A risk matrix is defined as a table that is divided into several categories of probability, likelihood, or frequency for its rows, and multiple categories of severity, impact, or consequences for its columns. The constituents of risk ordinarily attest themselves as a hazard; which refers to the likely origin of a harmful outcome and harms; which are the ensuing damages to the environment. It incorporates generally accepted ratings of risk, urgency and priority, with every row-column pair. This is represented by distinct cells which are separately colored, using red, green and yellow colors. Each distinct cell has a different risk rating, for instance, cells colored in red will indicate risks that require an urgent attention, whereas those that are colored in green will indicate those risks that do not require to be dealt with urgently. The yellow colored cells indicate those risks that fall in between the ratings of very urgent and Continue reading
Modern Management Practices
Social Return on Investment (SROI) – Definition, Benefits, and Challenges
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
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
SMART Goal Setting: Definition and Components
In the pursuit of personal and professional success, individuals often set goals to guide their efforts. However, not all goals are created equal. The concept of SMART goals, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound, offers a structured approach to goal setting that enhances the likelihood of success. Originating from the business management domain, the SMART framework has been adopted across various fields, including education, healthcare, and personal development. By promoting clarity and accountability, SMART goals enable individuals and organizations to systematically track progress and make necessary adjustments. SMART goal-setting was first introduced by Dr. Edwin Locke in the 1960s. According to Locke, setting goals that fit into the SMART criteria provided motivation and empowerment to people, which was crucial to ensure that the goals are achieved. Today, SMART criteria are applied to the goal-setting process in many organizations, regardless of their size and area of business. The Continue reading
Case Study on Green Marketing: Ecoalf’s Inspiring Business Model
In today’s world, many companies are involved in activities aimed at addressing relevant environmental issues as part of their corporate social responsibility initiatives. However, some ventures conduct their businesses while using solely green marketing as a mechanism to operate by reducing numerous negative impacts on the environment. One of the factors affecting the sustainability of fashion brands negatively is competition. Some businesses in this sector use radically distinctive development models, which allows them to keep the intermittent interest of the target market. However, without having a reputable history, this is difficult for companies to overcome the competitive barrier. As a result, high competition in such an environment affects the sustainability of brands and can often be an obstacle. The inability to withstand pressure from rivals, in turn, is directly associated with falling profits and, consequently, financial challenges. One of the trends in the fashion industry is the focus on environmental 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