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Excerpt coming from Essay:
Military Administration and the Company Problem
Firm theory may help for understanding any company conflict or perhaps behavior, and applies just as well towards the private and public sector. Applied to the military corporation, agency theory “offers insight into how armed forces strategies relate to political objectives, ” an essential consideration (Petrina, 2005, p. v). In the next applied to the organization world, organization theory offers insight into how executive decisions are made and just how executives may become corrupt when they possess significant power and separation by agents or perhaps shareholders. You will find differences in business versus armed service governance and organizational traditions, but these differences to complete not cloud over the necessary applicability of agency theory to the private and public sector.
A traditional view of company theory since it applies to armed forces organizations is the fact “civilians arranged oversight measures to screen the behavior in the military as well as the military responds based on the probability of its behavior being found out and its expectation of treatment from civilian leadership, ” (Petrina, 2005, p. versus. ). Civilian leadership can be defined simply as providers in the federal government including both executive and the legislative twigs, and to a smaller degree the judicial part. A hierarchal organizational structure potentially minimizes conflicts appealing, as rules operate in a tightly controlled framework with little personal leeway in decision-making. Points become more difficult when the idea of agency theory is broadened outward from your federal government to expose that the real agents will be the citizens of the United States. Military management is not really up for general public election, yet congressional and presidential management absolutely is usually, making the military indirectly accountable to the public. Simultaneously, the military’s role in protecting national security ensures that its functions are by simply definition certainly not public knowledge and so interaction and decision making occur without public oversight.
The agency problem in the military may work the way out in various ways depending on the situation. Occasionally principals may turn directly to the President and senior advisors, as in main national security crises. The intimate relationship between military and exec branch is somewhat more open to complications than the more formalized and bureaucratic marriage that typically exists with Congressional oversight (Petrina, 2005). In some ways, armed forces leaders or perhaps principals are even more liable to the brokers than in the organization world because of formalized organizations of command word. Some, although not all, corporations
