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The role of corporate governance
Definition of corporate governance essay
Definition of corporate governance essay
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Ternary, a for-profit organization, the first company to adopt and incorporate corporate governance (Robertson, 2015). Ternary Software’s organization was founded in 2001 by CEO, Brian Robertson (Daft, 2012). Ternary Software specializes in contracting and writing software for other companies. As indicated by John and Gupta, (2012) evidence showed that effective organizations are established and designed with purpose and structure in order to meet organizational goals. This paper identified Ternary Software’s organizational structural dimensions: sociocracy. The Sociocratic method is comprised of four primary practices: decision making by consent, circle organization, double-linking, and elections by consent (Robertson, B.) 2006, Porter’s …show more content…
Decision Making Consent structural dimension is effective because it streamlined Ternary’s decision making process to employ the use of this type of structural dimension when there is not an individual in the company that understands discrepancies against a decision when it arises. He stated that every decision was made by consent while providing groups with a choice to employ another process. All decisions at Ternary must be made by consent, unless the group agrees to use another method (Robertson B. , 2006).
The second structural dimension is Circle Organization. This form of structural dimension allowed the organization to form groups that operated semi-autonomously in the form of hierarchy. Each group was described as having the rights to their goals and accountability in order to perform needed executions, measurements, and control over procedures. Individual groups functioned in amongst higher levels in context, but he indicated that groups did not have full autonomy of higher and lower
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Cost effective leadership was what both companies were seeking in an effort to capitalize off their ability to provide goods and services at a lower costs delivering exceptional services to their clients without their clients getting dismayed about the cost, which contributed to the successes of Ternary. Consensus were built when decisions were made instead of using compulsory tactics in order to surpass their organizational objectives (Leduff, 2015). Robertson B., (2006) believed that Ternary is one of the companies that have grown the fastest in Philadelphia, while he believed that he could not have gained this type of success using the traditional management system (Robertson B. ,
When Jim Kilts showed up at Gillette in 2001, the first outsider to run the Boston-based company in more than 70 years, he found a business with great brands losing market share. Its acquisitions of Duracell and Braun were not delivering. Sales and earnings were flat, the company had missed its earnings estimates for 15 straight quarters, the stock had plummeted, and Wall Street had lost patience. Yet two-thirds of the top managers were getting top ratings. People were being rewarded for effort; performance, under Mr. Kilts regime, became the new measure.
This case study demonstrates a young woman leader, Toby Johnson, who used to serve in the military as a pilot and attended Harvard Business School, joined PepsiCo’s Leadership Development Program (LDP), and was working in the management team at the Williamsport plant. She determined to forge ahead, and led the plant to achieve the Level 3 CI and also won the Doolin Award, which the Williamsport plant had never achieved before. The problem that Johnson encounters currently is that if the plant should continue to forge ahead and achieve the ultimate Level 4 CI, which will cost huge amount of money and efforts with the risk of her sudden leave of plant.
The Ternary Software organization is the most leading software development company that has grown in over $2 million in annual revenue. Which make it’s one of the 50th fastest growing companies in Philadelphia for the past seven years (Robertson, 2005). The reason why this company is so successful is due to the organizational structure the CEO and founder Brian Robertson uses which is sociocracy.
Two important perspectives in the organizations literature have been prominent over the past several decades: organizational ecology and the new institutionalism. Ecology is often centered around the demography of organizations e.g. firm creation and mortality, while institutionalism seeks to explain organizational behavior based on the social and cultural construction of legitimacy. Ecology tends to explain the diversity of organizations we observe, institutionalism their resemblances (Lee, 2012). Despite these differences, organizational ecology and new institutionalism have much in common, as they both developed as challenges to rationalist approaches. The integration of these two traditions can be leveraged to develop valuable insights
Pfeffer, J., & Sutton, R. (2006). Are Great leaders in control of Their Companies?. In Hard Facts,
The political lens examines an organization through the “roots of conflict” in “different and competing interests, and disagreements” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 33). The political aspect of an organization requires the “exercise of power and influence” by stakeholders over others to achieve “buy-in” (Ancona et al., 2005: M-2, 33). I will analyze Dynacorp through the political lens to discuss the factors that will hinder of facilitate the success of the change to the front end/back end design (Dynacorp Revisited, 2005: M-2, 85).
Meyer , J. W. , and Rowan , B. “ Institutionalized Organizations: Formal Structure as Myth
It is also difficult to maintain a standard decision-making process without interferences or breakdowns. The three fundamental sets of factors that can lead to ethical dissolution includes individual, organizational, and contextual factors. The individual factors are concerned with the personal background that can make one to value a particular approach (Florien, 2012). Though they are important, they are the last thing an organization considers in the decision-making process. As such, the corporation has the utmost decision when making choices. However, at times, individual aspects deter the decision-making process. Aspects such as culture, gender, education level, and personality among others, can affect the process (Jackson,
Structural dimension is a pattern of connection and network between actors, where in general this dimension is emphasized on the pattern of relationships between individuals with networks of colleagues who are owned. Relational dimension is a relationship or interaction that occurs because of the trust between the actors, where in general measurements on this dimension is focused on the nature and quality of relationships and interactions between individuals. The cognitive dimension is the goal and the shared value of the actors, which in general is measured by focusing on the representation of objectives, norms, values, and the existence of mutual
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
The bottom layer would follow the guideline so they can achieve the company objectives. The group structure is Chairman Board of Directors Group of Executives Board of Management Group of General Management The main departments within the group are: Administration Division Business Division Customer Support Division Network Development Division Production Services Division R&D Department Finance Department Human Resources Each division has managers for supervision. The staff in each division needs to follow the managersÂ’ decision. Every member of staff clearly understands their role and responsibility under the hierarchical structure. It is because each layer gets different responsibilities.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Collins, J., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York: Harper Collins Publishers.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.