BSS064-6 Leading and Managing Organisational Resources Assignment Sample
Module code and Title: BSS064-6 Leading and Managing Organisational Resources Assignment Sample
To
CEO of Giacom
From
Members of “board of director (BOD)”
Subject Line: Corporate Governance and leadership Issues at Giacom and ways of preventing them.
Introduction and purpose
This email is being sent to provide awareness about “Corporate Governance” issues that occurred at “Giacom” recently and role of leadership leading to this failure will also be discussed. Moreover, this email will also discuss some recommendations that could be implemented within this company to prevent such issues from occurring.
Different aspects of “Corporate Governance” including sections on finance, ethics, as well as sustainability are covered in these discussions held within this email. These discussions will provide ideas about different types of roles of corporate governance in ensuring interests of stakeholders.
Different types of perspectives towards leadership including “Traditional perspective”, “Regenerative type of leadership”, and “Contemporary leadership” have been discussed in this email. In order to understand corporate governance different aspects of this needs understanding. Corporate Governance is developed for providing guidelines to organisational functionalities. These aspects of corporate governance include financial, ethical, and sustainability guidance. Implementation and maintenance of these guidelines ensures success of SMEs on a long-term basis.
Chosen company Giacom is oriented with diverse types of “Information Technology” services including “cloud services”, “security services” and “data backup” services. Different types of strategies regarding governance of company operations have been implemented within Giacom. Impacts of Corporate Governance on this company and issues that occur without maintenance of this corporate governance are also highlighted in this mil.
Critical analysis and evaluation
Corporate Governance
Corporate governance is defined in “UK Corporate Governance Code”. According to this code, “Corporate Governance” is a system of controlling or directing an organisation. Governance responsibilities of an organisation are responsibilities of “Board of directors” of that company. Shareholders of an organisation also play a crucial role in development of corporate governance. This is due to shareholders being responsible for appointing directors of as well as auditors within that organisation (FRC.ORG, 2022).
They also make sure proper structure for governing that organisation is prepared by directors. There are other duties of board members of an organisation under corporate governance (Koenane, 2018). This includes development of strategies suitable to an organisation. Allocation of appropriate leadership for implementation of these strategies and monitoring these strategies in action also.
“Corporate Governance” includes guidance towards activities performed by “Board of directors” of an organisation. This also includes procedure of development of values of a specific organisation. “UK Corporate Governance Code” provides guidance to board of directors of SMEs with ways of ensuring “Transparency”, “accountability”, “Good governance”, and “Sustainability” of an organisation (Mark and Vangelova, 2022). Determination of these functions increases sustainability of operations of an organisation on a long-term basis.
“Conflicts of interest” is a big issue that occurs within framework of “corporate governance”. This type of issue occurs when interests of executive or other employees responsible for controlling those organisational operations possess conflicting interests. Conflicts occur between company objectives and interests of employees of that organisation (Dat et al. 2020). Giacom possesses organisational goals of providing their customers with excellent IT solutions.
However, conflict would occur in case any controlling member of this organisation possesses interests in a business of computer sales (Jurakulovna and Bahodirovich, 2021). This will occur due to differences between organisational goals and different financial interests of controlling members of that organisation.
“Oversight” is another aspect that is responsible for causing “Corporate Governance issues” within a SME. “Oversight” includes board of an organisation being aware about daily operations performed within an organisation. Executives of that organisation are responsible for making board aware of these pieces of information about organisational functions.
Board members are also responsible for conveying information about organisational functionality and achievement of organisational goals through them to shareholders (Hakimah et al. 2019). However, in case board members are not having “Oversight” over company operations might impact level of performance of a company. In case of Giacom, without proper “oversight” of their board members their daily IT services may get disrupted.
“Accountability” of employees working at different levels of an organisation is necessary for success of that organisation. Without accountability “corporate governance” cannot achieve success. Employees working at every level of an organisation must be accountable for their work to other employees. This ensures success and efficiency of work procedures performed by employees. Without accountability, success of organisational operations is not ensured and “Corporate Governance” duties are not fulfilled (Danoshana and Ravivathani, 2019).
Giacom being an IT solution company requires employees to work at different steps of development of systems such as cloud computing or computer security. Therefore, employees are responsible for development of each component. Without being accountable for their duties any mistakes occurring within a system would not make any employee accountable for their mistakes. Therefore, proper accountability is required to be maintained within this organisation.
“Transparency” within an organisation is another aspect that impacts corporate governance within that organisation. Profits or losses incurred by an organisation along with business operations must be clear to their shareholders. This enables shareholders to be aware about usage of investments made by them within an organisation and encourages them towards future investments. However, in case transparency is not maintained then shareholders might face issue of “False pretence” towards an organisation (Danoshana and Ravivathani, 2019).
