Hrm/531 Week 1

During week one the class reviewed chapter one which discussed the corporation and its stakeholders. One matter that I found interesting was that I never knew that there were two types of firms. I always thought that there was just one type of firm and the only difference was what type of services or products they sold. From this reading, I learned that there are two different types of firms. The first type of firm is the ownership theory of the firm which states that the owner doesn’t care how their actions might impact the firm. Which I found interesting since I understood that the owner needed to be cautious of what actions he does since it can implement a difference in the firm. Also, the way they act can be observed by the other employees, …show more content…
It was my understanding that these stockholders were individuals who purchased stocks for a public or a private corporation. These stocks than in returned provided a profit for the organization. Other than the stockholders there were the individuals who worked for the company and then there were the individuals who purchased the goods or services that were provided. I assumed these were the only members that were involved in the day to day operations of the firm. But in fact, there is such a term as a stakeholder. The stakeholders are a person or group of people who can affect or are even affected by a company's action, decisions, policies, operations, and even outcomes. I would have never guessed that this group had such an enormous impact on the organization. These stakeholders included different people such as the more obvious like the various levels of management, or the everyday employees and the customers. Then there were the people who I never expected like the shareholders, the media, the community surrounding the organization, the government and even the