Professional Documents
Culture Documents
firm conformance
Features
Managers --- Stewards
Identification --- High Value Commitment
The Model of Man --- Collectivistic, Pro-organizational and Trustworthy
Managers Motivated --- Principal Objective, Growth, Achievement and
Self-actualization
Manager-principal Interest --- Convergence
Structures --- Facilitate and Empower
Owners Attitude --- Risk-propensity
Principal-manager Relationship --- Trust
Comparison
Theories on Relationship between Directors' functions
and Corporate Performance (stewardship theory---agent
theory)
Stewardship
Agent
Dominant Function of
Directors
Empowering:
Enable governance structures for
maximum potential of CEO and
managers
Monitoring:
Choose CEO
reward CEO
Evaluate CEO and company
performance
Performance Criteria
Limitation
Foundation of Theory
FIRM PERFORMANCE
Advantages:
providing an efficient leadership
preventing a potential rivalry
preventing the confusion
encouraging entrepreneurship and innovation
FIRM PERFORMANCE
FIRM PERFORMANCE
Dawn Harris and Constance Helfat (1998): Neither
FIRM PERFORMANCE
Lex Donaldson and James H. David (1991): ROE