The Systems Thinking Theory, the Theories of Global Governance - Coursework Example

TITLE: Sustained Writing Name Institutional Affiliation Instructor Date Introduction The focus of corporate governance is to implement the appropriate decision-making as well as the controls which govern the process of decision-making. In other words, it is concerned with the decisions that influence the decision-making, controls implementations and the process of implementing decisions. In the latest years, there has been a great shift of literature to not only focus on corporate governance pathology but also the outcome regulations, for instance the efficiencies achieved at the firm level due to the practice of sound and appropriate corporate governance. However, the study of corporate governances is geared to understanding how the stakeholders see the firm under the corporate governed. The main objective of this paper is to evaluate the efficiency of the corporate governance and by drawing the analysis from Matthews Dylan’s article-Poor countries can keep workers safe and still escape poverty. The analysis is based on the two theories the Systems thinking theory and the theories of the global governance. A Systems Thinking refers to a set of very powerful techniques and tools of problem solving which is based on the system design and analysis. It is always intended to assist in avoiding unexpected consequences while developing lasting solutions to those problems which are complex. The Systems Thinking Theory Under the Systems Thinking, the world is viewed as a one large system containing other small systems in it. It identifies each and every element within a system as delays and cycles of feedback (Bhatia, 2002). Through the explanation of the way the cycles and the delays change and create the systems within our environment, Systems Thinking gives an outstanding set of techniques which are essential in optimizing as well as understanding the areas that could be suffering as a result of very complex problems. From the article, delay is seen from the fact that there were no immediate actions taken by the garment factory owners to secure the lives of its workers despite receiving the threatening report from the inspectors about the unsuitability of the factory for occupation. Moreover, Bangladesh, being one of the developing countries had an up to date laws that matches the international standards on labor laws (Champbell, & Córdoba, 2008). The problem is that the implementation of the standards was not strictly adhered to. This can be attributed to the lack of the will on the government given the fact that the export economy of the Bangladeshi government rides on apparel. From the incident, it is evident that the garment factory management did not focus on the well-being and the behavior of the individuals (workers) inside its management cycle (Flynn, 2008). In essences, the kind of corporate governance that existed was not functioning as expected. It can be compared to the rules which describe a game without the moves to be taken during the game. The art of examining the uncertainty level in an organization is an important practice to the organization as a whole entity. It involves observation of the behavioral dynamics of each system within the organization as required by the Systems thinking philosophy. If the management of the garment factory in this article had observed this measure of corporate governance, chances are that what happened could not have been witnessed (Mulej, 2006). It is apparent from the article many poor countries avoid adopting even the basic improvements in their organizations. The argument behind this avoidance is the view that the organizations probably think that that the cost of production would increase and would lead to driving of businesses outside their respective countries of operations (Sandefur, 1990). The truth is that there is much that can be adopted by these countries without necessarily increasing the production costs. At such point, the intensity of competition is high in that there is a problem that is collective in nature such that there is no owner willing to accept even the minimum cost possible. On the other hand, the buyers are not willing to raise their prices if their competitors are not willing because they are simply in search of the cheapest prices possible (May et al., 2007). However, it was often thought by the factory owners that the system they were using was really successful as the rest of the businesses within the building had closed up after the evacuation warning. The factory owners perceived that they were really making profits only to end up in an unexpected situation. The inability to realize the impact of the delay was a mysterious collapse of the factory which led to lose of eighty seven lives of laborers. The fact that the owners of the factory had ignored warning by the international inspector means that the human rights of the workers had been infringed and the company was not honoring its corporate social responsibility of providing conducive working environment to its employees. In addition, the incident led to endless debate on the nature and quality of standards of labor in developing countries (Owens, et al., 2000). There were major concerns about the conditions under which the employees in developing countries worked under. The human resource management is bound to argue for better International Labor Standards if the bottom line is to be improved. For this reason, the International Labor Organization (ILO) has initiated projects in Vietnam that aims at comparing the performance of the factories with better working standards with those which have relatively lower standards and obtaining the bets data that could help in improving the standards (Luenberger, 1979). However, such correlation may not necessarily lead to positive or negative findings. It is rather dependent on the prevailing circumstances in which such correlation is done, but a business case exists for better treatment of workers. Such case, according to the Systems Thinking theory, is based on the principle that workers who are healthier and highly motivated are highly productive compared to those who are not. This case is true in most factory jobs and that is why the factory owners take no incentives to improve standards. This attempt of improving the labor conditions is essential for the success of any business. It is important to note that poor countries were in a better position of eradicating poverty at the same time ensuring the safety of their workers. The Theories of Global Governance Globalization is certainly a representation of a super phenomenon that shapes today’s trends. The influence of globalization is usually manifested in economic sphere. However, there is not a different perception of globalization in the economic theory as it is comprehended differently by many schools of thought in accordance with their ideologies (Idowu, 2009). Today, the theory of globalization is an area of multi-disciplinary and intensive debates. The area is