Stakeholders Definition - Coursework Example

Stakeholders Name: Name of institution: Stakeholders’ definition cannot be ascertained because there are numerous different kinds of stakeholders. The typology of the stakeholders depends on the type of the project or the enterprise undertaken. Nonetheless, a stakeholder can be defined as a person or a group of people who decides or gains a profit from an efficacious result. These can be people or individuals who have capitalized their ideas, money, and time in a project. Actually, this is a very thin definition and it is essential to comprehend that a stakeholder plays a very significant role in any given organization or projects. This is because some of them are very interested in the succession of the project while others have a great influence (Friedman & Willy, 2006). For this reason, it is so essential for the leaders or managers of the project to take notice of them and to try and accommodate them. Additionally, the project leader should be able to read the mentality of each stakeholder in order to find the best way to incorporate their needs, expectation, and requirements. However, the project manager must be watchful and vigilant for some stakeholders can be positive or negative. For this reason, I undertake to explore the different definitions and typologies of stakeholders, meaning of accountability to stakeholders', and the reason as to why governments must consult 'stakeholders'. Additionally, in relation to an issue of particular importance to an organization with which I am familiar of, I will discuss the different stakeholder relationships. (Friedman & Willy,2006). To begin with, stakeholders are individuals, group of people or any organization which might be affected, or interested in an outcome of a project in direct or indirect way. Stakeholders can be categorized into two namely, internal and external. Firstly, internal stakeholders are those ones who are internal to the organization. They comprise of, sponsors, portfolio manager, management, the project team, internal customers, functional manager, operational manager, and administrative managers among others. Secondly, External stakeholders are those who are external to the organization. They include the suppliers, sub-contractors, government, and the end users of the project outcome, local communities, external clients, and media among others. These stakeholders come in different kinds and shapes for they have varying expectations and requirements which needs a constructive but practical kind of handling. Therefore, for a project to be successful it is advisable for the leaders to know their stakeholders. This means that they should fully understand and know the stakeholders needs, expectations and also requirements. Failure to do that can cause so many difficulties to the project managers. These problems may comprise of, project delay, clogging of the cost or more worse the termination of the project. Hence, the project manager needs to familiarize with all stakeholders at the start of the project in order to come up with a strategy for the management of the stakeholders. This will aid him to manage them well and have a smooth running of his project (Friedman & Willy,2006). For instance, there are some projects which require the general public to be stakeholders. In such cases, the project manager consults their leaders for a better understanding of their expectations and needs. Failure to do so might make the project manager to encounter difficulties as the project advances. These kinds of projects comprises of the building projects such as road, rail and dam construction among others. Additionally, the project manager should compile a list of the stakeholders’ information. This documentation must include their interest, involvement, requirement, expectation, influences they have, possible impact, requirements and the criterion of communication among others. This is because some of the stakeholders’ interest on project varies tremendously and it is essential for project manager to know the dominant and non- dominant ones. As well, it is important to employ accountability to the stakeholders. Accountability means taking full responsibility for the actions taken especially in what a person is entrusted to do. Therefore, the accountability to the stakeholders means to fully take responsibility in regard to everything concerning them. For instance, stakeholder accountability has an influence in the preparation of the financial account. This stems from an understanding that the stakeholder has an economic interest in the company. Therefore, the manner of preparing the financial statement must be helpful to the stake holders. Additionally, accountability requires the project manager to hold meetings for investors and other stakeholders on an occasional basis. In the meetings, the leader should undertake the duties of explaining the financial result. More importantly, accountability to the stakeholder demands that they need to be informed of significant details of any business. These may include giving them a tour within the organization to see for themselves all the activities that are taking place. This should be accompanied by briefing on each section in the company to help them understand the essentiality of different segments within the company. Likewise, the stakeholder relation-related materials should be posted on the website for easy accession. These materials should comprise of minutes for the stakeholders meetings in particular the investors, brochure with information of each section in a project, TSE filings, corporate governance reports, notices for meetings and other important agendas, and financial statement among other. This means that the project leaders or managers must monitor and acknowledge the needs for every stakeholder. They should also handle their interest in an appropriate manner. This will help the managers in their dealings as well as in the process