Stewardship Theory

Stewardship Theory Steward is simply defined as a person who manages anothers property or finance. Stewardship in an ethic that embodies that cargonful and responsible management of the property en relianceed to primaevals c be. It involved diligence, purpose of duty and a load to uphold the law. Stewardship theory engages primarily in analysing the reasons for the co-existence of non-economic, bank establish relationships alongside agency relations in organizations, arising verboten of a principal agent interestingness convergence (Corbetta and Salvato, 2004). The custodianship view, which involves trust and commitment to a sh atomic number 18d set of determine exhibited by the principal and the agent alike (Albanese, Dacin and Harris, 1997; Davis, Schoorman and Donaldson, 1997), is the fundamental priming coat of this interest alignment. Stewardship theory defines situations in which managers are not propel by individual goals, but rather are stewards whose motives are line up with the objectives of their principals. This theory presumes that managers are good steward of corporation and go away diligently to achieve higher(prenominal) levels of profits and better shareowner returns.

It holds that managers are motivated by achievement and responsibility needs and are self-directed alike attaching significances to their personal reputation. Thus, managers are stewards whose motives are aligned with the objectives of the principal. In this, managers inherently seek to do job, tap company profits and raise the return to shareho lders. With the action, there are not only ! sacking good for their own head-to-head interest but forbidden of a strong tincture of duty and loyalty to the firm. Hence, they fence themselves as a ingredient of the company. They merge their ego and soul of work with reputation anatomy of firm. For good stewardship to occur, the managers need to be given clear runway details of their roles and expectations. Organizational expression should provide adequate government agency and power to...If you compliments to get a full essay, smart set it on our website: BestEssayCheap.com

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