Stakeholder Engagement and Management Report for Business Strategy

This report provides a detailed analysis of stakeholder relationships within organizations. It explores different types of stakeholder relationships, including internal and external stakeholders, and examines the benefits and challenges associated with working with various stakeholder groups. The report further delves into contractual frameworks for stakeholder engagement and management, and specifies a process for planning stakeholder engagement. It also analyzes the role of managers in managing stakeholder relationships, evaluates collaborative working techniques, and discusses methods for managing conflicts. Finally, the report examines methods for measuring the impact of stakeholder engagement on organizational performance, providing a comprehensive overview of stakeholder management strategies.

Managing Stakeholder
Relationships
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
1.1 Analyse the types of stakeholder relationships within organisations....................................4
1.2 Examine the benefits and challenges for organisations working with different stakeholder
groups..........................................................................................................................................5
LO2..................................................................................................................................................7
2.1 Examine the contractual frameworks for stakeholder engagement and management. ........7
2.2 Specify a process for planning stakeholder engagement......................................................8
LO3..................................................................................................................................................9
3.1 Analyse the role of the manager in managing stakeholder relationships. ............................9
3.2 Evaluate the use of collaborative working techniques to manage stakeholder relationships.
...................................................................................................................................................10
3.3 Discuss methods for managing conflict in stakeholder engagement. ................................11
LO4................................................................................................................................................12
4.1 Examine methods for measuring the impact of stakeholder engagement on organisational
performance. .............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14
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INTRODUCTION
For an organisation one of the main and potential driver of success is the way they build
and manage close relationship with their stakeholders, they are members or group of members
without their assistance organisation would cease to exist. To maintain positive relationship with
the stakeholders organisation needed to engage stakeholder mapping exercise that enables to
evaluate stakeholders and their various interest areas so that they can potentially engage oneself
with the organisational and self development positively. Respective report is based on the
building and maintaining close relationship with the stakeholder by both internal and external.
Further it includes benefits and challenges for a firm working with different stakeholders groups.
It also includes the contractual frameworks and planning for stakeholder engagement. It also
includes role of manager in maintaining stakeholder relationships in order to gain desirable
outcomes. By evaluating usage of collaborative working techniques for effectively managing
stakeholder relationship in order to gain potential outcomes. At last it elaborate methods or tools
to measure impact of stakeholder engagement on performance of organisation.
LO1
1.1 Analyse the types of stakeholder relationships within organisations.
A stakeholder is the group of individuals that have an interest or stake in the
organisational activities and they directly affect the by their actions. There are various types of
stakeholder relationship with organisation that are as follows:
Internal:
Internal Stakeholders are the individuals or group of individuals that directly or financial
involve in the operational process of business. In internal stakeholders includes team members,
line manager, senior manager, board managers (Crane and et.al., 2019). Team members engaged
or stake for employment income and safety, senior manager for job safety and get promotions.
So all have different objective and accordingly organisation need to deal.
 Team members: Team members have the close relationship with the organisation as
they provide challenging task that not only enhance their motivation but also alleviate
retention within the organisation in order to gain desirable outcomes.
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 Board manager: Board manager are close relationship with the organisation as they work
for organisation's achieving goals and objectives and participate in decision making
process.
External:
External stakeholders are few individuals for business that keep in mind while making
decisions and carry out business operations that includes customers, pressure groups,
government agencies and many more (Derakhshan, Turner and Mancini, 2019). As consumers
engaged or stake for product/ service quality and value, investors stake for financial returns,
stakeholders for revenue and safety, government for taxes and GDP.
 Consumers: Consumers are very important part of organisation and it is responsibility of
organisation to provide best products and services as per the consumers needs.
 Government agencies: Government agencies very much important to apply policies and
norms in organisational development and keep keen interest in organisational
development.
Identify effective stakeholder relationship:
For an organisation it is very much essential to identify their stakeholders and put one of
their best efforts in order to maintain effective kind of relationship with them (Francis and et.al.,
2019). Here are the stakeholder relationship management tool to identify relationship with
various stakeholders.
