Organisation

ANSWER 1: Introduction: Agency Theory, Stewardship Theory and mess dependance Theory (Resource Based Theory) ar popular, critical and telling Theory in board structure and composition. We could know the interpreting of Agency Theory by (Jensen & Mecking, 1976: 308) We define operator relationship as a contract under which atomic number 53 or more persons (the rule(s)) engage another person (the agent) to pull out some service on their behalf which involves delegating some proof making authority to the agent. Agency theory raises a fundamental problem in organizationsself-interested behavior. A corporations managers may ensn atomic number 18 on personal goals that compete with the owners goal of maximization of stockholder wealth. Since the shareholders slide by managers to administer the firms assets, a potential contest of interest exists betwixt the two groups. Stewardship Theory, which is similar to Agency Theory, animal trainer are stewards of the organization, trusty individuals who allow look after the interests of the owners of the corporation, by (Davis et al., 1997) The Resource Dependency Theory is a business counselling tool utilize to determine the strategic resources available to a company.

The fundamental principle of this theory is that the basis for a free-enterprise(a) favor of a firm lies primarily in the application of the nap of of import resources at the firms disposal (Wernerfelt, 1984; Rumelt,1984). To transform a short-term matched advantage into a sustained competitive advantage requires that these resources are heteroge neous in nature and not perfectly range (P! eteraf, 1993). The Comparison and Contrast of Three Theories : The above said terzetto theories could all to deceaseher imply in company. The company will mayhap extents the market share and/or is more competitive in her field, if she manages the internal issue (staff, tangible and intangible resources) in salutary attitude. It is competitive advantages for her. Good board structure...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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