ADM 1301 Lecture Notes - Lecture 4: Profit Maximization, Psychographic, Stakeholder Management

• School: University of Ottawa
• Department: Administration
• Course: ADM 1301
• Professor: Rumaisa Shaukat

Document Summary

Any group or individual who is affected by or can affect the achievement of an organization"s objectives (freeman: 1984) Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society. Anyone or any organization w/ a perceived stake the organization activities and operation. We live in a pluralistic society therefore ether is diffusion of power. Prevents concentration of power: power is more decentralized; people have a more equal distribution of power. Maximizes freedom: everyone has freed of expression, belief etc. Creates diversified loyalties; more complexities; v. important in a multicultural society like. Pursuit of self-interest individual and organization may pursue their self-interest; may not necessarily be bad. Forces conflicts : different groups and individuals leads to a lot of completion and a lot of conflict. Shareholder viewpoint: a business exists to make money greatest efficiency is achieved through profit maximization.