Case Study 1

Answer a:

            The fact that shareholders did not give their approval to the executive payment recommendations has the potential to require the corporation to make improvements to its present pay structure for executives. These modifications could include higher salaries or more generous benefits packages (Aslam et al., 2019). Altering the method by which executives are paid, as well as lowering the total amount that executives are paid, could be among the potential outcomes of this. Alterations to the make-up of the board of directors can be an additional important adjustment that the company needs to make before moving forward with its plans. It is probable that the board of directors will need to make some modifications to either the method by which they select board members or the processes that they follow in order to carry out their responsibilities (Ntim et al., 2019).

If the firm’s shareholders vote against the ideas for CEO compensation, it is probable that the company will experience unfavorable effects (Ntim et al., 2019). It is possible that executives will get the sense that the organization does not value their work, which could encourage them to look into other professional opportunities. It is also conceivable for shareholders to lose faith in the company, which may lead to them selling off their ownership. If this happens, the company would suffer financially as a result (Al Farooque et al., 2020). This may result in a decrease in the price of the firm’s stock, and it may also make it more difficult for the company to raise capital in the future.

There are 3,200 people on Aviva Canada’s payroll, which is the number of employees that are included in the Human Resource element of the organization’s budget. Tiered governance, which is a structured procedure for decision making, is the foundation upon which the HR department’s organizational structure is built (both escalations and approvals). A three-tiered strategy, consisting of a “operational,” “management,” and “executive” level, is frequently utilized in interactions that are more complicated and strategic in nature (Blasi et al., 2018).

The organization gives preference to a candidate’s skillset over their rank when selecting candidates for certain projects; as a result, this fosters an atmosphere conducive to everyone’s personal development (Flammer et al., 2019). Promotions are another important perk of working for Aviva Canada; employees have many opportunities to advance their positions if they put in the appropriate amount of effort. Before deciding whether a team should be assembled from within the organization or whether the work should be outsourced to contractors, the projects in the organizations are first examined. Aviva is committed to fostering an inclusive workforce and have the capacity to operate effectively (Saidu, 2019).

It is probable that the board of directors will need to make some modifications to either the method by which they select board members or the processes that they “follow in order to carry out their responsibilities (Allam, 2018). The board of directors” may also order those changes be made to the compensation structure for executive roles. The board of directors has the ability to make changes to either the amount of money that is paid to executives or the manner in which their compensation is determined. Alterations could be made to each of them, as one possibility. Alterations to the organizational structure of the company may be another thing that the board of directors needs to perform in order to properly run the company (Baxter & Srisaeng, 2018). Either the board of directors will have to make changes to the way the company is run, or they will have to make changes to the way the firm is financed. Both of these changes will be necessary. Both of these outcomes are entirely conceivable.

Answer b:

            One of the many ways that the board of directors of the company could express their gratitude to the company’s shareholders would be to alter the composition of the executive compensation package. There are a number of other ways that this could be done as well. Either the amount of money that is paid to executives or the process in which their remuneration is established may be altered at the discretion of the board of directors (Kovalenko, 2021). One possibility is that both of them could have their current versions modified. Alterations to the organizational structure of the board of directors themselves are one more possibility that is currently being contemplated by the board. This is an issue that the board is looking at. Either the process that is used to select members for the board of directors or the procedures that are utilized by the board when it is carrying out its duties might be susceptible to modification at some point in the future (Yoshikawa, 2018).

            Due to certain aspects, like transparency, project reporting, and pre-approved tasks for everyone, the delivery of Aviva Canada has been carried out in an extremely effective manner. This prevents employees from wasting their time in odd ways on tasks that are not required by the organization (Koutoupis & Pappa, 2018). Since everyone is aware of the RAG state, the organization is able to produce more efficient and effective goods. The “level at which resources such as money, time, and talent affect a project’s predicted success is referred to as the RAG status of the project as a whole or of each of its milestones. The acronym RAG, which stands for” “red,” “amber,” and “green,” consequently becomes a code that can either warn or reassure stakeholders regarding the current state of a project (Shwairef et al., 2021). The entity that is being evaluated is aware of how to position assets in the appropriate location at the appropriate time in order to make the most of available opportunities. This organization is able to get a higher yield in relation to costs as a result of the transparent workforce matrix. Measurement of expenses is carried out on a monthly basis across the entire organization with the goal of identifying and preventing losses (Zhang et al., 2022).

