The Management were imagined as formal suits from oxford sitting in air conditioned cabins deciding fate of thousands of blue collar people. But now the scene has changed completely and even the employees are involved in management and they are also a valued voice in management decisions.
This happened due to two reasons:-
1. Modern day managers realised that they need to involve the front line in management to make them more efficient and responsible in there jobs.
2. Secondly the management runs business with working capital which is getting difficult to accumulate considering the dipping profit margins and also riskier and Costlier to get loan from open market. So the capital now is arranged by the employees/workers investing in company business.
This happened due to two reasons:-
1. Modern day managers realised that they need to involve the front line in management to make them more efficient and responsible in there jobs.
2. Secondly the management runs business with working capital which is getting difficult to accumulate considering the dipping profit margins and also riskier and Costlier to get loan from open market. So the capital now is arranged by the employees/workers investing in company business.
This could be done in various ways:-
1. Allotment of company shares to employees as ESOPs.
2. Giving representation of employees or workers part role in management by making them partners in profit or loss.
This Concept is now adopted world wide and brought fortunes for many Companies.
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