McBride Financial Service Governance Evaluation

Running head : Corporate Governance

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McBride Financial Service Governance Evaluation

a ) Identify the corporate governance problems leading up to the corporate scandals of the early 21st century . Which of these problems might McBride fall prey to if Hugh does not accept your proposed solution

In the 20th century , the kind of corporate management laid the organization structure and its management structure , to manage the the enterprise . The business was not managed , rather the business was managing the enterprise . This is the main

problem that lead to the financial crisis of the 21st century . There are certain things in business that have to be managed , these are result volume , value , value added , performance indicators , result quality and result risk (Menard and Shirley , 2008

Performance indicators are such as performance effectiveness performance uncertainty and capital utilization . The 21st century problems are due to the lack of management and information about capital investment returns , performance cost capital amortization in solving worth declines , capital solution worth , both for current and planned new product result value and other information needs . All these were blocked by the 20th century management . The main cause of the problems here were the theories that were developed to organize the enterprise and not the business making the enterprise doom into problems . Business was not so much of concern but how the structure of the enterprise was organized , mattered so that it was organized and reorganized according to what theories people developed (Menard and Shirley , 2008

There was also the fundamental problem . This was failure to organize the business . Corporate governance involves managing an enterprise business . The activity of a business enterprise is to provide goods and services . These goods and services provision and distribution have to be organized for a business to be termed or qualified as organized Without organization of what constitutes a business , then there is no business organization . 20th century organization did not consider the organization of the business , instead , it organized the enterprise into functions , positions , units and so many others to form a contrived structure of the enterprise . Much value was given to what structure the enterprise had , and the theories were based on how they could be organized (Menard and Shirley , 2008 . Menard and Shirley note that once an organization structure is laid over the business , there can never be any management of the business (2008

Due to changes in the world the business must change . Recognition of this fact that a business change influences the structure of the business was not in the 20th century . If the business changes , it automatically requires the change of the structure of the business therefore reorganization of the structure , but if the structure of the enterprise comes first and is reorganized , is the business being managed really ? The rigid structure of the enterprise affects business change hence creation of change management problems . The creation of change management problems , leads to the enterprise being under pressure to form a new structure of the enterprise...