This company has been able to cut its costs and make a considerable increase in its savings because to the strong management efforts that have been implemented, which in turn helps the organization to have a greater annual net profit (Nasih et al., 2019). The organization has implemented a pre-set cost management system that has shown to be highly effective by generating savings that are at least three times more than before. The policies of the Aviva Company are rigorously founded on the efficient and productive use of labor. Aviva is able to achieve a substantially higher yield thanks in large part to the incentives it provides, which include promotions, bonuses, and commissions (Gyanwali & Walsh, 2020). When compared to Invest Health, this company’s training program is far less extensive. If we apply the same standards to the Invest Health conference, we can quickly reach the conclusion that its primary focus is on the level of professionalism and the chances it presents. Employees are given the opportunity to receive training and certification in their desired skill set so that the workforce can be strengthened and improved. It makes both the new and the veteran employees feel welcome by creating a more welcoming atmosphere (Shwairef et al., 2021).

Because it uses RAG Status, Aviva is able to finish projects more quickly and save a significant amount of money. Additionally, the company is better able to prevent risks and losses as a result of using this method of project management (Aslam et al., 2019). The Project Management department of Invest Wealth is quite young and is still in the process of being developed; however, it is closely following up with Aviva, and while it is not yet flawless, there is a significant amount of progress being made in this area of the business. The cost is the final factor that we are able to contrast and evaluate between both of these companies (Ntim et al., 2019). The two companies’ approaches to this aspect of the competition are not that dissimilar from one another. Both of these organizations have been able to save a significant amount of money in a variety of areas thanks to the transparency of their operations, the effectiveness of their reporting, the research and development that they have conducted, and the CVP analysis that they have performed. After conducting an in-depth analysis, we are able to reach the conclusion that Aviva is still in the lead when it comes to reducing expenses and improving operational efficacy (Gyanwali & Walsh, 2020).

Alterations to the organizational structure of the board of directors themselves are one more alternative that is now being investigated by the board. This is something that is being looked into by the board. Either the process that is used to select members for the board of directors or the procedures that are utilized by the board when it is carrying out its duties might be susceptible to modification at some point in the future. Altering the funding system that the board of directors uses for themselves is another idea that is being considered at this time “by the board of directors. Due to the fact that the board of directors have the right to make such adjustments, the policies and procedures that are in place to direct its work can” be modified at any time without prior notice (Ntim et al., 2019). The board of directors possesses the authority to alter the processes that are carried out in order to guarantee that directors are held accountable to shareholders.

Case Study 2

Answer a:

            The following is a discussion of the primary characteristics that make up the corporate governance structure of Singapore Airlines. The board of directors is comprised of nine people, each of whom has prior experience working in one of the following fields: finance, law, industry, business, labor, and management respectively (Al Farooque et al., 2020). These people come from a diverse range of various upbringings and have led a variety of different kinds of lives.

Seven of the nine directors of Temasek Holdings are considered “to be independent from both the management of the company as well as Temasek Holdings, which is” the largest stakeholder in the business. As a consequence of this fact, Temasek Holdings is the only majority shareholder in the organization (Aslam et al., 2019). Five committees have been established so that the board of directors can get assistance in meeting the tasks that have been placed on it.

            Over the course of many years, Singapore Airlines has offered its customers a travel experience that is safe, secure, and problem-free. As a result, they have earned the position of market leader in terms of inventiveness and continue to earn that status by providing exceptional services and products. In addition, Singapore Airlines has qualified cabin crew members who can provide these convenient services (Yoshikawa, 2018). The reason that Singapore Airlines was selected is because the company has consistently been one of the most profitable global airlines. Furthermore, Singapore Airlines has always been a competitor in the industry and a trendsetter. Their success is largely attributable to the powerful brand that they have established, which is driven mostly by the top management and robust brand equity. In the course of their 44 years in business, Singapore Airlines has been an industry leader in various areas pertaining to the in-flight experience and has made significant efforts to maintain this position (Ntim et al., 2019). A solid corporate culture centered on professional recruitment, consistent growth, training, and leadership development were some of the aspects that contributed to the organization’s success. Even though the vast majority of workers were Singaporeans, the upper management made it a point to guarantee that everyone, regardless of their background, was “involved in the day-to-day operations of the company”. This critical component was absolutely necessary in order to successfully recruit and establish the correct team, which ultimately contributed to their success. A varied route network, stringent core skills, and long-term planning on the ground were some of the other contributing reasons. Instead of concentrating on growing to become the largest firm, Singapore Airlines set its sights on becoming the most lucrative.

