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Macau Periodical Index (澳門期刊論文索引)
- Author
- Rodrigues, Jorge Jose Martins; Antonio Nelson Jose dos Santos
- Title
- Managers' entrenchment, power and corporate governance
- Journal Name
- Euro Asia Journal of Management
- Pub. Info
- Dec. 2011, Vol.21, No.1/2, pp. 39-50
- Keyword
- Entrenchment of top managers；discretionary power；corporate governance
- Abstract
- Abstract : Entrenchment strategies are implemented by top managers in order to make them become indispensable. This concept belongs to the field of corporate governance and little has been studied about it. These strategies appear to be a kind of reaction from the top managers to the different mechanisms of control, either internal or external, and are essential for those who want to enlarge their discretionary space. The entrenchment of top managers is not translated in a formal status and it is not an official recognition. Rather, it is constructed within a network of informal relationships controlled by them. The entrenchment allows them to increase their power toward the stakeholders, and therefore this power is perceived as coming from an illegitimate source. Nevertheless entrenchment of top managers could be beneficial if it contributes to the creation of value and to the development of the enterprise as a whole. Paragragh Headings: 1. Introduction 2. Entrenchment and power 3. Managers' entrenchment typologies 3.1. Entrenchment and effectiveness 3.2. Organizational entrenchment and market entrenchment 3.3. Manipulation strategies and neutralization strategies 4. Entrenchment by steps: manager life cycle 4.1. Valorization of the top managers 4.2. Reduction of the mechanisms of control 4.3. Power usage 5. Potential behaviours of managers at the end of their career 5.1. Top managers' retirement 5.2. Maintaining a strong power 5.3. Increase the managers' power 6. Summary Tables: 1. Typologies pf entrenchment strategies Figures: 1. Enterprise performance and power of the managers 2. Potential behavious of the managers at the end of the career