Total Quality Management Assignment
TOTAL QUALITY MANAGEMENT ASSIGNMENT Question 1. Reasons why the chief executive may realize that the interests of customers could conflict with the efforts to serve the share holders.
Introduction:
The first thing to bear in mind is the chief executive is a newly employed person and he has extensive business experience in managerial and internal controls which are well established and he has learned that the system being used to learn the Sound Health Limited has so many loopholes and contradicting systems of control hence ha has to try his level best of influencing the employees whom he has found there to accept the changes which may bring about conflicts.
Reasons:
A corporation’s managers may have personal goals that compete with the owners goal of maximization of shareholder wealth. Since the shareholders authorize managers to administer the firms assets, a potential conflict of interest exists between the groups.
An agency conflict may arise if firm is a sole proprietorship managed by owner, the owner manager will undertake actions to maximize his/ her own welfare. The owner manger may probably measure utility by personal wealth, but may trade of f other considerations, such as leisure and perquisites, against personal wealth. This may bring about a conflict because the shareholders may feel undermined by the Chief executive.
Managers have always been known to lead and direct an organization or a company by deploying and manipulating of resources e.g. human, capital, natural, intellectual and intangible. Share holders on the other hand are the one who holds one or more shares of stock in a joint company. In this the actual powers of the shareholders tends to be very limited though it seems that they are the owners of the companies. They don’t have any right of checking the books of accounts. This can also bring about the conflicts between the two parties.
Conflict of interest happens when both parties want to maximize each benefit. The shareholders
Introduction:
The first thing to bear in mind is the chief executive is a newly employed person and he has extensive business experience in managerial and internal controls which are well established and he has learned that the system being used to learn the Sound Health Limited has so many loopholes and contradicting systems of control hence ha has to try his level best of influencing the employees whom he has found there to accept the changes which may bring about conflicts.
Reasons:
A corporation’s managers may have personal goals that compete with the owners goal of maximization of shareholder wealth. Since the shareholders authorize managers to administer the firms assets, a potential conflict of interest exists between the groups.
An agency conflict may arise if firm is a sole proprietorship managed by owner, the owner manager will undertake actions to maximize his/ her own welfare. The owner manger may probably measure utility by personal wealth, but may trade of f other considerations, such as leisure and perquisites, against personal wealth. This may bring about a conflict because the shareholders may feel undermined by the Chief executive.
Managers have always been known to lead and direct an organization or a company by deploying and manipulating of resources e.g. human, capital, natural, intellectual and intangible. Share holders on the other hand are the one who holds one or more shares of stock in a joint company. In this the actual powers of the shareholders tends to be very limited though it seems that they are the owners of the companies. They don’t have any right of checking the books of accounts. This can also bring about the conflicts between the two parties.
Conflict of interest happens when both parties want to maximize each benefit. The shareholders