The Business Organisation And Its Stakeholders Flashcards
Define business organisation
Buchanan and Huczynski
This is organisations a social arrangements for the control performance of collective goals
The three key aspects are
Social arrangements
Controlled performance
Collective goals
Why do we need organisations
Share skills and knowledge
Specialise
Pool of resources
Types of organisations
Commercial versus not for profit
Commercial organisations mean objective is to maximize wealth for shareholders
There are three types of commercial organisations
Sole proprietorship
Partnership
Limited liability companies - private,public
Not for profit organisation
There mean objective is not maximizing wealth
They satisfy the need of their members to the society that they have been set up to benefit
Private sector and public sector organisations
Private sector organisations a run by the private groups and not by government
Public sector organisations are concern with providing basic government services under the control of government
Non governmental organisations NGO
They are the organisations which does not have profit as primary goal Neither is it directly linked to the governments
Cooperative
They are the organisations old and democraticly control by the members the people who buy the goods and services usually single person gets a single vote rather than and partnerships were single member gets so many words as so many as their shares
Key differences between various types of organisations
Source of fund
Size
Liability
Ownership
Objectivatis
Activities
Who are stakeholders
Stay kholos are an individual or group were invested and what the organisation does who affects or who can be affected by organisations actions
Types of stakeholders
Internal
External
Connected
Who are internal stakeholders
Internur stay colours are within the company and their objective is likely to have a strong influence and how the organisation is done
Employee
Managers or directors
Who are connected takeoolus
The stakeholders error have dealings or have invested in the firm
Shareholders
Finance providers
Suppliers
Customers
Who are external stakeholders
External stairculars do not have a direct lyn to the organisation but can affect or be affected by its decisions
Community at large
Environment pressure groups
Government
Trade unions
Who a primary and secondary stakeholders
Primary stakeholders have contract relations with the organisation that are internal and connected stakeholders
Secondary stakeholders Abadi that has interest in organisation but no contractual link that are the external stakeholders
Stakeholder conflict
Employee versus managers wages versus bonus
Managers versus shareholders growth versus independence
Customers versus shareholders product quality versus profit
General public welfare shareholders effect on environment versus profit
