THE EFFECT OF CONFLICT OF INTEREST ON EXECTIVE MANAGEMENT Conflict of interest is a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influence by a secondary interest. Primary interest refers to the principal goals of the profession or activity‚ such as the protection of clients‚ the health of patients‚ the integrity of research‚ and the duties of public office. On the other hand secondary interest motives as the desire
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Introduction of Agency Theory The specific definition of the theory based on the sources investorword.com and investopedia.com defined that the agency theory is a theory explaining the relationship between principals such as shareholders and agents. It is essentially involves the cost and way of resolving the conflicts between the principals and agents and change the something slightly to the correct position and decision related to the two group of conflict. Thus‚ the main objective of agency theory is to
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This was a period of time that people tried to figure out what might affect the productivity and efficiency‚ like from motivation. It produced a variety of theories researching people’s psychological desires; around what do they need in different levels‚ such as Maslow’s Hierarchy of needs. However‚ this time we try to focus on two-factor theory. Employees in an organization are either satisfied or dissatisfied with their job based on whether they are motivated or not on their job. However‚ the kind
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Definition of ’Agency Theory’ A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving problems that can exist in agency relationships; that is‚ between principals (such as shareholders) and agents of the principals (for example‚ company executives). The two problems that agency theory addresses are: 1.) the problems that arise when the desires or goals of the principal and agent are in conflict‚ and the principal is unable
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What is the agency theory? Agency Theory is defined the branch of financial economics that looks at conflicts of interest between people with different interests in the same assets. This most importantly means the conflicts between: * shareholders and managers of companies. * shareholders and bond holders. The fact: Agency theory is rarely‚ if ever‚ of direct relevance to portfolio investment decisions. It is used to by financial economists to model very important aspects of how capital
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personalityresearch.org/papers/plaut.htm Criticisms of Freud’s theory There have been criticisms of psychoanalysis from every imaginable angle. It has been equally strongly defended‚ and has held up very well under fire. Two common criticisms‚ espoused by laypeople and professionals alike‚ are that the theory is too simple to ever explain something as complex as a human mind‚ and that Freud overemphasized sex and was unbalanced here (was sexist). My opinion is that these criticisms are to a large extent the result
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© Myles Cook‚ 2006 Milgram’s Agency Theory of Obedience One of the areas that have fascinated psychologists is that of obedience – why does someone obey another? In the period following World War 2‚ the subject became a popular one for researchers fascinated by the amount of obedience shown by the German soldiers in Nazi Germany when faced with orders that resulted in the torture and deaths of millions of Jews. Stanley Milgram‚ a Jew himself‚ decided that the only way to prevent any further
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Agency theory Kenya has 62 micro-finance NGO’s. They have demonstrated that micro-business lending in Kenya is feasible‚ and that small borrowers do pay. They have pioneered new product types and innovations and some are moving toward sustainability. The microfinance NGO’s have played an important part in moving government toward recognition of the small borrower and have been instrumental in advancing the cause of the proposed Micro-Finance Bill. Small borrowers and the informal sector form a
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| | Merit pay is used to reward successful performance and is based on the amount of funds released by the Finance Department. Larger merit increases are awarded to those who consistently exceed performance standards. Increases are not granted to employees whose performance has been rated unsatisfactory overall. In accordance with LKY Group of Companies guidelines‚ supervisors recommend whether an employee should receive any increase based on annual performance review and the amount of increase
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INTERPERSONAL COMMUNICATION APPROACH The view of development as a replica of the systems of the change agents The change agents defined development as a replica of their own systems. For example‚ during the cold war‚ the USA was defining development as the replica of its own political-economic system and opening the way for the transnational corporations. At the same time‚ the developing countries saw the ‘welfare state’ of the North Atlantic Nations as the ultimate goal of development. These nations
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