A Simulation Model for Dichotomous Approach between Governance and Operations Management: Case Study of Financial Sector

Abstract

The following article focuses on the influence of corporate governance on the management of the activities at the operational level. The Corporate Governance is the set of management tools used by top management to guide and monitor the business activities and ensure efficient and transparent functioning of the organs and systems of social control. The study, presented here, is aimed at corporate organizations are characterized by a significant profile of complexity, in which the property involved, for the purposes of management, through the interposition of top management.
In such operational realities, are opposed two fundamental needs: the need for compliance with the regulations dictated and operational security vs. efficiency and production flexibility. The first is a goal typically on the governance, while the second is due to a management profile. For this reason, articulating a corporate governance structure is necessary to ask ' what ' and ' how ' corporate governance affects the management of the activities at the operational level and what kind of relationship exists between them. The two fundamental tools of connection identified, are the Corporate Governance and the evaluation system efficiency. Only after analyzing the type of link between governance at the highest levels of the hierarchy and task management to the lower levels of the hierarchy, you can find a fair share of reengineering of governance itself, leading to an improvement in business performance.

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