Managerial Grid:
Identify stakeholders:
In respective stage of organisation identify the stakeholders such as internal and external
stakeholders such as team members, line managers and board managers and maintain positive
relationship with them. By providing clear goals and objectives accordingly responsibilities so
that they can give one of their best efforts in organisational as well as self development
positively. In context of external stakeholders customers, pressure groups to identify and
maintain positive relationship with them required identify their needs and purpose to engaged
with them to serve accordingly.
Set desired outcomes:
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In respective stage of identify stakeholder relationship consist of structure exchanges
with them that best fit as per their needs. By setting clear picture in front of stakeholders so that
potentially contribute one of their best efforts.
Share information openly with stakeholders:
In respective stage organisation clearly communicate about goals and their roles in
achieving the same (6 Steps to an effective stakeholder relationship, 2019). In context of internal
stakeholders organisation by using effective communication such as team members should be
identified as per their skills and then provide responsibilities so that they can contribute one of
their best efforts. In context of external stakeholders they provide self interest such as
profitability and contribution in economy to engaged with organisation.
Listen openly:
To build the strong communication it is very much essential to openly communicate with
stakeholders so that they share their concern.
Provide options to resolve issues:
To engage stakeholders it is potential to provide best options to share the knowledge and
information in order to resolve issues.
Make realistic promises:
At last make positive and realistic options to stakeholders in order to gain desirable
outcomes from them.
Respective theory helps in determining to effective find out spheres in which organisation
can improve the relationship with their stakeholders in order to remain competitive in
marketplace.
1.2 Examine the benefits and challenges for organisations working with different
stakeholder groups.
A stakeholder is an individuals that keep interest in success and choice in organisational
makings in order to gain desirable outcomes (Freudenreich, Lüdeke-Freund and Schaltegger,
2019). There are benefits and challenges for organisation while working with different
stakeholders groups are as follows:
Benefits for organisation working with different stakeholder groups:
There are various benefits for organisation that are as follows:
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 Identify and sharing best practice: Stakeholders in an organisation belong from various
backgrounds and possess differ areas of knowledge, for effective kind of working
stakeholders suggest best practices for organisation. Sharing best practices is one of most
effective way to improve the performance by repeating it in organisation for gaining
potential outcomes. Such as government by regulating business activities and favouring
dealing directed to communicate potentially.
 Financial achievement of objectives: Stakeholders are very much important for an
organisation as shareholders have the stake in organisation by using share ownership. In
that regards managers of business act as an custodian in behalf of shareholders (Fu and
et.al., 2019). They contribute in financial achievement of objectives either earn capital
gains by selling of shares or earning dividends declared by firm. So there objective not
only limited to share price growth, growth in dividends but to achieving financial strength
by accomplishing set objectives.
Challenges: Here are the challenges the are encounter by organisation while working with
different stakeholders.
 Stakeholders resist to share information: Stakeholders sometimes in an organisation
face resistance to change that impact adversely both on organisation as well as to
individual in gaining potential outcomes. As they prefer the way to work and don't
analyse or see the value of changing. Further they face issues of office politics business
analyst may be unaware for the same. Due to the experience of previous projects failing
resulting in stakeholders not willing to spend their time and efforts on another project in
which they also fail. So it is very important for stakeholders to keep oneself enough
flexible to adopt changes positively.
 Conflict of interest: One of the complexities in front of organisation includes deal with
conflicts of interest that arise in between stakeholders (Harrison and et.al., 2019J). For
the stakeholders first and foremost factor that often come in mind is that whose interest
considered foremost in against virtue of business traditions and norms. So it is very
difficult for business to comply and work simultaneously in favour of all stakeholders of
organisation.
 Difference in culture: Stakeholders in the organisation come from various backgrounds
and different self interest, that bring diversity in their views and opinions. For an
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organisation difference in culture in between people arise conflicts as it varies in behalf
of beliefs, behaviour, language and practices. In that regards it is the accountability of
organisation to coordinate them and their self interest towards achieving organisational
goals and objectives positively.
