588: The Conference Recommendations


Strategetic center

The Conference on Corporate Governance in Human Resources Management
and Development & Reforming Managerial deficiencies in the
Organizational Structures by the Quintuple Classification

The conference was held at Cairo Sheraton Hotel on February17-18,
2004, organized by the Arabian Gulf Center for international
consultations in cooperation with the Strategetic Center for finance
and management, under the patronage and the presidency of the former
Prime Minister, Dr. Ali Lotfi. The conference on corporate governance
in human resources management and development & remedying managerial
shortcomings in the organizational structures by the quintuple
classification. The conference topics tackled the following:

First: Corporate governance on human resources administration and
development in addition to its managerial procedures
Second: Scientific applications on the method of reforming the
managerial deficiencies in the organizational structures by the
quintuple classification.
Third: Displaying a computer program to show the way of eliminating
these deficiencies in the organizational structures by the quintuple
Fourth: The reasons for the emergence of corporate governance
practices in corporations as well as its global principles in addition
to the best way of applying corporate governance in the public sector
Fifth: Corporate governance applications of the United States-based
corporations and its impacts on flourishing economic growth
Sixth: How to utilize privatization in reforming the managerial
shortcomings in the organizational structures using the quintuple
classification method
Seventh: Corporate governance applications in the Arab Republic of
Egypt and other Arab countries in addition to its impacts on
maximizing the wealth in institutions

After further discussions on the aforementioned topics conducted by
the participants, the scientific committee of the conference reached
several recommendations, the most important of which are the

1-There should be a shift from applying the degrees budget to jobs
budget in corporations. Besides, job comparisons and their
interrelations should be put into force. This aims to determine the
importance and relative value of each job in a hierarchical jobs
system regardless of individuals and employees. Through this
assessment, each degree is determined for every job in comparison with
the other jobs (this is achieved by the corporate governance committee
in corporations).

2-Firmly established rules and fixed definitions for the governance of
the job categories should be determined in corporations within the
framework of the quintuple classification. This classification
consists of high-ranking positions as well as the administrative,
supervisory, administrative, occupational, vocational and technical
jobs in addition to subordinate jobs (services).

3-These jobs should be ordered and well-governed inside these
categories on the foundations of duties and responsibilities of every
job irrespective of those who fill these jobs.

4- The principles of assessing employment should be decided in the
fiver-year plan for the organization to put the corporate governance
into practice. It includes (the actual size of business- the
performance rates for the employees- the actual number of employees-
the growth rates- the futuristic view- the annual average for
resignations- deficient numbers in the different job categories-
maintaining the perfect number in the job categories of the new

5-The corporate governance committee should decide the suggested
proportions for the job categories in corporations. Moreover, these
proportions should be transferred at the level of the administrations
to form the organizational strategy during the next five-year plan
(reforming the organizational structures by the quintuple

6-The new appointments should abide by a plan in the inadequate
categories. As a result, this achieves a balance in the corporate
governance practice.

7-Privatization should be utilized in the process of transformation
and specialization training during a five-year plan to upgrade the
highly qualified operating employees in governing corporations. In
addition, this reduces the expanses burden on salaries sections and
the expended sums on training. Consequently, this makes monetary flows
to the institutions.

8-There should be disclosure concerning the board statements. Then,
such statements are presented to the general assemblies. Further,
there should be disclosure on the property structures and the
interrelated properties. This is to determine the basic interests for
every participant.

9-The disputes and disagreement about Corporations Law and the
Exchange Market Law (bonds camping) should be settled. The present
bankruptcy laws should be radically changed to guarantee restructuring
process. Further, training courses should be established for directors
and board members in corporate governance to increase awareness on
this sensitive subject.

10-In-house audit committees should be composed. These committees can
assume the responsibility of controlling the process of practicing
corporate governance regulations in corporation management. Moreover,
they comment on the audit report before the general assemblies. This
report should include the market risks and the operations outside the
financial statements.

11-There should be independent non-executive board members. The board
should assume the tasks of managing directors at the same time. This
is to separate between the responsibilities of ownership and those of


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