Managing Multiple Stakeholders relationships

The stakeholders’ framework is a method for understanding and influencing the direct-action environment. It might be interesting to draw a map for your college or workplace and lost the key challenges. Organizations devise plans, organize themselves, lead, and control ways to interact with key stakeholders For example, Bell Atlantic devised a plan to offer cable TV service which required influencing key stakeholders such as government, banks, customers and even other companies in the industry.

The stakeholder framework raises issues that affect many organizations.

Networks and Coalitions:

A complex network of relationships links stakeholders with one another as well as with the organization. For example, consumer advocates may have contacts with an organization its employees and a government regulatory agency and in turn the regulatory agency will affect both the organization and its competitors.

A particular issue may unite several stakeholders in a support of or in opposition to organizational policy. For example, special advocacy groups might join with labor unions, the media, and legislators to block the introduction of a new technology that could cost worker jobs as well as pollute the environment. On occasion, such coalitions outlive the initial issue and continue to work together on others.

Multiple Roles:

A single individual or group may have multiple relationships with an organization. A toy company employee for example may also be a parent who purchases the company’s products, a shareholder with an investment in the company, a member of a consumer group lobbying for stricter safety codes for children’s products, or a member of a political party with pronounced ideas about free trade and protectionism. Stakeholders may therefore have to balance conflicting roles in determining what action they want the organization to take. This is especially true of management.
The special Role of Management:

Management has its own stake in the organization. All employees do, of course, but management is responsible for the organization as a whole, a responsibility that often requires dealing with multiple stakeholders and balancing conflicting clams. Shareholders, for example want larger returns, while customers want more investment on research and development employees want higher wages and better benefits, while local communities want parks and day care facilities. To ensure the survival of the organization, management must keep the relationships among key stakeholders in balance over both the short and the long term. In the McDonald’s case managers had to weigh the relative importance of stakeholders each of whom wanted McDonald’s to change.

Elements of the Indirect Action environment:

The indirect action component of the eternal environmental affects organizations in two ways. First, forces may dictate the formation of a group that eventually becomes a stakeholder. Second, indirect action elements create a climate rapidly caging technology, economic growth or decline, changes in attitudes toward work in which the organizations exists and to which it may ultimately have to respond. For example, today’s computer technology makes possible the acquisition, storage, coordination and transfer of large amounts of information about individuals and banks and other business forms use this technology to maintain store process, and exchange information about the credit status of potential buyers. Individuals concerned about the misuse of such data might form a special interest pressure group to seek voluntary changes in bank business practices. If this group were to organize a successful boycott of a particular bank, it would become a stakeholder of that bank and enter its direct action environment.

These complex interactions are grouped into four broad factors that influence the organization and must be considered by its managers: social, economic, political and technological.