Sunday, November 25, 2012

Retreat on Constitutional Interpretation in Bishoftu speech by Speaker of HOF



Distinguished Guest


Ladies and gentlemen. 
Good Morning. I am delighted to be here, on behalf of the The House of Federation and myself, let me welcome you all to these Retreat on Constitutional Interpretation in Beshoftu.
Let me acknowledge and thank Justice Albie Sachs, Prof Ulrich Karpen and Dr Xavier Arbos, for being with us in this retreat. I feel deeply privileged by their presence to share us their rich experience in the subject matter.
The House of Federation is Ethiopia’s Second Chamber of the federal Parliament, representing Ethiopia’s 75 ethnic groups, the Nations, Nationalities and Peoples of Ethiopia. While the ethnic, cultural and religious diversity of our country has been suppressed during previous regimes, the Nations, Nationalities and Peoples became the founders of the new, federal and democratic Ethiopia in 1994. The Ethiopian Constitution is based on the principle of self-determination and focuses strongly both on group as well as individual rights.
The constitution strongly promotes equality, democracy and social justice and binds governments to the development of the country. The Nations, Nationalities and Peoples are granted an unconditional right to self-determination up to secession. For this reason, the Second Chamber of Parliament, the House of Federation is representing the Nations, Nationalities and Peoples and not the regional states.
While many second chambers have strong legislative mandates, the House of Federation’s mandates is different. The House of Federation resolves conflicts between regional states and between regional governments and the federal government, it designs and decides the larger part of the fiscal transfer system, it promotes the unity of the country through equitable development and last but not least, it interprets the constitution and promotes democracy and constitutionalism.
The federal system of Ethiopia has helped much in reducing armed conflicts and has been instrumental in helping the nation to inspire for bright future coexistence with tangible economic developments.  However the Ethiopian federal model has not been without weaknesses and criticisms. 
The Framers of Ethiopian constitution laid down the most important framework where by the politician, professional and legitimacy of sovereign power join and work together in constitutional interpretation. It is unique and we can call Ethiopian Model of Constitutional interpretation. Unlike other countries we opted in giving this mandate to The House of federation and CCI members as an advisory body to the House in interpreting the constitution.
Constitutional interpretation is one of the pillars of our constitution. Without strength in this pillar, the constitutional system could face a risk of serious damage or crisis. The quality, efficiency and transparency with which we deal with constitutional interpretation are core criteria by which the House of Federation and the Council of Constitutional Inquiry can be judged for meeting its obligations to our people.
 So far as a young Democratic institution both the House of federation and CCI has many limitations in terms of institutional capacity, mainly lack of skilled and professional experts, lack of system in case handling and also lack of awareness on the issues of constitutional interpretation among varies segments of the society.
Retreat like this one may help us to exchange experiences of other countries to deal with the challenges we have regarding institutional capacity. Although one size does not fit all, learning from others and adapting in to our own context should be principle. When we invite guests to share their experience.
Let us recall that this is actually the second meeting of this kind of basically the same group of experts, judges, parliamentarians and officials that have leadership roles in constitutional interpretation in our young democracy.  We had been also met in Adama in May 2011.
At that meeting – the first of its kind on this important subject – as a group we identified both the major strengths and some important weaknesses in our performance in the previous 15 years. There were also very animated discussions about some areas that needed improvements.  The question is: How do we make real progress?
  The House of Federation has embarked on immense and intense activities promoting constitutionalism and democracy throughout the last six years. Huge efforts have been undertaken in popularizing the democratic principles of the constitution. Among many others we have designed radio and TV programs which are both entertaining and educational. Most of them are quiz-shows, participating the audience. We have designed a series of animated cartoons for children, explaining democratic principles through short stories around the life of school-children. This includes equal rights of men and women, children’s rights, fair elections and the like. The resonance from children and adults towards this program but also to other is immense.
 The more we increase awareness creation, the more demand will be created among the society in bringing their case to the House of Federation and to the CCI. Therefore we are required to make and create capable institution which works effectively and efficiently.
Conclusion
Let me conclude by saying, this is a very good opportunity for CCI Members and Participants from the Region to exchange views and rich professional experience of our distinguished guests from three countries.   Based on this we will need to act swiftly to put in place the system which is adoptable to Ethiopian scenario.
 Finally, I would like to thank the organizers for the Preparation of this very valuable retreat which is designed to discuss on the most important issue and Center of gravity in our constitutional system.
Thank you. 





