Corporate management and the revolution of the Machiavellimethod

Marosán, György: Corporate management and the revolution of the Machiavellimethod. Proceedings of the "Scientific Management" and Management Science Today International Scientific Conference. pp. 311-319. (2011)

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Until the 19. century the economy was built on the small and traditionally organized enterprises. In early of the 20. century gradually the companies become the most important factors of the economy). Based on the organizational and technilogical innovations the whole system of business – the ownership control and managament of the organizations – fundamentaly changed. From the 1930’ the owners gradually withdraw from day to day activities of the business, and hand over the responsibilities of the corporate control to the management. However from the 1960’ – as a result of the growing dissatisfaction with the performance of the management – the stockholders started a struggle for regain the power on the company. In the 1990’ gradually formed the complex system of the corporate governance. It consists of the institutions of the shared power, balanced system of rights and responsibilities, and motivation simulating the owner’s interest. However the events of the 21. century – the collapses of the companies (ENRON, Parmalat) and the crise of the world economy – proved, that the well organized institutional check and balances, and existing system of ownership control necessary but not sufficient to guarantee the appropriate development of the companies. Moreover even the latest modifications in the company laws - SOX and the Say-on-Pay – aren’t enough. The author analyse the problem why the institutional control is insufficient. The paper argue, that within the companies, as a result of the „natural” process of selection of management, a special type – so called High Mach – personality fill most of the posts of the managerial jobs. This type of the personality - from viewpoint of the management - is very efficient on the one side, however at the same time is very unstable. The control of this type of managers the companies needed – beside of the institutional control – a well organized motivational system, a well-considered decision-making process, socially responsible corporate culture, effective business ethics, and a selection process based on this conditions.

Item Type: Article
Journal or Publication Title: Proceedings of the "Scientific Management" and Management Science Today International Scientific Conference
Date: 2011
Page Range: pp. 311-319
ISBN: 978-963-306-176-3
Uncontrolled Keywords: Vezetés - vállalati, Vállalati menedzsment
Additional Information: Bibliogr.: p. 318-319. ; összefoglalás angol nyelven
Date Deposited: 2019. May. 16. 12:27
Last Modified: 2019. May. 16. 12:27

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