The Importance of a Company’s Culture The culture of a company is one of the most important and sometimes overlooked factors in an organization. The culture can increase employee engagement and increase productivity which will allow a company to reach its goals, “From productivity and engagement in the organization’s day-to-day, to an employer brand that naturally fuels recruiting efforts, to creating a lasting brand that customers immediately recognize, there’s no escaping it – culture radiates outward into the marketplace” (Straz 2015). The culture can have a great impact on the employees. Employees thrive in a positive working environment and the ability to engage with their managers without fear of retaliation. When a company creates a
Part of a human resource leader is communication, accessibility, and empowerment of one’s employees. I feel my skills in open communication, information sharing, decision fairness, outcome concern, and credibility help in numerous ways. Furthermore, being credible and concerned about outcomes, my employees believe in my leadership and know that I have their backs. With communication and information sharing my employees know that I am accessible to talk. Finally, my decision fairness empowers others to be involved in our daily tasks.
Regular CSR reports which are relevant, honest, and correctly targeted will improve credibility with the internal and external stakeholders, and in turn helps the company to gain competitive advantage over the competitors. These reports also increase employee morale and motivation, as they gain confidence in the company and their roles which they play within the company. CSR is no longer done just for philanthropic reasons but now it is integrated with company’s main goal. The companies are undergoing through a change from simply informing the public about the activities to a more detailed and comprehensive way of engaging the stakeholders. Benefit of CSR reporting: a.
Shareholders expect a certain return on their investment, so knowing how businesses plan to handle any increase will be important to them. Business executives are stakeholders for the same reasons as shareholders. They are going to care about the affect on profits, and whether or not the shareholders are satisfied. How minimum wage affects their business’s success in non-financial ways will also be a concern. Executives must consider how the treatment of and benefits for their employees affects society’s view of them.
Agency theory suggests that the interest of the business should come before self-interest. This may imply maximisation of profit, growth and shareholder return. Some writers such as Herbert Simon have argued that directors are more likely to act as ‘satisfiers’ than maximisers since corporations as organisations don’t act to achieve the best possible results but merely to achieve satisfactory results across several objectives. Simple agency theory aims to explore the corporate governance issues involved in the shareholder and director relationship as principal and agent. Whereas shareholders represent the owners of the business, the executive directors/directors look after the running of the business for them.
CEOs efforts are also appreciated and rewarded through indirect compensation through social security enhancers that will boost the CEO’s desire to steer a firm towards success. In addition, offering a proportion of a firm stake to the CEO is a form of compensation approach that grants the CEOs the opportunity of buy stakes of a firm they head to boost their commitment to the success of a firm (Heskett, Sasser & Schlesinger, 2015). Compensation of the CEOs based on varied approaches is vital to a firm’s
CSR is important for the multinationals to perform in foreign countries because of the growing competition and other challenges that are faced by an organization; the management theory is used as a tool to encounter such challenges ( Ismail, 2009). Donaldson (1989, cited in Secchi, 2007 :359) CSR also acts upon the firms managerial decisions when there are problems such as clashes, protests and strikes, these lay down the moral values, above profit maximization. Managerial theories performance depends on stakeholders trust, co operation and acceptance. Garrige and Mele ( 2004) Detomasi( 2008) were all of a view that social power drives the social responsibility as the corporation is a corporate citizen, who has investment in the community. Davies (1960) stated that CSR is a political power and therefore must be used responsibly as a business is social institution; its power comes from both within and outside.
Such a team where seamless and effective relationships exist, members are poised to learn from one another, develop skills and leverage on such internally gained skills to expedite work processes thereby increasing overall efficiency, reducing downtimes and knowledge gaps. Collaboration among such team members will make members to perform at their best by working on what they do best. Building Trust Good working relationship in a team cultivates trust and constantly gives members assurance of everyone being in the benefit of
Both these employees have shown their innovative approach at work and more than efficient attitude. As for Humbolt, he suggested the best project for the company by acquisition of Schnapps Brand. While the project investment is under the limits of capital budgeting, it is also enticing in terms of profitability and diversity to approach the varied class of customers. On the other hand, it was Morin who designed the price war and was the lead advocate, is yet another deserving candidate to lead the
Participative leadership boosts the employee morale because employees make contributions to the decision-making process. When a company needs to make changes within the organization, this style helps in easy acceptability of the change. • Transformational The transformational leadership style depends on high levels of communication from management to achieve goals. Leaders motivate employees and enhance productivity and efficiency through communication and interaction. QUALITIES OF A GOOD LEADER • A good leader has an exemplary character .