Modern management concepts and practices

¶ … Management

Organizational stakeholders

Organizational stakeholders can be defined as an organization, group, or a person that may be interested or concerned with the affairs of an organization. The policies, objectives and actions of an organization may have an impact on the stakeholders or the stakeholders to impact on the organization. Some of the examples of those stakeholders who play key roles include unions, suppliers, shareholders, government agencies, employees, directors, creditors and the environment from which the organization gains its resources. The roles of stakeholders may not always be equal. The customers of a company are eligible to trading practices that are fair but the company cannot consider the same way it considers its employees. A good example of a negative effect of the stakeholders is in a scenario where the company is making a decision of lower costs and is planning on a round of layoffs. This affects negatively on the workers' community and later on, on the local economy. Persons who have shares in the company are affected positively in a case where the company launches new products and experiences profit where the stock price rises.

Every organization is inclusive of those stakeholders whose views need to be considered in cases of the organization working out strategic plans or important decisions concerning the organization. The customer is the main stakeholder who may happen to exist as another organization or a private buyer. The major aspects that matter most to the customer are timeless, price and quality of the product or the services that the organization renders. In a case where the organization is a supplier, then they will have to deal with the pressure of meeting this aspect while being considerate the most profitable ways or spending within the restrictions of the organization. The existence of various customers' preferences, the suppliers of goods and service have the chance to offer competition. The competitor is considered a stakeholder in an organization as they experience the impact of an organization's actions that they are in competition with. Competitors are under the bracket or indirect stakeholders and they differ with the direct stakeholders.

Types of responsibilities an organization has to stakeholders

This article is subject to the responsibilities that the organization has towards the stakeholders. They include both external and internal stakeholders. Internal stakeholders refer to the shareholders who are the management and employees. External stakeholders refer to the community, credit competitors, suppliers and consumers. The employees are considered significant stakeholders. The employees remain in a subservient position in the organization regardless of the fact that they provide the necessary labor. Regarding this fact, state and federal laws have been put in place to govern the rights of employees and ensure that they are fairly compensated and treated with respect. The employment laws provides for 8 rights of the employee. They include the freedom of voicing concerns without retaliation from the employer, medical and family leave, non-discriminatory hiring, benefits of unemployment, safe working environment, and equal compensation regardless of gender, minimum wage and the ability to organize. Cases of employment law are discussed upon with regard to the equity principles.