Governance and what constitutes good or bad governance of sporting organizations have continued to be a topic, hotly debated today as it has been for the last decade. An important point that bears repeating is that there is no model of governance that will bring transformation to a poorly performing organization into a pillar of high performance. Ideally, the performance of the board is almost entirely dependent on the people involved.
The models or frameworks used can only help by providing tools to work with. Inherently, those involved in the management plays an awful role in ensuring that the all the plans are due in order to realize both short, medium and long term objectives. In this case, therefore, the paper aims at describing and evaluating the Strebel’s Contingent Perspective of Corporate Governance in various realms.
According to Strabel, business competition as an environmental factor and strategy as an organizational factor are important determinants of corporate governance. On the other hand, organizational performance and earnings quality are two dimensions of its effectiveness. It is important to note that corporate governance is effective in improving earnings quality and reducing accounting and governance risks. When the employees and the employer corporate in their dealings, the likelihood of having a high output is high as opposed to hen the two don’t corporate.
The performance also depends on the environment created by the employer to the employees. Working hand in hand in most cases, makes both to build confidence in whatever thing that they are doing, thus resulting to positive impact in most occasions.
Another aspect of corporate governance is the need for independent directors and set director tenure. In so doing, the organization is measured on its performance as far as profit is concerned.
The directors must be independent in the decision they make, and they must be geared towards taking the organization to higher plinths. The performance of the organization is measured in the manner in which the directors manage the finances, and all the aspects that are aimed at giving the organization good return. By so doing, it calls for a team work in every department. Everyone should be accountable and responsible for his dealings to ensure that the performance of the company is maintained.
In dealing with external and internal forces, the governance must emphasize a particular focus in decision-making and resource allocation. This role changes as the importance and nature of external forces, the externalities. The external forces help to shape the future of the organization. Current operations or planning needs changes and the changes must be geared towards creating positive impact in the business.
While making the change, the stakeholders must be focused and stand firm in making them, because when made wrongly, it can affect the progress of the firm. On the other hand, internal forces, internalities, have their own impact, as well as adding to those external factors. A good example is given in the case where the management is ineffective and the functionality of the organization is affected by internal or external factors. In this case, the board of management has to be involved in execution, taking a steering or coaching auditing, supervising, coaching, and steering, each with a different perspective and behavior role to bring the organization in line.
The composition of the executive committee should be reviewed annually. This should be done with respect to the dominant role type represented and the manner in which it fits in the environment. When there is a warning signal of an important shift in governance conditions, the composition of the executive committee should be ready to make changes.
The alteration should be made by drawing on the relevant subcommittee and making a corresponding change in the manner in which the board makes approaches to the decisions made. On the same plinth, when a shift in the governing subset of activities and related board role is required, the new driving role does not necessarily have to be acquired from scratch. Instead, it can be installed quickly by shifting the composition and locus of power in the executive committee. This is an implication that to show that the government should be flexible enough to accommodate any change that is aimed at making success within the organization.
From the analysis made, it is inherent to say that Strebel’s Contingent perspective of Corporate Governance aims at making successful operations within the organization most of the time. When adopted by directors and mangers in every business set up, the governance can result to high output, hence making the business to grow to higher standards. By so doing, the business will thrive because there are corporations in every sector.