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Organizational Structure or Governance

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Explaining how major contextual factors affect businessdecision making (5 marks). Defining key terms, theories and concepts presented inTopics 1-5 (5 marks). Critical evaluation of managerial actions in relation to thecontextual factors discussed in Topics 1-5 (10 marks). Demonstrating understanding of the impact of a contextualfactor on organisational performance (5 marks). Correctly using the APA referencing system to cite academicsources in-text and in the reference list (3 marks). Correctly using appropriate conventions of academicwriting (2 marks). Contextual factors: ar...

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Explaining how major contextual factors affect businessdecision making (5 marks). Defining key terms, theories and concepts presented inTopics 1-5 (5 marks). Critical evaluation of managerial actions in relation to thecontextual factors discussed in Topics 1-5 (10 marks). Demonstrating understanding of the impact of a contextualfactor on organisational performance (5 marks). Correctly using the APA referencing system to cite academicsources in-text and in the reference list (3 marks). Correctly using appropriate conventions of academicwriting (2 marks). Contextual factors: are characteristics of the internal andexternal environment; such as structure, functions,environmental forces, risks, etc. Key terms: words that are being used in this unit such as soletrader, structure, SWOT analysis, benchmarking etc. Concept: this is an abstract idea that someone has namedand defined. For example, the concept of employeeengagement is defined as the extent to which employees feelpassionate about their jobs, are committed to the organisation,and put discretionary effort into their work. It has a cognitive,affective, and behavioural component. Theory: is a supposition or a system of ideas intended toexplain something. For example, increasing employeeengagement will increase performance, customer satisfaction,profitability and productivity, and reduce employee turnover.

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Organizations are directed and controlled through corporate governance. It ensures integrity andethical behavior in businesses. Furthermore, corporate governance ensures that all shareholdersare treated equally (Albrecht, 2016). It ensures that there is complete disclosure andtransparency in the system including the financial information of the organization. Corporategovernance considers the interests of all stakeholders including any contract based obligation orlegal or social obligations of businesses (Albrecht, 2016). It ensures that all strategic decisionsare made in the interest of the company for successful results (Wondra, 2017). It is important tonote that corporate governance helps in policy setting, establishing corporate strategy, givingassurance that all actions are supportive of strategic positions, to monitor investment decisions,to monitor capital investments, accountability to stakeholders and many more benefits (Wondra,2017). Therefore, we can say that the framework of corporate governance aims in promotingsuccess, growth and value creation of organizations.Article-1: Ojober, M.J and Windsperger J (2014) The Choice of Governance Modes ofInternational Franchise Firms - Development of an Integrative Model. Journal of InternationalManagement, 20(2): 153-187.This article describes the evolution of international franchise research and the associatedgovernance modes of such firms. The associated governance modes in the chosen model refer tovarious types such as wholly owned subsidiaries, joint ventures, master franchising as well asarea development franchising. This study specifically develops an integrative frameworkdetermining modes of international governance through a combinative approach of economies oforganization. For the same, various perspectives of strategic management are considered.Thegovernance modes are understood through application of various theories such as the transactioncost theory, resource-based theory, property rights theory and organizational capabilitiestheory. According to transaction cost theory, the firm is considered to be an organizationconstituting of people with different point of views. Furthermore, it is considered that the firm’sstructure can determine price and production. Therefore, as per this theory, managers are lookedupon as opportunists and bring about transactions to their interests. They may sometimes arrange

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transactions to benefit them at a personal level due to selfish motives.

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