Who are the inside stakeholders of an organization? What will ...

[mcmcdaniel]

Who are the inside stakeholders of an organization?
 
  What will be an ideal response?

Question 2

Which of the following is a disadvantage of a multidivisional structure?
 
  A) A multidivisional structure decreases division of labor which ultimately decreases organizational effectiveness.
  B) It becomes difficult for corporate headquarters to identify the divisions in which an investment of capital will yield the highest returns.
  C) A multidivisional structure is not suitable for an organization which produces a wide range of complex products.
  D) Multidivisional structures are very expensive to operate.

[zhanghao]

Answer to Question 1

Inside stakeholders are people who are closest to an organization and have the strongest or most direct claim on organizational resources. The inside stakeholders of an organization are:
Shareholders: Shareholders are the owners of the organization, and, as such, their claim on organizational resources is often considered superior to the claims of other inside stakeholders. The shareholders' contribution to the organization is to invest money in it by buying the organization's shares or stock. The shareholders' inducement to invest is the prospective money they can earn on their investment in the form of dividends and increases in the price of stock.

Managers: Managers are the employees responsible for coordinating organizational resources and ensuring that an organization's goals are met successfully. Top managers are responsible for investing shareholder money in resources to maximize the value of an organization's future output of goods and services.

Workforce: An organization's workforce consists of all nonmanagerial employees. Members of the workforce have task responsibilities and duties (usually outlined in a job description) that they are accountable for performing at the required level.

Answer to Question 2

D