Managing Stakeholder Relationships

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.

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.
• 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.Get Assignment Samples.Talk to our Experts!

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:

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. Get help with USA's leading online assignment helper!

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.

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:

• 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 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.

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 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 p

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