مدیری برای آینده (مدیریت)

Methods of escaping from crisis

 

اداره شرکت ممکن است به عنوان فرآیند باشد که بر طبق آن که تعادل میان اهداف اقتصادی و اجتماعی ، منافع فردی و عمومی وجود دارد تعریف شده است.

یکی از اصول مهم CG اصل تقسیم حق مالکیت و کنترل است. این ایده با مشکل عدم تجانس از منافع صاحبان و مدیران، که عمال اصلی این مشکل گفته میشود.CG به منظور ایجاد مدل های که در آن سهامداران می توانند وظایف خود و تحقق بخشیدن به حقوق خود را منعکس سازد و نوبت کاری در حق مالکیت و کنترل شرکت را از یک گروه از سهامداران و مدیران خود را به دیگری ؛ از آن نیز تحت تاثیر ریزش درونی از سرمایه گذاری به اقتصاد کشور:

این مقاله که توسط Vershinina Ksenia به رشته تحریر در آمده است، کاملا روش های فرار از بحران توسط سی جی و مدل های مختلف را بررسی میکند.

Corporate governance may be defined as process according to which there is a balance among economical and social aims, individual and public interests. One of the major principals of CG is principle of division of right of ownership and control. This idea is accompanied by the problem of incongruity of interests of owners and managers, which is called agent problem. CG is aimed to create models in which shareholders could realize their duties and their rights. It reflects shifts in property right and control over the firms from one group of shareholders and managers to another; also it influences inflow of investment to the economy of the country.

 

Nowadays many states have faced crisis. And, of course, there are some consequences of it: recession, increase of the rate of unemployment, decrease in the level of living, changes and breakdown in industrial relations, bankruptcy of many companies. Many corporations tried to do their best to overcome such problems. One of the components for successful firm is rational governance. It helps to overcome a great number of issues: provides stability in business during the crisis; increases in capitalization of the company; change in controlling system; helps in finding criteria for forming the structure of CG, reservation in managing abilities of business while changing the role of shareholder; is a means of distribution of risks; it is used to find out the reasons of crisis and ways of solving these problems.

 

It is wise to say that during the crisis companies are worried about increase in the quality of the corporate governance rather more than during booms in the economy. Factors which influence CG are small quantity of companies and high concentration of ownership, lack of mechanisms social control of business actions. The main thing, which government and business should do for development of the economy, is to provide conditions for small-scale business and private initiative, lower administrative burden and corruption for firms. It is the base for the system, built according to corporate governance, which is attractive to investors.

 

Efficient corporate governance is a balance of interests of shareholders, investors, board of directors and management.  Investors provide resources and management govern these resources. Both sides are interested in qualified management, so for these aims companies create board of directors, which controls work of managers.  The main function of Board of directors is to solve contradictions, caused by division in functions of ownership and management through the control over executive organ. There are some functions of BD: approval of bargains, of company"s plans and budget.  At the time of crisis it is especially relevant.  Effective cooperation of BD and managers is impossible without timely data about successes and failures of the company"s strategy.

Here there are some of them:

• Financial control
• Proper work with partners
• Shortening of expenses

 

Corporations will plan their expenditures for short periods. It is advisable for corporations to have two budgets: planned and antirecessionary as it will lower risks of bankruptcy. In connection with uncertainty in the economy the value of risk-management in the firm will increase since it will be necessary to lower risks. Many companies will initiate new position of inside auditor. It is relevant to use recourses from direct investors. No business can develop without new programs; new plans and any innovations require more investment than expected before crisis. Generally, manager and businessmen mistakenly determine the period of the crisis; that is why if you feel that it will start soon, try to secure yourself against these consequences, specify your business, and find variants of business with low costs. As credits will be more expensive and difficult of approach and liquidity on bond market will decrease too, companies have to stay or have to give way to competitors. Corporations will integrate with other firms, while profitability will be exceeded; also they have to cooperate with government.

 

Relationship with partners should always be under control, but during the recession some measures will be not as effective as in booms. Corporations will pay more attention to the selection of partners. The role of tenders will increase considerably, but the decisive role will be in price. All formalities should be kept. Sides will revise contracts, paying special attention to points about expenditures.

There is the lack of money during the crisis, it means that consumers have less money to buy products; firms cannot cover losses, while supplier of these firms are not available to produce intermediate products. However, money cannot disappear; they just are replaced from one industry to another and its velocity decreases- the economy of the country slows down. So, the first goal is to work in industries, where money will concentrate. The second one is to lower the expenses. Shortening of expenses is essentially important during the crisis as investment decreases. It is not possible to say for sure about expenditures on labor because qualified employees are always in great demand and at the time of crisis especially. Nevertheless, aspirations to workers will be stricter. It is advisable to encourage measures to improve communication between boards and shareholders, which will ensure that the entire board is aware of concerns expressed by shareholders.

