SHAREHOLDER MODEL

The Impact of Shareholder Model on Labour Management

The Impact of Shareholder Model on Labour Management

Introduction

Corporate Governance is a systematic procedure of interaction between shareholders and management of the company, including its board of directors and other stakeholders. Corporate governance is the ideology that provides a platform for equal distribution of rights between the shareholders and stakeholder. Corporate governance structure of an organization consist set of tools that allow shareholders to monitor the activities of company executives and take an active part in decision-making process of the organization. In addition, the corporate governance structure of an organization is also responsible for the rights distribution among the labour force of the organization. The workforce of the organization is also an active part of the organization. An organization becomes able to achieve its goals and objectives because of the dedication of its workforce.

If the tasks assigned to the workforce are completed with dedication, an organization can easily achieve its short-term and long-term objectives. Therefore, an organization should carefully formulate policies regarding the rights of the workforce in order to effectively manage the labour. The British case charges the costs of low productivity to the low-paid employee, who has little possibility of rejecting low-paid work. This does not solve the problem of welfare financing, as long as transfer payments still continue to rise due to rising poverty. Governance problems of employment and welfare relationship have to take into account the repercussions of training and qualification systems. The issue of the generation of skills is a systematic intervening force when evaluating the potential of employment creation in emerging economic sectors. There are different models suggested for corporate governance. Each model offers different ideologies and arguments. The shareholder model of corporate governance not only represents the rights of the shareholder in the organization but also influences the labour force of the corporation.

According to contrastive corporate studies, the shareholder model has a significant impact on organizational structure and contributes toward effective labour management. The purpose of this paper is to discuss the shareholder model of corporate governance and its impact on the labour force of the organization. In addition, this paper aims to explore the concept of corporate governance and its influence on the organization. Nevertheless, the study will also imply the shareholder model of corporate governance and evaluates its impact over organizational structure. According to different studies, corporate governance is not directly related to operations of the organization (operational management). Nevertheless, the corporate governance of the organization is not correlated with the tactical control of the company. However, independent scholars argue that the corporate governance conceptions significantly impact the strategic decisions and strategies of the organization.

The Shareholder Model

There are several models presented in relation with corporate governance. The shareholder model of corporate governance is one of sculpts that have a significant impact on organizational performance and management. The shareholder model of corporate governance is the contemporary model that represents the ownership of the corporation with respect to the ...