Free

Effective Management - Essay Example

Comments (0) Cite this document
Summary
“The principle agent problem will always happen when one party who is an agent agrees to work in favor of another party-principle in return for some incentives. Such an agreement may incur huge costs for the agent, thereby leading to the problems of moral hazard and conflict…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Effective Management
Read TextPreview

Extract of sample "Effective Management"

PSYCHOLOGY “The principle agent problem will always happen when one party who is an agent agrees to work in favor of another party-principle in return for some incentives. Such an agreement may incur huge costs for the agent, thereby leading to the problems of moral hazard and conflict of interest. Owing to the costs incurred, the agent might begin to pursue his own agenda and ignore the best interest of the principle, thereby causing the principal agent problem to occur.” (Anonymous, 2014)
Ordinarily, contractors will have an obligation to do the work on behave of the one the party that has given them the contractual obligation. The party- the core principal which may be the local city may decide to give contracts to the contractors to do the work in accordance to the stipulated guidelines. The contracts may invoke agency problems since the contractors may fail to deliver what their principle requires.
For example schools with the help of school boards may decide to contract unqualified teachers on behave of the teachers unions because of the low price that the teacher has offered. Often, the contractors will do will always do their tasks to save costs at the expense of quality of the work that they have been contracted to do. They may also fail to finish the work or do the work at their interests.
Normaly, recognision of the incentives is pivotal in the effectiveness of the management. The incentives that are given to the contractors should be increased so as to act as a motivation to the contractors. This will enable them to do the work without the desire to minimize costs thus compromising the quality of the work. In class most students rated others with high and perfect score, this was an agency problem since many revealed conflict of interest as per the requirements. I think the incentive should be changed and that the perfect score should only be given when there zero errors.
Works Cited
Anonymous. (2014). Ageny problem. Retrieved 2015, fro
m http://www.investopedia.com/terms/a/agencyproblem.asp Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Effective Management Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Effective Management Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/macro-microeconomics/1698321-effective-management
(Effective Management Essay Example | Topics and Well Written Essays - 250 Words)
Effective Management Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/macro-microeconomics/1698321-effective-management.
“Effective Management Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/macro-microeconomics/1698321-effective-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Effective Management

Effective Management of Hypertension in African Americans

...? Effective Management of Hypertension in African Americans Effective Management of Hypertension in African Americans Hypertension is a major health problem which affects one-third of adults in the United States. Out of this, the majority are African Americans compared with other racial groups. In 2002, the overall US mortality rate associated with high blood pressure was 17.1% (American Heart Association, 2005). With regard to race and gender, African Americans had a disproportionately high Bp related death rate of 49.6% and 40.5% for African American men and women respectively as compared with 14.4% and 13.7% for white men and women (American Heart Association, 2005)....
10 Pages(2500 words)Research Proposal

Effective Management Of Post-Operative Pain

...?Introduction Patients often have poor understanding of pain and as a result, often develop low expectations for pain relief and their level of satisfaction with the pain management efforts by the healthcare professionals. An effective management of pain can help patients to relieve their pain and achieve early mobilization thus helping patients to recover and return to normality as soon as possible. Effective pain management not only reduces the stay of patients at the hospital but also reduces the cost involved. Pain management is considered as the second most common nursing intervention. It is however still a consistent problem faced...
8 Pages(2000 words)Literature review

Effective Management of Service Processes

...? Effective Management of Service Processes Introduction A service organisation is an organisation which acts as a third party to a user organisationand provides services to it. Bellagio, a hotel and a casino is chosen as the service organisation in order to address to the pertinent issues in this assignment. The aim of this assignment is to show how the effective management of the service processes, its service, people and resource utilisation has contributed to the success of Bellagio. Management of Service Processes Bellagio follows focus strategy for its services. It is the first hotel in Las Vegas which has shown remarkable quarterly sales revenue...
8 Pages(2000 words)Essay

