subject: How To Develop Good Governance System ? [print this page] Developing an independent and mission driven organization is a dream of every CEO but in order to make this dream come true one has to give special importance to governance system of organization. An organization where governance system is very strong has a broad membership base, can provide membership service and can represent their interests in the process of public policy more effectively than other organizations.
Governance is basically the practices, set of rules and methods by which an organization is run to achieve its goals. If an organization has a good governance system, it is the leadership of the organization which is responsible for such a system. That is why it is said that to have good governance system, an organization should first have effective leadership. A leadership, which takes care of its members fairly, is able to achieve the best of its interest.
Main functions of a good governance system includes setting independent method for leadership selection so that it can make sure that deserving people are chosen who can develop or adopt process of decision making on which the organization can rely. It is the job of leadership of an organization that they have to make it sure that managerial functions are kept separate from the governance system of the organization.
Different organizations like CIPE (Center for International Private Enterprise) and WCF (World Chambers Federation) have developed principles for the smooth progress of organizational governance system to a good governance system. These set of principles let the organizations develop a platform for the strengthening of methods of governance system of an organization. These principles include identification of distinctive features of each country, dissimilarities between managerial structure and different business atmospheres. But they do not try to offer a list of instructions that each organization should follow at all the cost. Actually these set of principles try to take into account a wide range guidelines which organizations of different countries can make use of to assess their current business practices and to bring necessary improvements in the organization they believe is important. It is identified that just few set of principles cant do work of creating structure of successful good governance system in an organizations. But actually it is different tools and mechanisms which are also required to bring the change.
These set of principles can not only be used in business organizations but they can also be used in chambers of commerce and government organizations operations on all the levels e.g. international, national, regional and local. For many years corporate governance has evolved from being a concern to large publicly listed organizations of prominent economies to an important issue of concern to not only public but also private sector businesses of large and small countries.
Chambers of commerce in all around the world is facing the same problem of governance issues which businesses companies started to face in the1990s. All around the world now it is agreed upon that the issue of governance is as important for government organizations as it is for business companies. Organizational governance mechanism can not only be used in large associations of developed markets but they can be also used in smaller organizations of developing economies.
Rules of governance system are basically related to the policies, institutions, mechanisms and practices which an organization adopts to control and to aim at its targets. It is one of the main factors which should be given considerable importance during the process of creation of an organization because if the governance system is be strong, the organization will be able to strengthen its members and will represent private sector interest in a better way in public policy process at all the levels.