Retreat on Constitutional Interpretation in Bishoftu.Speech By Speaker of HOF



Distinguished Guest
Ladies and gentlemen. 
Good Morning. I am delighted to be here, on behalf of the The House of Federation and myself, let me welcome you all to these Retreat on Constitutional Interpretation in Bishoftu.
Let me acknowledge and thank Justice Albie Sachs, Prof Ulrich Karpen and Dr Xavier Arbos, for being with us in this retreat. I feel deeply privileged by their presence to share us their rich experience in the subject matter.
The House of Federation is Ethiopia’s Second Chamber of the federal Parliament, representing Ethiopia’s 75 ethnic groups, the Nations, Nationalities and Peoples of Ethiopia. While the ethnic, cultural and religious diversity of our country has been suppressed during previous regimes, the Nations, Nationalities and Peoples became the founders of the new, federal and democratic Ethiopia in 1994. The Ethiopian Constitution is based on the principle of self-determination and focuses strongly both on group as well as individual rights.
The constitution strongly promotes equality, democracy and social justice and binds governments to the development of the country. The Nations, Nationalities and Peoples are granted an unconditional right to self-determination up to secession. For this reason, the Second Chamber of Parliament, the House of Federation is representing the Nations, Nationalities and Peoples and not the regional states.
While many second chambers have strong legislative mandates, the House of Federation’s mandates is different. The House of Federation resolves conflicts between regional states and between regional governments and the federal government, it designs and decides the larger part of the fiscal transfer system, it promotes the unity of the country through equitable development and last but not least, it interprets the constitution and promotes democracy and constitutionalism.
The federal system of Ethiopia has helped much in reducing armed conflicts and has been instrumental in helping the nation to inspire for bright future coexistence with tangible economic developments.  However the Ethiopian federal model has not been without weaknesses and criticisms. 
The Framers of Ethiopian constitution laid down the most important framework where by the politician, professional and legitimacy of sovereign power join and work together in constitutional interpretation. It is unique and we can call Ethiopian Model of Constitutional interpretation. Unlike other countries we opted in giving this mandate to The House of federation and CCI members as an advisory body to the House in interpreting the constitution.
Constitutional interpretation is one of the pillars of our constitution. Without strength in this pillar, the constitutional system could face a risk of serious damage or crisis. The quality, efficiency and transparency with which we deal with constitutional interpretation are core criteria by which the House of Federation and the Council of Constitutional Inquiry can be judged for meeting its obligations to our people.
 So far as a young Democratic institution both the House of federation and CCI has many limitations in terms of institutional capacity, mainly lack of skilled and professional experts, lack of system in case handling and also lack of awareness on the issues of constitutional interpretation among varies segments of the society.
Retreat like this one may help us to exchange experiences of other countries to deal with the challenges we have regarding institutional capacity. Although one size does not fit all, learning from others and adapting in to our own context should be principle. When we invite guests to share their experience.
Let us recall that this is actually the second meeting of this kind of basically the same group of experts, judges, parliamentarians and officials that have leadership roles in constitutional interpretation in our young democracy.  We had been also met in Adama in May 2011.
At that meeting – the first of its kind on this important subject – as a group we identified both the major strengths and some important weaknesses in our performance in the previous 15 years. There were also very animated discussions about some areas that needed improvements.  The question is: How do we make real progress?
  The House of Federation has embarked on immense and intense activities promoting constitutionalism and democracy throughout the last six years. Huge efforts have been undertaken in popularizing the democratic principles of the constitution. Among many others we have designed radio and TV programs which are both entertaining and educational. Most of them are quiz-shows, participating the audience. We have designed a series of animated cartoons for children, explaining democratic principles through short stories around the life of school-children. This includes equal rights of men and women, children’s rights, fair elections and the like. The resonance from children and adults towards this program but also to other is immense.
 The more we increase awareness creation, the more demand will be created among the society in bringing their case to the House of Federation and to the CCI. Therefore we are required to make and create capable institution which works effectively and efficiently.
Conclusion
Let me conclude by saying, this is a very good opportunity for CCI Members and Participants from the Region to exchange views and rich professional experience of our distinguished guests from three countries.   Based on this we will need to act swiftly to put in place the system which is adoptable to Ethiopian scenario.
 Finally, I would like to thank the organizers for the Preparation of this very valuable retreat which is designed to discuss on the most important issue and Center of gravity in our constitutional system.
Thank you. 