LO2
2.1 Examine the contractual frameworks for stakeholder engagement and management.
There are various contractual framework that work in the self interest of stakeholder
engagement and management that are as follows:
Agreements:
Service level and trade union agreements:
A trade union is an organisation made with members and their membership majorly
consisted with the workers. The main objective of trade union is to protect and take interest of
their members at work place (Hiang and et.al., 2019). In context of stakeholders they unified
with trade union by building close working relationship with employers. While stakeholders
work with the trade union they can be able to engage oneself in order to give one of their best
interest in organisational development and enhancement.
Contracts:
Stakeholders are classified and mapped by relied on the various attributes includes
relationship, agreement and risk leveraged that are proposed. Agreement is an important
instrumental component of the model that represents the stakeholders concern regarding accepts
the project in order to gain potential outcomes.
 Partnership agreement: The process of drafting a partnering agreement is a powerful
instrument to build assumptions that stakeholders needed to forefront. Partnering
agreements reviewed as an significant change in their situation while departure or arrival
of the new collaborator.
Compliance:
Today's regulatory landscape is very much dynamic in nature, it is need for business
owners and managers to adopt the informed approach while handling issues related with
compliance (Khojastehpour and Shams, 2019). for an example Training stakeholders related
with compliance is very much critical for success and sustainability for the business. Before the
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compliance training it is very potential to conduct compliance training needed to firstly define
stakeholders because these are generally people who get affected to the organisational actions,
policies and objectives.
Governance:
The first and foremost objective of an organisation to meet the needs of stakeholders, the
role of governance in every organisation to balance the competing objectives of stakeholder
interest. For an example Governance represents holding the balance in between economic and
social goals in between the individual and common goals in order to work in self interest of
stakeholders positively.
A stakeholder approach is one of important practice for managers helps to formulate and
implement processes to satisfy the stakeholders needs and wants for gaining the long term
success potentially (Pedrini and Ferri, 2019). Organisation follow the legal compliance,
legislations helps to them in work self interest of stakeholders so that they can give one of their
best efforts potentially.
2.2 Specify a process for planning stakeholder engagement.
Stakeholder engagement is very much important for the organisation, by following
systematic path an organisation can take care each and every need of their stakeholders that are
as follows:
Stakeholder list:
The first and foremost step in stakeholder engagement is to prepare a plan by list out
stakeholders of organisation but it should be done in through manner as it underestimate power
of minor stakeholders. It helps to identify the approach of various stakeholders such as partner,
stakeholder and supplier in order to gain desirable outcomes.
Areas of influence:
In that phase the stake holder's stake is defined potentially, to acknowledge the way their
interest overlap with project (Phillips and et.al., 2019). The major information in regards of
business goals and objectives and reason behind showing interest towards the project. As there
are no meaningful stakeholder engagement without understanding the view point of others so it
is potential to understand areas of strength of people in order to gain desirable outcomes.
Power:
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Each and every stakeholder has unique ability to proceed towards the project and using
ability during it. Sometimes power has monetary costing and contained the stakeholder
satisfaction in order to gain potential outcome.
Engagement approach:
The strategy to engage stakeholders should be studied in detail which included the
frequency of communication such as on weekly, monthly and regularly face to face meetings.
The content of communication which related with project progress, formation of design and
plans properly.
Model of stakeholder engagement:
Power versus interest grid: The first step of respective model states five steps to develop the
stakeholder engagement plan that are as follows:
Classify stakeholder and analyse:
In the initial stage of stakeholder analysis includes classify stakeholders on various basis
that classified into supporting or opposed that can be divided into upwards/sideways/ downwards
(Schaltegger, Hörisch and Freeman, 2019). The major benefit by using respective tool to win
support from the others which helps to give assurance about the project regarding its success and
stakeholders contribution in it.
Prioritize stakeholders:
After preparing the long list of stakeholders in the organisation that directly affect
business activities so in that regards needs to prioritize the stakeholders. By selecting on basis of
their power and interest in project determine the high or low affect on project.
