BUSINESS

Meeting Stakeholders and Quality Needs



Meeting Stakeholders and Quality Needs

Task # 1

Identifying Organizational Stakeholders and their expectations is the foremost important step in the successful management of the organization. In order to conduct this step, there is a prior need to understand what stakeholder means. Stakeholders are the group of people who can influence the organizations's decisions and have direct interest in the running of the business. The stakeholders are actively involved in the organization, influenced by the organization and even have ability to affect the success of the organization (Jergeas et al., 2000).

The company's stakeholders may include employees, government, customers, creditors, suppliers, community, owners, shareholders, investors or trade unions. There are two types of stakeholders which are as following:

Primary Stakeholders: internal stakeholders are the primary stakeholders who are usually involved in the economic transactions that include the employees or staff, customers, managers, stock holders, creditors, and suppliers. They have a close relationship with the business.

Secondary Stakeholders: external stakeholders are the secondary stakeholders who are usually engaged in the direct economic exchange with the organization. They do not have the close relationship with the organization but have the active interest in the business. They have the power to influence the actions of business and can even be affected by the decisions of business (Love et al., 1998). They may include communities, government, media, general public, business support group and activist groups.

After identification of stakeholder, the next step is to determine each stakeholder's satisfaction attribute or expectations. This analysis holds the immense importance as the overall performance of the organization is dependent on the stakeholders' expectations and successful delivery of their needs (Bourne, 2011). The expectations of the stakeholders require satisfaction such as competitive compensation, career development opportunities, pleasant work environment, safe work conditions and job security are the expectations of the employee.

The organization selected to reflect the topic is ICAEW Audit and Assurance which is the audit firm. The stakeholders of the ICAEW include the shareholder, management, directors, audit regulators, audit firms, employees, auditors, creditors and lenders, regulators of organization, and other.

The ICAEW identifies the need of their stakeholders so as to protect the interests and expectations of stakeholders in the organization:

Directors of the company expect auditors to assist in discharging responsibilities.

Managers expect auditors to add value through effective advices and ensure the accessibility of finance at decreased costs.

Regulatory authority of the company expects audit to provide relieve through meeting with the rules and regulations.

Employees of the company expect audit to protect their job and future in the organization.

Audit Regulators expect auditors to hold responsible for meeting with the clear standards and quality.

Lenders and creditors expect auditors to continue providing the comfort through enabling the organization to pay for the good, services and finance.

Audit firms expect auditors to provide the challenging work for the auditors to ensure their brightest future.

The ICAEW organization along with the directors considers the expectations of stakeholders and finds the most appropriate ways to address them. The ICAEW manages the expectations of stakeholders in numerous ...