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Published by imran27pk
it is the basic total quality book it cover all the aspects of quality.
hope you like it
it is the basic total quality book it cover all the aspects of quality.
hope you like it

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Published by: imran27pk on Nov 12, 2008
Copyright:Attribution Non-commercial


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Agency theory is usually found in the Business Law books and in certain accounting
texts. I interject the concept of agency theory to round out the theories by which
managers act in the firm.

Many firms today are owned by a collection of stockholders ranging from the
individual on the street, to managers of the firm, to large single investors, to
investment institutions. The day is gone when the majority of companies are owned
and operated by a single person or family.

Managers act as agents of the firm. Agency is the fiduciary
relationship that results from the manifestation of consent by one
person to another that the other shall act on his behalf and subject to
his control, and consent by the other so to act. The principle is the
one for whom action is to be taken and the one to act is the agent.

Managers act, or should act, for the greater good of the shareholders. This may mean
acting for the greater good of the firm such that the shareholders are better off in the
future. While ethics drive the "ethical" manager, it is important to see that the
principle of this philosophy we call TQM includes a desire to better, or increase,
someone other than oneself.

Lesson Two - EOQ, Process, Systems and Agency Theories


The old management paradigm presumed that management would look out for its
own self interest. This was a basic tenet of the union movement. Unions believed that
management was more interested in itself than in the worker. Servant management
leaves no room for self indulgence. Servant management truly calls each of us to serve
the other. So it is also in TQM -- serve others first.

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