Organisation

ANSWER 1: Introduction: Agency Theory, Stewardship Theory and pile dependance Theory (Resource Based Theory) ar popular, critical and arduous Theory in board structure and composition. We could know the variant of Agency Theory by (Jensen & Mecking, 1976: 308) We define message relationship as a contract under which unity or more persons (the rule(s)) engage another person (the agent) to beat some service on their behalf which involves delegating some destruction making authority to the agent. Agency theory raises a fundamental problem in organizationsself-interested behavior. A corporations managers may gear up on personal goals that compete with the owners goal of maximization of sh beowner wealth. Since the shareholders slide by managers to administer the firms assets, a potential struggle of interest exists betwixt the two groups. Stewardship Theory, which is similar to Agency Theory, double-decker are stewards of the organization, trusty i ndividuals who allow look after the interests of the owners of the corporation, by (Davis et al., 1997) The Resource Dependency Theory is a business forethought tool utilize to determine the strategic resources available to a company.

The fundamental principle of this theory is that the basis for a free-enterprise(a) vantage of a firm lies primarily in the application of the clunk of of import resources at the firms disposal (Wernerfelt, 1984; Rumelt,1984). To transform a short matched advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfect ly mobile (Peteraf, 1993). The Comparis! on and Contrast of Three Theories : The above said ternion theories could all to deceaseher imply in company. The company will peradventure extents the market share and/or is more competitive in her field, if she manages the internal issue (staff, tangible and intangible resources) in correct attitude. It is competitive advantages for her. Good board structure...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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