MNG3701 Chapter 1

Purpose of Business Organisation - Answer-* To the Entrepreneur it is the profit he makes from his business * To the consumer it is the value of the service or product * To employees it is their salary/wage earned * To an organization it can be selling shares to shareholders .Stakeholders - Answer-Any person or group of people that have (or claim to have) an interest in an organization and its activities. .Stakeholder Expectations - Answer-* Customers - quality products and good service * Suppliers - payment on time * Community - contribution in form of sponsorships or community projects * Organized labor - treat employees with fairness, dignity and respect .Internal Stakeholders - Answer-Work directly within the organisation - business owners, shareholders, investors, employees and management .External Stakeholders - Answer-Not directly associated with the organization - community, government, organized labor (trade unions), customers, suppliers. .Triple Bottom Line (Expected from Organizations) - Answer-* Be profitable * Take responsibility for the physical environment * Meet is social responsibilities towards the community in which it operates .Manager - Answer-The person responsible for running a part of or an entire organization .Management - Answer-The interlocking functions that managers perform. .Management Process - Answer-"The process of working with and through others to achieve organizational objectives in a changing environment." .Management Process Characteristics - Answer-* Management is a process * Management entails working with and through others