Understanding Stakeholders: What Is A Stakeholder According ✓ Solved

Understanding Stakeholderswhat Is A Stakeholder According To Cambrid

Understand the concept of stakeholders, their types, and their significance in project management by reviewing definitions, stakeholder identification, and analysis tools. The discussion includes internal and external stakeholders, their interests, influence, and strategies for engagement to support project success. An example related to call center quality issues illustrates stakeholder mapping and analysis.

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Introduction to Stakeholders

Stakeholders are individuals or groups with an interest or involvement in a project, organization, or societal issue. According to the Cambridge Dictionary, a stakeholder can be an employee, customer, or citizen who has responsibilities towards an organization and a vested interest in its success (Cambridge Dictionary, n.d.). This broad definition encompasses a vast array of parties that influence or are affected by organizational activities. Recognizing and understanding stakeholders are essential steps in effective project management and organizational strategy, as their support or opposition can significantly impact outcomes.

Classification of Stakeholders

Stakeholders are generally classified into internal and external categories. Internal stakeholders are those within the organization involved in daily operations and directly impacted by the project. They include employees, management, and organizational departments like Human Resources and Training. External stakeholders are outside the organization but have influence or are impacted by the project. These include customers, suppliers, government agencies, community groups, and sometimes the wider society.

Understanding the distinction between these types helps managers tailor communication strategies and engagement plans, ensuring stakeholder needs and influences are adequately addressed (Freeman, 1984).

Importance of Stakeholder Identification and Analysis

Identifying stakeholders begins with brainstorming and mapping all potential parties involved or affected. A stakeholder diagram visually depicts relational hierarchies and influence levels, often illustrated in concentric circles representing primary, secondary, and tertiary stakeholders (Bryson, 2004). This visual aid ensures comprehensive stakeholder recognition and helps prioritize engagement efforts.

Analysis of stakeholders’ interests, influence, and support levels assists in developing effective engagement actions. Tools like stakeholder matrices categorize stakeholders based on their level of interest and influence, guiding communication strategies (Eskerod & Hupe, 2017). For example, stakeholders with high influence and support require active management, while those with low interest and influence may require minimal engagement.

Case Study: Call Center Quality Improvement

Consider a scenario where a call center faces quality issues contributing to decreased customer satisfaction, revenue loss, and employee attrition. The root causes identified include inadequate training duration and outdated online tools. A stakeholder analysis involves mapping key internal and external parties: call center employees, management, customers, human resources, and external training organizations.

Using stakeholder mapping, internal stakeholders like call center staff and management are classified based on their influence and interest. For instance, the call center manager with high influence and support needs ongoing communication, whereas employees with low influence may require less frequent engagement. External stakeholders, such as customer organizations, impact the project through feedback and purchasing patterns.

Developing an engagement plan involves actions like frequent updates for high-influence stakeholders, tailored training programs, and feedback channels for customers. This strategic approach ensures stakeholder interests align with project objectives, ultimately improving call center performance.

Tools for Stakeholder Analysis

Effective stakeholder analysis employs tools such as stakeholder interest-influence matrices, stakeholder registers, and communication plans. The interest-influence matrix categorizes stakeholders into segments like 'high influence/high support' requiring active engagement and 'low influence/low support' suitable for monitoring (Bourne, 2015). Regular updates and adaptable strategies foster stakeholder collaboration, minimize resistance, and enhance project success.

Strategies for Stakeholder Engagement

Engagement strategies vary based on stakeholder analysis. For high-influence supportive stakeholders, maintaining strong relationships via regular reporting and participation is crucial. For those with high influence but low support, targeted incentives and transparent communication can shift attitudes. Marginalized stakeholders require monitoring without over-commitment to manage resource allocations efficiently.

Integrating stakeholder feedback into project planning and execution enhances trust and fosters long-term support, critical for complex projects or organizational change initiatives (Mitchell, Agle & Wood, 1997).

Conclusion

Understanding and managing stakeholders is vital for project success and organizational development. Proper identification, analysis, and engagement strategies facilitate smoother implementation, reduce resistance, and promote shared goals. Effective stakeholder management is an ongoing process that adapts to project dynamics and stakeholder needs, ultimately contributing to sustainable success.

References

• Bourne, L. (2015). Stakeholder engagement: Practical tools for projects. Gower Publishing, Ltd.
• Bryson, J. M. (2004). What to do when stakeholders matter: stakeholder identification and analysis techniques. Public Management Review, 6(1), 21-53.
• Eskerod, P., & Hupe, P. (2017). Stakeholder management strategies for complex projects. Project Management Journal, 48(6), 49-66.
• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.
• Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
• Cambridge Dictionary. (n.d.). Stakeholder. Retrieved from https://dictionary.cambridge.org/
• Gaventa, J., & Cornwall, A. (2006). Powerful actors and social forces: The politics of advocacy, empowerment, and community-based development. Economy and Society, 35(2), 229-245.
• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.
• Kickert, W. J. M., Klijn, E. H., & Koppenjan, J. F. M. (1997). Managing Complex Networks: Strategies for the Public Sector. London: Sage Publications.
• Johnson, J. P., & Johnson, R. B. (2015). Foundations of democratic government. Journal of Political Science Education, 11(1), 85-108.