A customer is a King and a centre of life in your business and without him your business will close the doors. A customer is the one who puts money in the business to pay all the key stakeholders. Everyone in your organisation exists because of the customer. Everyone in an organisation exists to attract, serve and retain customers. Once a customer is happy he will bring in more repeat business, recommend new customers to you and make your business more visible at no cost to you.
A business has three elements which work together to produce goods and services required to satisfy customers demand. The three elements are people, technology and process as indicated in the diagram below.
Technology and process elements are inactive and cannot function on their own unless the people element initiates action. It is the people element therefore which makes the technology and process elements of an organisation work together to produce the planned results. It is also the people who link the organisation to the outside world. It is the people who carry out the day to day operations of the business. Therefore the people are number two in the order of hierarchy of an organisation.
Management which takes the third slot in the order of hierarchy ensures the policies as passed by the directors are implemented by the organisation. Management implements the business plan of an organisation and provides leadership guidance to the staff when they are carrying out their day to day operations of the organisation. Management also gives feed back to the directors on the performance of an organisation.
Board of Directors
The board of directors which ranks fourth in the order of hierarchy acts on behalf of shareholders of an organisation in the implementation of the strategic plan. They are responsible for establishing the organisation’s vision, mission and values. They also put in place adequate policies which will ensure smooth implementation of the mission and subsequent monitoring of performance. In the eyes of the public and regulatory authorities directors are owners of the company.
The shareholders who are the owners of the shares of the company rank last in the order of hierarchy. The shareholders provide capital to the company to enable it carry out its operations. They manage the company through of directors which they appoint during the annual general meeting. They are the ones who have a right to dividends when they declared in the general meeting on the recommendation of the board. In general shareholders remain dormant and can only exercise their power during the general meeting.
John Muhaise Muhaise
Director:John Muhaise Bikalemesa