Project Stakeholder Management

This report focuses on project stakeholder management in the context of the banking system. It covers the background and key features of the banking system, as well as the issues faced by different stakeholders such as customers, investors, and employees. The report also includes stakeholder analysis, engagement strategies, and monitoring techniques. It provides insights into theories of stakeholder management and offers solution models to overcome the identified issues.

PROJECT
STAKEHOLDER
MANAGEMENT

INTRODUCTION.......................................................................................................................................4
Part A..........................................................................................................................................................4
Background of system and key feature of system....................................................................................4
Feature of banking system.......................................................................................................................4
There are several features of banking system some of them are mention below :-..................................5
Brief description of issues.......................................................................................................................6
Part B...........................................................................................................................................................6
Stakeholder analysis of system................................................................................................................6
Stakeholder engagement of system..........................................................................................................8
Stakeholder monitors of the system.......................................................................................................10
Issues and problem of the system..........................................................................................................11
PART C.....................................................................................................................................................12
Analysis of the issues of the system......................................................................................................12
Theories of stakeholder management....................................................................................................12
Solution Model......................................................................................................................................13
Conclusion for future direction..............................................................................................................14
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Project stakeholder management includes identifying stakeholders, analyzing their
aspirations and influences, implement new strategies for working with interested parties and
executing the procedure (Oppong, Chan and Dansoh, 2017). Frequent communication with the
interested parties is needed. It is sometimes difficult to manage stakeholder perceptions because
of competing priorities. For example: one main stakeholder (the CFO) needs the lowest cost of a
new IT solution, while another stakeholder party (the IT team) needs the system with the most
efficient features. The project report is based on a topic that is banking and its issues are also
included. The report is divided into three tasks in that part A includes information about issues of
chosen system, part B covers information about stakeholder engagement of system. The last part
of report covers information about different theories of stakeholder management and solution
models to overcome from above mentioned issues.
Part A
Background of system and key feature of system.
In Australia, there are four main financial institutions controlling banking business:
Commonwealth Bank of Australia, Westpac Banking Company, Australia, New Zealand
commercial bank, and National Australia Bank. There are many small companies with an
existence across the nation, as well as a huge proportion of other banking firms, such as
community banks, investment funds and consensual banks, that provide restricted online banking
and are characterized as authorized deposit-taking organizations (ADIs). Many large financial
institutions are in attendance, but few have an existence in financial services. Reserve Bank of
Australia (RBA) is the Federal Reserve. The monetary assertions system (FCS) of the Australian
Government ensures reserves of up to $250,000 per bank account per ADI in case of an ADI
failure. It has a vibrant and industrialized financial sector consisting of local financial
institutions, foreign banks and this one of international companies. Banking in Australia
proclaimed that the New South Wales Banking in Sydney was founded in 1817. It served in
Australia and Oceania throughout two centuries. The ANZ Bank, established under the term
Bank of Australasia, was founded in England in 1835.

Feature of banking system
There are several features of banking system some of them are mention below :-
 Deals with money- A bank’s main characteristic are that it handles all the bank
transactions cash (Sunder, 2016). In order to invest it safely, users should, for example,
transfer the money into a savings account that would always be invested in the spending
money in the system.
 Provide loans- Through lending various items for the loan, banks earn extra profits. The
bank makes additional deposits and lends money during certain rates to the person
entitled. Banks are now lending for different needs like study credit, car credit, home
loan, personal loans etc.
 Withdrawal and payment facilities- Banks gain extra profits by lending numerous objects
for the loan. The bank makes further deposits and loans the privileged person money
during certain rates. Banks also lend for various needs, such as research, auto loans, home
loans , personal loans, etc.
 Internet services- Another advantage of a bank is that banking institutions provide
internet connectivity as well. It has become even easier for people to perform several
transactions thanks to the growth of the web and its participation in the banking industry.
Banks offer electronic services through their applications. Users can purchase food, pay
bills, shop without money. People can pay for everything online with the assistance of
banking applications.
 Business- Financial is not simply concerned about supplying clients about banking
facilities (Garcia‐Castro and Francoeur, 2016). To order to make more capital, both banks
are engaged to subsidiaries. It is their sole obligation to secure their customers is
maximally satisfied and that maximum interest rates are provided for more customers.
The funds are transferred from one side to the next to make a profit.
 Increase functionality - Like other banking industries, their interface is also improved.
Banks have evolve from the pure borrowing and deposit of cash and withdraw to savings
and mortgages for cashless technology and phone payment systems. It is one of the most
rapidly growing fields. In relation to internet banking, mobile banking and people’s

