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THOUGHTS ON PURPOSE OF CORPORATE ESTABLISHMENT: BARRIERS OR AVENUES TO PROGRESS?

The title to my sharing is a quest to put in writing some perspectives on the subject.

Hoping that I am on the correct trajectory, I begin by acknowledging that behavioral theories of optimal performance in organisations continue to evolve as the world responds to changes in how business is done.

For instance, I have come across approaches that suggest that there should be less focus on heirarchy in organisations so that innovation and teamwork can thrive with minimal restrictions on how far one can go with delivery on tasks. However, there are arguments to this theory in the sense that it assumes that there will be harmony at all levels and doesn’t take into consideration who would be responsible and accountable when things go wrong.

Having appreciated that being responsive to technological and other advancements and the nuances they come with in terms of ways of work, I will focus my thoughts on practice that is still generally applicable to explain my views.

The corporate establishment will typically comprise the shareowners at the apex, the governing body, the C-Suite (or Executive Management) Senior Management, Middle Management and other structures below in the pyramid.

I propose that the organisation establishment be seen as the vehicle that the corporate is expected to use to operate the business for which it was created. It defines who should do what in an organisation. The establishment will pave the way for determining job description , evaluation and remuneration in relation to each position. It also creates groups and reporting structures which ultimately feed in to the apex of the organisation.

The establishment demonstrates the inter relations between individuals and groups in the organisation to ensure that the strategic goals and objectives are met in a systematic, focused and efficient manner.

As an ardent supporter of structure and order being a critical success factor of any business activity, I am of the view that issues of transparency, accountability and responsibility which are part of the pillars of corporate governance are best realized in an establishment that epitomizes the essence of the pillars.

Responsibility and accountability should not be obscure, otherwise injustice will come to persons who had very little or nothing to do with an outcome of certain behavior. Imagine an officer who was tasked to simply gather information and hand it over to his supervisor for analysis and report, being held accountable for the negligent evaluation of the information done by his supervisor. That would be a total misapprehension of the concept of teamwork, isn’t it?

What is important is to ensure that the establishment is respected and implemented in the most efficient way possible that does not encourage ambiguity of functions which may lead to uncertainty and confusion, which are fine recipes for corporate polarity.