Weekly Address: Wishing the American People a Happy Thanksgiving | The White House

Weekly Address: Wishing the American People a Happy Thanksgiving | The White House

Monday, November 5, 2012

SOME KEY CONCEPT FOR MANAGEMENT



PLANNING
Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.
According to Urwick, “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.
According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.
Steps in Planning Function
Planning function of management involves following steps:-
  1. Establishment of objectives
    1. Planning requires a systematic approach.
    2. Planning starts with the setting of goals and objectives to be achieved.
    3. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.
    4. Moreover objectives focus the attention of managers on the end results to be achieved.
    5. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective.
    6. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager.
    7. Such goals should be specified in qualitative terms.
    8. Hence objectives should be practical, acceptable, workable and achievable.


  1. Establishment of Planning Premises
    1. Planning premises are the assumptions about the lively shape of events in future.
    2. They serve as a basis of planning.
    3. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations.
    4. It is to find out what obstacles are there in the way of business during the course of operations.
    5. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent.
    6. Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes.
    7. Internal premises are controllable whereas external are non- controllable.
  2. Choice of alternative course of action
    1. When forecast are available and premises are established, a number of alternative course of actions have to be considered.
    2. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization.
    3. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made.
    4. After objective and scientific evaluation, the best alternative is chosen.
    5. The planners should take help of various quantitative techniques to judge the stability of an alternative.
  3. Formulation of derivative plans
    1. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
    2. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans.
    3. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
    4. Derivative plans indicate time schedule and sequence of accomplishing various tasks.



  1. Securing Co-operation
    1. After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
    2. The purposes behind taking them into confidence are :-
      1. Subordinates may feel motivated since they are involved in decision making process.
      2. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans.
      3. Also the employees will be more interested in the execution of these plans.
  2. Follow up/Appraisal of plans
    1. After choosing a particular course of action, it is put into action.
    2. After the selected plan is implemented, it is important to appraise its effectiveness.
    3. This is done on the basis of feedback or information received from departments or persons concerned.
    4. This enables the management to correct deviations or modify the plan.
    5. This step establishes a link between planning and controlling function.
    6. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.
ORGANIZING
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.
A manager performs organizing function with the help of following steps:-
  1. Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.

  1. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.


  1. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.
  2. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.
STAFFING
The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce.
According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”
Nature of Staffing Function
  1. Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.
  2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out.

  1. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.
  2. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.
  3. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements.
  4. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers,etc. In small companies, the top management generally performs this function. In medium and small scale enterprise, it is performed especially by the personnel department of that concern.
DIRECTING
DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place.
Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals.
Direction has got following characteristics:
  1. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates.
  2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization.
  3. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important.
  4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless.
  5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise; a subordinate receives instructions from his superior only.
  6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.

What is Controlling?
Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions
According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”
According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”

Controlling has got two basic purposes
  1. It facilitates co-ordination
  2. It helps in planning
Features of Controlling Function
Following are the characteristics of controlling function of management-
  1. Controlling is an end function- A function which comes once the performances are made in conformities with plans.
  2. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
  3. Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always looks to future so that follow-up can be made whenever required.
  4. Controlling is a dynamic process- since controlling requires taking reviewable methods; changes have to be made wherever possible.
  5. Controlling is related with planning- Planning and Controlling are two inseparable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.


