How should an organization balance the needs of shareholders, employees, management, and other interested groups (enviro...
How should an organization balance the needs of shareholders, employees, management, and other interested groups (environmental groups, etc.)?
Homework Answers
Employees are cost for the company but they are asset for the company as well. Every employee should be paid as per the productivity and amount revenue they are increasing or amount of cost they are decreasing.That way employee's need can be balanced.
Management are responsible for making strategic decision that will eventually increase the bottom line (net profit) of the company. Management should have major proportion of shareholding in the company. In that way, management will be more eager to try their best to increase revenue or decrease cost.
Shareholders will be happy when company's profit is maximized after meeting other stakeholder's need. After all, when company is profitable that will give security to employees and management, shareholders and all other stakeholder would be happy.
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How should an organization balance the needs of shareholders, employees, management, and other interested groups (enviro...
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