of decision making. Managers should also listen and hold an open communication with all the stakeholders. In these talks they should share on their concerns, contributions, risks and benefits of the organization. Additionally, project leaders should utilize good behavior modes and processes sensitively focusing on the concerns and abilities of all the stakeholders. On the other hand, accountability to the stakeholders emphasizes that the project leader should ensure that the interests, talents, expectations, ideas, and requirement are at the heart of the project. This will help to incorporate the stakeholders as the determiners of the companies or business future. If this accountability fails the company might end up collapsing due to lack of strong hold on the things that matters most. Additionally, it will also help the project leader to also consider the negative contributions of some of the stakeholders. By so doing, he/she will be able to think of a strategy to find a way forward for companies’ succession. Therefore, accountability entails encompassing all that pertains to the stakeholders be it positive or negative in order to attain a desired outcome. The positive stakeholders promote and contribute to the organization in a highly productive way. This productivity facilitates commitment and a spirit to focus more on the project at hand. It also creates a room for conversing with each other within and outside the organization thus helping in acquiring of new ideas through constructive sharing. Therefore, accountability to communicate and create time to share on the progress and problems of the organization can only bring success. Contrary to that, the negative stakeholders either external or internal create a pathway for the down fall of the project or organization. Therefore, accountability for these kinds of stakeholders means that the leader must try to internalize their ideas but avoid accommodating them. For instance, the leader can create a forum to know them better, listen to their needs and expectations and find a way to negotiate for the change of mind. Alternatively, the leaders’ accountability may require him to listen but shun away their contributions in a constructive and a subtle way. Therefore, accountability is demanding and challenging but a leader with good leadership skill will be able to maneuver. Government has an obligation to consult the stakeholders. This consultation has a vital role to play for it creates a forum for face to face interaction thus promoting openness. Additionally, the government cannot govern itself or run without the stakeholders and therefore it is essential for them to put the interests and expectations of the stakeholder in the forefront. This cannot take place unless the government creates time to consult with the stakeholders. As a result, they will be able to benefit from the stakeholders and vice versa. These benefits stems from the fact that the government consultation will enable a formation of a perfect union, establishment of justice, surety of domestic tranquility , provision of common defense, and promotion of the general welfare among others. To be precise, government has many stakeholders. These stakeholders may gain or lose depending with on the relationship they have with the government. However, there should be a good networking with both internal and external stakeholders for it will help in building a comprehensive indulgent of government structure and main stakeholders. Additionally, it will facilitate in fostering operative proficient networks and connections for supporting the accomplishment of governmental goals. In addition, the government must consult both the external and internal stakeholders because of the influence they both have in the government. The internal stakeholders influence involves formal power such as an authority and superior position, they influence informal power like the leadership style, and they control strategic resources such as the accountability for tactical product. They posses knowledge and skill -have expertise that forms the core competency in an organization. Additionally, internal stakeholders control the environment by negotiating and networking relationships to external stakeholders. More so, they influence by involvement in strategy implementation by acting as the changing agent. Similarly, external stakeholders has influence to the government through, internal links such as networking, being involved in strategy implementation by acting as strategic partners in distribution channels, by controlling the strategic resources such as labor, money, and materials, and finally the possession of knowledge and skills as cooperation partners and subcontractors. Therefore, the government should consult the stakeholders for they have to tap in the influences for stronger governance. Moreover, government deals with the general public as the stakeholders. This makes it so difficult for them to be able to satisfy all the needs of each stakeholder. In addition, the government may not be able to reach all people due to large numbers. For this reason, the government should consult some of the stakeholders for they will act as their ears and eyes in different counties around the country. As they consult, they will be able to have easy means of understanding the dire needs and expectations of the public. By so doing, they will be able to be accountable to them by supplying their needs as well as listening to their immediate complain. More so, the public will be able to see the efforts of the government and be ready to cooperate thus making it easy for the government to lead them. Therefore, while the government consults the stakeholders there are mutual benefit. This means that the government gains knowledge and technical knowhow on the strategy to employ for effective governance. Similarly the stakeholders gains for they are able to express themselves openly to the government. Moreover, the stakeholder