Strategic Management - An Introduction
Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.
Strategic Management is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement.
Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task. They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management. Thus the employees can judge the impact of such changes on their own job and can effectively face the changes. The managers and employees must do appropriate things in appropriate manner. They need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well. Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization.
Following are the important conce
STRATEGY
The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving).
Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”.
A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives. While planning a strategy it is essential to consider that decisions are not taken in a vacuum and that any act taken by a firm is likely to be met by a reaction from those affected, competitors, customers, employees or suppliers.
Strategy can also be defined as knowledge of the goals, the uncertainty of events
and the need to take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the business the company is to carry on, the type of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers and society at large.
Features of Strategy
  1. Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight, the firms must be ready to deal with the uncertain events which constitute the business environment.
  2. Strategy deals with long term developments rather than routine operations, i.e. it deals with probability of innovations or new products, new methods of productions, or new markets to be developed in future.
  3. Strategy is created to take into account the probable behavior of customers and competitors. Strategies dealing with employees will predict the employee behavior.
Strategy is a well defined roadmap of an organization. It defines the overall mission, vision and direction of an organization. The objective of a strategy is to maximize an organization’s strengths and to minimize the strengths of the competitors.
Strategy, in short, bridges the gap between “where we are” and “where we want to be”.
Components of Strategy statement
The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement are as follows:
  1. Strategic Intent
An organization’s strategic intent is the purpose that it exists and why it will continue to exist, providing it maintains a competitive advantage. Strategic intent gives a picture about what an organization must get into immediately in order to achieve the company’s vision. It motivates the people. It clarifies the vision of the vision of the company. Strategic intent helps management to emphasize and concentrate on the priorities. Strategic intent is, nothing but, the influencing of an organization’s resource potential and core competencies to achieve what at first may seem to be unachievable goals in the competitive environment. A well expressed strategic intent should guide/steer the development of strategic intent or the setting of goals and objectives that require that all of organization’s competencies be controlled to maximum value.

Strategic intent includes directing organization’s attention on the need of winning; inspiring people by telling them that the targets are valuable; encouraging individual and team participation as well as contribution; and utilizing intent to direct allocation of resources. Strategic intent differs from strategic fit in a way that while strategic fit deals with harmonizing available resources and potentials to the external environment, strategic intent emphasizes on building new resources and potentials so as to create and exploit future opportunities.
  1. Mission Statement
Mission statement is the statement of the role by which an organization intends to serve it’s stakeholders. It describes why an organization is operating and thus provides a framework within which strategies are formulated. It describes what the organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and what makes an organization unique (i.e., reason for existence). A mission statement differentiates an organization from others by explaining its broad scope of activities, its products, and technologies it uses to achieve its goals and objectives. It talks about an organization’s present (i.e., “about where we are”). For instance, Microsoft’s mission is to help people and businesses throughout the world to realize their full potential. Wal-Mart’s mission is “To give ordinary folk the chance to buy the same thing as rich people.” Mission statements always exist at top level of an organization, but may also be made for various organizational levels. Chief executive plays a significant role in formulation of mission statement. Once the mission statement is formulated, it serves the organization in long run, but it may become ambiguous with organizational growth and innovations. In today’s dynamic and competitive environment, mission may need to be redefined. However, care must be taken that the redefined mission statement should have original fundamentals/components. Mission statement has three main components-a statement of mission or vision of the company, a statement of the core values that shape the acts and behaviour of the employees, and a statement of the goals and objectives.
Features of a Mission
    1. Mission must be feasible and attainable. It should be possible to achieve it.
    2. Mission should be clear enough so that any action can be taken.
    3. It should be inspiring for the management, staff and society at large.
    4. It should be precise enough, i.e., it should be neither too broad nor too narrow.
    5. It should be unique and distinctive to leave an impact in everyone’s mind.
    6. It should be analytical,i.e., it should analyze the key components of the strategy.
    7. It should be credible, i.e., all stakeholders should be able to believe it.
  1. Vision
A vision statement identifies where the organization wants or intends to be in future or where it should be to best meet the needs of the stakeholders. It describes dreams and aspirations for future. For instance, Microsoft’s vision is “to empower people through great software, any time, any place, or any device.” Wal-Mart’s vision is to become worldwide leader in retailing. A vision is the potential to view things ahead of themselves. It answers the question “where we want to be”. It gives us a reminder about what we attempt to develop. A vision statement is for the organization and it’s members, unlike the mission statement which is for the customers/clients. It contributes in effective decision making as well as effective business planning. It incorporates a shared understanding about the nature and aim of the organization and utilizes this understanding to direct and guide the organization towards a better purpose. It describes that on achieving the mission, how the organizational future would appear to be.
An effective vision statement must have following features-
    1. It must be unambiguous.
    2. It must be clear.
    3. It must harmonize with organization’s culture and values.
    4. The dreams and aspirations must be rational/realistic.
    5. Vision statements should be shorter so that they are easier to memorize.
In order to realize the vision, it must be deeply instilled in the organization, being owned and shared by everyone involved in the organization.