characterized large number of attendees and with opposing views concerning a particular phenomenon. The attempt to define globalization is normally highlighted by individual aspects of it (Katok & Hasselblatt, 1998). However, a good number of definitions put emphasis on defining globalization based on the globalization’s economic dimensions. Therefore, globalization can be defined as the integration based on the project that aims at expanding the roles played by the markets in the global sphere. It is also referred to as a social process whereby the geographic obstacles to cultural and social arrangements lose their significance. The explanation of globalization from a structural point of view is seen a process which is bound by law, economic and social dynamics. It presents the development of the society which in simple terms for easy understanding. On the other hand, globalization as viewed from a conjuctural perspective considers the consequences of the combination of the economic and technological tendencies with certain policies and historical conditions determining its character. In the article, delay is apparent in the case where poor countries, in this case Bangladesh, experiences barriers that prevent the intervention of external forces for the purpose of improving the international standards of labor (Deckop, 2006). There is no evidence of the existence of proper mechanism established to monitor the International Labor Organization’s standards in most poor countries. According to the theory of globalization, globalization involves traversing the continents of the world for the purpose of executing businesses. In the article, negotiation for better work programs by Vietnam was based on the fact that Vietnam had the intentions of joining the Transpacific Partnership (Westland & Clark, 1999). The venture into this partnership was connected to the need for the country to work in collaboration with the International Labor Organization so as to improve the conditions of their labor. The effect of not realizing the impact of the delay has led to poor bilateral agreements which cannot withstand domestic and non-domestic politics surrounding the labor standards. Complaints concerning the bilateral agreements have emerged (Kayem, 2013). The complaints are normally brought forward by the human rights agencies and unions concerning matters that affects human life – in this case the workers. Moreover, the conditions of labor in a generalized system preference are a complaint in a typical setting from the same groups of individuals with regard to labor issues (Galt, & Schoonover, 2010). Of the complaints raised, there exist some differences depending on the petitioner. However, there is no guarantee for positive outcome after the analysis of the complaints. However, a complaint that touches on human rights is likely to be reconsidered than those brought forward by unions. Lack of a powerful civil society led to poor concept of union. In the case of Cambodia, there country had little skills to manage the unions as the country was still suffering from the adversity of the Second World War. For this reason, strikes were witnessed almost every day. However, the situation in Cambodia changed with the advent of globalization and innovation. People were sent by the solidarity center to teach the leaders of various unions on the matters concerning when to hold strikes and when they are allowed to do so, when it is in their interest to strike and when it is not (Thelen & Smith, 1995). The Cambodian society therefore grew in an indigenous manner with technical and nontechnical assistance outside the country. Conclusion In conclusion, the main role of the dynamic approach in matters organizational development is its ability to create theories which are coherent to the field. Process versus structure, maturation versus learning and perception versus conceptual and so on. It is a theory which adopts the theoretical approach to study development. It has grown directly with the advances which aim at understanding the nonlinear and complex systems. It is dynamic in that the elements of systems change continuously. Under the system thinking, development is understood better as a mutual, multiple and an interaction of all systems along the development levels. It is can be viewed also as a process that is nested and is set to unfold overtime. On the other hand, the theories of global commerce postulates that globalization is subjective to contemporary debate under the theory of the socio-economic. It is a unique process which aims at unifying the world’s economy. For the transformationists, the globalization process is uneven and not certain on matters result as it emphasis on multidimensional approach. However, the skeptics have their position in challenging not only the sustainability of globalization but also its ubiquity. Through the financial flows, investments and trade, the effects of globalization can be measured. In addition, the main feature characterizing global commerce include the replacement of the heterogeneous patterns and culture with a distinct framework which is suitable to the operations of the global markets. The individualism and maximizing behaviors are the basis of the atomistic economy which creates a neoclassical picture. Moreover, the mobility of production factors is perfect and the communication of information is powered by modern technology. The individualistic ideology has great influence hence creating an economic approach that is neoclassical. However, the current economy continues to show a lot of stability regardless of the impacts resulting from the global unification. The modern economy is also evolving every time with a hierarchal system characterized by variability at each level thus indicating the survival of the system. Various economic models have been developed to represent the existence of variability in the world’s economy. Examples of such models are the Japanese, the Anglo-American and the German models which are used in organizing the economic activities. They ensure that the process of evolution prevents homogenization which is a significant feature of global commerce. Reference Bhatia, N. (2002). Stability Theory of Dynamical Systems. Berlin [U.A.], Springer. Champbell, T., & Córdoba, J. (2008). Special Issue: Systems Thinking and Corporate Social Responsibility. Chichester, Wiley. CULPAN, R. (2002). Global Business Alliances: Theory. And Practice. Westport, Conn, Quorum Books. Deckop, R. (2006). Human Resource Management Ethics. Greenwich, CT, Information Age Pub-Inc. Flynn, G. (2008). Leadership and Business Ethics. [Dordrecht], Springer. Galt, R., & Schoonover, K. (2010). Global Art Cinema: New Theories and Histories. New York, Oxford University Press. Idowu, S. (2009). 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A Dynamic Systems Approach to the Development of Cognition and Action. Cambridge, Mass. [U.A.], MIT Press. Westland, C., & Clark, T. (1999). Global Electronic Commerce: Theory and Case Studies. Cambridge, Mass. [U.A.], MIT Press. Read More