Contemporary Management Theory: Stakeholders' Role in Organizations

This essay provides a detailed analysis of the role of stakeholders in contemporary management theory. It begins by defining stakeholders and highlighting their importance to an organization's success. The main body of the essay discusses the different types of stakeholders, including internal (employees, investors) and external (government regulators, suppliers) stakeholders, and their respective roles. It further explores the leadership's role in engaging stakeholders, emphasizing the importance of communication, transparency, and creating a supportive environment. The essay also delves into stakeholder management, highlighting the importance of maintaining good relationships, motivating employees, and monitoring stakeholder interests. The essay concludes by summarizing the key points and reiterating the significance of stakeholders in achieving organizational goals. The essay utilizes models like the Power-Interest Matrix and provides real-world examples from companies such as Amazon, Marks and Spencer, and Walmart.

Contemporary
Management Theory

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discuss the role of stakeholders in an organisation....................................................................3
Internal and External Stakeholders.............................................................................................4
Role of Leadership in engagement of Stakeholders....................................................................5
Stakeholders Managements.........................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Stakeholders are the most important group of people which covers the varied interest in
the individual and also towards the company that can there by lead to implement all the varies
source and nature(Barcellos, and et. al., 2020). The stakeholder mainly being the backbone of the
company as they helps the organisation to grow in a better way with there investments and also
with all there assets that are being given to the people for the companies to increase there market
value, there are varies external and internal stakeholders like suppliers, board of directors,
creditors etc. This report will deal with all the stakeholders analysis and its main features like
various theory band models that provides the structured growth of the organisation through stake
holders.
MAIN BODY
Discuss the role of stakeholders in an organisation.
Stakeholders are the most important members of the organisation and companies as they
use to provide various areas and groups that lead to achieve the targets with all the projects and
the outcomes. The stakeholders usually helps the companies to manage certain issues that
implies to make the company to work in a better way.
As in the conduct of stakeholder analysis there are various Power-Interest Matrix that is
being used by the company in order to make and classify the stakeholders. The matrix is being
made in order to know the power and all the interest that is being generated by the stakeholders.
For instance this matrix explains The stakeholder analysis of the home depot company. The
Morrisons has made various influence and all the participation level with the interest that are
being needed and can be explained in as follows:

Illustration 1: Power-intrest grid 2020 High power, High Interest- Through this model basically the organisation use to have
varies stakeholders that cover the high power and high interest in the company. As they
are mainly those who share all the matters with common interest by investing huge
amount of money and making it work in an extreme area(Chan, 2021). They are mainly
the Partners and the Clients who merge out with the company and frame certain rules. High power, Low interest- It covers all the areas that has been covered in the high power
and with that all the low interest in that seems. They are mainly the trade union who use
to cover and retain the basic business for more than the usual time period in order to get
the effective and the materialistic side of all the work that has been set by them. Low power, High interest- The Employees and the media person were being covered in
that areas as they were having the lowest power in the organisation but they use to attain
the higher interest in that company. There has been made that all the powers and the
functions were being made by the employees were actually being framed and made in the
repudiate(Graham, 2019). The employees tends to make all the work that carries to be
for the growth of the company and they implies the work which covers the most
outgrown interest in the company.
 Low power, Low interest- All the non-governmental organisations, public authorities
and government bodies are being covered under this as they usually do not show any of
the interest in the organisation and the companies neither they tries to maintain the
various and the administrative area which complies the work of the company. Morrisons

implied that all the approached attain maximum power and matrix that can be framed and
provides the detail to work in proper manner.
Internal and External Stakeholders.
Stakeholders are the key people for all the organisation, as they use to provide all the
areas that can be qualitatively improvise the working of the company as there are various
stakeholders in the company and they are as follows:
External Stakeholder: The individuals or the groups that bare being linked with all the
organisation and the company in order to provide the varies details like getting all the
information for the company: Government Regulators- The government bodies who use to build and develop all the
important information about the company and tries to maintain the areas that keep the
outgrown of the company variably expanded.
 Suppliers- All the person who are being contribution in all the supply of the products that
are being analysed and make that to work in. the main aim that has been lied by all the
suppliers is that they try to make and modify various areas and the culture that imparts
that all the products are given to the organisation and they should maintain and provide
the supplies to the company on time.
Internal Stakeholders- They are the person who use to adapt all the responsibilities of the
company through there internal medium and tries to ,maintain the areas that can help the growth
of the company. It helps in the production and the development of the company by making it
work in a better way. Morrisons has made the following as being in the internal stakeholders: Employees- All the individual that are being working in the company and the
organisation in order top frame it put with all the varied features this mainly implies that
such activities which covers the employee of the company to work in order to maintain
the growth of the company and tries to get it the achieved target(Gray, and et. al., 2020).
 Investors- All the person or the individual that use to invest in the Comoran as to make
them to raise there funds and to improvise there working in all the areas and methods.
There has been analysed that all such work which has been termed as to clarify the
working of the task in all the sectors and areas. The investors there by helps in the smooth
running of all the business and to make them to invest in proper manner.