 

The aim financial manager is to provide liquidity. For it he can use two instruments: attraction and use of funds. Money should be concentrated inside the corporation, and the less it comes out the better. Managers should use the most reliable during the recession funds. In 1998 it was dollars, now someone supposes they are land and real estate, but others think that this market will go bankrupt. Private pension funds are considered quite reliable. Managers of small-scale business should be recommended to dispose their funds in banks on terms of state insurance. Some businessmen put their assets on deposits in rubles. In no circumstances firms should not give their money to small banks as they will suffer first. It is safe to take credits from reliable banks. International banks are safe too. Bonds and shares can play the roles of money substitutes.

 

Realization of these and some other methods allows to lower expenditures, to concentrate effort and to govern, lover risk of failures of business caused by failures in one of its part.

Nowadays many corporations will pay more attention to personnel policy since it is one of the mainframe factors in company"s success. Crisis is the best time for taking on workers, only bad employees will be dismissed.

There is one method that will help you to soften crisis results: create a daughter enterprise and transfer to it 15% of the best assets and 15% the best staff, do not burden new firm with debts. In case your main company went bankrupt your best specialists would stay with you.

Management and its activity should be processed. There are several principles of organization of the company. Here they are:

• 1. Correspondence of responsibility and seal.
• 2. Correspondence of competence to the level of responsibility
• 3. Division of seal ( to avoid double work)
• 4. Transparency and necessity of activity

Corporate governance failures allowed the financial crisis to develop, and hence corporate governance reform must be part of the solution. The main strategy of corporation activity is constant development. It helps company to stay in industry during recession.

Far before crisis managers should think about relationship inside the company as it influences effectiveness of the firm. There are several models of governing the corporation. It is extremely important to determine either the dominant model or general principles of working of the corporation. The model should be chosen by CEO or ownership. Well determined model can the key to success.

One global model was suggested by John Keynes. He voted for expansion of the role of government in the economy. This method made a good showing during the Great Depression in 30^th years in the USA, which was connected with deflation, caused by overproduction. Decrease in prices led to financial instability, bankruptcy of many organizations. Keynes suggested that economy should be pumped with money. Nowadays there is deflation in US" economy: for instance, prices on real estate decreased by 30%. The one thing with stable prices is foodstuff. For reconstruction of the equilibrium in other industries economists in USA use Keynesian method. Also governments of Great Britain, Germany, Spain, France, Norway, and Austria provide financial help to national corporations.

According to Ricardo Semler and his book there is one plant in Brazil that not only overcame difficulties, but gain stunning profit. 150 workers were suggested to shorten their wage for free, refuse from social payments, and do all work which previously was in charge of outside suppliers. In their turn they were allowed to take part in managing the firm. After one month of such work results were very surprising: the profit for employees was so high that it compensated decrease in wages.

Crisis may be compared with visit to doctor. For example, doctor says that you have excess weight and it caused some problems. And you have been thinking about going to gym or about jogging for long time. To say it in short, crisis helps to CEO( Chief Executive Officer) do things which should be done long time ago. Now they will learn how to manage expenses for personnel, develop instruments of control of expenditures, analyze the organizational structure, and work out regulations of staff recruitment and of staff education. Nevertheless, many corporations discharged part of their staff. For instance, Motorola laid off 3000 work places, American Express dismissed 10% of personnel, EMI(Great Britain)-1500 people, Volvo-4000 people, YAHOO!- 3500 work places.

 

So, in conclusion, combining theory and practice, using analysis of the world experience, research and development of some businesses, taking into account peculiarities of financial institutions and perspectives of the development of corporations, it is possible to mark out main characteristics of effectively working corporation:

• Aim, mission, and strategy of the company
• Functions, determined according to strategy
• Structure, formed depending on functions
• Official instructions and other regulating rules
• Well-functioning marketing system, including up-to-date technologies, machinery and means, which form image
• Efficient system of governing of the corporation
• Qualified group of manager
• Competent staff, which is motivated to good work
• Well formed corporate culture
• Constant development

To say in short, corporations have to decide which of their activities has advantages and which a foreground task is.

Methods of escaping from crisis

Efficient governance in time of recession and management in new conditions

لطفا با بیان نظرات خود بنده را در اداره بهتر این وبلاگ و مطالب فوق یاری دهید. محمد یارندی 18/07/1388

Please express your comments to, Mohammad Yarandi 10/10/2009

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