MGMT20144 Management and Business Context - Free Samples to Students

The main contextual factor discussed in this journal article is organisational governance.  Specifically the authors applied a new research and analysis approach to studying the relationship between governance structures and firm performance in Vietnamese organisations. Three aspects of governance were examined: board independence, CEO duality and board size.  The research found that the higher the proportion of independent directors on the board, that is directors who neither work for the firm nor have extensive dealings with the company, the lower the performance of the firm.  Likewise, when CEO duality is present, that is the CEO also serves as the board chair the lower the performance of the firm.  However, the research found no relationship between the size of the board and the performance of the firm.  In this research, firm performance or return on assets was measured by calculating operating income before depreciation divided by total assets.

The implications of this research is that firms should carefully consider the structure of their boards if they want high performing organisations.  Specifically, the board directors should have some association with the firm as it appears that when a director works for the frim or has regulator contact with the firm, this intimate knowledge and understanding improves the performance of the firm.  In addition, firms should carefully consider keeping the board chair position separate from the management structure of the firm; in particular, the CEO should not be the chair of the firm.  

Answer:

Introduction:

The CEO from the diversified board are able to manage their relationships in the new companies of different regions. This article examines the reason behind this fact. In this article, the author has predicted that the prior experience of CEO's with diversified board members reduces the chances of director turnover and CEO turnover. Along with this, it also helps in improving the overall performance of the firm. The theory provided by the author is supported by 188 CEO's working in different regions. The author suggests that maintaining the positive relationship is the main factor in the success of a new outside CEO. The study also suggests that when the new company is more diverse in comparison to the previously working company of a CEO, then he has to face a number of problems in dealing with different types of members.

The author has conducted primary research to increase the reliability of the findings. The main sources of such research include interviews of the outside CEO's working in different nations and the opinions of the board members about their performance. Along with primary data, the author has also gone through the secondary papers which mainly includes the annual reports of the company having diversified board members.

The findings of this article can be used by the emerging and developed organizations by introducing diversified board members to manage the business operations. The organizations can also find the suitable reasons for appointing the outside CEO’s having experience with the diversified board members.

The business practices are required to be carried out in such a way so that it can benefit the flexibility of the organization in long run. This article argues that environmental and social practices related to the sustainability of the business contribute to the resilience of the organization along with the short-term business outcomes. In this article, the author has also explained the organizational resilience as the organization's ability to analyze and correct the maladaptive tendencies and manage positively with all type of unexpected situations. The findings of this articles are based on the personal interviews conducted with more than 200 individual firms. The author has used more primary data in comparison to the secondary data to present the most appropriate information in this article. This article describes the fact that most of the managers in the present business scenario, look out for short-term and big level financial benefits to justify the socially sustainable and responsible practices. The author has justified this fact by claiming in this article that such practices also help organizations to become more resilient and avoiding crises. However, the author also found it difficult to measure the level of avoidance, so he analyzed on the basis of long-term outcomes. This article provided an understanding that the firms that adopt responsible environmental and social business practices tend to have higher sales growth rate, lover financial volatility and higher chances of survival in comparison to the firms not adopting the same. The author hopes to provide the reasons for organizations to focus on sustainability instead of short-term profits.

How middle managers manage the political environment to achieve market goals: Insights from China's state?owned enterprises

This article analyses the responsiveness of managers to the political factors existed in the external environment of an organization. The findings are largely based on the study conducted on for large enterprise working in operating successfully in China. The study indicates that middle-level managers are more active and responsive in comparison to the upper-level management and employees.

The data is largely based on the primary research which includes the results of interviews, questionnaires, and surveys. This makes the data more reliable as all the results are self-evaluated by the author to provide adequate information. The findings of this report can be used to identify the appropriate approaches that can be used in dealing with the political factors and other related areas of a business. The author has carried out a systematic study to show the different type of challenges and their impacts on the sustainability of the business in contrast with the activeness of employees.

The role of corporate governance has increased as per the increase in shareholders activism. This article proposes a new conceptual model that includes the features of the noticeable activism of shareholders with the help of two components. These components represent the propensity of shareholders to a target company and propensity of executives to settle the demand privately. The model defined in this article clearly separate the expectations of corporate governance for the two concealed components rooted in activism process. The findings of this model allow the corporate managers to negotiate privately and to value only activist demands of the shareholders and to accept the same as the corporate governance of the organization. The research model of this article empirically investigate and theorize a wider role and mechanism of corporate governance to ensure that the employees and executives should not be ignored to fulfill all the demands of the shareholders. This articles concluded that implications of corporate governance differ from private activism and visible shareholder demands. The data is based more on the secondary sources which majorly includes the CSR reports of the companies.

The findings of this paper can be used to identify the shareholder’s interest and their compatibility with the corporate governance of the business. More emphasis is provided on the practices carried out by the managers to fulfill the expectations of the shareholders which also reflects the importance of shareholders in carrying out the business effectively.

References

Goranova, M., Abouk, R., Nystrom, P. C., & Soofi, E. S. (2017). Corporate governance antecedents to shareholder activism: A zero?inflated process. Strategic Management Journal, 38(2), 415-435.

Guo, Y., Huy, Q. N., & Xiao, Z. (2017). How middle managers manage the political environment to achieve market goals: Insights from C hina's state?owned enterprises. Strategic Management Journal, 38(3), 676-696.

Ortiz?de?Mandojana, N., & Bansal, P. (2016). The long?term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631.

Zhu, D. H., & Shen, W. (2016). Why do some outside successions fare better than others? The role of outside CEOs' prior experience with board diversity. Strategic Management Journal, 37(13), 2695-2708.