The company stakeholders
The company stakeholders
To begin with, there are six types of stakeholders to the company each requiring different section of the information. The parties that require information for various purposes include: – shareholders, employees, customers, suppliers, the government, the community, and environment. These groups of people make the organization remain competitive and relevant in the society. When we talk of a community we may mean the whole world for a multinational. External stakeholders Customer: – A customer is the one who receives and consumes the company’s goods and it is the customer who makes the company to continue business in its lifestyle.
They consume goods and services from the company and they expect the company to give a good which is of good quality and user friendly. The good must have the utility value for the customer and at a good price. This will enable the customer to be loyal to the company and ensure the competitiveness of the company’s product. The company communicates to them through the following means: – advertisement, trade and exhibitions, giving free samples, cash discounts, and offering credit facilities. Suppliers:-Suppliers are the people who give services or goods to the company. There are the most crucial for the survival of the company.
Their confidence in the businesses of the company depends solely on how prompt the company pays credit facilities given to them and how regular they do business to the outside world The company communicate to this people through; letter, cheques, purchase orders, and through advertisements. Community:-The community is interested in sustainable development, through the financial statement of the company the community will be able to know how much money was used in sponsoring communal projects, how many employees from the community, and how infrastructure was sponsored by the company.
This information is available in the cooperate social responsibility of the financial statement of a company The environmentalists:-These are people who are interested in the environment of the company. They are interested in information from the financial statements of the company on the section of cooperate social responsibility. The Government:- The government is also a major stakeholder in the operations of a business; they need various types of information for various reasons.
To begin with they need information of a company to be able to ascertain the amount of tax the company is supposed to pay, to be able to regulate the business. Internal stakeholders Shareholders:- These are the owners of the business, they are the people who promoted the company or who started the business and there aim it to make profit and share it. They are the people who appreciate the investments made by the company; they are interested in all information available in the financial statements. Employees:- This are the most crucial people of the company, they receive salaries of the company they include the management of the company.
They are interested in vast information ranging from letters of appointment, letters of dismissal, salary increment information and any other information that is available in the financial statements of the company they are working for. Strengths and weakness of change models The organization has been changing from one form to another; this has become known as the mainstream. Even the modern is undergoing some changes and looks at this change as smooth one. It mainly features change like a positive element in organization and employees and resistance only occurs when a change cannot be clearly explained (Rhinesmith R. 993).
In transformational change it is done through a well developed and coordinated ‘management of change’ program involving directors, management and all employees in the organization. Specific implementation action plans are: 1. Announce the change as far as advance as possible 2. Do not hesitate. Once the change process has started, avoid being de-railed or slowed down unnecessarily. 3. Keep people focused on the change through newsletters, briefings, announcements, etc. engage in ‘information overkill’. 4. Be open about change, as far as practicable. Avoid being unnecessary secretive and being seen t have a hidden agenda. 5. Give people an opportunity to talk and ask questions. Create discussion activities. 6. Identify and develop people/groups who will manage and support the change. 7. Give special attention to people who will be affected by change, either positively or negatively. 8. Involve people in implementing change. 9. Involve and consult staff unions, etc. 10. Assume that more may go wrong with the change that originally thought possible. In an organization, the empowerment of staff is recommended in order to respond to different and changing needs of clients.
This is a culture where the primary task of supervision is to help people to trust their own instincts and take responsibility for the success of company. People’s empowerment requires management to move from hierarchal structures to more participative forms of management, with a sharing of authority and responsibility for serve delivery to clients. It is also recommended that the culture of change need to be established in the company. This helps in strategic thinking and an ability to rapidly respond to changing environment events that radically transform the business environment.
It also embodies an adoption of people centered values that direct management, practice, as opposed to purely task cultural determinants (Nanus B. 1992). Organizations that are able to rapidly respond to changing circumstances are open and responsive to new ideas, employee involvement, and participation, which are key elements in engendering flexibility within the enterprise to be able embrace values that are deemed essentials in valuing the voice of the customer includes, service, humility and integrity. Lastly they should be innovative.
