Agency Theory: an Assessment and Review

Can you think of one threat that arises from the use of agency theory in developing measures aimed to prevent future banking and/or financial failures?\

Agency law is a relationship between a principal and in agent in which the agent is legally authorized to act on the behalf of the principal.

The structure and agency debate is a common one in the field of sociology and different theorists come up with different ways of accounting for the actions of social actors. This essay takes the position that structuration solves the problem of this much contested debate. Initially key concepts and elements of structuration will be pointed out .These elements include structure, agency, social systems and power amongst many others. Subsequently, there will be engagement of a discussion of different schools of thought and finally it will be demonstrated how structuration prevails over the structure-agency debate.

The global market has shown exemplary contribution to the growth of the world's development until recently where financial crisis have been bombarding most economies. As a result, the cost of livelihood had been unaffordable to many who live below the dollar. The monetary crisis has led to the lowering of many currencies against the dollar, hence advancing the economy crisis to most worldwide nations. This turn of events has been attributed to the lack of exercise of business and management ethics in many multinational companies, firms and investments. Financial scandals have been the order of the past twenty years leading to the sweep over of the flourishing global market. The scandals, especially in larger companies and multinational, are spurred by inter and intra-conflicts in their organizational structures.

This paper talks about Children’s Crisis treatment Center (CCTC). CCTC as a system is concern with meeting the needs of children and families with mental health and those that have experienced abuse, neglect and trauma. The focus here will be on the School Therapeutic Services component, the connection it has to the system and the environment and attempt to bring to light whether CCTC is functioning in line with its mission statement. I will also be describing my place in the institution as a system.

Our textbook defines an agency problem as a “conflict between the goals of a firm’s owners and its managers” (Megginson & Smart, 2009). It then defines agency costs as dollar costs that arise because of this conflict. In the corporate structure, stockholders are the owners of the firm, and they elect a board of directors to oversee the firm and help protect their investment. The board then hires the right corporate managers to run the firm with the goal of maximizing the wealth of the

DePasquale, J. P. (2000). Exploring personal responsibility for participation in organizational processes: Antecedents and consequences. Virginia Polytechnic Institute and State University). ProQuest Dissertations and Theses, 97-97 p. Retrieved from http://search.proquest.com/docview/304640181?accountid=35812. (304640181).

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The thing that caught my attention throughout this discussion and the readings were agency versus structure. Agency is when the individual has the free will to act independently in making their own life choices. Structure is the consistent arrangements that either influence or limit the choices and opportunities available to that individual. Many may consider the debate about agencies versus structures as being the underlining understanding of determining rather or not an individual is acting on their own free will or is that individual action dictated by social structure. Although agency is usually referred to as micro level, but it is not always micro level it can be macro level as well. This is because agencies refers to their ability

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher

Your use of the JSTOR archive indicates your acceptance of JSTOR 's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR 's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher

In the early 1900’s, some of the first ideas were thrown together to allow an organization to flourish in the upcoming modern era. The first theories were known as scientific and classical management, which focused on three separate theories from Frederick Taylor, Henri Fayol, and Max Weber. The three theories have similar ideology in the fact that organization is driven by management authority, employees only source of motivation is money, and organizations are machinelike with employees making up the parts of the machine (Papa, Daniels, & Spiker, 2008). In the Prophecy Fulfilled case study, Mary Ann (senior auditor) takes on a management role with subordinates similar to that of Weber’s Bureaucratic Theory (Daniels 1987, pp. 77-78).

Discuss the differences between the “agency theory” and the “stewardship theory”. Explain which of these theories applies to your strategic audit firm and why?

As explained by Schelker (2013), the agency problem between the owners and the management of a firm is at the heart of the corporate governance literature. Hence, there is a need for a