  1. Goals and objectives
A goal is a desired future state or objective that an organization tries to achieve. Goals specify in particular what must be done if an organization is to attain mission or vision. Goals make mission more prominent and concrete. They co-ordinate and integrate various functional and departmental areas in an organization. Well made goals have following features-
    1. These are precise and measurable.
    2. These look after critical and significant issues.
    3. These are realistic and challenging.
    4. These must be achieved within a specific time frame.
    5. These include both financial as well as non-financial components.
Objectives are defined as goals that organization wants to achieve over a period of time. These are the foundation of planning. Policies are developed in an organization so as to achieve these objectives. Formulation of objectives is the task of top level management. Effective objectives have following features-
    1. These are not single for an organization, but multiple.
    2. Objectives should be both short-term as well as long-term.
    3. Objectives must respond and react to changes in environment, i.e., they must be flexible.
    4. These must be feasible, realistic and operational.
Strategic management process
The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy.
Strategic management process has following four steps:
1.
Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it.

2.
Strategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies.
3.
Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources.
4.
Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives.
These components are steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situation’s requirement, so as to make essential changes.

Components of Strategic Management Process
Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with the other components and that this interaction often happens in chorus.

Environmental scanning
Organizational environment consists of both external and internal factors. Environment must be scanned so as to determine development and forecasts of factors that will influence organizational success. Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organization’s internal and external environment. It helps the managers to decide the future path of the organization. Scanning must identify the threats and opportunities existing in the environment. While strategy formulation, an organization must take advantage of the opportunities and minimize the threats. A threat for one organization may be an opportunity for another.
Internal analysis of the environment is the first step of environment scanning. Organizations should observe the internal organizational environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders, access to natural resources, brand awareness, organizational structure, main staff, operational potential, etc.
Also, discussions, interviews, and surveys can be used to assess the internal environment. Analysis of internal environment helps in identifying strengths and weaknesses of an organization.
As business becomes more competitive, and there are rapid changes in the external environment, information from external environment adds crucial elements to the effectiveness of long-term plans. As environment is dynamic, it becomes essential to identify competitors’ moves and actions. Organizations have also to update the core competencies and internal environment as per external environment. Environmental factors are infinite, hence, organization should be agile and vigile to accept and adjust to the environmental changes. For instance - Monitoring might indicate that an original forecast of the prices of the raw materials that are involved in the product are no more credible, which could imply the requirement for more focused scanning, forecasting and analysis to create a more trustworthy prediction about the input costs. In a similar manner, there can be changes in factors such as competitor’s activities, technology, market tastes and preferences.
While in external analysis, three correlated environment should be studied and analyzed —
  • immediate / industry environment
  • national environment
  • broader socio-economic environment / macro-environment
Examining the industry environment needs an appraisal of the competitive structure of the organization’s industry, including the competitive position of a particular organization and it’s main rivals. Also, an assessment of the nature, stage, dynamics and history of the industry is essential. It also implies evaluating the effect of globalization on competition within the industry. Analyzing the national environment needs an appraisal of whether the national framework helps in achieving competitive advantage in the globalized environment. Analysis of macro-environment includes exploring macro-economic, social, government, legal, technological and international factors that may influence the environment. The analysis of organization’s external environment reveals opportunities and threats for an organization.
Strategic managers must not only recognize the present state of the environment and their industry but also be able to predict its future positions
Strategy Formulation
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. The process of strategy formulation basically involves six main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order.
  1. Setting Organizations’ objectives - The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.



