1.4 Stakeholders

Question 1

What is a stakeholder?

Answer 1

anyone that has a vested interest in a business

Question 2

Examples of stakeholders

Answer 2

Customers (product)
Government (taxes and employment)
Shareholders (money)
Suppliers (demand)
Employees (salary and job security)
Management 
Competitors (
Local community (employment and no pollution)
Banks (loan payments)

Question 3

What is arbitration?

Answer 3

to resolve industrial disputes between workers and mangers

Question 4

Advantages of arbitration

Answer 4

independent arbitrator will hear the arguments from both sides and decide on what they condor to be a fair solution.

Both sides can agree beforehand whether this settlement is binding that is they have to accept it.

Question 5

Disadvantages of arbitration

Answer 5

Neither stakeholder group will be likely to receive exactly what they wanted.

The costs of the business might rise if the arbitrator proposes higher wages or better work conditions than the employer was originally offering

Question 6

What is worker participation

Answer 6

to improve communication decision-making and reduce potential conflicts between workers and manager

Question 7

Examples of worker participation

Answer 7

works council, employee directors

Question 8

Advantages of worker participation

Answer 8

Workers have a real contribution to make to many business decisions. Participation can motivate staff to work more effectively.

Question 9

Disadvantages of worker participation

Answer 9

Some managers believe that participation wastes time and resources eg: in meetings that are just ‘talking shops’ and that the role of the manager is to manage, not the worker.

Some information cannot be disclosed to staff other than senior manger, eg: sensitive details about future product launches.