Restoring the Human Side of Business



Why are rewards so massively unbalanced in favor of shareholders and top management? And why is it that the top managers of floundering firms, or even firms that go belly up under their stewardship, nevertheless receive massive compensation packages?

These and other provocative questions are posed by IESE's Rafael Andreu and Josep M. Rosanas, who proffer their "Manifesto for Better Management" in the latest IESE management magazine.

How we compensate workers needs a complete rethink, they say. To do this, companies may need to abandon contemporary financial theory to some degree, along with its primary objective of maximizing shareholder value.

Under the theme of "Restoring the Human Side of Business," the magazine features thought-provoking articles to move the business world toward a more humanistic model of management.

Claudia Peus (TUM School of Management in Munich) highlights humanistic leadership principles, while Michael Pirson (Fordham University Schools of Business) and Shann Turnbull (International Institute for Self-Governance) make a bold proposal for "network governance," which they say would prevent power abuse and allow for greater cooperation among all stakeholders.

There are also columns by IESE's Domènec Melé and Harvard's Rosabeth Moss Kanter, who both call for a new way of doing "humanistic business."

Following Facebook's recent IPO, IESE's Miguel Cantillo and Nicholas Corbishley discuss what companies can hope to gain from going public.

IESE's Marta Elvira, Carlos Rodríguez Lluesma and Núria Mas identify best practices and business opportunities in the management of care services to cope with the aging populations of industrialized countries.

Antonio Urcelay, president of Toys “R” Us Europe, discusses the challenges of his sector, including outsourcing to China, the rise of emerging markets, e-commerce, and the role and responsibility of management.

A case study on Kola Real considers the Latin American cola maker’s chances of becoming a top multinational in a soft-drink market dominated by Coca-Cola.

And David McNeill, of Transport for London, talks about the logistics of moving millions of visitors during the upcoming London 2012 Summer Games in July.

Finally, IESE's Brian Leggett revisits Dickens’ classic works to think afresh about the scandal of child labor on the recent occasion of the World Day Against Child Labour on June 12.

IESE Insight is a quarterly research-based magazine, published in separate English and Spanish editions. Its premium content is linked to articles from the IESE Insight knowledge portal, which contains research and teaching materials, opinion articles, business indices, audiovisual materials and an extensive database of more than 20,000 scholarly references.

Go to the IESE Insight review website