Encouraging Employees to Challenge Existing Ways of Doing Things, and to Be

question 103

Essay

Encouraging employees to challenge existing ways of doing things, and to be creative and innovative in proposing better ways of operating, requires the company to create a supporting environment. In many firms, this means empowering their employees. What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand in the market.

Book Value Per Share

Book Value Per Share is a financial metric that calculates a company's equity available to common shareholders divided by the number of outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.

Common Share

A type of equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.