choices reliance on currency, banks should not be mistaken to assumption that they can
provide more services in the future to about zero percent.
So these are the key features of banking system. These functions are not directed towards any
particular person or group. These functions are helpful for different group of people.
Brief description of issues
The bank's policies state that investors mean individuals and corporate persons (customers,
employers, stockholders, state officials, public bodies, etc.), or categories of people who
influence and/or impact the Bank’s activities. Below some issues of banking system’s each
stakeholders is mentioned in such manner that is as follows:
 Issues of customers- Bad customer support is a concern, not just in the banking industry,
but in virtually any business field. There is a double question. First, people don't want to
talk to an automaton when calling their bank (Huemann, Eskerod and Ringhofer, 2016).
Although this can make it easier for banks to siphon their customer's order, it is not what
people want. When they approach the customer support, users want a real, human
interaction. But there's a different problem. Even if a staff member responds to the
telephone rather than the computerized response, a problem can still be bad customer
service. For instance, when people are held on too much, transported too many times, or
when the bank worker is too long to r, people get irritated.
 Issues of investors- The investors are key stakeholders of banking system and they also
face issues. Their main issue is related to lack of return on invested amount. It is so
because if they make investment of sum of amount and if bank gets unable to make
payment to investors then they may face issue of loss on investment.
 Employees- Due to modifications in technology under banking system, it is becoming
difficult for employees to sustain their jobs. It is so because robots are taking place
instead of human beings in the banking operations. As a result, employees are facing
issue of losing their jobs.

Part B
Stakeholder analysis of system
The analysis of the stakeholders is the method by which a system is assessed and possible
changes are made in relation to interested parties. This data is used to evaluate how stakeholder
groups' interests should be answered in a project plan, policy, scheme or other measures. A
stakeholder analyzes an issue for anyone who has claim to it, in order to fulfill the responsibility
of the organization, for managing and resolving the conflicting claims on a business in a specific
situation (Xia and et. al., 2018). A stakeholder review does not exclude stakeholders' concerns,
but it does guarantee that all parties involved are taken into consideration. During the project
planning process, stakeholder research is also used to determine stakeholders' reactions to future
improvements. Stakeholder analyzes can be performed once or regularly to track changes in the
attitudes of stakeholders over time. Herein, below stakeholder analysis of banking system is done
below in such manner that is as follows:
Stakeholder Substantiation
Customer The Bank's services are used by clients. The independence of
the Bank depends strongly on its priorities. In Australia nearly
every family enjoys the services of the Bank. The Bank is the
main investor of the Australian economy, with more than half
of the public's savings. The bank has established accounts for
enterprises and companies that render substantial
contributions to the national GDP.
Employee The Bank, which employs people to over 200,000 people, is
the biggest employer in the Australian union. The Bank's
policemen represent the bank's main asset, communicate with
clients and build the Bank’s notoriety, support transportation
development and ensure its strategic business missions are
implemented.
Society The Bank exists in each of the Australian Federation's
constitutional bodies, the overwhelming majority of Australia
Federation's national institutions and is also involved in

community (local communities). The activities of the
company are inextricably connected to their social and
environmental fields.
Government The Bank is a significant donor and is active in carrying out
important national and international initiatives and
programmers (Lehtinen, Aaltonen and Rajala, 2019). The
government is a major shareholder and client of the Bank
served by its authorities and businesses in which it has a
participating stake.
Shareholder and investors The Bank's shareholder list includes more than 100,000
people. The Bank’s shares listed on both Australian and
international exchanges are a public enterprise. The power of
shareholders is controlled by the laws and corporate
governance policies of the Bank. The bank seeks to increase
its market capitalization and is keen to engage with its
shareholders in transparent and open relationships.
Stakeholder engagement of system
Stakeholder engagement is the mechanism by which a company includes individuals who are
influenced or may control the execution of its decisions. Effective engagement helps to transform
the demands of partners into corporate goals and offers the foundation for the successful
implementation of strategies (Barnett, Henriques and Husted, 2018). Finding the agreement or
inspiration expressed allows a community of shareholders to make a conclusion and guarantees a
successful return investment. Listening, engaging and partnering with stakeholders provide
assistance to company in addressing business impacts as well as enhance outcomes for
customers, society and environment. Herein, below stakeholder engagement of banking system is
described through diagram which highlight main stakeholders of bank as well as address area of
interest as well as concerns they having and the manner our decisions impact them.

Figure 1 Stakeholder engagement, 2020
(Stakeholder engagement, 2020)
Stakeholders engagement is based on three major aspects i.e., communities, customers and
environment. Thus, listening, engaging as well as partnering with stakeholders provide assistance
in address business impact and also enhance outcomes for communities, environment and
customers. In addition to this, there are numerous other aspects which baking system involve in
their working and help in engaging stakeholders in effective manner some of them are mention
below :-
 Experts & Civil society – This society include consumer groups, NGOs and academics
which research, campaign as well as advocate on issues.
 Media & public Voices – It includes journalist as well as social media influencers who
bring issues or problems to the public domain.
 Regulators & Policy makers – This includes politicians, regulators as well as
government who involve consultations and policy reforms.

