Stakeholder Management 2/29/2016

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StakeholderManagement

2/29/2016

StakeholderManagement

Stakeholder management is a vital component when it comes to ensuringthat the expectations of stakeholders are met. It becomesparticularly useful since they have an interest in the project thatis being executed as it would be determined by the deliverables andthe outputs (Eskerod &amp Vaagaasar, 2014). As organizations ventureinto the maximization of the stakeholder value, the focus thatremains is on the creation of value for the organization. Thepurpose of the stakeholder management tool is to be able to identifythe stakeholders within the firm (Gnan, Hinna, Monteduro &ampScarozza, 2013). Further, there is the concept of determining howvalue can be added to the firms in which they have a stake. Doing soby aligning the stakeholders with transparency and accountability inthe overall use of organizational funds and measuring the impact onthe stakeholders and their firms. The initiative entails stakeholderstaking part in overseeing that there is accountability andtransparency when it comes to the use of funds within theorganization. in which they have a stake. Aligning them to the issueof transparency and accountability in the overall use oforganizational funds.

Stakeholder Management Tool: Figure One

The purpose of the tool is to identify the stakeholders while at thesame time aligning them to a particular initiative and development ofa connection with them to ensure continuity of the project inquestion. Each stakeholder has a stake when it comes to ensuringutheuse of finances is transparent and accountable by taking theinitiative of overseeing the use of funds.

. Analysis of the proposed plan

Rationale forthe initiative based on value of completion of the stakeholdermanagement plan

The justification of the need for transparency and accountability atthe organization emanates from the need to ensure that there istransparency and accountability in how operations are carried out bythe company. The manner in which the firm is run depends heavily onits success (Hernantes et al., 2013). Notably, many businesses havefound themselves failing because funds are embezzled. It is mandatoryto have a proper framework through which it becomes possible for thestakeholders to take an active role when it comes to understandinghow funds within the firm have been used. The management stakeholderplan should focus on making it possible for stakeholders themto accurately check the use of funds within the organization. Theinitiative entails (creates) a transparent and accountableenvironment in which funds in the organization are properly utilized.Further, the initiative looks at the possibility of inculcating aculture of integrity through accountability within the organization.,Ensuressuch that finances within the organization are all accounted.Those in charge of the management of the funds need to ensure thatthey do so in a manner that depicts the honesty in all the businesstransactions.

Identification of the stakeholders

Internal stakeholders

Team/ group

External stakeholders

Senior leadership members

Bill Andrew

Catherine Martha

Other leaders

Edward Tim

Senior leaders

Val Valeria

Peer groups

Melisa Key

John Smith

Employees

Daniel Jack

Ivan Koji

Fellow colleague

Shaw Mayor

Employees and other staff

John Duce

The current stakeholders would be assessed regarding their currentpositions, their interests and the desired positions in figure two.

Figure Two

Stakeholders

Current Position

Interest

Desired Position

Ability to promote transparency and accountability

Understanding of transparency and accountability

Bill Andrew

Executive member of the Board

  • Strives for excellence in what he does

  • Enjoys trying out new ideas in business

  • accountability in any business venture

+ +

Catherine Martha

Executive member of the Board

  • Interested in transparency at the firm

  • Strict on junior employees

  • Keen on integrity regarding financial matters

+ –

Edward Tim

Chief Financial Officer

  • Concerned with financial expenditures in the company

  • Cautious on inappropriate use of funds at the company

+ +

Val Valeria

Financial Officer

  • Works by the rules of the organization

  • Careful on business transactions involving the use of funds

+ +

Melisa Key

Deputy Financial Officer

  • Advocates transparency and accountability

  • Strict on junior staff

+ N

John Smith

Chief Accountant

  • Enjoys working on the books of accountants of the business

  • Tracks all expenditures in the business

  • +

Daniel Jack

Accountant

  • Monitors and tracks financial expenses of the firm

  • +

Ivan Koji

Accounts Manager

  • Oversees activities done by the junior employees

+ –

Shaw Mayor

Assistant Accountant’s Manager

  • Keeps the books of accountants and in charge of small expenses within the company

+ _

John Duce

Accounts Clerk

  • Oversees payment of wages and salaries to employees

+ N

Figure Three

A plan would be introduced aimed at aligning the stakeholders intothe realization of the initiatives set. The table would furtherelaborate the people who would provide the support to help those witha negative or neutral position.

Stakeholders

Current Position

Interest

Desired Position

Ability to promote transparency and accountability

Understanding of transparency and accountability

Required Support

Bill Andrew

Executive member of the Board

  • Strives for excellence in what he does

  • Enjoys trying out new ideas in business

  • Emphasizes on accountability in any business venture

+ +

H

Catherine Martha

Executive member of the Board

  • Interested in transparency at the firm

  • Strict on junior employees

  • Keen on integrity on financial matters

+ –

H

Edward Tim

Chief Financial Officer

  • Concerned with financial expenditures in the company

  • Cautious on inappropriate use of funds at the company

+ +

H

Val Valeria

Financial Officer

  • Works by the rules of the organization

  • Careful on business transactions involving the use of funds

+ +

H

Melisa Key

Deputy Financial Officer

  • Advocates transparency and accountability

  • Hard to junior staff

+ N

M

John Smith

Chief Accountant

  • Enjoys working on the books of accountants of the business

  • Tracks all expenditures in the business

  • +

H

Daniel Jack

Accountant

  • Monitors and tracks financial expenses of the firm

  • +

H

Ivan Koji

Accounts Manager

  • Oversees activities all of the activities are done by the junior employees

+ –

M

Shaw Mayor

Assistant Accountant’s Manager

  • Keeps the books of accountants and in charge of small expenses within the company

