Module 4: Factors influencing workforce management, motivation and performance and change management

Stakeholders affecting change

Owners

Owners have ideas about how they want their business to move forward. This is especially true in sole traders or partnerships.

In larger businesses such as public limited companies, the separation of ownership and control will mean that owners have less influence.

Managers

In larger companies, it is likely to be the board of directors and management who make strategic decisions about change in the company.

Customers

As businesses are driven by customer demand for goods, their buying patterns will affect business plans. Customer behaviour will have an impact on changes within a company.

Regulators

Regulators are public bodies whose role is to oversee companies and ensure they behave responsibly.

For example, OFCOM is the regulator for the communications industry and its role is to make sure businesses in the industry provide a good service to their customers.

Financial Institutions

If a business borrows money from a financial institution, then that organisation will be interested in how the business is run.

Government

Governments' decisions can force businesses to make changes in the way they behave. For example, the Welsh Government has made changes to how businesses in Wales must treat litter. This forces businesses to put new systems in place to comply with the legislation.

Workplace recycling

Employees

One important group of people that drive change in business are the workers themselves. Employee feedback can promote immediate change but businesses can change the way they work due to other employee factors, such as productivity levels and staff turnover.