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Public Sector Management - Essay Example

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Summary to essay on topic "Public Sector Management"
The paper is devoted to the discussion of the issues of management in public sector, namely the questions of the corporate governance and the problems of providing consultations with the key stockholders. As these issues often become cornerstones for the companies of public sector, it is necessary to base their description on the real environment with the application of the appropriate theories
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Public Sector Management
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Download file "Public Sector Management" to see previous pages... The public sector company I am going to speak about is one of the prominent companies in the Caribbean region, the name of which has been asked not to be revealed. During the work in this company, I have become the witness of the way the corporate governance was performed. According to the information I had been by my colleague,
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the process of implementing new corporate governance strategy has been implemented since the year of 1981, when the word combination 'corporate governance' has not yet been implemented and has been known only to a few people. The need in implementing this strategy lied in the fact that the government has been facing the necessity of merging this public sector company with another one, which put under the threat the future of many workers. That's why the Board of Directors decided to combine various corporate governance initiatives. The first step in implementation of the governance initiatives was the issue of the limited stock meant for the managers of the company as a part of their employment contract. Through this step the Board sincerely hoped that this would unite the managers with the company and would encourage them work for the benefit of this company, with building solid and long-term relations with the key shareholders. This set of initiatives was later followed by the granting the tag-along rights to all shareholders. From the critical point of view, tying the managers to the company as its shareholders may both work for the benefit and for the failure of the company. On the one hand - making managers shareholders of the company they work in may really encourage them for better achievements; on the other hand, people don't always understand the importance of being a shareholder, which means that not all workers, becoming shareholders will display better working results. However, it is very important for the managers to create solid relations with the investors and shareholders, which means that being a shareholder themselves will only help them in this process.
The Board of Directors has implemented a new capital share structure. This new structure allowed involving the minority shareholders to the governance process, which also assisted in maintaining the new capital share structure. The governance structure of the company described, seek to align the interests of the executive employers and the shareholders. The main guidance of the corporate governance of the company lies in the belief that effective system of governance supports the confidence of the shareholders and becomes a proper basis for the correct functioning in any public sector. It does not matter, whether the enterprise belongs to the public or private sector. These laws are applicable to all spheres of business. For example, one of the most effective steps in improving corporate governance was equalizing the dividend treatment between the preferred and the common shareholders. In this process to align the interests of the shareholders and the executives made the Board of the company establish a system of executive compensation which has been closely connected with the shareholder value creation. Since the year 2000, the bonuses which the executive workers received in their normal process of work, has been closely ...Download file "Public Sector Management" to see next pagesRead More
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