Organisation and It's Parts

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The Major parts of an organisation

Orgnization: An organization is like a team of people working together for a common goal, like a
soccer team trying to win a game. They have different roles, like players and coaches, and they all
have to work together to be successful.

1. Employee

Individuals hired by an organization to perform specific tasks or roles in exchange for wages or salaries.

Internal Impact:

- Motivated and skilled workforce leads to increased productivity.

- Employee turnover affects organizational stability and knowledge retention.

External Impact:

- Public perception of employee treatment influences brand image.

- Employee strikes or dissatisfaction can disrupt operations and tarnish reputation.

2. Unions

Organizations formed by workers to collectively negotiate with employers for better wages, benefits,
and working conditions.

Internal Impact:

- Negotiations with unions impact labor costs and working conditions.

- Union activities can influence internal policies and procedures.

External Impact:

- Strikes or disputes can garner negative media attention and affect public perception.

- Union lobbying efforts may influence government policies affecting the industry.

3. Shareholders

Individuals or entities that own shares or stocks in a company, entitling them to a portion of the
company's profits and voting rights in certain decisions.

Internal Impact:

- Shareholder interests influence strategic decisions and financial priorities.


- Dividend payments and stock performance affect shareholder satisfaction.

External Impact:

- Shareholder activism can pressure management to change practices.

- Shareholder confidence affects the company's ability to raise capital.

4. Communities

Groups of people living in the same area or sharing common interests, often impacted by the activities
of organizations operating within their vicinity.

Internal Impact:

- Corporate social responsibility initiatives can enhance the company's reputation.

- Community relations impact local permits, licenses, and zoning.

External Impact:

- Support or opposition from the community can influence regulatory decisions.

- Community engagement affects brand perception and customer loyalty.

5. Suppliers

Entities or individuals that provide goods or services to an organization, essential for its operations.

Internal Impact:

- Dependence on reliable suppliers impacts production schedules and quality.

- Supplier relationships affect supply chain efficiency and cost management.

External Impact:

- Supplier disruptions can halt production and affect customer satisfaction.

- Ethical sourcing practices can impact public perception and brand reputation.

6. Media

Channels or platforms through which news, information, and entertainment are communicated to the
public, including newspapers, television, radio, and online outlets.

Internal Impact:

- Public relations efforts shape media portrayal and brand image.

- Media coverage affects employee morale and stakeholder confidence.


External Impact:

- Negative publicity can harm reputation and stock value.

- Positive media coverage can enhance brand visibility and consumer trust.

7. Government

The governing body responsible for creating and enforcing laws, regulations, and policies that affect
organizations and society as a whole.

Internal Impact:

- Regulatory compliance efforts impact operational procedures and costs.

- Government policies influence taxation, trade, and industry standards.

External Impact:

- Changes in regulations can affect market dynamics and competitiveness.

- Government contracts and subsidies can impact revenue and growth opportunities.

8. Trade and Industry Associations

Organizations formed by businesses within a specific industry or trade to promote their common
interests, provide resources, and advocate on their behalf.

Internal Impact:

- Membership in associations provides access to industry expertise and networking opportunities.

- Participation in association activities can shape industry standards and regulations.

External Impact:

- Association lobbying efforts influence government policies affecting the industry.

- Industry collaborations and initiatives impact market dynamics and competition.

9. Competitors

Other organizations operating in the same industry or offering similar products or services, vying for the
same market share and customers.
Internal Impact:

- Competitive intelligence informs strategic planning and product development.

- Competitive pricing strategies affect profitability and market share.

External Impact:

- Market rivalry influences pricing, marketing, and distribution strategies.

- Competitor actions can trigger responses affecting brand positioning and customer loyalty.

10. Customers

Individuals or entities that purchase goods or services from an organization, driving its revenue and
shaping its product offerings.

Internal Impact:

- Customer feedback informs product development and service improvements.

- Customer satisfaction impacts brand loyalty and repeat business.

External Impact:

- Market demand influences pricing, production, and inventory management.

- Customer reviews and word-of-mouth recommendations affect brand reputation and sales.

11. Social and Political Action Groups

Organizations formed to advocate for specific social or political causes, aiming to influence public
opinion, policies, or corporate practices.

Internal Impact:

- Engagement with these groups can inform corporate social responsibility initiatives.

- Activist pressure may necessitate changes in internal policies and practices.

External Impact:

- Public campaigns can influence public opinion and consumer behavior.

- Political lobbying efforts can impact legislation and regulatory frameworks.


The End

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