Chapter Five. Good Management (Really) Makes Money

IF BAD MANAGEMENT PRODUCES negative results, as is indisputably reflected in dollars and cents on the bottom line (see Chapter 4), does good management produce positives? Absolutely.

Organizations that really value and involve their employees have higher levels of growth, market value, return on assets, and returns to shareholders. That is not wishful thinking; that is the inescapable conclusion of the data from hundreds of quantified studies. The goal of this chapter is to present that data in such a way that corporate decision makers freely embrace it.

The positive quantitative outcomes presented in this chapter are largely the result of management’s support and respect for employees. These organizations ...

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