HI6005: Stakeholder Relationship Management's Influence on Decisions

This report examines the significance of stakeholder relationship management (SRM) and its influence on management decision-making within a global environment. It highlights the increasing importance of stakeholder interaction due to the rise in development projects and the potential for co...Read More

Stakeholder Relationship Management and its
influence on Management Decision-Making
Management and Organisations in a Global Environment
Submitted by:

Introduction
Why stakeholder interaction?
Inescapable with rise in development projects
According to Harrison, Bosse and Phillips (2010) conflicts of interests can delay projects
Both time and efforts are invested
Widely used for managing relations
Benefits outcomes of a project
Influence management decision-makings
Projects fail due to ineffective management

General Framework
 Significance of stakeholder relationship
 Helps to identify stakeholder-organization relationships
 Superior stakeholder satisfaction critical for success
 Developing and maintaining relationships are desired goals

Continued
 Manage business by understanding changing environment
 influence management decision-makings on moral, social grounds
 As stated by Mok, Shen and Yang (2015) emphasizes exchangeable relationship

Define the general external environment, identifying stakeholders within it
 General environment:
 External environment referring to broader situations with society
 Elements are economic, legal-political, technological, environmental and socio cultural.
 External environment
 Divided into micro and macro
 Factors of micro environment directly impact operations
 Factors of macro environment are beyond control

Define the specific external environment, identifying stakeholders within it
 Specific external environment
 factors outside organizations
 According to Zhang and Liu (2010) specific external environment is distinctive and changes
 Directly relate to organizational goals
 Include suppliers, customers, competitors, regulators, strategic partners.

How multi-advocacy approach to SRM assist in decision-making
 Multi-advocacy approach
 decision-making model.
 According to Matos and Silvestre (2013) links logically means and ends of decision-making
 Adopted to encourage free flow interactions and/or suggestions

Four step approaches to SRM
 1. Identifying Stakeholders
 2. Studying Stakeholders
 3. Prioritizing Stakeholders
 4. Contacting Stakeholders

Conclusion
 Stakeholders’ role in influencing decision-makings has increased attention
 Involving all stakeholders is important
 Strategic stakeholder management drive towards competitive advantage
 Stakeholder relations management vital for success
 Engaging into effective SRM produce better outcomes

References
1. Harrison, J., Bosse, D. and Phillips, R. (2010). Managing for stakeholders, stakeholder utility functions, and competitive
advantage. Strategic Management Journal, [online] 31(1), pp.58-74. Available at: http://10.1002/smj.801 [Accessed 19 Sep. 2018].
2. Korschun, D. (2015). Boundary-Spanning Employees and Relationships with External Stakeholders: A Social Identity Approach. Academy
of Management Review, [online] 40(4), pp.611-629. Available at: http://10.5465/amr.2012.0398 [Accessed 19 Sep. 2018].
3. Matos, S. and Silvestre, B. (2013). Managing stakeholder relations when developing sustainable business models: the case of the Brazilian
energy sector. Journal of Cleaner Production, [online] 45, pp.61-73. Available at: http://10.1016/j.jclepro.2012.04.023 [Accessed 19 Sep.
2018].
4. Mok, K., Shen, G. and Yang, J. (2015). Stakeholder management studies in mega construction projects: A review and future
directions. International Journal of Project Management, [online] 33(2), pp.446-457. Available at: http://10.1016/j.ijproman.2014.08.007
[Accessed 19 Sep. 2018].
5. Zinovieva, C.G., Kuznetsova, M.V., Dorfman, T.V., Limarev, P.V. and Limareva, J.A. (2016). Study of external and internal factors
affecting enterprise’s stability. Advances in Systems Science and Applications, 16(1), pp.62-71. Available at:
http://ijassa.ipu.ru/index.php/ijassa/article/view/357/296 [Accessed on 19 Sep. 2018]
6. Zhang, J. and Liu, Y. (2010). Organizational Climate and its Effects on Organizational Variables: An Empirical Study. International Journal
of Psychological Studies, [online] 2(2), pp.514-528. Available at: http://10.5539/ijps.v2n2p189 [Accessed 19 Sep. 2018].