Business organizations are formed either to produce goods, that are sold to the public or offer services to the public, in the majority of the cases at a profit. A business organization can be a one person business that is sole proprietor or a partnership where there are at least two owners or a private incorporated company where shares ownership is restricted or public incorporated company.
An incorporated company is said to be public when its shares are available for purchase by the members of the public (Cole 2004). An incorporated public company acquires a legal entity, is separate from the owners and is managed by a Board of Directors. Industrial relations: Industrial relations encompass all aspects of the employment relationship including human resource management, employee relations and union management relations (Answers. com 2009).
In this respect this relations should be understood to be about labor rights and respect to human life in a workplace and some of these components include job safety, collective bargaining and equal pay for equal work (TakingITGlobal 2008). Industrial relations are hence increasingly associated with the unionized sect of the labor market what is essentially known as a trade union, which is an organization of workers whose
Need essay sample on "Public Company"? We will write a custom essay sample specifically for you for only $ 13.90/page
Investor relations: Investor relations is a strategic management responsibility that integrates finance, communication, marketing and law compliance to enable the most effective two-way communication between a company, the investors and other constituencies which ultimately contribute to a company’s securities achieving fair valuation (IFAC, 2009). The fair valuation of the company securities will be reflected in financial indicators in particular the return on their capital, earnings per share and profit (Cole 2004).
While an investor is keen to receive a good return on his/her investment, he/she is not however involved in day to day operations of the company which is a function of management. Coordination between industrial and investor relations: There are several interest groups who are expected to benefit from the company business such as shareholders (investors), employees, customers, suppliers, and the public at large. Of these groups, investors who are providers of capital and employees who provide labor are very critical to the success of the company.
The Board of Directors that manage a public company have an obligation to ensure that investors’ and workers’ interests are taken care of and therefore ensure that their management’s strategic interest is to satisfy as much as possible these two groups. However the interests of employees and those of investors may be in conflict and management shall therefore be required to coordinate the two groups’ interests so as to ensure that the company’s objectives are met.
One area that needs coordination is the workers compensation package that is what is he/she being paid for the services rendered since a good package will boost the workers morale and in turn increase the company’s productivity and profit. The second area that needs coordination is the investors’ interest that is a reasonable return on their capital, earnings per share and profit. If there is a communication breakdown between investors and the workers and one party decides to walk out, then the future of the company will be in jeopardy.
This situation may arise if the workers demand what investors may consider to be too much or unreasonable and therefore withdraw their capital or if the workers fill that they are being unfairly exploited and they hence withdraw their service thereby grinding the company operations.
References Answers. com (2009): Industrial Relations. <http://www. answers. com/topic/industrial-relations > accessed March 22, 2009 Cole, G (2004).
Management Theory and Practice, 6th Edition, Published by Thomson Learning TakingITGlobal 2008: Labour Rights- Work & Economics <Http://issues. tigweb. org/labour? gclid=CNFd-47ftpkCFRAhDQodqjeo5Q> accessed March 22, 2009. IFAC (2009), Sustainability Framework/ Financial Investors: Investor Relations for Managing Reputation and Benchmarking <http://webifac. org/sustainability-framework/ip-investor-relations > accessed March 22, 2009.