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Bring fact-checked results to the top of your browser search. Management and control of companies The simplest form of management is the partnership.
The management structure of companies or corporations is more complex. By the laws of most states it is obligatory for the board of directors elected periodically by the shareholders to appoint certain executive officers, such as the president, vice president, treasurer, and secretary.
The latter two have no management powers and fulfill the administrative functions that in an English company are the concern of its secretary, but the president and in his absence the vice president have by law or by delegation from the board of directors the same full powers of day-to-day management as are exercised in practice by an English managing director.
The most complex management structures are those provided for public companies under German and French law. In the case of public companies, however, German law imposes a two-tier structure, the lower tier consisting of a supervisory committee Aufsichtsrat whose members are elected periodically by the shareholders and the employees of the company in the proportion of two-thirds shareholder representatives and one-third employee representatives except in the case of mining and steel companies where shareholders and employees are equally represented and the upper tier consisting of a management board Vorstand comprising one or more persons appointed by the supervisory committee but not from its own number.
The affairs of the company are managed by the management board, subject to the supervision of the supervisory committee, to which it must report periodically and which can at any time require information or explanations.
The French management structure for public companies offers two alternatives. The similarity to the German pattern is obvious, and French legislation carries this further by openly permitting public companies to establish a supervisory committee conseil de surveillance and a management board directoire like the German equivalents as an alternative to the board of directors—president structure.
Dutch and Italian public companies tend to follow the German pattern of management, although it is not expressly sanctioned by the law of those countries.
considered management style as the distinctive way in which an organization makes decisions and discharges various functions of goal setting, formulation, implementation of strategy, corporate image building, dealing with. Organizational change is pervasive today, as organizations struggle to adapt or face decline in the volatile environments of a global economic and political world. The many potent forces in these environments—competition, technological innovations, professionalism, and demographics, to name a few. Business organization - Management and control of companies: The simplest form of management is the partnership. In Anglo-American common-law and European civil-law countries, every partner is entitled to take part in the management of the firm’s business, unless he is a limited partner; however, a partnership agreement may provide that an ordinary partner shall not participate in management.
The Dutch commissarissen and the Italian sindaci, appointed by the shareholders, have taken over the task of supervising the directors and reporting on the wisdom and efficiency of their management to the shareholders.
Separation of ownership and control The investing public is a major source of funds for new or expanding operations. As companies have grown, their need for funds has grown, with the consequence that legal ownership of companies has become widely dispersed. For example, in large American corporations, shareholders may run into the hundreds of thousands and even more.
Although large blocks of shares may be held by wealthy individuals or institutions, the total amount of stock in these companies is so large that even a very wealthy person is not likely to own more than a small fraction of it.
The chief effect of this stock dispersion has been to give effective control of the companies to their salaried managers. Although each company holds an annual meeting open to all stockholders, who may vote on company policy, these gatherings, in fact, tend to ratify ongoing policy.
Even if sharp questions are asked, the presiding officers almost invariably hold enough proxies to override outside proposals. The only real recourse for dissatisfied shareholders is to sell their stock and invest in firms whose policies are more to their liking.
If enough shareholders do this, of course, the price of the stock will fall quite markedly, perhaps impelling changes in management personnel or company policy. Thus, if a company is performing well in terms of sales and earnings, its executives will have a relatively free hand.
If a company gets into trouble, its usual course is to agree to be merged into another incorporated company or to borrow money. In the latter case, the lending institution may insist on a new chief executive of its own choosing.
If a company undergoes bankruptcy and receivership, the court may appoint someone to head the operation. But managerial autonomy is the rule. The salaried executives typically have the discretion and authority to decide what products and services they will put on the marketwhere they will locate plants and offices, how they will deal with employees, and whether and in what directions they will expand their spheres of operation.
Executive management The markets that corporations serve reflect the great variety of humanity and human wants; accordingly, firms that serve different markets exhibit great differences in technology, structure, beliefs, and practice.
Because the essence of competition and innovation lies in differentiation and change, corporations are in general under degrees of competitive pressure to modify or change their existing offerings and to introduce new products or services.
Similarly, as markets decline or become less profitable, they are under pressure to invent or discover new wants and markets. Resistance to this pressure for change and variety is among the benefits derived from regulated manufacturing, from standardization of machines and tools, and from labour specialization.Evidence-based decision making in management (EBMgt) requires that managers and their organizations procure and organize enough empirical and objective data to implement a scientific decision-making process.
May 18, · There is an enormous lie underlying business, the lie that decisions are made rationally, applying logic and expertise, sifting evidence, and carefully weighing alternatives. In organizational decision making, managers are able to exercise the greatest degree of discretion in The Organization of the Petroleum Exporting Countries (OPEC) reduces production by Depreciation expense business associations would be best for Green’s $10, Business organization - Management and control of companies: The simplest form of management is the partnership.
In Anglo-American common-law and European civil-law countries, every partner is entitled to take part in the management of the firm’s business, unless he is a limited partner; however, a partnership agreement may provide that an ordinary partner shall not participate in management.
But, at its core, green management is about becoming aware of how your behavior, working practices or production methods impact the environment, and making changes that reduce your environmental "footprint" and make your business more sustainable. A manager who gives guidance to employees, using formal and informal networks, acting as a figurehead, could be seen as fulfilling the: A.
Decision making role/5.