Dell Inc Research Paper Example | Topics and Well Written Essays - 500 words

Dell Inc - Research Paper Example rs (agents) manage to obtain support of directors concerning their practices, which do not deliver optimum level of value to the shareholders (principals) then the problem of agency, aggravates into corporate governance problem(Kashyap, Antia and Frazier). Therefore, governments use to intervene in these kind of cases because, shareholders simply do not have sufficient resources and competencies to pinpoint a fraud on a directorial level. However, law bounds organizations to announce their financial performance publically. At the same instance, governmental financial law enforcement agencies analyze the organizational practices of corporations in order to quantify their compliance with the general premises of maximization of shareholders wealth(Wojcik). However, modernly governments are planting their representatives in board of directors, so that they can monitor the fulfillment of the promises made by managers to shareholders in real time. Another purpose of this paper is to define hybrids of widely accepted organizational structures worldwide. However, for this purpose it is important to note that there are two basic organizational structures known to the world, which are centralized and decentralized formations of organizations(Homburg, Jensen and Haiin). The former one is characterized with centric leadership and authority therefore, all of the departments take orders and instructions from a formalized chain of command. On the other hand, the latter one can be defined as something, which is attributed with delegation of authority and job autonomy. Under this mechanism, top management is only responsible for providing broad objectives for middle and line management to achieve. Nevertheless, top management in this case does not concern itself to the operational layout through which intended goals are being fulfilled. But, with the passage of time, centralized organizational setting evolved into as structure with a se parate department for innovative project