Every organization revolves around its core, which is the organization. In order for all of an organization’s operations and responsibilities to become more streamlined, it is required that it develop more effective marketing innovations (Al Farooque et al., 2020). This may be accomplished by creating an improved and more advanced virtual environment. A great reputation can be maintained by a firm by ensuring that their clients are happy at all times. This may be accomplished by having a support service department. Following this, this should also get emphasized on the company’s strategies for increasing customer involvement by ensuring that the company’s goods are more convenient for customers to use (Saidu, 2019). The corporation maintains its commitment to the time-honored practice of utilizing the matrix organization structure, which comprises functional and geographic departmentation, with the Chief Executive Officer (CEO) positioned at the very top. The organizational chart of Singapore Airlines is presented in the figure that can be found below:

Figure 1: Organizational chart for Singapore Airlines

(Source: Ntim et al., 2019)

The following designations have been bestowed upon these committees: Committees are what make up the Board, and the committees that make up the Board “are the Board Executive Committee, the Board Audit Committee, the Board Compensation and Industrial Relations Committee, the Board Nominating Committee, and the Board Safety and Risk Committee” (Aslam et al., 2019).

It would appear that the board of directors is made up of people who have a wide variety of perspectives and experiences in the areas that they specialize in. This is evidenced by the fact that there are nine members on the board, each of whom comes from a unique background and possesses specialized expertise in one of the following areas: finance, law, industry, business, labor, and management (Baxter & Srisaeng, 2018). This demonstrates that the board is comprised of a diverse group of individuals. This demonstrates that the board is thoughtful and comprises members from a variety of backgrounds.

This demonstrates that the board is diverse not only in terms of the people who serve on it but also in terms of the expertise that each member brings to the table. In addition, seven of the nine directors “are considered to be independent from both the management of the company as well as Temasek Holdings, which” is a big stakeholder in the business. This is because Temasek Holdings is a significant stakeholder in the business (Baxter & Srisaeng, 2018). Since Temasek Holdings is such an important shareholder in the company, this is the result. This is true regardless of whether or not the companies in question are traded on public markets or are privately owned and operated.

Answer b:

            It is demonstrated that the board “is diverse not only in terms of its composition, but also in terms of the” expertise that each individual member brings to the table. In addition, seven of the nine directors are considered to be independent from both the management of the firm as well as Temasek Holdings, which is a big stakeholder in the company (Ntim et al., 2019). This is because Temasek Holdings is a significant stakeholder in the business. This is the true regardless of whether the companies in question are listed on public markets or are privately owned and operated.

The fact that the board of directors of the firm is made up of individuals who come from such a wide variety of backgrounds results in a number of benefits for the organization. These benefits may be divided up into a wide variety of subcategories. To begin, it ensures that the board has access to a wide pool of information and expertise from which they can draw ideas when deliberating on important matters. This may prove to be very beneficial for huge enterprises.

This is of the utmost significance since it guarantees that the board will be able to make choices that are both well-informed and strategic in nature, so serving the organization as a whole in the most beneficial manner that is feasible. Second, a high level of board diversity provides more checks and balances within the board (Ntim et al., 2019). This is because directors who come from a variety of backgrounds and have varying points of view are more likely to confront and question the decisions made by their fellow directors. This is due to the fact that directors “who come from a variety of different backgrounds and have a variety of different points of view are more prone to question and push one another.

This is as a result of the fact that directors who come from a range of various backgrounds and have a variety of different points of view are more likely to question and confront one another’s judgments. The reason for this is that directors of movies who come from a range of different backgrounds and have a variety of different points of view are more likely” to have had a variety of different experiences. One more factor contributing to this is the fact that many directors of film bring their own unique points of view to the table. As a consequence of this, the potentially destructive effects of groupthink are mitigated, and the processes of critical thinking as well as creative thought are encouraged (Shwairef et al., 2021).

The fundamental job “of the board of directors in terms of corporate governance is to keep the manager after recruiting them, supervising them, evaluating them, and compensating them. Both the establishment of governance systems that are policy-based and the provision of organizational direction come under the purview of the same board of directors. When it comes to the governance of the firm, the board of directors always makes” sure to maintain a healthy connection with the CEO. Additionally, the board of directors is responsible for monitoring and managing CSR, and in this regard, they are held accountable for how well the firm performs its responsibilities toward society.

The management is accountable for striking a balance between the various stakeholders’ interests. When this is the case, the most important and decisive function in a company will consistently be played by the management (Kovalenko, 2021). Organization, leadership, strategic planning, and operational control are considered to be the most important responsibilities of management. Therefore, management can boost the efficacy and efficiency of the corporation’s processes, initiatives, and personnel by making use of functions such as these. In terms of social responsibility, it is the commitment and obligation of management “to take actions that will benefit and defend both the well-being of society and the interests of the organization. These actions must be taken (Aslam et al., 2019).

To summarize, increasing the diversity of the board leads to an increase in the legitimacy of the board in the eyes of” workers, shareholders, and other stakeholders. This is true no matter what kind of stakeholder is involved (Allam, 2018). This increase in legitimacy may have been caused, in part, by the board’s increasing legitimacy over the course of time, as one possible reason. The key reason for this result is that the board has a reputation for being seen as representative of the diverse shareholder base that the company has.

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