Creating Shareholder Value: Impossible Dream or Achievable Business Objective?(empowering employees leads to profits)

Business magazines, newspapers, and journals are replete with articles exhorting managers to adopt the creation of shareholder value as their prime directive. The concept of shareholder value is not new. It is at base the concept of productivity repackaged to appeal directly to the investor.

Since the industrial revolution, increased productivity has been understood as both the increase of worker output, and the achievement of productive efficiencies through the mechanization and the automation of labour. Through the latter, the output of the individual worker is leveraged, so that fewer employees are required to achieve higher levels of production. The ultimate outcome has generally been lower production costs and increased profit potential.

As western economies have shifted emphasis from indust...

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