1.4 DEFINITIONS
It is proper to begin with the language of management. The following are a few management terms that will be used frequently throughout this book (Compton 1997; Babcock 1996):
1.4.1 Management Responsibilities
The management group of a company has the overall responsibility of achieving the company's objectives and meeting the diverse expectations of its stakeholders. The management group is composed of managers at various levels, from CEO (chief executive officer) down to first-line managers (e.g., group leader, section head, manager, etc.).
The stakeholders are groups of people who have a stake in the company's performance. These include shareholders, customers, suppliers, employees, and the community in which the company operates. Typical expectations of these stakeholders
include:
A. Shareholders-return on investment, dividends, and earnings per share; and increase in stock price over time
B. Customers-quality products, acceptable services, and flexibility to accommodate changing needs, efficient delivery, and reasonable prices
C. Suppliers-financial stability, market share position, quality production, collaboration efficiency, and on-time payment
D. Employees-good working conditions, stable employment, and competitive
salary and benefits
E. Community-environmentally clean, tax contribution, socially responsible, ethically acceptable reputation, and good corporate citizenship