A modern approach to rational analysis is the ‘stakeholder’ principle, which implies that a corporation has a duty to ensure a fair and effective equilibrium between the demands of the stakeholder classes, i.e. stockholders, staff, consumers, manufacturers, retailers and the general public.Get the facts about Tom Rollins book you can try this out.
The philosophy holds that the company’s goals can be achieved from juggling the various ‘stakeholders’ opposing arguments. The business has a duty to both of these and has to organize its priorities and include a level of happiness with each. In this case, Abraham Maslow’s theories appear important, that is, managers have a system of objectives or motivations, so after managers have reached one objective, e.g. x percent income, they can shift to fulfill certain targets, e.g. better employee working standards.
Another similar solution to the ‘stakeholder’ principle implies organisations do not have priorities, only individuals have priorities. We say that the aims of a organization are in fact a result of the parties ‘priorities that were agreed.
They say that the decision-making role is spread around the business in big corporations, and that businesses have five primary objectives: revenue, output, inventory, market share and income.
There are focus points for administrators seeking to reach a common objective. Therefore management communicate among themselves and ultimately this dispute must be settled by consensus and only then can the objectives accomplished by the company be acceptable. This principle can be used to put both social as well as economic factors into the decision taking phase.