While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.
  1. Evaluating the Organizational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own strengths and weaknesses as well as their competitors’ strengths and weaknesses.
After identifying its strengths and weaknesses, an organization must keep a track of competitors’ moves and actions so as to discover probable opportunities of threats to its market or supply sources.
  1. Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives. The idea behind this is to compare with long term customers, so as to evaluate the contribution that might be made by various product zones or operating departments.
  2. Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit. This requires a careful analysis of macroeconomic trends.
  3. Performance Analysis - Performance analysis includes discovering and analyzing the gap between the planned or desired performance. A critical evaluation of the organizations past performance, present condition and the desired future conditions must be done by the organization. This critical evaluation identifies the degree of gap that persists between the actual reality and the long-term aspirations of the organization. An attempt is made by the organization to estimate its probable future condition if the current trends persist.
  4. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.
Strategy Implementation
Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. Organizational structure allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as maximize efficiency, quality, and customer satisfaction-the pillars of competitive advantage. But, organizational structure is not sufficient in itself to motivate the employees.
An organizational control system is also required. This control system equips managers with motivational incentives for employees as well as feedback on employees and organizational performance. Organizational culture refers to the specialized collection of values, attitudes, norms and beliefs shared by organizational members and groups.
Follwoing are the main steps in implementing a strategy:
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Developing an organization having potential of carrying out strategy successfully.
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Disbursement of abundant resources to strategy-essential activities.
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Creating strategy-encouraging policies.
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Employing best policies and programs for constant improvement.
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Linking reward structure to accomplishment of results.
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Making use of strategic leadership.
Excellently formulated strategies will fail if they are not properly implemented. Also, it is essential to note that strategy implementation is not possible unless there is stability between strategy and each organizational dimension such as organizational structure, reward structure, resource-allocation process, etc.
Strategy implementation poses a threat to many managers and employees in an organization. New power relationships are predicted and achieved. New groups (formal as well as informal) are formed whose values, attitudes, beliefs and concerns may not be known. With the change in power and status roles, the managers and employees may employ confrontation behaviour.
Following are the main differences between Strategy Formulation and Strategy Implementation-

Strategy Formulation
Strategy Implementation
Strategy Formulation includes planning and decision-making involved in developing organization’s strategic goals and plans.
Strategy Implementation involves all those means related to executing the strategic plans.
In short, Strategy Formulation is placing the Forces before the action.
In short, Strategy Implementation is managing forces during the action.
Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making.
Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions.
Strategy Formulation emphasizes on effectiveness.
Strategy Implementation emphasizes on efficiency.
Strategy Formulation is a rational process.
Strategy Implementation is basically an operational process.
Strategy Formulation requires co-ordination among few individuals.
Strategy Implementation requires co-ordination among many individuals.
Strategy Formulation requires a great deal of initiative and logical skills.
Strategy Implementation requires specific motivational and leadership traits.
Strategic Formulation precedes Strategy Implementation.
STrategy Implementation follows Strategy Formulation.

