Learning Aim E: Principles of Management Flashcards
The people who affect or who are affected by an organization’s activities.
Stakeholders
The owners of a business certainly have an influence on the change which happens within the business. Especially for small businesses such as sole traders and partnerships etc. the owners can essentially dictate and control more or less any change which happens internally. As the business grows and becomes a larger business with investors and a board of directors etc. the owner’s influence can be reduced significantly.
Owners
Ultimately, if employees do not agree with a change that their business makes, it can cause issues and make implementing the change very difficult. Therefore, it is very important for businesses to gather the views of employees before making any change.
Employees
Managers not only influence change but are usually pivotal to the successful implementation of most changes in business. Managers are often involved in planning the business’ strategy and providing insights to the owners about the business, which is often much more than just data on a spreadsheet. Therefore, they are in a very influential position in relation to future change within the business.
Managers
Ultimately, if customers don’t agree with a change in the business, it is likely to have detrimental impact. Often, to ensure change is successful, businesses will conduct extensive market research with customers before deciding around a potential change.
Customers
The Advertising Standards Agency (ASA) operate in a different way to Ofsted and can issue fines or withdraw advertising completely if they deem it to break rules which in turn influences change in a business.
Regulators
Financial institutions support businesses to maintain the flow of finance. For example, they may provide a mortgage to support a business to invest in property i.e., a shop or a warehouse to support growth.
Financial Institutions
The government are a very influential external stakeholder regarding the way businesses operate through the rules and regulations it imposes on businesses etc.
Government
Something that comes from inside the business that might cause a change eg the need increase cash flow.
Internal Factors influencing change
Something that comes from outside the business that influences change eg the economic environment.
External factors influencing change
Process of making sure changes are made smoothly and efficiently and do not negatively affect systems reliability, security, confidentiality, integrity, and availability.
Change Management
The reluctance to change our ideas in light of new information eg staff may not want to change the way that they work.
Resistance to Change
A process in which a large company or organisation changes its working methods or aims, for example in order to develop and deal with new situations or markets
Organisational Change
