Briefly set out a) the main theoretical perspectives underlying the Essay

Briefly set out a) the main theoretical perspectives underlying the remuneration of executive directors in major national or mul - Essay Example However, this silence is less relevant to their leadership qualities, and more a result of their resultant extra ordinarily high salaries. In addition, there has been a very significant difference in the remunerations of CEOs belonging to US companies, as compared to those belonging to companies in the UK. With respect to this observation, this paper studies the remuneration of executive directors, and delves into the issues and theories concerning their outrageous amounts, and the debates that arise from them. The debate on the remuneration that executives receive has been carried out for several years. A recent factor, which has heated this debate even further, is the current recession and its effects (The Economist, 2010). This stems from the fact that over 13 percent of the residents of the US are unemployed, while millions others struggle to hold on to their jobs as their salaries and wages are reduced from what they used to be (Robbins, Judge & Judge, pp. 278, 2008). Apart from this, Lehman Brothers experienced a downfall, and needed two bailout packages from the government to recover and prevent further such happenings. This occurrence has made the common person wary of the way the scarce resources are employed, and that they should be treated as scarce instead of being wasted. However, people who only see half the picture make majority of the complaints and criticisms that the system of high remunerations receives. They see how these directors receive huge salaries for what they do, but they do not consider or even know about the stressful and demanding jobs that these directors do which help them secure such large payments (The Economist, 2010). This is a critical element that is missing from their perspectives, which makes theirs an unfair, unbalanced perspective. These critics do not bother considering the perspective of the CEOs themselves, or the significance and value of their services (The Economist, 2010). This paper aims to prove that, for this reason, their perception is flawed, and that the CEOs do earn the money they receive, using research, and statistics. Theoretical Perspectives It is an observation (Robbins et al., pp. 23-39, 2008) that a huge number of experts have carried out research on the issue of remuneration of executive directors in the United Kingdom, as well as in the United Kingdom, especially during the last decade. Analysis has identified that extraordinary increment in the salaries of executive directors been one of the major reasons of such a huge number of researches carried out on the subject. In order to understand theoretical perspectives of executive directors’ remuneration, the paper will include agency and expectancy theories that will provide a comprehensive understanding. In particular, every company in the United Kingdom follows a standard remuneration package for its executive director that usually includes a basic salary, a yearly bonus along with long-term benefits. In this packag e, salary is the permanent component whereas the other components vary in different organisations. It is an observation that two factors play a critical role in determining variable components in remuneration of executive. Firstly, the calculation that relates variable components as functions of basic salary (Robbins et al., pp. 23-39, 2008). The second factor refers to the achievement of directors in terms of their target, thus, an average performance will lead towards to a lower bonus. Besides understanding

Relationship management as a means of developing competitive edge Assignment

Relationship management as a means of developing competitive edge - Assignment Example This research will begin with the concept of relationship management and an overview of the organization which is used as an example for the implementation of this marketing concept. The area of research for this paper is the concept of relationship marketing and its application in the business scenario. Relationship marketing (RM) is defined as â€Å"the process of identifying and establishing, maintaining, enhancing, and when necessary terminating relationships with customers and another stakeholder, at a profit, so that the objective of all parties involved are met, where this is done by a mutual giving and fulfillment of promises†. The company being considered is called New Star Company and it was a pop music club before it merged with another company after which it became a fan club. After the merger, New Star Company still kept the members of its pop-music club with the intention that they would bring in new members into the fans club. They need to gain a foothold in the Chinese market and are looking into business strategies which will enable them to attract new members to their fans club, yet at the same time be able to retain their existing base of members. Relationship Management is about attracting, maintaining and enhancing the relationships between an organization and its customers. This marketing strategy came about as a result of the effects of low growth rate and deregulation which made it necessary for an organization to determine how they could maintain their existing customer base instead of developing new ones.... d are looking into business strategies which will enable them to attract new members to their fans club, yet at the same time be able to retain their existing base of members. In this research we will examine how relationship management can work as an effective business stra0tegy for the company to gain new members. Review of Relationship Management Relationship Management is about attracting, maintaining and enhancing the relationships between an organization and its customers. This marketing strategy came about as a result of the effects of low growth rate and deregulation which made it necessary for organization to determine how they could maintain their existing customer base instead of developing new ones. Relationship marketing involves using satisfied customers as a way for attracting n0ew customers. This means using the element of customer loyalty to gain strength in a new market, which calls for interaction between an organization and its customers, wherein it is necessary for both parties to share the same philosophy to successfully interact. The power of relationship marketing is seen in its unique feature of trying to establish a long-term and mutually beneficial relationship between an organization and its customer. In order to do this, relationship marketing focuses on gaining as much knowledge as possible on customer preferences and implementing these preferences into product and service design. "Relationship marketing is a long term orientation, all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges". Kolter (2000) Difference between relationship marketing and transactional marketing In we need to understand how relationship marketing can benefit an organization we need to see how