Strategy Evaluation
Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in todays dynamic world with socio-economic, political and technological innovations. Strategic Evaluation is the final phase of strategic management.
The significance of strategy evaluation lies in its capacity to co-ordinate the task performed by managers, groups, departments etc, through control of performance. Strategic Evaluation is significant because of various factors such as - developing inputs for new strategic planning, the urge for feedback, appraisal and reward, development of the strategic management process, judging the validity of strategic choice etc.
The process of Strategy Evaluation consists of following steps-
  1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements for performing the main task. The performance indicator that best identify and express the special requirements might then be determined to be used for evaluation. The organization can use both quantitative and qualitative criteria for comprehensive assessment of performance. Quantitative criteria includes determination of net profit, ROI, earning per share, cost of production, rate of employee turnover etc. Among the Qualitative factors are subjective evaluation of factors such as - skills and competencies, risk taking potential, flexibility etc.
  2. Measurement of performance - The standard performance is a bench mark with which the actual performance is to be compared. The reporting and communication system help in measuring the performance. If appropriate means are available for measuring the performance and if the standards are set in the right manner, strategy evaluation becomes easier. But various factors such as managers contribution are difficult to measure. Similarly divisional performance is sometimes difficult to measure as compared to individual performance. Thus, variable objectives must be created against which measurement of performance can be done. The measurement must be done at right time else evaluation will not meet its purpose. For measuring the performance, financial statements like - balance sheet, profit and loss account must be prepared on an annual basis.
  3. Analyzing Variance - While measuring the actual performance and comparing it with standard performance there may be variances which must be analyzed. The strategists must mention the degree of tolerance limits between which the variance between actual and standard performance may be accepted. The positive deviation indicates a better performance but it is quite unusual exceeding the target always. The negative deviation is an issue of concern because it indicates a shortfall in performance. Thus in this case the strategists must discover the causes of deviation and must take corrective action to overcome it.
  4. Taking Corrective Action - Once the deviation in performance is identified, it is essential to plan for a corrective action. If the performance is consistently less than the desired performance, the strategists must carry a detailed analysis of the factors responsible for such performance. If the strategists discover that the organizational potential does not match with the performance requirements, then the standards must be lowered. Another rare and drastic corrective action is reformulating the strategy which requires going back to the process of strategic management, reframing of plans according to new resource allocation trend and consequent means going to the beginning point of strategic management process.
Strategic Decision
Strategic decisions are the decisions that are concerned with whole environment in which the firm operates the entire resources and the people who form the company and the interface between the two.
Characteristics/Features of Strategic Decisions
  1. Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others.
  2. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.
  3. Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about.
  4. Strategic decisions involve a change of major kind since an organization operates in ever-changing environment.
  5. Strategic decisions are complex in nature.

  1. Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk.
  2. Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions which help or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision.
The differences between Strategic, Administrative and Operational decisions can be summarized as follows-
Strategic Decisions
Administrative Decisions
Operational Decisions
Strategic decisions are long-term decisions.
Administrative decisions are taken daily.
Operational decisions are not frequently taken.
These are considered where The future planning is concerned.
These are short-term based Decisions.
These are medium-period based decisions.
Strategic decisions are taken in Accordance with organizational mission and vision.
These are taken according to strategic and operational Decisions.
These are taken in accordance with strategic and administrative decision.
These are related to overall Counter planning of all Organization.
These are related to working of employees in an Organization.
These are related to production.
These deal with organizational Growth.
These are in welfare of employees working in an organization.
These are related to production and factory growth.

SWOT ANALYSIS
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given below-

  1. Strengths- Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc.
  2. Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc.
  3. Opportunities- Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue.
  4. Threats- Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.
Advantages of SWOT Analysis
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner-
  1. It is a source of information for strategic planning.
  2. Builds organization’s strengths.
  3. Reverse its weaknesses.
  4. Maximize its response to opportunities.
  5. Overcome organization’s threats.
  6. It helps in identifying core competencies of the firm.
  7. It helps in setting of objectives for strategic planning.
  8. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.
SWOT Analysis provide information that helps in synchronizing the firm’s resources and capabilities with the competitive environment in which the firm operates.
SWOT ANALYSIS FRAMEWORK

