Write short notes on the following:
a) Need
for Corporate Governance
b) Strategic
Choice
C )Knowledge Management.
Ans Need for
Corporate Governance
With increased global competitiveness, the growing market in
Yemen is faced with the challenge of attracting and retaining investment in
order to participate more fully in the global economy and address mounting
demographic concerns. Increasing awareness and implementation of good corporate
governance practices can improve the investment climate and promote the
development of a vibrant private sector and capital market. However, in order
to advance corporate governance, stakeholders must find and coordinate ways to
implement principles that produce internationally acceptable standards and
reflect local business realities such as the predominance of family-owned
firms.
The need, significance or importance of corporate governance
is listed below.
Changing Ownership Structure : In recent years, the ownership
structure of companies has changed a lot. Public financial institutions, mutual
funds, etc. are the single largest shareholder in most of the large companies.
So, they have effective control on the management of the companies. They force
the management to use corporate governance. That is, they put pressure on the
management to become more efficient, transparent, accountable, etc. The also
ask the management to make consumer-friendly policies, to protect all social
groups and to protect the environment. So, the changing ownership structure has
resulted in corporate governance. Importance of Social Responsibility : Today,
social responsibility is given a lot of importance. The Board of Directors have
to protect the rights of the customers, employees, shareholders, suppliers,
local communities, etc. This is possible only if they use corporate governance.
Growing Number of Scams : In recent years, many scams, frauds and corrupt
practices have taken place. Misuse and misappropriation of public money are
happening everyday in India and worldwide. It is happening in the stock market,
banks, financial institutions, companies and government offices. In order to
avoid these scams and financial irregularities, many companies have started
corporate governance. Indifference on the part of Shareholders : In general,
shareholders are inactive in the management of their companies. They only
attend the Annual general meeting. Postal ballot is still absent in India.
Proxies are not allowed to speak in the meetings. Shareholders associations are
not strong. Therefore, directors misuse their power for their own benefits. So,
there is a need for corporate governance to protect all the stakeholders of the
company. Globalisation : Today most big companies are selling their goods in
the global market. So, they have to attract foreign investor and foreign
customers. They also have to follow foreign rules and regulations. All this
requires corporate governance. Without Corporate governance, it is impossible
to enter, survive and succeed the global market. Takeovers and Mergers : Today,
there are many takeovers and mergers in the business world. Corporate
governance is required to protect the interest of all the parties during
takeovers and mergers. SEBI : SEBI has made corporate governance compulsory for
certain companies. This is done to protect the interest of the investors and
other stakeholders.
a) Strategic
Choice
Strategic choice is
a systemic theory of strategy. This theory is built on a notion of
interaction in which organizations adapt to their environment in a
self-regulating, negative-feedback (cybernetic) manner so as to achieve their
goals. The dynamics, or pattern of movement over time, are those of movement to
states of stable equilibrium. Prediction is not seen as problematic. The
analysis is primarily at the macro level of the organization in which cause and
effect are related to each other in a linear manner. Micro-diversity receives
little attention and interaction is assumed to be uniform and harmonious
An effective strategic choice process positions an
organization for making sustainable strategic decisions.
At the heart of effective strategic planning lies the ability
to surface the truly important issues and to make good choices, in the process
of deciding how to address these issues.
Strategic choices that have been shortlisted for inclusion in
a corporate strategy need to be capable of being broken down into a series of
doable steps to be taken immediately, and can be further broken down into
medium and long-term achievable actions, with clearly stated deliverables.
These larger authentic, believable, communicable corporate
strategic choices must also be able to be carried out in the real world. They
must be capable of being translated into clear budgets. Projects or action
plans, with clearly assigned accountabilities. They must be at least adequately
resourced. As importantly they must be planned with associated risk management
practices in place to deal with the inevitable obstacles that arise.
Structure of the strategic choice space
There are five main sets of procedures in the approach to
strategic planning followed here at simpley-strategic-planning.com. They are-
- Engaging commitment
- Setting long term strategic objectives for improved performance of the organisation
- Generating strategic options
- Evaluating and deciding on strategies
- Monitoring implementation of the strategies against the long term objectives.
- The strategic intent or objective set to improve the long term performance of the organization
- The strategic issues distilled from the analysis of key factors relevant to the overall situation of the organization in its environment, and
- The strategic options generated by the planning team
- KM
Strategy:Knowledge
management strategy must be dependent on corporate strategy. The objective
is to manage, share, and createrelevantknowledge assets that will
help meet tactical and strategic requirements.
- Organizational
Culture:The
organizational culture influences the way people interact, the context
within which knowledge is created, the resistance they will have towards
certain changes, and ultimately the way they share (or the way they do not
share) knowledge.
- Organizational
Processes:The
right processes, environments, and systems that enable KM to be
implemented in the organization.
- Management
& Leadership:KM requires competent and experienced
leadership at all levels. There are a wide variety of KM-related roles
that an organization may or may not need to implement, including a CKO,
knowledge managers, knowledge brokers and so on. More on this in the
section onKM positions and roles.
- Technology:The
systems, tools, and technologies that fit the organization's requirements
- properly designed and implemented.
- Politics:The
long-term support to implement and sustain initiatives that involve
virtually all organizational functions, which may be costly to implement
(both from the perspective of time and money), and which often do not have
a directly visible return on investment.
In terms of decision processes within this set of activities
there are three key components of the strategic planning process which generate
the space in which sound strategic choice may be made. They are-
Knowledge Management is the collection of processes that
govern the creation, dissemination, and utilization of knowledge. In one form
or another, knowledge management has been around for a very long time.
Practitioners have included philosophers, priests, teachers, politicians,
scribes, Liberians, etc.
So if Knowledge Management is such an ageless and broad topic
what role does it serve in today's Information Age? These processes exist
whether we acknowledge them or not and they have a profound effect on the
decisions we make and the actions we take, both of which are enabled by
knowledge of some type. If this is the case, and we agree that many of our
decisions and actions have profound and long lasting effects, it makes sense to
recognize and understand the processes that effect or actions and decision and,
where possible, take steps to improve the quality these processes and in turn
improve the quality of those actions and decisions for which we are
responsible?
Knowledge management is not a, "a technology thing"
or a, "computer thing" If we accept the premise that knowledge
management is concerned with the entire process of discovery and creation of
knowledge, dissemination of knowledge , and the utilization of knowledge then
we are strongly driven to accept that knowledge management is much more than a
"technology thing" and that elements of it exist in each of our jobs.
It is important to remember that knowledge management is not
about managing knowledge for knowledge's sake; the overall objective is to
create value and to leverage, improve, and refine the firm's competences and
knowledge assets to meet organizational goals and targets. Implementing
knowledge management thus has several dimensions including:
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