Caring Companies are also more Efficient

Josep M. Rosanas, recipient of best book of the year award

03/02/2014 Barcelona

Josep Maria Rosanas

Making decisions is part of every executive’s day-to-day, yet far from the mundane. Complexity and uncertainty, understanding causes and predicting consequences characterize decision-making. Unfortunately, there is no magic formula to arrive at the "best" decision at the end of each day.

Taking good care or employees, says Josep M. Rosanas in "Decision-Making in an Organizational Context" may be one way to tame the complexity inherent in decision-making. Doing so, says Rosanas, actually improves efficiency. These are the central ideas that drew the attention of the Alumni Association in its selection of Rosanas as the 2012-2013 academic year’s recipient of the best book of the year award.

Rosanas asserts that the interaction and trust between people in organizations are the fundamental drivers of productivity, an approach that departs from other traditional, results-focused theories.

According to this model, positive learning is essential. Rosanas, who holds the Andorra Credit Chair of Markets, Organizations and Humanism, argues that rewards and punishments rarely yield the desired outcomes. Instead, it is by "encouraging employees to identify and cooperate" and by finding creative, long-term solutions that organizations can thrive. For example, cutting production costs may lead to a rapid rise in productivity, but in the long term may result in a lack of motivation and a drop in quality.

Efficiency, attractiveness (offering activities that satisfy people's intrinsic motivations) and unity (getting people to identify with the organization’s goals), says the author, are indispensable for any organization that wishes to prosper and survive.

Rosanas’ book is one more voice contributing to the debate about "conscious capitalism," which examines the crisis of values and trust in the business world.

Research excellence awards

Rosanas is one of the three recipients of the Alumni Association research excellence awards.

Established in 2001, these awards are a recognition of the best book, best course and best academic article, with a prize of €10,000 in each category.

Read a summary of the book on IESE Insight