What Is Value Based Management - CiteHR
Rajsawster
Hr Specialist - Policy,compehsation &
Rashidmusa
Compensation And Policy

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Hi Every one, What is value based management? Why value based management is important? What are benefits of value based management? Please reply. Regards Rashid
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Hi Rashid,

Good Question, generally you won't find such stuff on this site. Most postings are focused on dealing with subjects of day to day affairs.

First time I see such intellegent question on this site.

Value based Management is he management approach that ensures corporations are managed consistently on value (normally: maximumizing shareholders value).
Value based Management aims to provide consistency of:
The corporate mission
Corporate strategy
Corporate governance
Corporate culture
Corporate communications
Organization of corporation
Decision, processes and system
Performance management & system
Reward processes and system.

Three elements of Value Based Management
1. Creating BValue
2. Managing for Value
3. Measuring value

Value based Management is dependent on the corporate porpose and the corporate values.

It is important because:
1. The market for its product and services
2. The market for corporate management and control (Competition on determining who is in charge of an organization, therat of takeover, restructuring and leavrage buy-out.
3. Capital market ( competing for investors and money)
4. The employee and managers market
Benefits of Value based Management is:

1. Can maximise value creation
2. Increase corporate transparancy
3. Help organizations to deal with global and deregulated capital market
4. Align the inerst of top managers with shareholders in terest
5. Facilitate comminications with investors, analyst and with stakeholders
6. Prevent under valuation of stocks
7. Facilitates to improve decision making.

Regards

Sawant
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