The company's perspective Most company mission statements have a strong declaration about how very important their people are to the company's success.
Good management understands that people are vital to a company's success.
In the context of a company, people are typically viewed in the aggregate. This is a very important distinction in understanding management's perspective regarding salaries and raises. Since it cannot think or act, a board of directors acts as its guardian or trustee and directs its business affairs. It is very important to understand that the management in a company has an overriding responsibility to the company and not to the individual employee. Managers make decisions that may supercede the good of an individual employee, but which are required for the overall good of the company.