What can be considered as a guiding principle in effective management?

Emphasizing employee well-being serves as a guiding principle in effective management because it directly impacts organizational performance, employee satisfaction, and retention. When management prioritizes the health, happiness, and development of employees, it fosters a positive workplace culture. This, in turn, leads to higher levels of employee engagement and productivity. When employees feel valued and supported, they are more likely to contribute their best efforts toward achieving the organization's goals.

Good management recognizes that employees are a critical asset, and addressing their well-being enhances collaboration, innovation, and morale. Engaging with employees and understanding their needs can lead to better decision-making, improved performance, and ultimately, the long-term success of the organization.

The other guiding principles may provide some benefits but do not inherently focus on the holistic development of an organization. Maximizing shareholder profit tends to overlook other important stakeholders, including employees. Following a strict hierarchy can stifle communication and creativity, whereas reducing operational costs, while important, does not necessarily lead to an engaging and motivating work environment. Thus, prioritizing employee well-being is more conducive to sustained organizational effectiveness and success.