Organizational Structures And Corporate Governance, Effectiveness of Internet - Assignment Example

?Business Ethics of Discussion Discuss The Relationship Between Trust, Organizational Structures And Corporate Governance. Some relationships between terms are purely definitive in nature. Corporate governance is an adoption of a collection of control mechanisms, used by an organization to dissuade potentially ill motive managers from engaging in activities that are disastrous to the welfare of stakeholders and share holders in any business organization. Organizational structure on the other hand is a hierarchical arrangement of lines of authority, rights duties and communications of an organization .It chiefly depends on the organization’s objectives and strategies that are in place. A business trust is a legally organized set up for the management and control of assets and property it has trustees who take responsibility for the management of the assets in the trust. In a business environment, the three factors must be combined to accomplish organization’s goals through a set of relationships between organization’s management, shareholders, and other stakeholders. Structures in corporate governance are provided through which the objectives of the company are set and it acts as the means of monitoring performance and achieving objectives. Equally, an organizational structure seeks to determine how the roles, responsibilities and power are assigned, coordinated and controlled and how information will flow between different managerial levels. In a decentralized structure, the decision making power is evenly distributed and divisions and departments may have different degrees of flexibility and independence In a centralized structure most of the decision making flows from the top and it may have tight control over divisions and departments. A business trust on the other hand, provides way to keep business assets safe from lawsuits and creditors this is based on laws and how trust is created and it protects the business from certain types of taxation (Caldwell & Karri, 2005). Discussion 2 Financial Management in a Virtual Multinational and Effectiveness of Internet In a modern word a financial manager may find himself or herself working with different people from different demographics such as people from different companies and cultures .This implies that such teams can only be collaborated through modern communication in form of internet. Owing to innovations in information and communication technology the world has become increasingly virtual. This is a concept of people with complementary skills who are equally committed to a common purpose goal where they hold themselves mutually acceptable. The first major key to this is that the finance manager will be able to work across boundaries of time and space by making use of computer driven technology. Secondly, it enables the finance manager to interact with sub teams through interdependent tasks guided by common purpose and work across links lead by transport, information and communication. Thirdly, there is quick response to changing business environments making it easier for the manager to unite experts in specialized fields working far from each other digitally. It also provides greater degree of freedom to managers involved with development projects and it saves time and money. Although this virtuosity is effective, it is different from co-relation reasons being that a manager must build trust differently because it is measured exclusively in reliability terms. Likewise, co-located teams benefit from facilitation of the manager while in virtual teams a manager must provide clear direction. Finally, decisions must be arrived at differently to avoid cultural bias (Kelley, 2001). Discussion 3 Barriers to Change as Depicted By Gayla Holges Organizational barriers are restrictions that rise on the eve of renewing an organization direction, capabilities and structure in a bid to serve the ever changing needs of both external and internal customers. According to Gayla Holges there are three major barriers to organizational change. Regarding employee involvement, it is important to involve employees in a change ones invented so as to ensure maximum participation .Failure to do this will mean reduced interest and less possible practicality. Regarding flawed communication strategies: It is important to involve everyone in an organization in a healthy communication that keeps everyone in the know so that a change can be embraced by all at the same time .The method of delivery should be timely this will ensure that the intended message does not overwhelm people when unprepared or subject them to fear of unknown as they ask what will happen next. Thirdly, culture shift may create barriers if not addressed wisely because in every organization people come from different cultural backgrounds .This implies that when changes come they should seek to incorporate feelings and culture so that none is overlooked. This way, all taboos and traditions must be respected this minimizes resentment that may build as some employees may feel disrespected. Due to the importance of change in every organization, whenever there are strategies of change, there should be ability to identify ways to avoid these barriers to propel the organization forward because change cannot be separated from an organization (Puffer, 2004). Discussion 4 How Are Finances of a Company Affected by Organizational Change and What Are Issues to Deal With When Planning Change? Organizational changes are activities of modification or transformation which are aimed at improving business organization. Change happens for several reasons which include acquisition, a merger, accommodating growth, expanding markets and financial