Models of corporate management

Models of corporate management

In management there are several methods of management of the organization that is very important as they allow to settle communication between employees and owners of the company that considerably increases efficiency of work in general.

Models of corporate management

Two models are the most widespread and opposite:

  1. American or outsider. Is based on management of joint-stock companies taking into account external and market mechanisms of control. The interests of shareholders are represented by small investors different and independent from each other on whom management of corporation has influence.
  2. The German model of corporate management still is called insider. Management of joint-stock companies is based on use of generally internal methods of corporate control or self-checking. This technique is based on interaction of all interested persons in work of the enterprise. Decision-making is carried out taking into account opinions not only of auctioneers, but also managers, personnel and public organizations.

These two opposite systems generated other options which are based on domination of the American or German method of corporate management and consider national peculiarities of the country. In that case it is possible to allocate such models:

  1. The Japanese. There was it during the post-war period and financial and industrial groups were taken as a basis. The main line – the full closeness based on bank control that helps to reduce a problem of control of managers.
  2. Family. Use this option practically worldwide where members of one family manage the enterprise.

In certain cases, for development of business of the company can be guided at the same time by several models of corporate management.

Author: «MirrorInfo» Dream Team