Benefits of good corporate governance practice Implications of poor corporate governance practice Overview Corporate Governance has been defined as the system by which companies are directed and controlled — Cadbury Report Corporate Governance encompasses practices and procedures to ensure that a company is managed in such a way that it achieves its objectives. In profit oriented enterprises, these objectives would be to maximize the returns to its shareholders. However, differing interest of other stakeholders is recognized.
Table 3 Comparative profiling tools Understanding cultural norms and diversity is just as important as understanding individuals. Dreher and Macnaughton 21 contend that cultural competence is really nursing competence. As communities become more diverse, it is important that leaders adopt strategies to teach, provide feedback, and motivate persons from different cultural backgrounds and different skill mixes.
Leadership mentoring bridges the regulatory and subjective aspects of human resources management through the pairing of experienced leaders with novice leaders.
To illustrate a type of mentoring, Montgomery 22 presents a descriptive method whereby an experienced professor mentors a Leadership failures of enron student in the needed leadership and administrative experiences.
The mentoring of new critical care managers by the chief nursing officer should occur over time and is enhanced through the resolution of increasingly complex situations.
Because of the rapidly changing external environment, it is increasingly important to understand how leaders anticipate and implement change.
The Del-phi method is a process in which a questionnaire is distributed to experts who independently complete it; the results are evaluated to determine the likelihood that certain events may occur.
Critical care nurses can use this evidence-based information to educate each other about change. This concept was first discussed by Skewhart 28 in and then made famous in the s when Deming encouraged the Japanese to adopt it to promote continuous quality improvement.
Understanding why nurses resist or accept change enables a leader to communicate why change is necessary and to mentor others through the change process. Previous Section Next Section Managing Revenue and Expenses International studies indicate a global need for financial education for nurse-leaders.
Nurse-managers must have basic knowledge of financial management. Interpreting financial statements, understanding performance ratios, and recognizing the time value of money are essential when financial forecasts and cost implications for business plans are being estimated.
To compile a capital budget, managers must understand the financial implications of leasing versus purchasing, the expected useful life of equipment, and estimated maintenance costs. Understanding how to calculate a return on investment when proposing new technology, such as computerized documentation systems, enables critical care leaders to conduct cost analysis of different systems and options.
This collaboration is crucial to budget planning. It is important to know the cost per unit of service so that staff and supplies increase as the number of patients increases. Knowledge of expiring supplier and provider contracts helps leaders anticipate the effects of budgeted rates and numbers of patients.
Previous Section Next Section Managing Technology and Equipment A basic understanding of information technology is essential for critical care leaders. Nurses who have mastered technology can devise technological interfaces to gather statistical data that assist in efficient management of critical care units.
Technologically savvy nurses can use Web technology to make educational materials and programs, such as videoconferencing and Webcasts, easily accessible for patients and clinicians. Critical care nurses can use software on their wireless personal digital assistants to look up, verify, and calculate medication dosages or concentrations of intravenous infusions to reduce medication errors.
Wireless personal digital assistants and laptops improve fast and efficient communication. Technological advances surround critical care nurses and nurse-managers. Previous Section Next Section Summary Each organization has unique operational issues and managerial supports.
To successfully overcome the challenges faced by an organization, nurse-managers must work with supervisors to hone the necessary leadership skills.
Previous Section Next Section Communication Skills Communication occurs through speech, nonverbal signals, and written documentation. It is essential that leaders disseminate and interpret information quickly and accurately.
A 2-year study 33 of Chilean nurse-leaders suggested that leadership is characterized by exerting a positive influence on others through good communication.
At the root of effective communication is delivering the message in such a way that the listener will hear it.
Simulation and role-playing are effective methods for improving communication skills. The mission is what the organization strives to accomplish; in other words, the reason the organization exists. Vision is also about understanding how to rally people around an idea.
All operations, education, goals, and strategies should be linked to the vision and should fit in with the overall mission. It is a myth that there is a single right or best organizational structure.
Organization is a tool for making people productive when they work together. Organizational structures like command and control work effectively in crisis or disaster management situations because decisions must be made quickly and there is little time for discussion.
Collaborative and team structures are effective for improving processes and designing new programs. Effective communication of standards, responsibilities, and rewards translates into improved performance. Promoting the obfuscation of actual practices during surveys or billing audits sends the wrong message and often exposes facilities to whistle-blower lawsuits.Question: Thanks for this.
Is corporate social responsibility an important issue in corporate governance? A widely accepted concept in corporate governance .
Both the Competing Values Framework (Quinn et al., ) and Mintzberg’s () management model are valuable in examinging the success—and failures—of Enron’s leadership and organizational culture. Each model offers a unique vantage point and holds different strengths and weaknesses. Failures of high-profile companies such as Enron and WorldCom led to Sarbanes-Oxley in The law encouraged directors to do a better job in fulfilling their fiduciary duties especially in the area of financial reporting.
WHITE PAPER The Irony of Integrity A Study of the Character Strengths of Leaders By: William A. Gentry, Kristin L. Cullen, and David G. Altman. Organizational Management Skills.
Healthcare businesses can benefit from examples of other successful organizations. The book Built to Last, 2 a study of successful corporate habits, indicates that continuity of leaders and ongoing leadership development contribute significantly to the success of an organization. Organizations and their shareholders benefit if employees are taught to manage.
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