Order Number |
636738393092 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
KIMBERLY’S POST:
Discuss the pros and cons of the shareholder-primacy and director-primacy models of corporate governance. Which do you prefer and why?
Shareholder primacy is a shareholder-centric form of corporate governance that focuses on maximizing the value of shareholders before considering the interests of other corporate stakeholders, such as society, the community, consumers, and employees.
Director primacy places priority to give board members independent power to pursue organizational interest for the shareholders.
Shareholder pros- Internal stakeholders with a large, vested interest in a business often sit on the board of directors. This stakeholder’s value is partially his business experience and partially his book of business relationships. The business acumen an experienced business leader has is highly beneficial for a business owner. Not only can the stakeholder offer mentoring advice, but the stakeholder can also help guide the company to grow properly and not make costly mistakes along the way.
Shareholder cons- Corporate decisions and strategy may transition into reaching short-term goals, which may result in hasty decision-making and decisions characterized by short-term incentives and bonuses to meet certain targets. Lack of willingness to take on risks and invest in new technologies may limit the growth of corporations and the potential to improve overall well-being with better products.
More dividends paid out by corporations to provide income to shareholders instead of using the generated cash to make more and better strategic investment decisions, research, and development.
Director primacy pros- It eases decision-making capability; it helps to maximize shareholder returns. Extensive professional experience.
Director primacy cons- It cannot expand the role of shareholders. Unrestricted power.
I would prefer shareholders primacy because it gives you the power in decision making. Also, shareholders can influence the business strategic decisions and is able to negotiate the level of influence in the firm.
JEFFRION’S POST:
Discuss the pros and cons of the shareholder-primacy and director-primacy models of corporate governance. Which do you prefer and why?
Shareholder-primacy is a theory in corporate governance holding that shareholder interests should be assigned first priority relative to all other corporate stakeholders.
Pros of shareholder-primacy is that it gives you directly contact with the corporate decision making and the power to amend things.
Cons of shareholder-primacy will be the clashing of the corporate and the shareholders with the creditors.
Director-primacy is board-centric, but shareholder wealth focused.
Pros of director-primacy shows power of directors to manage the corporation and their obligation to do so in the shareholders’ interest creates a variant of the principal-agent problem.
Cons of director-primacy is a core tension between the board’s authority and the need to ensure that the board uses its authority responsibly.
Restructuring
You are required to respond to at least two of your peers’ initial posts with a substantial response. Responses to peers should be at least two paragraphs and be substantive in nature. Substantive means that you should add something to the discussion, referring to the original post. Referring to any reading or other scholarship is always a plus.
o Respond to two different peers are initial posts, other than yourself. That is required and you will lose points if you do not participate to this minimum extent.
Guided Response: Assume the role of the employee and respond to at least two of your classmates’ posts by discussing your perception of the communication strategies chosen.
DYANI’S POST:
One of the most challenging tasks in organizations is communication. Employees commonly express their dissatisfaction with this area throughout organizational change and day-to-day operations (Heathfield, 2021).
This week’s lectures advise that communication is essential for change implementation and long-term success. According to Palmer et al. (2021), one of the most mentioned change drivers is communication, which explains why change is necessary and how it will be accomplished. On the contrary, a major cause of change failure is a lack of communication.
Personnel changes can also affect people on a personal level thus it is important to determine how much information should be shared and any potential benefits to the change.
In the past, I have been tasked with communicating personnel changes within my organization and many times the information was rarely positive. Communication regarding organizational changes should always be a two-way channel. In my organization we host town hall meetings, which has been effective when communicating personnel changes as it provides a platform for questions and answers.
Communicating the reasons for the personnel changes so that everyone understands the framework, purpose, and necessity is essential. For change managers, it is also important to determine factors that could affect coding and decoding when planning a communication strategy, and to tailor text information and channels accordingly (Palmer et al., 2021).
A change management communication plan should be developed by leaders who are conveying organizational changes to employees. The way leaders communicate with employees about changes must be deemed significant and held to the same standard as the change process overall.
Communicating change can be difficult. Whether the company is going through organizational changes such as adjusting to remote work due to COVID, positive encouragement from leadership is essential. Whatever the change, providing employees with a boost in morale by seeing them adapt and overcome the changes is critical.
Finally, the liaison should make time to be available to employees, maintaining open lines of communication and being willing to listen at all times.
References:
Heathfield, S. (2021). Communication in Change Management. The Balance Careers. Retrieved from https://www.thebalancecareers.com/communication-in-change-management-1917805
Palmer, I., Dunford, R., & Buchanan, D. (2022). Managing organizational change: A multiple perspectives approach (4th ed.). McGraw-Hill Education.
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