Innovation plays a business critical role in process. Design and frequent cultural attributes associated with innovation include risk tolerance, strategic thinking, a sense of exploration, a search of new meaning in a world of discontinuities and freedom to imagine the impossible. Innovation is the value system through which employees generate new ideas and business solutions for dealing with the complex issues confronting the enterprise. It embodies a sense o f tolerance and allows employees to make errors, provided they learn from such errors.
While in old type of change, remains continuity of the old systems. The famous process of industrialization was a continuity of the discoveries made by the earlier generation otherwise known as the Stone Age era because the tools used then were crude, made of stone and wood (Werzel B. ,2001). The leadership of crystal has so many challenges in order to take the company to the next level. These include the following challenges. (i) One of the leadership challenges in Philip is how they can establish a culture of change in the company.
This means that leaders must be able to think strategically and have the ability to respond rapidly to changing environmental events that radically transform the business environment in future. This breaks with well-entrenched beliefs, values, norms and assumptions that have become ingrained in management thinking over a number of years takes both courage of conviction and a sense of dairy that can only emanate from feelings of security and a real understanding of the strategic issues of stake according to (Buch & Werzel 2001).
Leadership of Philip must also be ready to break traditional cultures in this organization. This culture change does not happen overnight it takes a long time to implement hence requires management tolerance (Benfari R; 2000). All these challenges when put into consideration will help the company to do well in next 5 – 10 years of operation. Change has played an important role in the modern society. Some of the changes that are experienced in the world today includes; innovation, flexibility in terms of decision making , teamwork, training of employees and other many factors that have lead to organizational change.
Atkson laid down a model that allows change to take (Davenport , 1993). He called it a flexible firm model and has three distinct but interrelated characteristics; (i) Functional flexibility; (ii) Numerical flexibility; and (iii) Financial flexibility. Functional flexibility refers to how firms assign (mult-skilled) employees to different roles, activities and work tasks to meet changes in market demand and customer requirements.
Numerical flexibility refers to how firms adjust the size of their workforce in relation to fluctuations in output requirements and market demand by using employment agencies, such as manpower, or ‘non-stand employment practices such as part-time ,short-term and fixed-term employment contracts. Financial flexibility refers to how firms adjust their wage costs to make savings buy moving away from uniform and standardized pay structures, or by introducing performance-related pay in keeping with the objectives of functional and numerical flexibility. (Willmott (1993) and Grey (2005) Characteristic required for change Management of change involves answering the following questions: what is to be accomplished? Why? How is this to be accomplished? What changes will occur as a consequence? This approach is important to ensure that the focus is on the objectives to be achieved.
The ‘how’ can be modified to respond to the particular circumstances. This ensures flexibility in the management of change. In answering the above questions, it is important to understand that change means: (i) moving from a solid present state to a new solid desired state through a period of transition (ii) managing the politics involved in the change process.
Change involves crisis and opportunity (iii) managing not only the planning, organizing, directing and controlling an organization but also the power struggles, strategic maneuvering and “cut throat” actions (Hammer R . B. 1997). The key strategy to facilitating adaptation to change is communication. This should be clear, timely, and two-way and must have information and meaning. Management skills required to successfully manage change are: a) Analysis and identification of issues requiring solution through the change process. Determine the objectives and resultant changes; b) Formulation of strategies for achieving these objectives;
Development and implementation of ways for gaining acceptance of the objectives and the means of achieving them. It is important that those involved in the change process and those affected by change are part of the change process. Successful management of change depends primarily on people management skills ( Gell M M. , 1999). Conclusion Change will always be present in the business organization as efforts to make work easier and well organized is undying in this era of technology inventions deployment is an out come of change and with the mindset of the people steered toward development.
Many ways of managing business organization will be born. The society should brace itself for controversial scenes as rejection is bound to be there as many people hate change. Negative or positive attitudes toward this frame of mind should be sorted with the required steps to avoid conflicts that can make the organization an unfriendly place for one to shaper his or her professions skills. There is a need to show appreciation for the past discoveries that have brought the business organization to what it is today.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 12 January 2017
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