MNG3701 - Chapter 1
Purpose of Business Organization
* 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
Any person or group of people that have (or claim to have) an interest in an organization and its
activities.
Stakeholder Expectations
* 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
Work directly within the organization - business owners, shareholders, investors, employees and
management
External Stakeholders
Not directly associated with the organization - community, government, organized labor (trade
unions), customers, suppliers.
Triple Bottom Line (Expected from Organizations)
* Be profitable
* Take responsibility for the physical environment
* Meet is social responsibilities towards the community in which it operates
Manager
The person responsible for running a part of or an entire organization
Management
The interlocking functions that managers perform.
Management Process
"The process of working with and through others to achieve organizational objectives in a
changing environment."
Management Process Characteristics
Purpose of Business Organization
* 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
Any person or group of people that have (or claim to have) an interest in an organization and its
activities.
Stakeholder Expectations
* 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
Work directly within the organization - business owners, shareholders, investors, employees and
management
External Stakeholders
Not directly associated with the organization - community, government, organized labor (trade
unions), customers, suppliers.
Triple Bottom Line (Expected from Organizations)
* Be profitable
* Take responsibility for the physical environment
* Meet is social responsibilities towards the community in which it operates
Manager
The person responsible for running a part of or an entire organization
Management
The interlocking functions that managers perform.
Management Process
"The process of working with and through others to achieve organizational objectives in a
changing environment."
Management Process Characteristics