benefits other stakeholder. This can be perceptible as the public gains as the government representatives take their needs to the government. For instance, the government relies on the stakeholders’ tax for the smooth learning of the country. Therefore, by consulting them it makes it easier to find the means of getting these tax revenues from them without difficulties. Through consultation the stakeholders too have a forum to discuss on the tax revenue issues. It is clear that stakeholders are an essential group for every project, organization and even in the government. In addition, we have also seen that stakeholders can benefit other stakeholders. For this reason, it is essential to focus on the relationship of the stakeholders. However, it is not advisable to generalize the relationship of the stakeholders due to their diversity. As well, each project operating systems attracts different stakeholder. Therefore, I will only focus on the stakeholders’ relationship in the apple company. In the apple company the relationships in the business has been an indispensable asset. The company builds its relationship between its employees, suppliers, investors, communities, customers and competitors. For the relationship to remain intact the company effectively manages the relationship and lowers the risk of every relationship. As a result, the company is able to create value thus increasing the quality of its impalpable assets and in return increasing the company value tremendously. Apple has to do this for the value of its intangible value is about 550 billions USD. This is evidence that almost ninety percent of apple value is derived from the companies’ relationship with the stakeholders. Therefore, the main source of their benefit is the relationship they have with their stakeholders. In addition, the engagement of the employees and the customers’ loyalty has been the intangible assets that fully contribute to the company value more than even it is on physical things. To be precise Robert Monks and Alexandra Reed conducted a research on many companies. Apple was one of the companies and they were able to find out that eighty percent of its market value in the year 2005 only was fifty eight billion sterling pounds. The remaining twenty percent of the company’s value was contained in its relationships with its stakeholders. For this reason, each relationship in the apple company has been and still is an intangible asset. In fact, apple holds to the fact that assets can either appreciate or depreciate or have a specific value. Therefore, to enhance the quality of the intangible asset and increase the overall valuation of the business apple ensures that it manages tis stakeholders’ relationship. Apple effectively manages their stakeholders’ relationship by applying three principles on each group of their stakeholder. These principles are authenticity, engagement and integrity. Firstly, to the customers they use a customer experience. Therefore, they supply quality products with a convenient price. They also provide information to customers on a monthly basis to try and inform them what is in the market or on offer. To its employees, Apple Company makes them feel valued. They do so by appreciating and affirming their efforts. They also listen to their complains and sorts them out diligently. Additionally, they reward and promote the employees depending on the quality of their service. Apple Company offers the service of a return on investments to its investors and owners and to its suppliers they promote their products provided it is of the desired quality. Apple Company manages its relationship with its community in a very attracting manner. They conduct a business that positively impacts on the company and the local community. This means that they employ actions that strengthen the community value. As a result, they enter the communities’ jurisdiction and contribute to the communities’ tax base. By so doing the community leaders and the community in general holds the Apple Company in a high esteem. Therefore, Apple Company is not just a company but a contributing member of the society. For this reason, the community prefers many Apple stores to be opened. This is because apple increases the land values and creates jobs compared to other companies like the petrol- plant which drives down the land value and disrupts the residents. Looking at the Apple Company I can only draw one conclusion. This is by managing stakeholders’ relationships impacts positively on the companies’ value. Additionally, by making a positive strategic stakeholders decision the company also adds on its value. However, it is essential to remember that building the exceptional stakeholders relationships can not just be used as a polite way of doing business; it should be used as a strategy of building self-sustaining business. This strategy is well employed in the Apple Company and that is why it is continuing to be a booming business. For this reason, it is important to invest more on the stakeholder’s relationship as the intangible asset at all times. To conclude, internal and external stakeholders should be well thought of in every business. This is because the accountability to them, managing the stakeholders’ relationship, consulting them and understanding the influence that each stakeholder holds boosts the project or a company positively. However, if the stakeholders are ignored it can only lead to the companies downfall. Hence, it is important to follow the exemplary characters of the Apple Company for the succession of the business. In my opinion, stakeholders are indispensable assets in the business, company and the country at large. Therefore, it is by understanding their needs and expectations that will lead to succession. However, much astuteness is needed while dealing with the stakeholders. Reference: Friedman, A. L., & Miles, S. (2006). Stakeholders: Theory and practice. Oxford: Oxford University Press. Read More