Influence of Stakeholders on the Organizational Management - Essay Sample

Introduction

Stakeholders are individuals, groups or organization who show interest, in a company. Apparently, the work of the stakeholders is a major concern about organization performance and ensure its still at competitive and acceptable level. Although the stakeholders have no tasks in organization management, they play an essential part by influencing the organization. The essay seeks to describe how the stakeholders influence organizational management.

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Stakeholders influence the process of decision making. They are important since they ensure that the organization environment during work remain dynamic, rewarding and stimulating and the working conditions are good within the organization thus ensuring organization smooth running and excellent performance.

Perhaps, the stakeholder has their personal interest which needed to be satisfied by the organization they invest in it. However, the interest varies and can go in hand with financial, welfare issues, company productivity, quality, ethical morals, environment, and technology. The interest of stakeholders should be well defined and fully addressed by the organization. It's a very important process that needs to be undertaken carefully since it may determine the long-term success of the organization (Nieves-Nieto, 2018). It's clear that an organization that fails to satisfy its stakeholders faces the risk of being wiped out of the world.

Therefore, it is critical for the management to conduct a thorough assessment in organization settings as well as its purpose and their own role. The management task is to ensure they build a relationship and stable framework concerning the partnership. The purpose of the framework is to connect the individuals of the organization with each other and further relates well with stakeholders. As such, the management is needed to know critical partnership, create a satisfactory network in the working relationship especially with key groups as well as the individuals involved, and finally ensure the maintenance of such relationship (Nieves-Nieto, 2018). To be able also to capitalize and maximize on these external sources of influence, power, support and required advice, the organization management should be conversant with money, time and resources, and personal mandates. In addition, they should also be aware of the area of potential setbacks such as customers shifts in demand, loyalty, and goodwill as well as competition and rivalry from other organization. Moreover, the organization should comply with the area of operation regulatory agencies and guidelines issued by government agencies.

Stakeholders are categorized into i) internal stakeholders and ii) external stakeholders.

The internal stakeholders are the one having a direct influence when it comes to organization resources. Whereas the external stakeholders are individuals who do not have any direct roles in operations pertaining to a certain organization but usually have an interest in their activities. Usually, the driving force for better achievement of goals and objectives within the organization is brought up by the external stakeholders' motivations. Internal stakeholders consist of organization employees as well as management team whereas the external stakeholders consist of customers, suppliers, local community, investors, trade unions, regulatory agencies, and the general public.

Certainly, the organizational stakeholders have great influence in the organization management specifically in the decision-making process. The organization stakeholders can be classified as 1.) Customers, 2.) Controllers, 3.) Suppliers, and 4.) Advisers

Customers

These are stakeholders who are being supplied with good and services from their organization. They make significant influence framework on demands on the organization. Customers demand to have a great impact on organization sales and marketing (Oyewo, 2019). Moreover, their feedbacks are important inputs to the survival and sustainability of organizational performance.

Suppliers

Since no organization is self-sufficient it's is required to make arrangement to acquire necessary resources such as services, funds, capital, raw material and goodwill which is requirements for organizational survival as well as functioning. This can be achieved through resource suppliers who form the external department of the organization hence making the organization becoming a customer to other organization. Therefore, the supplier's viability is crucial for organization management since it depends on its product for functioning purpose.

Perhaps, supplier influences the organization to ensure that its supplied products are covered under statutory authority regulations. Hence, mandated to fulfill organization policies, procedures, and safeguards. Furthermore, the associate's suppliers work to unite with the organization while supporters' suppliers form a brand ambassador of the organization which influences the 'friendly power' for the organization thus providing help encouragement especially in creating an environment of goodwill to the organization.

Advisers

These are stakeholders whose activity tend to set trend in the business world and industry the organization belongs to. They are role is to provide a form of support or resource through their form of advice. Therefore, through their assistant and support, these stakeholders help the organization to effectively use its resources and esteemed support they received from other surrounding sources. Moreover, their pieces of advice influence organization decision thus should not be ignored since the pieces of advice fall into an impersonal category.

Controllers

These are stakeholders who have power over the organization. Organizations are needed to meet the set regulations usually enforced by the local government (Oyewo, 2019). It is considered to be internal stakeholders as they form the governing board that is an integral part forming hierarchical structure within the organization. Thus, setting organization management a sense of clear guidelines especially in the decision-making process and planning.

Conclusion

Perhaps, stakeholders work hand in hand with organization management to ensure the organization has achieved they set goals, objective, vision, and mission. Therefore, stakeholders are valuable assets to organizations.

References

Nieves-Nieto, C.D., Bernal-Conesa, J.A., Penalver, A.J.B. and Santos, J.A.C., 2018. Corporate Social Responsibility and Sustainability's Effect on the Relationship Between Technological Companies' Stakeholders and Performance.

Oyewo, B., Ajibolade, S. and Obazee, A., 2019. The influence of stakeholders on management accounting practice. Journal of Sustainable Finance & Investment, pp.1-30.