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Stakeholder theory
Stakeholder analysis
Stakeholder analysis case study
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The concept of a stakeholder approach to management, suggests that managers must formulate and implement many processes to satisfy the groups who have a stake in the firm. The main task in this process is to manage and integrate the relationships and interests of shareholders, employees, customers, suppliers, communities and the other groups in a way that ensures the long-term success of the firm.
A stakeholder approach emphasizes active management of the business environment, relationships and the promotion of shared interests.
There are many groups who have a stake in the success of the firm. The interests of the key stakeholders must be integrated into the purpose of the firm. The stakeholder approach has these advantages:
The stakeholder
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To survive in a very turbulent environment management must set direction for the firm. To successfully change direction, management must have the support of those who can affect the firm and understand how the firm will affect others. The stakeholder approach provides no rival to the traditional aim of “maximizing shareholder wealth.” A stakeholder approach rejects the very idea of maximizing a single objective function as a useful way of thinking about management …show more content…
Rather than set strategy stakeholder by stakeholder, managers must find ways to satisfy multiple stakeholders simultaneously. All stakeholders will not benefit all the time. Win-win situations are not guaranteed.
Examples of applied stakeholder approach
Reading: Five management scandals: what can you learn by Moogy A.
The News Corp hacking scandal. Applying the stakeholder approach in this case, Get to the truth as quickly as possible. Hold management accountable. If you find out that your employees engaged in any illegal behaviour, you should take proper actions. It sends a strong message that your firm won’t condone any form of behaviour that breaks the law. In the News Corp. situation, many staff member were dealt with.
Be open with your findings. You may not like what your employees did, but if reporters ask you specific questions, don’t be evasive with your answers.
Announce new policies in your firm. If your internal investigation into the crisis discovers a serious problem, now it is the time to announce a change in policy. In the case with News Corp., they could have created a new news cycle by announcing a new, stricter code of ethics for reporters and
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
A stakeholder is anyone whether involved or not involved that is interested in an outcome to a situation (Editorial Board, 2015).
...g by; First, I would make sure that their is plenty of feedback for the employees. As our text suggests, "Without feedback, learning can not occur"(Crandall, W., Parnell, J. & Spillan, J. (2013). Secondly, I would make sure that I have a great crisis management team that are well trained and drilled. Thirdly, we would have a strategy and plan for crisis events. Also, It is very important to make sure that your team members are all confident in their ability to make good decisions for the company. So many times, people are afraid to make decisions. This leads to scapegoating within the departments, and the whole blame game. That doesn't get anybody anywhere.
According to the Case Management Society of America, case management is "a collaborative process of assessment, planning, facilitation, care coordination, evaluation, and advocacy for options and services to meet an individual's and family's comprehensive health needs through communication and available resources to promote quality, cost effective outcomes" (Case Management Society of America [CMSA], 2010). As a method, case management has moved to the forefront of social work practice. The social work profession, along with other fields of study, recognizes the difficulty of locating and accessing comprehensive services to meet needs. Therefore, case managers work with these
Stakeholder analysis is the technique of finding people in order of their power and interest so that it results in positive or negative impact on the organization or working staff or on project through their decision. The stakeholder can be anyone like customer, sponsor, project core team, stockholder, supplier, etc.
...ng major objectives for firms and attaining ability of balanced conflicting and demands for firm stakeholders.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
The role of stakeholders in project management can range from supporting activities such as defining project goals to assessing project risk (Silvius & Schipper, 2014). One common trend in the literature is that no matter what the stakeholder role is, stakeholders should be identified early so that the interactions with the company add value (Fageha, & Aibinu, 2013; Lucae, Rebentisch, & Oehmen, 2014; Turner & Zolin, 2012; Silvius & Schipper, 2014). When the project manager neglects to identify stakeholders at the start of a project, having positive interactions with stakeholders might be limited as the project matures (Hagen & Park, 2013; Allen et al., 2014). Turner and Zolins (2012), Lucae, Rebentisch, Fageha and Aibinu (2013), and Oehmen (2014), agree that stakeholders should be identified in the initial stages of managing projects, mainly during the project planning stage; however, this is difficult to achieve due to the multiple meanings of the term stakeholder (Fageha, & Aibinu, 2013; Doh & Quigley, 2014). In the project planning stage, the following activities must be fulfilled: scope planning, stakeholder identification, stakeholder engagement, communication planning, cost and schedule estimation, funding, procurement planning, quality planning, resource planning, and risk management planning (Fageha, & Aibinu, 2013; Lucae, Rebentisch, & Oehmen, 2014; Poplawska et al., 2015). Stakeholder identification and stakeholder engagement
Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
A stakeholder is any individual or group that has an interest in the organization (Investopedia, 2014). Examples of stakeholders would be: employees, investors, the community, or even the government (Investopedia, 2014). A company the size of Cornella Brothers has a lot of stakeholders, the two largest being employees and investors. The community is also a large stakeholder for the company because the company has accomplished a deal of things for the community. They have built plenty of buildings and parks that help the community to better develop it.
When using performance management to improve an organisation’s productivity you need to first decide who is the focus of the organisation’s long term goals, are they focusing on Shareholders or Stakeholders. The Shareholder approach focuses on the profit to the shareholders, no other factors need to be considered aside from the bottom line profits. The Stakeholder approach is a well-rounded, balanced approach to management, considering more than just how much money the organisation makes.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.