This leads to a reduction of trust and reduction in investments done by shareholders. Giacom being accountable for diverse categories of business segments, their shareholders must be made aware of their losses or profits on a regular basis maintaining transparency within this organisation.
Board members of an organisation are obliged towards development of strategies for securing best interest of their shareholders along with people associated with that specific organisation. Without proper ethical considerations “corporate governance” would be impacted within an organisation. Ethical guidance within Giacom would guide their employees to work in best interest of their shareholders. Giacom will provide them with top quality cloud service and other IT solutions. Without ethical practice being in place requirements of their organisations would not be made.
Finance
“Financial Corporate Governance” of an organisation provides guidance towards controlling actions of “organisational financing”, “utilising funds”, and “keeping transparency” about usage of funds. These guidelines are aimed at ensuring that funds are gained and allocated in a proper way by organisations. Moreover, usage of funds in different types of organisational operations are taken into account by managers and conveyed to executives.
These executives and board members convey these pieces of information to stakeholders. This is done to make stakeholders aware about performance of their investments. Financial pieces of information also include profit of losses incurred by organisations (Kyere and Ausloos, 2021). A transparency is required to be maintained with these pieces of information in order to make stakeholders aware about company operations. Moreover, financial guidelines lead to proper utilisation of funds and aid in achieving organisational goals.
Stakeholders being aware about this knowledge become aware of achievement of organisational goals. Giacom being an IT service providing company there are various shareholders associated with it. Moreover, services such as cloud services, security services, and many more include diverse phases of activities. Therefore, financial guidelines for proper functioning of each necessary step are very important. Without maintenance of transparency within profits or losses of this company it might impact investments of their shareholders.
Ethics
“Ethical Governance” within an organisation ensures that all activities performed are according to company guidelines. Moreover, implementation and maintenance of ethical guidelines also ensures that actions performed within an organisation are for achieving organisational goals (Alhammadi et al. 2018). “Ethical Governance” implemented within Giacom by its “Board of directors” ensures that organisational operations are performed towards successfully developing digital systems and meet with customer requirements.
Sustainability
“Corporate Governance” developed by board members of an organisation are also aimed at ensuring sustainability of organisation on a long term basis. This includes different types of guidelines for preventing issues from occurring within an organisation and avoiding disruption of operations. These guidelines provided through corporate governance not only increase sustainability of organisational operations but also ensure environmental aspects of organisational operations (Alhammadi et al. 2018).
“Corporate Governance” developed for Giacom ensures through financial, ethical, and sustainability guidelines that relations between this company and investors are maintained. This helped this company in gathering funds for their operations and continues their business on a long-term basis.
Leadership
Leadership of an organisation plays a crucial role in maintenance of “Corporate Governance”. Framework of “Corporate Governance” is developed by “Board of Directors” for having a control over organisational operations. However, this framework is implemented within an organisation by leaders of that organisation. Different types of principles followed in different types of leadership aid in controlling organisational operations. Leaders are responsible for guiding employees of an organisation to work for achieving organisational goals.
“Corporate Governance” is also developed for ensuring fulfilment of organisational goals. Therefore, leaders aid in following corporate governance by influencing employees to work for fulfilling organisational goals (Bhagat and Bolton, 2019). Financial, ethical and other guidelines mentioned within corporate governance of an organisation are carefully maintained by leaders. They make sure employees working under them follow these guidelines to avoid any legal issues and ensure sustainability of operations.
Traditional Perspective
“Traditional Leadership” enables leaders to be chosen based on leadership traits shown by them. According to this type of leadership, leaders set goals for team members and they work for achieving these goals. Goals set by these leaders are in line with organisational goals and upon completion benefit is incurred by organisations.
This perspective of leadership is more “Autonomous” in nature as leaders are responsible for providing guidance to team members (Koenane, 2018). Team members are not allowed to provide their opinion towards any objective. Leaders leading through this type of leadership are required to possess a higher level of self-awareness. Thai helps them to control their team members based on their leadership traits.
“Traditional perspective” towards leadership has been seen to be causing issues within various organisations. This type of leadership includes leading through inclusion of ideologies such as “command-and-control”, “Hierarchical organisational structure” or “Leadership based on seniority”. These types of choices often create conflicts between employees within SMEs. Moreover, employees having lower levels of efficiency get selected as leaders due to their organisational seniority (APQC, 2022).
This impacts organisational performance and causes significant loss of productivity. Insights of employees working within an organisation are also not taken in this type of leadership. This prevents leaders from being aware about and solving different issues faced by employees. Therefore, this type of leadership style is becoming obsolete over time.
Regenerative Leadership
Figure 1: Aspects of Regenerative Leadership (Source: THENATUREOFBUSINESS, 2022)
“Regenerative Leadership” includes leading members of a team through conditions occurring within living forms. Activities occurring within an organisation are compared with different stages of living conditions. These include aspects of “Living System Design”, “Living Systems Culture” and “Living Systems being” (THENATUREOFBUSINESS, 2022).
