Case Study Analysis on Corporate Governance

The instructions for the short essay on Corporate Governance were as follows:
An under performing company has been acquired by another company, and the new owners have found signs of malaise. Firstly, the previous management has launched ambitious training programs for young employees, which are costly as many of these employees leave after finishing their training. Secondly, some employees, who have worked in the company for many years, whose skills have a high asset specificity when used in the company, misbehave by cheating on the job. Suggest designs of employment incentives that could reduce these two types of organizational inefficiency. Give theoretical reason for your suggestions. (2 Pages)
Sources:
1.Aglietta, M, Rebrioux, A (2005), Corporate Governance Adrift. A critique of shareholder value, Cheltenham, ch 2
2.Barca, F, Becht, M (ed) (2002), The Control of Corporate Europe, chap.1 (Introduction by Becht an Mayer)
3.Berglf, E, Pajuste, A (2003), Emerging Owners, Eclipsing Markets. Corporate governance in Central and Eastern Europe (ch 11 in Cornelius, P K, Kogut, B (eds), Corporate Governance and Capital Flows in a Global Economy), Oxford
4.Berglf, E (1994), A Control Theory of Venture Capital, Journal of Law, Economics and Organization, 10(1)
5.Demski, J (2003), Corporate conflicts of interest, Journal of Economic Perspectives, vol. 17, no 2 Library, Online)
6.Gugler, K (ed) (2001), Corporate Governance and Economic Performance, Oxford, chap. 1-3
7.Jensen, M, Ruback, R (1983), The market for corporate control. The scientific evidence, Journal of Financial Economics, (Library, Online)
8.La Porta, R, Lopez-de Silanes, F, Schleifer, A, Vishny, R (2000), Investor protection and corporate governance, Journal of Financial Economics 58, (Library, Online)
9.Lazonick, W, Sullivan, M (2000), Maximizing shareholder value: a new ideology for corporate governance, Economy and Society, vol. 29, no. 1
10.Milgrom, P, Roberts, J (1992), Economics, Organization & Management, London, ch. 2, 5, 6, 8
11.Schleifer, A, Vishny, R (1997), A survey of corporate governance, The Journal of
12.Tirole, J (2001), Corporate Governance, Econometrica, vol. 69, no. 1 (the following is excluded 2.2 3), (Library, Online)
13.Vives, X (ed) (2000), Corporate governance. Theoretical and empirical perspectives, Cambridge, chap. 6
Of course, you do not need to use all that stuff. You only have to use related articles and if possible I appreciate if you could add some citations (which belong to the referred articles) in your answer.
You can find some articles in the internet but if you have some doubts feel free to contact your TA.

About the Solutions
The short two page essay was completed with four sources under the title Corporate Governance. The first page is reproduced below.

Corporate Governance

The management of employees comes with the essential requirement for managing rewards for the employees. The situation described shows that the reward management systems for younger employees as well as the way the senior employees of the company are treated, leaves a lot to be desired. In essence, the current behavior of the company seems to be going against the recommendations made by individual analysts such as Lazonick (2000) as well as Welch (2005) because the company is not getting any value from these groups of employees.

The ambitious training program needs to be curtailed since it is not only a heavy cost for the company, it is also hurting the company since trained employees are leaving soon after they are set to add value to the firm. To prevent this, the company can initiate the idea of a one year surety bond in which employees who finish their training should spend at least a year with the company if they join the company in the first place. Further, those who stay with the company for a year should be given a bonus and those who stay for three years after their training should be given an additional commitment bonus. The theoretical basis for this is provided by Welch (2005) who discusses the hierarchy of needs amongst which he considers money to be very important in terms of bonuses and awards given to the employees of GE.

Other Details about the Project/Assignment
Subjects: Management -> Corporate Governance
Topic: Case Study on Corporate Governance
Level: College / University
Tags:

Management, Case Study, Corporate Governance, Employee Training

Price: $1.95

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Project Details

Subjects: Management -> Corporate Governance
Topic: Case Study on Corporate Governance
Level: College / University
Tags:

Management, Case Study, Corporate Governance, Employee Training

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Case Study Analysis on Corporate Governance

Management, Case Study, Corporate Governance, Employee Training

Management, Case Study, Corporate Governance, Employee Training