what is the relationship between stewardship and a business solution to the problem of e-waste?

The key difference between agency theory and stewardship theory is that bureau theory is an economical model which describes the human relationship between master and amanuensis, whereas stewardship theory is a homo model which describes the relationship between principal and steward.

Both agency theory and stewardship theory are corporate governance principals in the mod business organisation globe.  Although both theories have singled-out features, the ultimate objective is to improve organizational performance. Identifying the type of corporate governance is the foundation of a successful business.

CONTENTS

1. Overview and Key Difference
2. What is Agency Theory
3. What is Stewardship Theory
4. Relationship Between Agency Theory and Stewardship Theory
5. Adjacent Comparing – Agency Theory vs Stewardship Theory in Tabular Class
6. Summary

What is Bureau Theory?

Bureau theory refers to the human relationship between concern principals and their agent. It is a management and economic theory. Basically, the main is the stakeholders or the owners of the organization while the agent is the visitor executives hired on behalf of the principal. Principals consul ability to agents to make decisions. It is to reduce the complexity of work and to streamline the business operation. However, in example of a loss or run a risk, the principal has to deport it.

However, in certain cases, in that location can be issues and conflicts due to the decisions made by agents. Information technology can be due to mismatch of ideas, and preferences or priorities between principals and agents. So, this is referred to as a principal-amanuensis problem. Further, agency theory describes disputes that might occur due to ii principal areas: divergence in objectives and difference in adventure aversion.

For case, company agents may look for new markets rather than improving the existing market. However, this will affect the short term profitability, causing a pass up in the expected revenue growth. On the opposite, principals may seek curt term growth and stability in the existing market.

What is Stewardship Theory?

Stewardship theory is a theory that states employees are intrinsically motivated to work for others or for organizations to complete the tasks and responsibilities with which they have been assigned. It also states that people are employees are collective minded and work proactively toward the attainment of the organizational goals as gives them a sense of satisfaction.

According to stewardship theory, visitor executives protect the preferences of the shareholders or owners and brand decisions on their behalf. Their main aim is to grade and maintain a successful organization to achieve the shareholders' vision. As a result, organizations which follow the Stewardship principle selects the right personality to lead the organization; this requires to place the CEO and Chairman responsibilities under one Executive.

What is the Relationship Between Agency Theory and Stewardship Theory?

Both theories focus on the human relationship between 2 parties: the owner and the executive. Depending on the executive behaviour and the expectations of the owner, these theories have pregnant characteristics. Although these theories have singled-out features, the ultimate objective is to better organizational functioning.

What is the Departure Betwixt  Agency Theory and Stewardship Theory?

Even though these two theories focus on corporate governance and business growth, at that place is a significant difference between agency theory and stewardship theory. Agency theory refers to the relationship between the owner and the agent, while stewardship theory refers to the relationship between the possessor and the steward. Moreover, the agency theory is based on management and economical principles, whereas Stewardship theory is based on psychology and sociology. Bureau theory claims that improved performance is due to the implemented governance structures by the principal to limit the opportunistic behaviour of the agent. However, stewardship theory claims that the improved operation is due to the principal encouraging governance construction that motivates pro-organizational behaviour of the steward.

Furthermore, agency theory is driven by extrinsic motivation, whereas the stewardship theory is driven past intrinsic motivation. Therefore, this is besides a significant deviation between bureau theory and stewardship theory. According to bureau theory, managers accept a low level of identification with the organization, thus assuasive self serving-interests to be chosen over owners'interests. In contrast, co-ordinate to stewardship theory, managers take a loftier level of identification with the organization. Therefore, high-level identification empowers executives or stewards to piece of work hard, sorting out problems and finally gaining intrinsic rewards past principals.

Summary – Agency Theory vs Stewardship Theory

In summary, both agency theory and stewardship theory are corporate governance principals in the modern business world. Notwithstanding, the key deviation between bureau theory and stewardship theory is that agency theory is an economic model, whereas the stewardship theory is a psychological model.

Reference:

1. Johnson, Walter. "Stewardship Theory of Corporate Governance." Bizfluent, eleven February. 2019, Available hither.
ii. Kopp, Ballad. "Agreement Agency Theory." Investopedia, Investopedia, 18 Apr. 2019, Available here.
iii. Madison, Kristen Joie. "Agency Theory and Stewardship Theory Integrated, Expanded, and Bounded by Context: An Empirical Investigation of Structure, Behavior, and Performance within Family unit Firms."University of Tennessee, 2014.

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1. "2561221" (CC0) via Pixabay

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