 Investors – Australia government, retail stakeholders as well as investors who take
interest within financial and non-financial performance (Bourne, 2016).
 Suppliers & strategic partners – It is related to the ecosystem of suppliers as well as
partners who collaborate for delivering products as well as services to customers in
effective manner.
 Colleagues – They are the employees of banking system who create as well as deliver
product or services and colleagues are the face of company.
Thus, by engaging stakeholders in effective manner banking system will conduct their operations
in better manner and will able to fulfill need and demand of different internal as well as
stakeholders in better manner.
Stakeholder monitors of the system
Stakeholders are an individual, group or an business firm who may affect, be affected by
or perceive themselves to be affected through decision, activity as well as outcomes related to
specific project or activity. In addition to this, stakeholder engagement is strategies and action
which needed for promoting production involvement of stakeholders within project decision as
well as execution. In addition to this, stakeholders are vital to the success of every project or
task. Monitoring as well as controlling stakeholder engagement is more than responding to
particular issue or problem. It needed throughout the project life cycle. Explanation of these are
as follows:-
 Anticipating engagement needs
 Monitoring relationship of stakeholders
 Making sure that engagement plan is followed.
 Adoption of several strategies when required.
Thus, by monitoring as well as controlling stakeholder engagement banking can maintain and
increase efficiency as well as effectiveness of engagement activities (de Oliveira and Rabechini
Jr, 2019). Below mention are ways through which stakeholder engagement will be implement
explanation of these are as follows :-
 Inspection of stakeholder engagement should be always assessed against the stakeholder
management plan. As it is important to keep this handy as well as available.

 Along with this, it is also important for banking system to check that project stakeholder
engagement activities are effective toward several activities such as managing
stakeholder expectations, enhancing understanding of stakeholders needs as well as
expectations, fostering stakeholder support, addressing urgent issues on priority basis
before they impact company at large level and enhancing satisfaction of stakeholders as
much possible.
Apart from this, there are several useful tools for monitoring stakeholder engagement which
banking system can use. Explanation of these are as follows :-
 Survey – For obtaining feedback of stakeholders for determining their satisfaction level
in relation of project. In this survey banks can ask one simple question i.e., In what
manner project meeting your experience.
 Counting – Number of persons will be count by management of company who attending
open houses, reply to surveys and many more.
 Complaint log – To analyses complaints of customers.
 Meeting with stakeholders which include both open houses meeting or meeting through
invites.
Issues and problem of the system
Bank fraud is the use of potentially illegal mean for obtaining assets, money as well as
other property which owned or held through financial institutions or obtained money from
depositors by fraudulently posing as bank or other financial intuitions (Sperry and Jetter, 2019).
In simple term, bank fraud is criminal offence as well as particular elements related to bank fraud
laws vary is depended on jurisdictions. Although, term bank fraud is implemented in relation of
action which employ a scheme or artifice as opposite to bank theft or robbery. Some of them are
mention below :-
 Accounting fraud – It is primarily result in affecting business lending as business who
commit accounting frauds result in looking more profitable in papers rather then reality.
On the basis of such fraud statement bank grant loan to such type of business as result
business are insolvent which result in can’t repaying loans. Thus, bank get left with loss

 Loan fraud - Bookkeeping misrepresentation can prompt credit extortion, yet this sort of
extortion isn't simply constrained to organizations introducing fake data on their advance
applications. At the point when people present bogus data so as to acquire a credit, that is
additionally advance misrepresentation. So also, if a criminal takes somebody's
personality and applies for a credit in their name, that is another sort of advance
extortion. Moreover, on the off chance that somebody has a credit extension and a trick
craftsman draws assets from that line, that additionally falls into this classification.
 ATM Fraud – It involves everything from reprogramming the machine to installation a
skimmer to steal card information or details. Moreover, it also result In including
fraudulent deposits through depositing empty envelopes as well as free envelope ATM
generally easiest way for avoiding that.
These are major frauds which take place in bank and it is important to focus on these type of
frauds in effective manner so that such practices will not take place in banking system.
PART C
Analysis of the issues of the system
In banking system major issues is related to fraud that can be in several term such as
ATM fraud, accounting fraud, loan fraud and many more. Thus, for an organization it is
important to focus on these factors in effective manner so that no fraud will take place and
company will able to accomplish their goals and objectives In better manner. So such not only
impact activities of bank bit also result in negative impact on their brand image within market
area.
Theories of stakeholder management
Six principles of stakeholder theory – By Freeman six principles has been designed that
should govern relation within stakeholders and the corporation. Explanation of these are as
follows:-
 The principles of entry and exit
 The principle of governance
 The principle of externalities

