Governance and Directorships – why students should learn about these
There are certain concepts in business management that people do not think of much. We are usually bothered with the brand value, employee satisfaction, marketing policies and financial strategies. These are important parameters to judge a company but are manifestations of what goes within the think tank of an organization. You got it right. We are talking about governance and directorships of companies that provide the necessary leadership.
Governance – the guiding principle of a company
Corporate governance is a broad ranging term that encompasses policies, systems, rules and relationships that create the authorities within a company. Different companies adopt different governance styles depending on its internal and external environment. The board of directors plays a vital role in choosing the style of governance and implementing it.
Different styles of corporate governance
We agree that when we talk about these issues most people consider them as mere theories and try to bypass them. However, business management students cannot ignore these as theories because when they would become managers and spearhead organizations they have to understand these styles and also work according to them. Thus at Myland Business Institute we teach our students about governance and directorships as we want to give them complete education on business management.
We ensure that the students get well acquainted with these terms and their implications. Let’s move on with governance styles.
Some companies implement the unitary board style of working in which managers and non-executives form the board. All members are privy to corporate data and hence there is a good flow of communication. The CEOs of these types of companies are extremely powerful as they devise the company’s business policies. These companies often have different committees to balance the distribution of power.
Under the dual board system, there is a management board and a supervisory board. The supervisory board is formed by the shareholders and is primarily responsible for supervising the management board. In this type of governance, the two are independent of each other and hence flow of information is not always very smooth.
Partnership management is another popular governance style in which the board and the top management work together and are involved in the day-to-day affairs of the company.
At Myland Business Institute we cover all the management styles as well as teach our students about directorships so that they have better knowledge about working of companies and can easily find their place in the corporate world. Even those students who aspire to be entrepreneurs can choose their own style of working.
For more information about the qualities of Governance and directorships or entire business courses in the Myland Business Institute, please, contact us.
Registration for studies here.