Business Administration - parte 2

Sustainable business and business ethics

Development is sustainable when it meets the needs of the present without compromising the ability of future generations to meet their own needs. Intergenerational equity — to adopt a global, national value is an important question: “what if I change my mindset?” Economic development, social development, and environmental protection are interdependent and mutually reinforcing components of sustainable development.

Triple bottom line

People, planet, and profit (prosperity). Sustainable development minimizes pollution and resource depletion, ensuring that future generations will have vital resources.

Corporate social responsibility (CSR)

The idea that business has obligations to society beyond the pursuit of profits. CSR encompasses the responsibility of enterprises for their impact on society.

Stakeholder Theory

The stakeholder theory is one of the most used theories in managerial studies. It explores the dynamic and complex interplay between a company and its network of stakeholders. This theory assumes an explicit systemic approach: “a stakeholder can be defined as ‘any group or individual who is affected by or can affect the achievement of an organization’s objectives’.” Ed Freeman invented the stakeholders’ model, which is different from the input-output model.

Input-output model vs stakeholder model

It is important to understand the stakeholders’ needs:

• Consult — Limited two-way engagement: organization asks questions, stakeholders answer (focus groups and meetings)
• Negotiate
• Involve — Two-way or multi-way engagement: learning on all sides but stakeholders and organization act independently
• Collaborate — Two-way or multi-way engagement: joint learning, decision-making, and actions
• Empower — New forms of accountability; decisions delegated to stakeholders, stakeholders play a role in governance

Human resource management

From the 1980s, companies started managing by calling them "PERSONAL," not HR (Human Resource). Human Resource Management is a specialized function of planning how to obtain employees, oversee their training, evaluate them, and compensate them.

Major differences between personnel management and human resource management

HRM Skills

Service delivery information, organization design, organizational development, resourcing and talent planning, learning and talent development, performance and reward, employee engagement, employee relations, leading HR, insights strategy, and solutions. To achieve a high level of job satisfaction and dedication among employees, it attracts, develops, and retains employees to perform the jobs necessary to accomplish organizational objectives. Plan for staffing needs, recruit and hire workers, provide for training and evaluate performance, determine compensation and benefits, and oversee employee separation.

Hard HRM vs Soft HRM