components of Values Conflict In organizations, conflict of values occurs when shareholders, who are the owners of organizations, develop a feeling that managers, who are responsible for the daily activities of organizations, are using their positions as avenues of achieving their personal objectives. Values conflict is associated with managers who use the organizations to meet their own objectives, instead of the values that shareholders have concerning the organizations. Stakeholders perceive that managers do not invest enough time, money, and efforts in boosting organizations to achieve essential growth and development. Conversely, some managers perceive that shareholders want the org anizations to achieve their own interests at the expense of employees. Protagonists believe that shareholders only think about revenues and profit margins of the organizations, but not the overall welfare of the workforce and sustainability of the organizations. Some components of the values conflict include the perceptions held by shareholders and the management concerning administration of the organizations, the attitudes of the shareholders and managers, the level of suspicion among the parties involved, and the arguments presented by the parties. The Reasons and Rationalizations that the Protagonist Must Counter From the shareholders perspective, managers do not invest enough efforts, money, and time towards organizations’ performance without external control and the application of corporate governance. Instead, managers use their positions to meet their own interests, a behavior deemed as opportunistic by shareholders. Therefore, shareholders observe that devoid of effec tive corporate governance, managers cannot sustain organizations to survive in the competitive markets. Shareholders fear that organizations can fail to maintain their market share, and consequently collapse. According to managers, organizations can always succeed through the efforts that employees and the management apply, but not through external incentives such as performance based pay, which aims at increasing organizational performance. Managers believe that the main goals of the organizations are not profits and revenues, but sustainability and the capacity for delivering the best products that meet the needs of consumers. According to the protagonists, the reasons and rationalizations that shareholders need to understand is that the nature of competitive organizations is achievable through passion, willingness, and collective cooperation among stakeholders. Thus, protagonists believe that incentives from shareholders are not practical strategies of improving organizational pe rformance in a sustainable manner.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More What Key Parties Will Gain or Lose from Corporate Governance? In successful organizations, shareholders reap benefits, as they receive increased dividends and profits that accrue in these organizations. Consequently, managers and employees experience the accomplishments and receive incentives such as promotions, rewards, and increased remuneration. Among organizations, success transpires when managers and employees work hard, deliver products of the desired quality to consumers, and undertake the right measures geared towards organizational performance. However, protagonists perceive that incentives proposed by stakeholders to enhance performance will hamper organizational growth and development. Incentive contract dictates that the higher the fixed pay or salary, the lower the performance of manage rs in achieving organizational goals. From the incentives, managers and employees will only focus on the requirements of the shareholders, who will dictate the organizational development towards their preferred direction. On the other hand, shareholders stand to benefit from the incentives, since they will have a complete dominance of the organizational operations. Therefore, shareholders will be in a good position to steer organizations to increase performance, and consequently generate optimum profits and revenues. Conclusion Conflict is a common scenario in organizations due to differences in values held by shareholders, managers, and employees. Shareholders believe that organizations need to maximize profits, increase revenues, and enhance performance. On the other hand, managers think that organizations can succeed through innovation, creativity, motivation, and hard work on the part of management and employees. According to managers, the innovative nature of employees and mana gers can fail to effect necessary changes, if shareholders impose performance contract incentives on them. The innovative and creative nature of management and employees will not materialize, since the workforce will work hard to achieve the objectives that stakeholders need. Conflict usually arises when shareholders suspect that managers use organizations to meet their personal objectives. This compels shareholders to initiate a corporate governance, which is a strategy aimed at controlling the operations of managers in organizations without necessitating their actual presence. Managers believe that performance based on incentive contracts is not effective. Protagonists feel that organizations require some level of independence to capitalize on their efforts, money, and resources in improving organizational performance.

Cover Letter Tips for Receptionists

Cover Letter Tips for Receptionists The job search experts at Best-Job-Interview.com have developed this cover letter template for receptionists looking for their next opportunity. My annotations are italicized after each paragraph- feel free to update and adapt to your experiences or reword to reflect your own voice! The more personalized your letter is for its intended recipient, the better.Your Name   Your Address   Your Contact details (phone and email)  Even if youre submitting online, if youre given the opportunity to upload a document, format it like you would a letter. If youre using an email to send your cover letter, include your name and contact information in your email signature instead.DateMs Mary Stevens   Hiring Manager   ABC Company   15 South Parkway   Long Island, NY 11551  Again, an online submission process can throw a wrench in here, but if there are any contact details for the HR department online, call in and just ask the receptionist who will be reviewing the materials so you ca n personalize your letter. It looks much better than just To whom it may concern and shows youre willing to take initiative and go above and beyond, before youve even landed the interview.Dear Ms. Stevens:Err on the side of Ms over Miss or Mrs. If the gender of a name is ambiguous, the safest option is to use the full name, i.e. Dear Alex StevensYour job posting for a receptionist at ABC company caught my attention immediately as my skills and experience are a close match to your requirements for this position. Im a longtime fan of ABCs work with companies like Generics Inc. Thank you for your consideration of my application and the enclosed resume.   Notice the specificity of the opening paragraph- Jane names the company and indicates she has some knowledge of its work. If shed encountered the post on a specific job site, or even better, received a word-of-mouth referral, she could have mentioned that here as well. Dont try to fake it- actually research any company youre applying to, and try to find some positive mention of them in the news to enrich your letter.I have three years work experience as a receptionist in a large organization where I was responsible for handling all calls and visitors in addition to providing extensive organizational and administrative support. I am a self-directed and independent worker who has taken the initiative to learn as much as possible about the company I work for in order to become a valuable information resource.  Obviously this is a generic version of a skill summary- you would want to name your previous employer and possibly mention a specific example of something youd learned about or a project you initiated. Whats noteworthy is that its not just a repetition of a resume bullet point, but a broader summary.Organizational and planning skills are among my particular strengths. I have developed a number of processes to manage my varied responsibilities tasks and make sure I meet the demands of a fast-paced work envi ronment. I utilize technology to assist me wherever possible and have a good working knowledge of a number of computer applications including MS Office.   This is fairly vague also- an experienced receptionist should be able to refer to specific processes or scheduling and project management programs. If this crossed my consultant desk, I would suggest Jane use more positive language like Im comfortable with content management systems and learning proprietary software on the job.My strong communication skills and outgoing, energetic personality ensure that I provide first-rate customer service to both clients and colleagues. I thoroughly enjoy dealing with a wide variety of people and take pride in being the face of an organization or the first point of contact over the phone.This is where a close reading of the job description comes in handy- highlight aspects of your personality, as Jane does, that will conform to the demands of the job. I like that Jane mentions both outside cl ients and her colleagues, since a good receptionist has to be able to get along with everybody.ABC Company enjoys an excellent reputation and I am confident that I would be an asset to your company. I look forward to the opportunity to discuss my abilities in more depth and am available for an interview at your earliest convenience. Please contact me via phone or email to arrange a convenient time for us to meet. Thank you for your time and consideration and I hope to speak with you soon.End with a note about the company youre applying to, and indicate your availability for an interview. Make sure it doesnt sound like a demand or a hostage negotiation, but is breezy and polite!Sincerely,Jane JobseekerAug 10, Job-Winning Receptionist Cover LetterRead More at Best-job-interview