Strategic Management And Corporate Governance Essay

1094 Words Apr 10th, 2016 null Page
For any organization, the concern of management system is placed in priority. The reason came from the desire to have higher output of products, and gain more benefits. Managerial discretion, the concept created and brought to the discussion on how it influenced in the economic transition; in order to helps firm face the difficulties and challenges to survive. In addition, high managerial discretion brings benefit to firm by its flexible, in decision making process, forecasting and anticipating the unexpected outcome. Though its benefits can be seen through, without control and manage, high managerial discretion can bring harm to the organization as managers’ benefit is taken from the expenses of the owner or shareholders. The consequence, the two opposed perspectives: strategic management and corporate governance, bring the inside and approach to measure, evaluate and determine managerial discretion level. Through the review, I think that the hybrid result came from the two perspectives will bring the effectiveness and efficiency to the organizations. That is to say, high managerial discretion if done right in high governance structure, can only result the best for the firms.
Managerial discretion is the extent of what managers can do at their right. In the article, it is the restriction formed latitude of actions and latitude of objectives. In strategic management view, “which depicts discretion as the latitude of managerial actions is grounded within the upper echelon…

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