Evaluation of a Particular Contextual Factorâ€Myassignmenthelp.Com

Question: Evaluation of a particular contextual factor? Answer: Introduction The aim of the following report is to have an in-depth evaluation of a particular contextual factor, which would be convenient for an organization, which has been chosen and discussed in the previous assignment. Therefore, the focus of the present assignment would be to assess the credibility of the chosen contextual factor for the particular business practice discussed in the assignment one. The assessment of the chosen contextual factor would be pursued in order to understand whether the considered organizational factor would be able to enhance the business practice of the organization. Considering the perspective regarding the business organization presented in the previous one, the contextual factor of corporate governance would be appropriate, as corporate governance is essential for the fruitful management of the internal factors of an organization. Through having a thorough discussion about the considered contextual factor corporate governance, the following report will reach to a proper conclusion. It will help in making appropriate recommendations about how the contextual factor can be properly utilized for enhancing internal factors of the organization. It can be anticipated here that the evaluation of the aspect of governance or corporate governance will be helpful for acquiring a better management perspective. Discussion Prior to identify and evaluate the significance of the considered contextual factor, it is essential to have a clear and concise idea about the term in the organizational context. In terms of one of the essential contextual factors, the term governance or corporate governance is known to be a particular system or set of particular organizational procedures, practices as well as rules (Tricker Tricker, 2015). Based on the Australian Institute of Company Directors, the phrase corporate governance is indicative of a particular aspect in the organizational business context that encompasses all the policies, regulations, relationships, systems and processes, which every organizational authority requires to exercise as well as maintain (Van Grembergen De Haes, 2017). In this context, it should be mentioned that the fundamental attributes of corporate governance is formed by both the internal and external factors of an organization, which means constitution, policies of an organization, expectation from the communities and legal regulations highly determine the fundamental attributes of corporate governance (Acharya et al., 2013). According to Larcker Tayan (2015), corporate governance is responsible for balancing the interests of the board of the directors of an organization as well as of the executives and stakeholders of an organization. Moreover, corporate governance assists an organization by designing a distinct format considering the organizational aims and visions. The format provided by corporate governance helps in establishing objectives according to the organizational mission, vision and further it shows the convenient methods for achieving those objectives. Predominantly, there are three kinds of corporate governance styles, which are dual board, partnership management and Unitary Board (Claessens Yurtoglu, 2013). Adoption of the Unitary Board kind of corporate governance means that an organization is having a board of directors and non-executives who do not possess any potential bond with a particular organization prior to their appointment. When an organization pursues unitary board in terms o f corporate governance, the organization obtains smooth flow of communication among the executive individuals though most of the time, the executive members hold extremely potential roles. Consequently, they determine formulation of each of the organizational policies (Starbuck, 2014). On the other hand, several times organizations prefer to keep a separate supervisory board along with a separate management board in order to pursue a satisfactory and risk less authorial maintenance within the organization. It has been understood that the joint operation of a management and a supervisory board generally work under the corporate governance, which is known as the dual board. If an organization pursues the dual board corporate governance style, two of the aforementioned boards work independently and consequently the organization loses a fluid communication process (Westphal Zajac, 2013). As per the reason that in the dual board governance system, the shareholders play the main role in electing the supervisory board, most of the time the corporate governance becomes partial. However, it has been further understood that in the partnership management kind of corporate governance, an organization achieves a high involvement from the board as well as the top management (La rcker Tayan, 2015). According to Khan et al. (2013), in terms of corporate governance, the partnership management style works best. In the partnership management style, the board members of an organization give active participation in each of the committee works as per the reason that they have constantly give feedback to the hierarchy. Henceforth, it is understandable that, in the partnership management style an organization can fruitfully pursue a transparency and constant support from both the board of directors and the management (Bushee et al., 2013). In this respect, it is required to mention the fundamental mechanism, which helps an organizations corporate governance in efficiently maintaining its fundamental responsibilities, are the internal, external mechanism and the independent audit. The internal mechanism acts as the control devices, which not only monitors the organizational activities as well as progress of the organization but also assists an enterprise in taking corrective actions in crucial times (Zahra, 2014). On the other side, with the external mechanism, corporate governance helps an organization in meeting the objectives of external aspects like the regulation board, government, varied trade unions and most importantly the financial companies. Therefore, it can be contemplated that the corporate governance is an efficient contextual factor that helps in pursuing debt management as well as legal compliance. Most significantly, with the help of the mechanism of independent audit, corporate governance guides an org anization in the right direction to serve financial statement to both external and internal stakeholders (Berger et al., 2016). It has been further understood that by providing financial statement to the internal as well as external stakeholders organizational authorities successfully present the financial performances of the organization to each of the engaged stakeholders. It can be therefore asserted that corporate governance is such an essential facet of an organization without which it cannot operate in a systematic and successful way. It is also required to mention that an organization needs to consider legal acts and regulations imposed by an organization. It has been identified above that corporate governance is itself is a mechanism that takes the responsibility to accomplish as well as monitor an organizations internal and external operation and outcomes. Therefore, understandably in order to deal with some of the crucial external aspects like government and government imposed laws, a potential hold on corporate governance is required (Larcker Tayan, 2015). It has been found out that a business organization has to abide by certain legal acts and regulations and in order to have a legal existence in the society, an organization should oblige to those laws, which are designed by individual government. In Australia, a business enterprise is suppo se to maintain minimum Corporation Act 2001 and Australian Securities and Investment law 2001, which are considered to be the commonwealth legislations of Australia (Zahra, 2014). It should be considered that a business organization could not abide the aforementioned laws, if the organization does not have a proper corporate governance system. Corporate governance itself acts like an organizational law that formulates duties and procedures and at the same time monitors whether those are being accomplished appropriately or not. According to the corporation act the boards of directors or the individuals who are responsible for pursuing the acts of corporate governance are obliged to fulfill the duty of care and diligence, act in the best interest of a company and the duty of preventing an organization from external and internal risks (Tricker Tricker, 2015). The statutory duties as propagated by the Australian corporation act 2001 are indicative of the fact that it is not possible for an organization to maintain a legal existence in the market. Therefore, the aforementioned discourse of evaluation is indicative of the fact that corporate governance is an asset for an organization, which not only serves for the maintenance of an organizations internal and external aspects but also helps in maintaining a legal existence of the enterprise in the business market. Conclusion From the above discourse, it has been understood that corporate governance is an essential organizational component, without which it is not possible for an organization to maintain smooth internal and external operations. Additionally, the above discourse gives hint of the fact that in order to keep a legal existence in the market; a business organization essentially should have potential organizational governance. Recommendations For the organization presented in Assignment one appropriate kind of corporate governance and required activities would be the partnership management governance. It is because with the help of partnership management, the organization could maintain a transparent working culture. At the same time flexible communication as well as continuous modification in the management and other organizational activities will be efficiently maintained. The activities, which would assist the organization in pursuing fruitful partnership management governance, are Establish a board of efficient directors Recruit experienced and trustworthy individuals for the position of management Continuous monitoring on organizational performance Conduct risk assessment and thereafter risk management Ensure all the managers and the directors have the adequate amount of information they requir References Acharya, V. V., Gottschalg, O. F., Hahn, M., Kehoe, C. (2013). Corporate governance and value creation: Evidence from private equity.Review of Financial Studies,26(2), 368-402. Berger, A. N., Imbierowicz, B., Rauch, C. (2016). 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