The Hierachy Gap: the Importance of Creating Value in Lower Level Employee
Executive Summary
The research centers on how value affects the organization when they focus on the lower level employees’ interest, fairness, transparency, and create opportunities to advance. The results being better product service retaining valuable employees and improving stakeholders’ value.
A failure to governance has lead to the collapse of trust in the stakeholders with the economic recession. The main argument is that taking care of the bottom line means better treatment of lower level employees who increase profits in organizations and increase value for stakeholders. It is important to examine the importance of managing human capital as carefully as financial capital as a scarce strategic resource because ninety percent of profits and stakeholders value is created by lower level employees. Over many centuries, the often the overlooked lower level employees have done their jobs with little regards to monetary value from top executives.
The ethical leadership focuses on what values we place for our human capital. If an organization is serious about creating value that is long term then top management needs to invest in the frontline workforce. The managerial model is outdated in understanding corporate relationships. The model for today’s global organization is the enterprise strategy which guides all our stakeholders’ relationships. Therefore all employees are working jointly with top management as good citizens. This is why the overall success lies in commitment to lower level employees.
Introduction
What is an organization’s social responsibility to its lower level employees to create value for its stakeholders? How important is it to examine the importance of managing human capital as carefully as financial capital as a scarce strategic resource? How can employee evaluations be fair and transparent? Does clarifying the corporate code of conduct assist in the lower level employees’ behavior? Should top management take pay-cuts in troublesome
The research centers on how value affects the organization when they focus on the lower level employees’ interest, fairness, transparency, and create opportunities to advance. The results being better product service retaining valuable employees and improving stakeholders’ value.
A failure to governance has lead to the collapse of trust in the stakeholders with the economic recession. The main argument is that taking care of the bottom line means better treatment of lower level employees who increase profits in organizations and increase value for stakeholders. It is important to examine the importance of managing human capital as carefully as financial capital as a scarce strategic resource because ninety percent of profits and stakeholders value is created by lower level employees. Over many centuries, the often the overlooked lower level employees have done their jobs with little regards to monetary value from top executives.
The ethical leadership focuses on what values we place for our human capital. If an organization is serious about creating value that is long term then top management needs to invest in the frontline workforce. The managerial model is outdated in understanding corporate relationships. The model for today’s global organization is the enterprise strategy which guides all our stakeholders’ relationships. Therefore all employees are working jointly with top management as good citizens. This is why the overall success lies in commitment to lower level employees.
Introduction
What is an organization’s social responsibility to its lower level employees to create value for its stakeholders? How important is it to examine the importance of managing human capital as carefully as financial capital as a scarce strategic resource? How can employee evaluations be fair and transparent? Does clarifying the corporate code of conduct assist in the lower level employees’ behavior? Should top management take pay-cuts in troublesome
References: Beth Israel Agrees to go without to Save Jobs (2009,March 12). http://www.boston.com/news/local/massachusetts/articles/2009/03/12/a_head_with_a_heart/ Jennings, M. M. (2008, March 3). Business ethics: Case studies and selected readings (6th Ed.). South-Western Publications. p.505 Nelson, K., & Trevino, L. (2004). Managing business ethics: Straight talk about how to do it right (3rd ed.). New York: Wiley APPENDANCES: GRAPHS 1. Business Model: hierarchy view /e 2. Basic two – tier stakeholder map