The performance of corporation organizations is an essential piece of information for investors and stakeholders. Return on investment is one of the most applied tools to measure the performance of business organizations. It helps investors establish the profitability of a given investment regarding capital. Social return on investment (SROI) measures how an organization adds value to the environment and communities. The change is measured by evaluating the company’s social, economic, and environmental outcomes, which are also the pillars of sustainable development. Social return on investment is an ideal tool for measuring social impacts and should be employed in medium and large corporations. To achieve true sustainability, organizations report on three main aspects: financial gains, as well as social and environmental impacts of their activities, processes, and products. Over the years, financial reporting has been the most dominant way of measuring the performance of corporate organizations. However, with the rising concern Continue reading
Modern Management Concepts
The Factor of Authenticity in the Modern Business
Authenticity has been a popular trend for the past twenty years, and it continues to grow even larger encompassing new areas every year. Nowadays, almost any sphere in the economy has a niche which is devoted strictly to authentic products, which often imply being organic, chemical-free, and manufactured in accordance with ethical principles. This trend was initially started by so-called hipsters who often sold items which they believed to be unique in some way, such as customized jeans or retro sunglasses. Over time, this tendency was identified by market analysts and started being utilized by corporations, for example, Henkel, a German conglomerate, recently launched a brand called Authentic Beauty Concept. The fact that such large companies seek to exploit this idea shows that the authenticity concept is extremely powerful in society. Yet, at its core, authenticity is about people’s desire to discover and consume unique experiences which form their true Continue reading
Sharing Economy Concept – Meaning, Drivers, Principles, and Forms
“Sharing economy” is the term that entered scientific literature not so long ago that is why it is still rarely used. Being also known as ‘collaborative economy’, this term is used to describe a type of business model that builds on the sharing of resources between individuals through peer-2-peer services – allowing customers to access goods and services when needed. The transaction between individuals takes place through sharing economy firms, which are called intermediaries. The intermediaries provide the platform, such as a website or a smartphone app, rather than providing the service directly. Sharing economy firms started to appear in 2008 and 2010, in the aftermath of the global financial crisis, which prompted people to look for new business opportunities. As a business model, the sharing economy takes different forms and is characterized by unique features. More and more people and organizations become involved in the sharing processes currently. The Continue reading
Assessing Different Types of Innovation
The majority of businesses need help with innovation. Only 6% of executives are truly happy with their performance in terms of innovation, according to McKinsey. Due to this, it is challenging how few corporate leaders have the confidence or expertise to address the issue before it is too late. Generally speaking, disruptive, incremental, bincremental, and radical innovations differ significantly from what businesses are used to doing most of the time. 1. Disruptive Innovation Since no system, method, or industry is immune to disruption, many find it beneficial to seek new disruptive discoveries. Reusing resources like technology can help generate new ideas that appeal to consumers. To illustrate, consider the rise of the iPhone from Apple Inc., which popularized touch displays over conventional button phones. Disruptive innovations, like everyday commercial ventures, are unmanageable because they are riskier than incremental improvements. Standardization is used to improve quality and create new goods and Continue reading
The Role of Emotional Intelligence in the Hiring Process
There are several types of jobs where emotional intelligence (EI) assessment could be effective in personnel selection. Moreover, high EI is necessary for highly demanding jobs. For instance, lawyers and file clerk, who face a lot of emotional labor during their day-to-day work, may fake their chances of securing a job position or use interpersonal interactions. However, such jobs as accountants and welders, which have little to no emotional labor, do not depend on emotional skills. HR professionals may not effectively measure or predict EI via testing methods. For instance, on the psychometric test for EI, it is impossible to predict EI as it is a measure of cognitive intelligence rather than EI. The use of practice employment tests is significant in improving recruitment and personnel selection outcomes for highly demanding job positions. Therefore, HR professionals who are ardent about using psychometric tests for EI may discover that they are Continue reading
The Importance of Emotional Intelligence
The concept of emotional intelligence (EI) is an integral part of all areas of human development. However, as with many other scientific ideas, scientists still cannot agree on what emotional intelligence is. There are many definitions of emotional intelligence. Some define emotional intelligence as a set of non-cognitive abilities, competencies, and skills that affect a person’s ability to cope with challenges and environmental pressure. Others see this as the ability to be aware of their emotions and the emotions of others in order to motivate themselves and others and to manage emotions well in private with themselves and when interacting with others. Since the trainer is more a practitioner than a scientist, a shorter definition is preferred, which is easier to work with during the training and which conveys the essence of this scientific concept. Emotional intelligence is the ability to be aware of one’s emotions and the feelings of Continue reading