Law, Offer and Invitation to Treat
Actions of Top Management
Top management is the highest ranking executives responsible for the entire enterprise. Top management translates policies into goals, objectives and strategies and projects a shared vision of the future. The actions of top management will influence the organization’s culture. According to words and behavior that they say and behave, senior executives will establish a set of acceptable behavior that filter through the organization about. For instance, how much freedom that a employees have, what is the suitable dress a employees should wear, whether risk taking is desirable, what actions earn pay raises, promotions, intrinsic and extrinsic rewards. For example, Joe, CEO of a company, he is punctual to work on every day. He act as a role model in the company, his subordinates will follow his example and won’t be late to work.
Another well-known example is come from Robert A. Keirlin. He has been called “the cheapest CEO in America. He is the chairman and CEO of Fastenal Company, the largest retailer of nuts and bolts in the United States but he takes a salary of only USD 60,000 a year. He owns 3 ‘second-hand’ suites, drives a Toyota, collect discount coupons and stays in a low-priced motel when he travels on business. Did he need to pinch pennies? Definitely no, as Fastenal's largest individual shareholder, he owns nearly 12% of the stocks, he is worth more than USD248 million. He can buy many luxury goods with the money that he have but he prefer a modest personal life style. He also prefers the same for his company. He always tells his subordinates: We don’t waste things in the company. He sees himself as a role model for frugality, and his employees have learned to follow his
Top management is the highest ranking executives responsible for the entire enterprise. Top management translates policies into goals, objectives and strategies and projects a shared vision of the future. The actions of top management will influence the organization’s culture. According to words and behavior that they say and behave, senior executives will establish a set of acceptable behavior that filter through the organization about. For instance, how much freedom that a employees have, what is the suitable dress a employees should wear, whether risk taking is desirable, what actions earn pay raises, promotions, intrinsic and extrinsic rewards. For example, Joe, CEO of a company, he is punctual to work on every day. He act as a role model in the company, his subordinates will follow his example and won’t be late to work.
Another well-known example is come from Robert A. Keirlin. He has been called “the cheapest CEO in America. He is the chairman and CEO of Fastenal Company, the largest retailer of nuts and bolts in the United States but he takes a salary of only USD 60,000 a year. He owns 3 ‘second-hand’ suites, drives a Toyota, collect discount coupons and stays in a low-priced motel when he travels on business. Did he need to pinch pennies? Definitely no, as Fastenal's largest individual shareholder, he owns nearly 12% of the stocks, he is worth more than USD248 million. He can buy many luxury goods with the money that he have but he prefer a modest personal life style. He also prefers the same for his company. He always tells his subordinates: We don’t waste things in the company. He sees himself as a role model for frugality, and his employees have learned to follow his