Analysis and implementation of ideas of these aspects of life provides these types of leaders with a chance of aligning incidents of living forms with leadership ideas. Focus of this type of leadership is kept on “Logic of life” and strategies are formed based on different activities of living organisms.
This type of leadership has been analysed to be very effective in securing organisational success. However, there have been some issues faced within SMEs during implementing such type of leadership. First issue faced by leaders of SMEs is to be able to align incidents of living beings with organisational functions. Failure to do this leads to failure of organisational functions (Mark and Vangelova, 2022).
Moreover, successful implementation of this type of leadership perspective with organisational procedure takes longer than other forms of leadership. SMEs are noticed to be implementing changes in their organisational functionality frequently. This makes it difficult to make changes within process of guiding employees. Therefore, this type of leadership is not efficient for implementation within SMEs.
Contemporary leadership
“Contemporary leadership” is a type of leadership that is focussed on aspects of working in a collaborative manner. In this type of leadership, leaders of an organisation lead through taking up best ideas from all ideas proposed by group members. Leaders through this type of leadership fosters bond between organisational objectives and individual objectives for employees (HOLTBYTURNER, 2022). This increases organisational performance by driving efforts of employees in favour of organisation. Issues faced by SMEs due to this type of leadership include lack of control over some employees, reduced performance due to lack of control, and also issue of accountability.
Conclusion and Recommendation
“Corporate Governance” is developed by board of directors as a tool of controlling operations of an organisation. Organisational aims and objectives are focussed during development of formation of “Corporate Governance” of an organisation. Therefore, throughout different types of guidelines included within “Corporate Guidance” whether it be financial, ethical or sustainability related they aim at fulfilling organisational objectives. Successful implementation and maintenance of these specifications mentioned within corporate governance provide success to organisations.
However, various instances have been mentioned within discussions above about issues occurring within SMEs due to improper corporate governance. These issues occur due to guidelines of corporate governance being not implemented properly.
There are different types of leadership theories and each of these theories includes different principles. Leaders of different organisations lead their team members through implementing different types of leadership styles. These leadership styles can be “Traditional”, “Contemporary”, or “Regenerative” in nature. These are chosen according to suitability of organisational type and functionality of organisation.
Different issues that are faced by organisations in case of each of these leadership styles have been discussed. Therefore, not a single leadership style can be identified to be perfect. However, “Contemporary leadership styles” as a result of including opinions of employees of organisation are more practical. Incorporation of ideas of employees provides insights to company operations and minor issues are also addressed efficiently.
Steps that might help SMEs in avoiding issues related to “corporate governance” and “Leadership” include usage of advanced technologies for monitoring organisational functionalities. Implementation of “Artificial Intelligence (AI)” based devices for analysing organisational activities would enable managers to monitor organisational activities remotely. Moreover, advanced communication devices can be used for enhancing communication between managers and other employees. Establishment of better communication will encourage employees towards achieving organisational goals.
SMEs can include a system of rewards for encouraging maintenance of duties mentioned within corporate governance of an organisation. In case of choosing most appropriate leadership technique for an SME, executives responsible for leading an organisation should analyse organisational activities minutely and according to functionality of that organisation choose most suitable leadership style.
References
Alabdullah, T.T.Y., Ahmed, E.R. and Muneerali, M., (2019). Effect of board size and duality on corporate social responsibility: what has improved in corporate governance in Asia? Journal of Accounting Science, 3(2), pp.121-135.
Alhammadi, S., Archer, S., Padgett, C. and Karim, R.A.A., (2018). Perspective of corporate governance and ethical issues with profit sharing investment accounts in Islamic banks. Journal of Financial Regulation and Compliance.
Al-Najjar, B., (2018). Corporate governance and audit features: SMEs evidence. Journal of Small Business and Enterprise Development.
APQC (2022) Problems with Traditional Leadership Available at: https://www.apqc.org/resource-library/resource-listing/problems-traditional-leadership [Accessed on: 30/09/2022]
Bhagat, S. and Bolton, B., (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58, pp.142-168.
BVCA (2022) Giacom. Available at: https://www.bvca.co.uk/Media-and-publications/Case-Studies/Technology-media-and-telecoms/Giacom [Accessed on: 30/09/2022]
CLOUDMARKET (2022) News. Available at: https://cloudmarket.com/news/ [Accessed on: 30/09/2022]
Danoshana, S. and Ravivathani, T., (2019). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. SAARJ Journal on Banking & Insurance Research, 8(1), pp.62-67.
Dat, P.M., Mau, N.D., Loan, B.T.T. and Huy, D.T.N., (2020). COMPARATIVE CHINA CORPORATE GOVERNANCE STANDARDS AFTER FINANCIAL CRISIS, CORPORATE SCANDALS AND MANIPULATION. Journal of security & sustainability issues, 9(3).
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