A Report on Developing Working Relationships with Stakeholders

This report delves into the critical aspects of developing and managing stakeholder relationships within an organizational context. It begins by defining stakeholders and emphasizing their importance to business operations and goal achievement. The report then outlines stakeholder mapping techniques, including identifying, analyzing, prioritizing, and engaging stakeholders. It explores essential skills for building trust and fostering clear communication. The report covers expectation management and conflict resolution strategies, alongside the advantages and limitations of stakeholder consultations. It also addresses the risks of inadequate stakeholder engagement and provides insights into the roles, responsibilities, interests, and concerns of stakeholders from a managerial perspective. Furthermore, it examines the benefits of stakeholder collaboration across various business areas and the scope and limitations of these collaborations. The report concludes by summarizing the key findings and emphasizing the significance of stakeholder relationships for organizational success, referencing multiple academic sources.

DEVELOP WORKING
RELATIONSHIPS WITH
STAKEHOLDERS

TABLE OF CONTENTS

INTRODUCTION
Stakeholder is a party that interested in company, and they affected by business. and it
includes creditors, directors, employees, government, owners and suppliers. They can effect by
organization's actions, objectives and policies (Dyer, 2019). Organizations needs to develop
relationship with stakeholders because without them, firm cannot operate their business and
achieve organizational goal. This report will be covers stakeholder mapping technique, skills,
conflict resolution techniques, advantage and limitation of stakeholders consultations, roles
responsibilities of stakeholders.
Part A
1.1 Stakeholders mapping technique.
Stakeholder mapping includes following process that is used by organization's at the time of
decision-making related to business.
Identifying :- It's a first step of stakeholder mapping and it is used to identify
stakeholders. This process requires knowledgeable of people who understand the importance of
developing stakeholder list. Stakeholder fall in two categories that some are affected from project
of organization and some put effect project. It useful for organization at the time of new entrance
in market. It also useful to adopt new technology because in both situation organization has to
develop relationship with stakeholders like – customers, employees, government etc.
Analyse :- It is a second step of mapping to stakeholders and through this organization
defining stakeholders roles and expectation. Different stakeholders put various impact on
organizational goal. Some have the potential to generate greater impact on business compare
than other. Due to analysing, organization understanding that what motivates to stakeholders and
how to satisfy their need.
Prioritize :- After analyse needs, so organization segment needs according to priority.
Then satisfy needs of stakeholders according to importance and manage to stakeholders closely
according to priority. (Kazadi, Lievens and Mahr, 2016). They analyse time to time their needs
and evaluate change in status during course of project.
Engage :- it is a final step and organization support to stakeholders to win and achieve
goal of organization. Communication is base to engage stakeholders in organization for fulfil
project. They also give training to developing skill and knowledge of stakeholders.

1.2 Skills and techniques used to enhance relationship with stakeholders.
Build trust :- Influencing cannot happen without trust and it is very important to
establish trust and mutual understanding with employees. Organization needs to be very open,
honest and straightforward with stakeholders.
Clearly communicate :- Clear communication is very essential to develop relationship
with stakeholders because through clear communication they can share information effectively
with stakeholders, and they also motivate through this skill because they feel belongingness with
organization.
Know to stakeholders :- Understanding the stakeholders wants, needs and expectation
because these things helps to develop relation with them. They are very important for
organization so firm have need to understand wants of employees and satisfy them.
1.3 Expectation management and conflict resolution technique applied to stakeholders.
Organization uses different types of techniques for management of expectation and resolve
problem of stakeholders. Like :-
Managing expectation :-
 For managing employees' expectation organization evaluates their performance time to
time and give promotion, reward and incentives according to their performance. This
technique also helps to manage expectation, and they do work with their full efforts.
Conflicts resolution :-
 It is very big concern and enterprise has need to use techniques for resolution of conflicts.
In organization many types of conflicts raise at workplace so it conducts meeting with
employee face to face and gather information from them. After evaluate they take
decision and resolve problem.
 Organization use techniques of negotiation to manage expectation. Through negotiation,
it evaluates and understand needs and wants of employees and provide satisfaction to
them through fulfil their all needs and wants (Sin and Neave, 2016). This management
techniques also influence to employees and motivate to them.
1.4 Advantage and limitations of different types of stakeholders consultation.
Stakeholders consultation is about initiating and sustaining constructive external relationships
over time. It helps in develop productive, constructive relationship over the long term with
organization.