concerns. All these events require use of business finance without which they can never be achieved. Most of these financial effects target employees as they play a major role in business production. First, there is a notable mental stress which arises due to perceived injustices and unfairness due to untimely communication by the managers making the employees to worry about the future outcomes. This is common when the changes are broad, far reaching and simultaneous. Secondly, there arises lack of loyalty. This is highly witnessed in companies that place their interests first instead of that of their workers .Such companies will cut back salaries and benefits as the first thing especially when making changes that involve cost sharing hence motivation decreases taking performance with it. Thirdly ,there is life changes this is due to salary cuts, loss of benefits ,job loss or relocation to another town .These are devastating changes for people who are responsible in the society . To reduce these effects it is important that as organizations lay down strategies, they should look critically at issues that can impact negatively on finance. The best way to do this is by communicating effectively with employees at every stage of changes bound to be made to ensure future preparedness and better financial management (Filatotchev & Toms, 2006). Discussion 5 Business Schools and Their Relevance Business schools are mainly university level institutions that confer certificates, degrees, and other academic levels of qualification in business administration. Topics taught in such schools include accounting, administration, and economics. These schools teach predominantly business courses. Relevance of business school can be addressed on many fronts based on perspectives relevant to all the various elements of social systems including managers, political leaders, donors, firms, workers and the entire society. However relevance denotes attention to the practical concerns rather than less tangible theoretical concerns. Relevance of business schools is evidenced through bringing in executives and sending students out for consultation on projects with local companies. So this way student is able to solve complex and multi dimensional problems just like in real life. Secondly, business schools are preparing their graduates for broader carrier path giving them a wider menu of career choices which were previously not in place or difficult to move into. Thirdly business schools have become a hub of generating an inexpensive shortlist of minimally qualified candidates especially those starting with certificates who later rise to become important experts in the word of business regardless f their humble beginning. To conclude, the society is served best by business school through actions that are of self interest but it is important for business managers to consciously seek to be useful to the society by practicing direct business responsibility inoder to serve the interest of the broader society (Becker, 1998). Discussion Six Differences and Similarities of Ethics, Morality and Integrity In order to get a clear understanding of the three characteristic behaviors in business organizations it is important to look at their definitions first. To start with, behavioral integrity refers to the consistency of an individual’s actions and words and it facilitates trust.Integity is considered a virtue because people in an organization value promises and the alignment between persons deeds and words is characterized as behavioral integrity .This makes it important for all the people in an organization to be aware of their behavioral discrepancies. Gender differences may exist in behavioral integrity with contextual variations where males under public pressures may show greater integrity, but exhibit lower integrity under pressure in private for their own self-protection. Morality is an adopted code of conduct with a set of rules for what is right or wrong in a given environment. In this case, murder is immoral, but in a battle field it is moral. Moral codes define expected behavior therefore; it is an assimilation of beliefs that make people leads a good life. Ethics refers to understanding and adopting moral values within the work place or home and it relates to values adhered to in the immediate surroundings. Ethics differ in their application from one situation to another. It is possible to conclude that while morals define people’s character, ethics suggest the social working system and they point toward application of morality while integrity is consistency of actions to ensure morality and ethics are adhered to. In this discussion, morals and ethics may appear similar, but they are distinct in that ethics can be simple to follow because they are sets of guide lines while morals can be decidedly tougher (Starkey & Hatchuel, 2004). References Becker, T. (1998). ntegrity in organizations: Beyond honesty and conscientiousness. Academy of Management Review, 23(1), 154-161. Caldwell, C., & Karri, R. (2005). A covenantal approach to building trust. Caldwell, C., & Karri, R. (2005). Organizational governance and ethical sy Journal of Business Ethics, 1-3. Filatotchev, & Toms, S. (2006). Corporate governance and financial constraints on strategic turnarounds. Journal of Management Studies, 43(3), 407-433. Kelley, E. (2001). Keys to effective virtual global teams. Academy of Management Executive, Kelley, E. (2001). Keys to effective virtual global teams. Academy of Management Executive, 15(2), 132-133. Puffer, S. M. (2004). Changing organizational structures: An interview with Rosabeth Moss Kanter. Academy of Management Executive, 96-105. Starkey, K., & Hatchuel, A. (2004). Rethinking the business school. Journal of Management Studies, 41(8), 1521-1531. Read More