Organisation

ANSWER 1: Introduction: Agency Theory, Stewardship Theory and hatful dependance Theory (Resource Based Theory) ar popular, critical and obese Theory in board structure and composition. We could know the rendering of Agency Theory by (Jensen & Mecking, 1976: 308) We define pith relationship as a contract under which atomic number 53 or more persons (the rule(s)) engage another person (the agent) to figure out some service on their behalf which involves delegating some ratiocination making authority to the agent. Agency theory raises a fundamental problem in organizationsself-interested behavior. A corporations managers may send on personal goals that compete with the owners goal of maximization of sh atomic number 18holder wealth. Since the shareholders slide by managers to administer the firms assets, a potential fight of interest exists betwixt the two groups. Stewardship Theory, which is similar to Agency Theory, director are stewards of the organization, trusty individuals 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) favor of a firm lies primarily in the application of the deal 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 n ature and not perfectly locomote (Peteraf,! 1993). The Comparison and Contrast of Three Theories : The above said trinity theories could all to deceaseher imply in company. The company will possibly extents the market share and/or is more competitive in her field, if she manages the internal issue (staff, tangible and intangible resources) in candid 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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