Effective Management of Suppliers

...? Effective Management of Suppliers First School Affiliation Executive Summary This paper is interested in discussing some of the problems faced during the tendering process in an organisation that are also faced or common in tendering processes in other organisations. The problem of accuracy of tender bids when it comes to how the process is carried out, the pricing of the bid and accountability of the tender is very common in tendering and this paper will make known this problem and the reasons that bring about the inaccuracies in tender bids. The inaccuracies in bidding can be costly to the respondent or lead to losses to the tendering firm. Introduction and Articulation of the problem A tender...
13 Pages(3250 words)Assignment

Effective Management in Construction Industry

.... One of the most common mistakes project managers make is to underestimate the amount and type of resources required. This leads to projects that run over budget and fall behind schedule. A major source of risk in project management is inaccurate forecasts of project costs, demand, and other impacts (Flyvbjerg 2006:5). There is a wide range of materials available that discusses the processes of detailed planning in construction projects; however, this is not our emphasis here. This section is meant to show that effective and careful project planning is an important input to achieving a project on time. Organizing After defining or creating a doable plan, the next crucial move the...
10 Pages(2500 words)Essay

Human resource management: effective management

...113070 Human Resource Management relies on the theory that human resources are strategic and effective management of these resources can provide exceptional and competitive advantage to the organisation. In recent years, there had been a stress on human resource development, which branched out of the conventional personnel management with additional glitter and strength and gained its own splendour in the present business world. Earlier words like labour force, work force, personnel management of both the forces implied a collective mass of rigid, slightly thoughtless, immovable rather threatening in its dark intensity. Human Resource gives a much softer...
8 Pages(2000 words)Essay

Effective Management of Research

...Effective Management of Research: A Handbook Literature Review i. Old Approach to Research Research is a quest for knowledge and full understanding of a facet of life. The dictionary definition of research is "a diligent inquiry or examination in seeking facts or principles." As a hyphenated verb, it is defined thus: "to search and investigate again." To the words "diligent" and "again" may be added "careful" which are the research actions the University of Melbourne-Faculty of Education wants student researchers to invest in this process. In this view, research is not only a careful study and investigation of things already known about a particular subject; more important, it also seeks to uncover new information about... that...
10 Pages(2500 words)Essay

Effective Management

...The Most Important Attributes, Personal Qualities And Skills An Effective Manager Must Possess. Introduction Over the past decade there is an abundance of evidence, that could be produced to say that successful organizations are managed by efficient managers. Success in the long run can be ensured only through effective management. Successful managers foster sustainable growth through their skills, attributes and personal qualities. According to Pfeffer and Veiga(1999), common sense and common knowledge are different. Knowing things is different from doing things. Being able to analyze a case, identify a problem, suggest...
4 Pages(1000 words)Essay

Effective management of change

...the lowest profit in its history and the lowest basic earnings per share i.e. 145 million pounds pre tax profit and zero basic earnings per share (Bevan 2001). Turnaround strategies and the challenges With the drastic fall in profits and the low market confidence culminating into huge shedding of its share price, the management had to have a plan to steer the once market giant back to its long lost glory (Bevan 2001). Many changes in the management had to be initiated and this was no doubt a daunting task for the management and the staff alike. As it is well known that it takes quite a short time and less effort to destroy or lead to decline but to rise again to the top takes a great...
12 Pages(3000 words)Essay

Effective Management of Culturally Diverse Workgroups '

...Effective Management of Low Socio-Economic Culturally Diverse Population Effective Management of Low Socio-Economic Culturally Diverse Population An organization uses its employees to attain its targets through allocation of duties to specific groups and individuals. A low socio-economic workforce normally advocates for collectivism that usually affects individual productivity because some employees avoid assigned duties because someone else will do it. Apart from collectivism, low socio-economic culturally diverse workforce has its distinctive characteristics and code of conduct that sets it apart from the other teams. The characteristics include distinct communication...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Effective Management for FREE!

Contact Us