Role of Leadership in engagement of Stakeholders.
The stakeholders engagement usually provides the positive outcomes that helps to
maintain the relationship of the company in all the leadership engagement.
 Leaders tend to provide all the stakeholder and the individual to interact in all the matters
that area being needed to be concerned like in individual emotions, politics, and all the
important matters that helps in implying concerns for the people. Like in Amazon the
mangers involves there stakeholders in all the important decisions which are important
and matter of concerns.
 Leaders have to make themselves ready for all the challenges that can come on behalf of
there stakeholder as they can at any time did not feel flexible on the new areas of
working. And for that the companies will have to make the zone and the areas
comfortable for the employees.
 The leaders should influence there stakeholder to work and involve with the company by
making them aware about the strategies and also planning some certain areas and ways
through which a company can outgrow in all the specific areas(Mantzana, and et. al.,
2020). The stakeholder can implies and use all this methods which conducts the working
by making certain programmes and clear vision in front of stakeholders. Just like in
Marks and Spencer use to make all the programmes in which they achieve all the growth
areas and working nature of the company.
 All the teams should tend to manage the working of the company by making them
efficient in all the sectors and training them to achieve the certain goals. These implies
that the company can thereby in the varies areas through which they can raise the funds
and the profits which improvise the working of the company and its important areas.

Illustration 2: Stakeholders, 2020
Stakeholders Managements.
The stakeholder management is mainly the process through which all the mangers tends
to maintain the proper and the good relation with the stakeholders. As for all the organisation it is
the most important thing that all the individuals should be treated equally. There has been
analysed that all the working of the individual depends on the working of the organisation that
the company can there by frame the essential areas through which all the work can be made and
withdrawn(Sohu, and et. al., 2018). The organisation tends to make the behaviours and the
environment in the company in an efficient way that it enlarges all the areas. The communication
between the stakeholders and the transparency that is being maintained usually being covered in
the stakeholders.
There are varies reasons and areas through which all the company should manage there
stakeholders works. The management should try to make a further impact on all the company
and there behaviour. The stakeholders should get all the important functions which are important
for all the company and the organisation. There are certain elements that are important for all the
organisation as through which all the stakeholders should mange the work and area:
 The managers should tend to make a proper behaviours with all the stakeholders that are
being made in the organisation. There use to analysed that all the managers should imply

there working in all the areas and tries to create a proper communication with all. As in
Walmart the managers tends to treat all there employees equally and in proper manner.
 Managers should make there stakeholders makes the employees to be motivated in all the
sectors as they tend to provide the necessary element which covers for the benefit of the
company(Tsalas, and Pentsas, 2018). As M&S tends to make all the important element
by rewarding and appreciating there employees for there working.
 Managers should monitor all the stakeholders in a proper way as that makes them to
communicate in all the variable areas of interest and try to maintain a proper working
environment.
CONCLUSION
From this above report it is concluded that, stakeholders are the most important
individual in the company they tends to provide all the goals which helps to maintain the relation
with the external and the internal environment. There has been explained that organisation use to
apply the Morrisons Power-Interest model and there are various relations of the leaders and the
management through there working in all the sectors and nature. Furthermore, stakeholder plays
an important role in the organisation and there may be made a growth of the company throughout
there working and capabilities.

REFERENCES
Books and Journals
Barcellos, and et. al., 2020. Priority pharmaceutical micropollutants and feasible management
initiatives to control water pollution from the perspective of stakeholders in Metropolis
of southern Brazil. Integrated Environmental Assessment and Management, 16(6),
pp.955-967.
Chan, E.S., 2021. Influencing stakeholders to reduce carbon footprints: Hotel managers’
perspective. International Journal of Hospitality Management, 94, p.102807.
Graham, S., 2019. Coordinating invasive plant management among conservation and rural
stakeholders. Land Use Policy, 81, pp.247-255.
Gray, and et. al., 2020. Harnessing the collective intelligence of stakeholders for
conservation. Frontiers in Ecology and the Environment, 18(8), pp.465-472.
Mantzana, and et. al., 2020. Airports’ Crisis Management Processes and Stakeholders
Involved. Annals of Disaster Risk Sciences, 3(1).
Sohu, and et. al., 2018. Stakeholders’ Perception on Critical Cost Variation Factors in Malaysian
Building Projects. Civil Engineering Journal, 4(9), pp.2075-2081.
Tsalas, A. and Pentsas, N., 2018, April. Stakeholders Management in the Defense Sector.
In International Conference on Business & Economics of the Hellenic Open University
2018.