High power and High interest: Respective kind of stakeholders are crucial decision makers
and largely impact on project success.
High power – low interest: Respective kind of stakeholder needed to keep in loop, organisation
needed to satisfy respective kind of stakeholders even they are not interested in project because
they possess power.
Low power- High interest: organisation keep respective kind of stakeholders informed and
ensure that they not have any issue.
Low power and low interest: Organisation monitor respective individuals and not bore them by
excessive kind of communication with them.
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Respective model provides the important information to management about the different
role and their areas of interest and way to treat with differ stakeholders in the organisation so that
important outcomes should be attained.
LO3
3.1 Analyse the role of the manager in managing stakeholder relationships.
Stakeholder are the individuals or organisations that keep investment or other interest in
the organisational activities. The stakeholders in private business includes owners, employees,
customers and suppliers (Srinivasan and Dhivya, 2020). Business manager keep the direct
responsibility with the clients and supervisors but possess indirect responsibility with other
stakeholders to run profitable and transparent business activities.
Clarify needs and expectations:
Manager plays very much important role in clarify the needs and wants of organisation
by collaborating with higher authority with the stakeholders. They guide and direct their
activities by considering their roles and responsibilities so that business objectives should be met.
In that regards it is the major role of manager to specify business expectations that vary from
stakeholder to stakeholder (Vitolla and et.al ., 2019). Such as employees have differ objective,
government work for overall benefit so it can be said that needs and expectations should be set as
per an individual. It helps to build positive work relationship with the stakeholders as they are
very clear with their roles and responsibilities and can be contribute their best efforts in
organisational development.
Developing and implementing plan:
Manager is responsible to list out all the activities within the business and accordingly
distribute roles and responsibilities to individuals. Manager responsible for drafting plan by
strategically. In that regards Manager as per the department and organisational goals prepare plan
so that stakeholders can contribute one of their best efforts in organisational as well as individual
development positively. While a manager develop the plan they consider need of each and every
stakeholder without neglecting any one, respective activity of manager build positive work
relationship with stakeholders.
Allocating resources:
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Resource allocation is the chain of activities related with assigning and managing
organisational assets in a way that assist with organisational strategic goals and objectives
(Werhane, 2019). In resource allocation includes managing tangible assets and provides enough
knowledge to stakeholders so that they can participate in the decision making process in effective
manner. So in context of stakeholders manager plays very much important role in fairly
allocating resources to an individual in order to build effective relationship with stakeholders.
3.2 Evaluate the use of collaborative working techniques to manage stakeholder
relationships.
Collaboration has been massively enhance in recent time due to the advent and massively
improvement in the work and activities. In an organisation to collaborate with the stakeholder
various kinds of techniques should be used to gain the desirable goals and objectives that are as
follows:
Building trust:
Trust plays very much important role, organisation put one of their best efforts in
building trust within the stakeholders such as uncovered relevant information, improve
participation in the decision making process and many more so that they become loyal towards
achieving organisational goals and objectives positively (Yu and et.al., 2019). It is known as one
of most potential technique to build trust in stakeholders by focusing on above mentioned
collaborative techniques. After build trust organisation can be able to solve problems, build
respect for one another and able to bring consensus in their thoughts that is very much important.
Negotiating, influencing and effective networking:
Influencing and negotiating is one of the most important kind of collaborative techniques
that proved useful every time. It is particularly very crucial ability to gain potential outcomes
from the stakeholders. There are various ways to negotiate with stakeholders is to lead them by
example as it is one of most important way to teach an individual. By communicating in
effective manner an organisation can negotiate and influence the behaviour of stakeholders
towards the goal in order to achieve definite goal. Respective activity helps in behaving properly
in culture diverse work environment and empowering people in order to remain competitive in
marketplace.
Active listening:
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Active listening is one of most important collaborative technique for the organisation to
manage the stakeholders relationship (Harrison and Wicks, 2019). By listening actively
organisation can be able to understand the motive and each aspect properly that helps in taking
effective kind of decision making. By listening effectively stakeholders can be able to put
oneself clearly in front of management and they also understand their concern which build
positive relationship with them.