+ _

M

John Duce

Accounts Clerk

  • Oversees payment of wages and salaries to employees

+ N

M

Figure Four: Stakeholder-based balanced scorecard

Potential Stakeholder

Contributions

Inducement

Senior leadership members

  • Provide leadership and guidance

  • Provide counsel

  • Power

  • Legacy

  • Returns

Senior leaders

  • Give advice

  • Provide guidance

  • Make time for consultation

  • Power

  • Legacy

  • Income

Other leaders

  • Management

  • Strategy

  • Governance

  • Appraisal

  • Recognition of effort

Peer groups

  • Assistance

  • Remuneration

Employees

  • Time

  • Efforts

  • Ideas

  • Results

  • Benefits

  • Compensation

  • Promotion

Fellow colleague

  • Counsel

  • Ideas

  • Compensation

Employees and other staff

  • Technical support

  • Collaboration

  • Compensation

  • Appraisal

Arationale for analysis and decisions in Step 1 and Step 2

The rationale for choosing the stakeholders is due to the effect ofproper financial management on the operational activities of a firm.In a state where funds are mismanaged, the stakeholders identifiedwould be affected because the firm may not have operational funds.The choice of the stakeholders is an indication of the effect thatcorruption and embezzlement of the funds would have on the employees.The individuals who have been selected are directly affected byfailure or success of the initiative of transparency andaccountability. Senior leaders will taint their image if the companythey are managing becomes bankrupt due to lack of transparency andaccountability. However, if the firm were to operate on a foundationof transparency, it would be beneficial for all of the mentionedstakeholders. Employees were selected because they are affected byhow funds are utilized within the company. If there is amisappropriation, the chances are high that the business could bedeclared bankrupt, resulting in its closure. If such were to happen,employees would be laid off since there would be no money to sustainstakeholdersthem.. The peer groupswere selected since if the firm were to lose credibility regardingthe financial operation, it would result in a decrease of revenue forthem.

How the individual needs of the stakeholders differ

Each of the stakeholders mentioned has a stake in the organization.Those holding the leadership positions have their reputation toprotect as executives. They would do anything to ensure that theyoversee the success of the initiative of promoting accountability andtransparency (Hilb, 2012). As for the employees, their interestrelies on the fact that they draw their source of income from theorganization. If the organization were to fail in its operations forlack of funds, the employees would have much to lose, especiallybecause many of them draw their source of income (Huemann &ampZuchi, 2014), in terms of salaries, shares and dividends. Further,there is the concept of the amount of compensation each was to derivefrom the organization. Senior leaders in the organization have ahigher stake compared to the employees indicating the variation ininterests.

The positions to be taken by each of the stakeholders are significantbecause of the impact they each have on the running of activities inthe company. As stakeholders, any decisions made by the enterprise,especially regarding finances, must be accounted. Senior leaders whoact as board representatives play a role when it comes to decisionsmade about economics, indicating the significant role their positionwould have on the initiative. Employees take the active part inensuring funds are used in an appropriate way and that anytransactions that do not add up get to be accounted for. The sameapplies, primarily, for the financial officers and the accountants.

Rationale for analysis of step three and four

Step three shows the interest that each of the stakeholders has onthe initiative. As depicted, the senior leaders within theorganization aim for excellence. If the initiative within the firmwere to be successful, it would be to the advantage of any of thestakeholders. The senior leaders have to dedicate much of theireffort towards ensuring that the initiative outlined is achieved.Every stakeholder identifies that they have a role to play when itcomes to ensuring that the concept of transparency is achieved(Crawford, 2014). The information revealed was valuable, as it helpedidentify the stake that each of the stakeholders had when it comes toensuring the success of the initiative. The needs of the stakeholdersare interdependent since the employees follow directions given by thesenior leaders. In the same way, activity carried out by theemployees, when it comes to the management of funds, has an effect onhow much the executives would earn regarding compensation. The viewof each stakeholder has an impact on the balanced scorecard since itwould reflect the amount of compensation that each of the employeeswould realize.

References

Crawford, J. K.(2014). Project management maturity model. CRC Press.

Eskerod, P., &ampVaagaasar, A. L. (2014). Stakeholder management strategies andpractices during

a project course.Project Management Journal, 45(5), 71-85.

Gnan, L., Hinna, A.,Monteduro, F., &amp Scarozza, D. (2013). Corporate governance and

managementpractices: stakeholder involvement, quality and sustainability tools

adoption. Journalof Management &amp Governance, 17(4), 907-937.

Hernantes, J., Rich,E., Laugé, A., Labaka, L., &amp Sarriegi, J. M. (2013). Learningbefore the

storm: Modelingmultiple stakeholder activities in support of crisis management, a

practical case.Technological Forecasting and Social Change, 80(9),1742-1755.

Hilb, M. (2012). Newcorporate governance: Successful board management tools. Springer

Science &ampBusiness Media.

Huemann, M., &ampZuchi, D. (2014). Toward a comprehensive project stakeholdermanagement

approach for HRprojects. Advancing human resource project management,383-424.