University revision · Leadership, Management and Governance
Agency Theory
Agency Theory is a crucial concept in corporate governance for Zambian tertiary health students. It examines the relationship between principals (e.g., shareholders, the public) and agents (e.g., managers, directors) hired to act on their behalf. The theory addresses conflicts of interest that arise when agents may not act in the principals' best interests. Students apply this theory to analyze governance challenges in Zambian public hospitals or private health entities. Understanding agency theory is key for exams and for designing governance mechanisms—like audits, performance incentives, and transparency—that align agent actions with principal goals, ensuring accountability and ethical stewardship of healthcare resources in Zambia.
Questions
100
Est. time
~100 min
Views
0
Pass mark
50%
How this revision works
- Questions appear in random order
- Feedback after every question
- Retake as often as you like
- Results saved as an exam paper
Outcomes
If you passWell done! You understand the principal-agent dynamic and its implications for governance in healthcare organizations.
If you don't pass yetAgents should act for principals. Review the core premise of agency theory and the potential for conflict. Think of a manager in a hospital as an agent—whose interests might they serve?