3.3 Discuss methods for managing conflict in stakeholder engagement.
In an organisation people come from diverse culture that create conflicts and hinders self
interest of organisation in giving one of their best efforts. To manage the conflicts for
maintaining the stakeholder engagement here are the methods:
Investigation:
In respective method of managing conflict involves investigate the major cause behind
the conflict and then consult with the management to overcome from the issue of conflict in
order to build peaceful atmosphere within the organisation. It is very much effective to analyse
the pros and cons of situation accordingly take steps on situation. By investing the situation
thoroughly organisation can be able to effectively resolve and manage relationship with
stakeholders effectively.
Negotiation:
Negotiation is the dialogue in between two or more people or parties that intended to
reach at the beneficial outcome in regards of over one or more issue to remain competitive in
marketplace. To solve the conflicts they negotiate with the parties in positive manner so that any
kind of conflict not arise (Civera, De Colle and Casalegno, 2019). So it is very much effective
kind of tool or method for managing stakeholder engagement.
Mediation:
Mediation is the process in which parties meet with mutually selected impartial and
neutral person that helps to negotiate the difference. To solve conflicts mediator plays very
crucial role as management leaves decision power totally and strictly on them. They by
evaluating the matter very closely and bring with the crucial kind of factors in order to reach at
crucial result. Respective mediators not behave partially with any one that directly helps in
managing relationship of stakeholders.
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LO4
4.1 Examine methods for measuring the impact of stakeholder engagement on
organisational performance.
For an organisation it is very much effective to evaluate or analyse the impact of
stakeholder engagement on the organisational performance in effective manner (de Oliveira and
Rabechini Jr, 2019). As when stakeholder engage with one another for achieving the
organisational goals and objectives, it improve the organisational profitability and sustainability
in the marketplace. It not only proved beneficial for organisation but also on the individual's
performance as it contribute in career growth potentially. Here are the various methods that helps
in measuring impact of stakeholder engagement on organisational performance.
Audit:
Audit is the systematic and independent kind of examination by using the accounts,
statutory records, documents and vouchers of organisation in order to determine the effectiveness
of organisation and its activities. By conducting audit organisation can be able to evaluate
financial measures such as sales, income and growth potentially which shows stakeholder
engagement and organisational performance. With the help of justifiable audit organisation can
be able to build trust and maintain support of their stakeholders such as consumers in purchasing
products and services of organisation effectively. Audit enables to build reputation of
organisation as well as individual that associated with organisation in order to gain desirable
outcomes.
Cost benefit analysis:
In today's business environment it is very much crucial to get evaluate idea, option and
investment technique. From small businesses to large enterprises cost benefit analysis helps to
organisation in taking effective kind of decision making (Fonrouge, Bredillet and Fouché,
2019). It helps to identify the highest and best return of an investment by considering cost,
resources and risk involved with the project. By examining respective factors organisation can be
able to evaluate the most important stakeholders for them and their contribution in achieving
organisational objectives. So respective tool proved very much beneficial for organisation to
inspect shareholders performance positively. It directly impact on the organisational reputation,
advocate in gaining support from the others that plays very important role in organisational
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development and enhancement. With the help of cost benefit analysis organisation can be able
build trust and maintain positive relationship with them.
Hence it can be stated that for an organisation stakeholders plays very much important
role in giving one of their best efforts such as skills, support, opinion and invest money also
crucial for organisational development.
CONCLUSION
From the above report it has been concluded that stakeholders plays very much important
role in the organisational as well as self development in order to remain competitive in business
environment. It is very much effective for organisation to provide potential benefits as per
different needs of differ class of stakeholders in order to reap crucial results from them. For an
organisation it is essential to evaluate various stakeholders and engage them in very respectful
manner without treating discriminating against minor ones in order to achieve desirable
outcomes. Diversity among the stakeholders in regards they have to manage various strategies
and approaches to properly treat with them by providing adequate information and recognition to
build positive relationship with them.
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Online:
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<https://www.sustainet.com/stakeholder-relationship/>.
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