 
Limitations of SWOT Analysis
SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as very simple because of which the organizations might overlook certain key strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an organization can identify these aspects for itself.
There are certain limitations of SWOT Analysis which are not in control of management. These include-
  1. Price increase;
  2. Inputs/raw materials;
  3. Government legislation;
  4. Economic environment;
  5. Searching a new market for the product which is not having overseas market due to import restrictions; etc.
Internal limitations may include-
  1. Insufficient research and development facilities;
  2. Faulty products due to poor quality control;
  3. Poor industrial relations;
  4. Lack of skilled and efficient labour; etc
Strategic leadership
Strategic leadership refers to a manger’s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees. It is the potential to influence organizational members and to execute organizational change. Strategic leaders create organizational structure, allocate resources and express strategic vision. Strategic leaders work in an ambiguous environment on very difficult issues that influence and are influenced by occasions and organizations external to their own.
The main objective of strategic leadership is strategic productivity. Another aim of strategic leadership is to develop an environment in which employees forecast the organization’s needs in context of their own job. Strategic leaders encourage the employees in an organization to follow their own ideas. Strategic leaders make greater use of reward and incentive system for encouraging productive and quality employees to show much better performance for their organization. Functional strategic leadership is about inventiveness, perception, and planning to assist an individual in realizing his objectives and goals.
Strategic leadership requires the potential to foresee and comprehend the work environment. It requires objectivity and potential to look at the broader picture.
A few main traits / characteristics / features / qualities of effective strategic leaders that do lead to superior performance are as follows:
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Loyalty- Powerful and effective leaders demonstrate their loyalty to their vision by their words and actions.
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Keeping them updated- Efficient and effective leaders keep themselves updated about what is happening within their organization. They have various formal and informal sources of information in the organization.
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Judicious use of power- Strategic leaders makes a very wise use of their power. They must play the power game skillfully and try to develop consent for their ideas rather than forcing their ideas upon others. They must push their ideas gradually.
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Have wider perspective/outlook- Strategic leaders just don’t have skills in their narrow specialty but they have a little knowledge about a lot of things.
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Motivation- Strategic leaders must have a zeal for work that goes beyond money and power and also they should have an inclination to achieve goals with energy and determination.
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Compassion- Strategic leaders must understand the views and feelings of their subordinates, and make decisions after considering them.
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Self-control- Strategic leaders must have the potential to control distracting/disturbing moods and desires, i.e., they must think before acting.
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Social skills- Strategic leaders must be friendly and social.
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Self-awareness- Strategic leaders must have the potential to understand their own moods and emotions, as well as their impact on others.
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Readiness to delegate and authorize- Effective leaders are proficient at delegation. They are well aware of the fact that delegation will avoid overloading of responsibilities on the leaders. They also recognize the fact that authorizing the subordinates to make decisions will motivate them a lot.
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Articulacy- Strong leaders are articulate enough to communicate the vision(vision of where the organization should head) to the organizational members in terms that boost those members.
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Constancy/ Reliability- Strategic leaders constantly convey their vision until it becomes a component of organizational culture.
To conclude, Strategic leaders can create vision, express vision, passionately possess vision and persistently drive it to accomplishment.

What is Corporate Governance?
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
Corporate Governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. Corporate Governance clearly distinguishes between the owners and the managers. The managers are the deciding authority. In modern corporations, the functions/ tasks of owners and managers should be clearly defined, rather, harmonizing.
Corporate Governance deals with determining ways to take effective strategic decisions. It gives ultimate authority and complete responsibility to the Board of Directors. In today’s market- oriented economy, the need for corporate governance arises. Also, efficiency as well as globalization are significant factors urging corporate governance. Corporate Governance is essential to develop added value to the stakeholders.
Corporate Governance ensures transparency which ensures strong and balanced economic development. This also ensures that the interests of all shareholders (majority as well as minority shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights and that the organization fully recognizes their rights.
Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral, as well as ethical environment.
Benefits of Corporate Governance

  1. Good corporate governance ensures corporate success and economic growth.
  2. Strong corporate governance maintains investors’ confidence, as a result of which, company can raise capital efficiently and effectively.
  3. It lowers the capital cost.
  4. There is a positive impact on the share price.
  5. It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization.
  6. Good corporate governance also minimizes wastages, corruption, risks and mismanagement.
  7. It helps in brand formation and development.
  8. It ensures organization in managed in a manner that fits the best interests of all.