Advantage :-
Business experience :- Stakeholders are individuals that firm attract them because they
present picture of organization through their ability and develop relationship with other people.
Board of director is also a stakeholder, and they do not contribute in day to day operation. But
they provide big picture through set plan order for long term success.
Business acumen :- Enterprise attract to stakeholders consultation because they provide
guidance when any situation get a little sticky (Zavyalova, 2016). firm search and adopt those
people who have complete knowledge to deal with situations. So they are beneficial for firm
because they deal with every type of situations.
Disadvantage :-
Fearing failure :- Stakeholders consultation has also disadvantages that organization has
fear about failure. It creates through lack of communication because if communication not flow
in systematic and effective manner so it creates lack of control over key decision.
Representing own interest :- It is also a disadvantage because at many times
stakeholders focus on their own interest. External stakeholders are community and political
appointees who might not act in company's best interest. If organization not offering anything so
this concern helps to stakeholders with his constituents.
1.5 Risk and potential consequences of inadequate stakeholders' consultation.
Inadequate stakeholder always put negative effect on organization because if stakeholders
do not consulted, so they loss their interest and becoming difficult. This thing also loss their
support, morale and this creates difficulties in achieve organizational goal.
Damage organizational reputation :- If stakeholders are not consulted, so they damage
reputation because they can not talk and communicate properly with other. The damage of
recovery of image of the firm may be consumed more time and cost(Crilly, Hansen and Zollo,
2016). For example :- it put negative effect on promotion and advertisement so this creates
barrier to attract people.
Reduce customer loyalty :- Customer loyalty decrease due to inadequate stakeholder
consultation because organization put many years and time to make image and brand in mind of
customers and small piece of negative consultation destroy loyalty and retention of customers.

Part B
2.1 Identify the stakeholder with whom relationship developed.
 As a manager I develop relationship with stakeholder through adopting democratic style
in organization because through this style manager discuss all information and concern
with stakeholders before making decision. So they influence and motivate from this style
of management.
 I also do effective communication with stakeholders because it helps in active listening,
and they motivate from effective communication. I interact with them very clearly and
honestly so relationship between organization and stakeholder maintain for long term,
and they feel consultancy.
 I resolve the conflicts of stakeholders as soon as possible and evaluate performance time
to provide reward and incentives according to their performance. All these things
improve the performance and helps to achieve organization goal.
2.2 Roles, responsibilities, interest and concern of stakeholders.
As a manager of organization I have to play many roles and responsibilities to manage and
satisfy interest of stakeholders.
I have responsibility as a manager that make vision and lead to stakeholders through
share visions and goal of organization so it helps to manage them. I evaluate time to time stake
holder's needs and wants and satisfy their needs. This thing helps to fulfil their interest and
concern.
I have responsibility to provide training to employees about new technologies to improve
skills and knowledge of them.
I have role of manager in organization is controlling that means control to stakeholders of
organization because it is important to manage and maintain performance and helps to achieve
goal organization.
2.3 Business areas that would benefit from collaboration with stakeholders.
I establish collaboration with stakeholders and many business areas are beneficial from
collaboration. I get support in following way and business areas also beneficial :-
Decision-making :- In my firm I establish effective collaboration with stakeholders so
decision-making procedure become easy. Many individuals have different capability and skill of
thinking, so they make effective decision to achieve goal of organization.

Saving time and money :- I will maintain relationship with different stakeholders, so
they do work quickly because all are specialist in own field. This speciality of stakeholders helps
to save time and cost.
2.4 Scope and limitations of collaborating with different types of stakeholders.
I establish coordination between organization and stakeholders, so I evaluate that collaboration
of stakeholders has scope and limitation in context of organization.
Scope :-
 I will majorly focus on coordination with employees and I found that employees'
creativity encourage at workplace because all employees has different skills and
knowledge and this thing helpful to develop ideas of improve business.
 Due to collaboration technology increase and profit also increasing because stakeholders
research markets time to time about the latest technology.
Limitations :-
 They also take more and long time to take decision so this affect to organization
performance.
 Flexibility reduce at workplace because stakeholders do not accept changes and if ready
top change, so they consume more time. Employees, customers etc.
Conclusion
From above study it has been summarized that stakeholders are very important for
organization because all are expert in their own field. Organization use stakeholders mapping
technique for mapping of stakeholders. Many types of skills are necessary to enhance
stakeholders like communication and problem solving. Techniques are also use by organization
to solve problem of stakeholders likes meeting and organization also manage expectation of
stakeholders through negotiation technique. This report also conclude that inadequate
stakeholder consultancy damage to reputation of organization.

References
Books and journals
Dyer, J.A., 2019. Persuading Pacific Maritime Supply Chain Stakeholders to Prioritise Climate
Change Resilience. Handbook of Climate Change Resilience, pp.1-28.
Kazadi, K., Lievens, A. and Mahr, D., 2016. Stakeholder co-creation during the innovation
process: Identifying capabilities for knowledge creation among multiple
stakeholders. Journal of Business Research. 69(2). pp.525-540.
Sin, C. and Neave, G., 2016. Employability deconstructed: perceptions of Bologna
stakeholders. Studies in Higher Education. 41(8). pp.1447-1462.
Zavyalova, A. And et.al., 2016. Reputation as a benefit and a burden? How stakeholders’
organizational identification affects the role of reputation following a negative
event. Academy of Management Journal. 59(1). pp.253-276.
Crilly, D., Hansen, M. and Zollo, M., 2016. The grammar of decoupling: A cognitive-linguistic
perspective on firms’ sustainability claims and stakeholders’ interpretation. Academy of
Management Journal. 59(2). pp.705-729.
Mitchell, R.K. And et.al., 2015. Stakeholder inclusion and accounting for stakeholders. Journal
of Management Studies. 52(7). pp.851-877.
Bhandarkar, M.P. and Dewey, M.K., Grand Central Communications Inc, 2017. Multiple
stakeholders for a single business process. U.S. Patent 9,645,712.