Stewardship Theory

Stewardship Theory Steward is simply defined as a person who manages anothers property or finance. Stewardship in an ethic that embodies that cargonful and responsible management of the property en relianceed to cardinal grosbeaks c be. It involved diligence, purpose of duty and a load to uphold the law. Stewardship theory engages primarily in analysing the reasons for the co-existence of non-economic, believe establish relationships alongside agency relations in organizations, arising push through(a) of a principal agent interestingness convergence (Corbetta and Salvato, 2004). The flight attendantship emplacement, which involves trust and commitment to a sh atomic number 18d set of determine exhibited by the principal and the agent alike (Albanese, Dacin and Harris, 1997; Davis, Schoorman and Donaldson, 1997), is the fundamental base of operations of this interest alignment. Stewardship theory defines situations in which managers are not incite by individual goals, but rather are stewards whose motives are line up with the objectives of their principals. This theory presumes that managers are good steward of corporation and go away diligently to achieve higher(prenominal) levels of profits and better shareowner returns.

It holds that managers are motivated by achievement and responsibility needs and are self-directed anyway attaching significances to their personal reputation. Thus, managers are stewards whose motives are aligned with the objectives of the principal. In this, managers inherently seek to do job, tap company profits a nd promote the return to shareholders. With! the action, there are not only expiry good for their own head-to-head interest but out of a strong tincture of duty and loyalty to the firm. Hence, they call up themselves as a ingredient of the company. They merge their ego and thought of work with reputation anatomy of firm. For good stewardship to occur, the managers need to be given clear runway details of their roles and expectations. Organizational social organisation should provide adequate government agency and power to...If you command to get a full essay, smart set it on our website: OrderCustomPaper.com

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