 The principle of contract costs
 Agency principle
 The principle of limited immortality
Above mention are basic principles related to stakeholder theory as well as it requires by an
business firm to act in the interest of not only the shareholders and not just few of stakeholders
but all of the stakeholders.
Form of stakeholder models – By Bucholtz and Carroll, three values of stakeholder
model has been defined which enable clearly articulate why stakeholder approach are important
to business as well as society (Haefner and Palmié, 2017). There are three values of stakeholder
model explanation of these are as follows :-
 Descriptive value – Stakeholder model is descriptive which provides language as well as
concept to explain business firm. It is related to the way company work and their effects
on wider environment. Thus, stakeholder theory present model which describing what an
corporation is as well as it explain company as an constellation of co-operative and
competitive interest possessing intrinsic value. In simple term it can be said that,
stakeholder theory provide assistance in understanding as well as managing
organizational activities.
 Instrumental value – Stakeholder model is instrumental in which managing stakeholder
result in accomplishing goals and objectives of business such as growth, increasing
profitability as well as sustainability (James, 2016). In addition to this, stakeholder model
help in testing connection within managing stakeholder and achieving business targets.
 Normative value – It is third aspect of stakeholder theory which presumption that
stakeholders have inherent values. In addition to this, it has been accepted that
stakeholder have legitimate stake in business activities which based on their interest area
in company as well as stakeholders have intrinsic value.
Solution Model
In relation of banking system fraud it is important to implement suitable model so that
companies will able to conduct their operations in better manner as well as they will not face any
difficulties in future. Thus, forms of stakeholder model is suitable as with the assistance of this

banking system will be able to conduct in better manner (Park and et. al., 2017). There are three
major factors related to the same such as descriptive value, instrumental values and normative
value.
Conclusion for future direction
After going through this fraud issues in working of banking system it has been
recommended to them for their future direction that they have to conduct transaction related to
money lending in effective manner. Along with this, they have to verify each and every
document which customers is providing while taking loan or doing ATM transaction. Thus, such
practices will result in minimize chances of fraud which take place within banking system.
CONCLUSION
After going through above discussion it has been summarized that, in business environment bank
is important part as will as it is important for them to manage their stakeholders in effective manner. So
that company will able to make their customer satisfy and gain positive outcomes in effective manner
without facing any such difficulties. Along with this, in an business firm stakeholder are classified mainly
within two section i.e., internal and external. In relation of both it is responsibility of an organization to
make their customer satisfy so they will able to accomplish their goals and objectives in better manner.

REFERENCES
Books and Journals
Oppong, G. D., Chan, A. P. and Dansoh, A., 2017. A review of stakeholder management
performance attributes in construction projects. International Journal of Project
Management, 35(6), pp.1037-1051.
Sunder M, V., 2016. Lean six sigma project management–a stakeholder management
perspective. The TQM Journal, 28(1), pp.132-150.
Garcia‐Castro, R. and Francoeur, C., 2016. When more is not better: Complementarities, costs
and contingencies in stakeholder management. Strategic Management Journal, 37(2), pp.406-
424.
Huemann, M., Eskerod, P. and Ringhofer, C., 2016. Rethink!: Project Stakeholder Management.
Project Management Institute, Incorporated.
Xia, N. and et. al., 2018. Towards integrating construction risk management and stakeholder
management: A systematic literature review and future research agendas. International Journal
of Project Management, 36(5), pp.701-715.
Lehtinen, J., Aaltonen, K. and Rajala, R., 2019. Stakeholder management in complex product
systems: Practices and rationales for engagement and disengagement. Industrial marketing
management, 79, pp.58-70.
Barnett, M. L., Henriques, I. and Husted, B. W., 2018. Governing the void between stakeholder
management and sustainability. Advances in Strategic Management, 38, pp.121-143.
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. CRC Press.
de Oliveira, G. F. and Rabechini Jr, R., 2019. Stakeholder management influence on trust in a
project: A quantitative study. International Journal of Project Management, 37(1), pp.131-144.
Sperry, R. C. and Jetter, A. J., 2019. A Systems Approach to Project Stakeholder Management:
Fuzzy Cognitive Map Modeling. Project Management Journal, 50(6), pp.699-715.
Haefner, N. and Palmié, M., 2017. With (out) a Little Help From My Friends? Stakeholder
Management, Innovation Strategy, and Long-Term Firm Performance.
James, S. D., 2016. Strategic bankruptcy: A stakeholder management perspective. Journal of
Business Research, 69(2), pp.492-499.
Park, H. and et. al., 2017. Stakeholder management in long-term complex megaconstruction
projects: The Saemangeum Project. Journal of Management in Engineering, 33(4), p.05017002.
Online

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