Management and Its Relationship with Ownership

This chapter explores the complex relationship between management and ownership in corporate governance. Management is defined as the set of activities and people necessary to achieve organizational goals, combining scientific knowledge with the technical skills of experience. The chapter identifies key managerial functions, including planning, organizing, leading, and controlling, while highlighting the evolving role of managers in the face of contemporary challenges such as digital transformation and socio-political changes. It outlines three hierarchical levels of management-top, middle, and executive-each with distinct roles and responsibilities. The text also explores different leadership styles (technocrat, artist, craftsman) and ideal types (hero, supervisor, teacher, facilitator). The relationship between management and ownership is examined through various configurations, noting the potential for conflicts of interest and the need for alignment of goals. The chapter discusses tools such as board evaluation to realign the actions of management with the interests of owners. The Volkswagen Dieselgate scandal is analysed as a case study, illustrating the impact of misaligned management and ownership interests and the importance of an inclusive corporate culture and effective governance.