Podcast
Questions and Answers
What is the primary factor that determines which stakeholder's needs are more important in a conflict?
What is the primary factor that determines which stakeholder's needs are more important in a conflict?
- The level of environmental impact the stakeholder can cause
- The level of interest the stakeholder has in the decision
- The level of profit the stakeholder can generate for the organisation
- The level of power the stakeholder has over the organisation (correct)
What is the purpose of Mendelow's power-interest matrix?
What is the purpose of Mendelow's power-interest matrix?
- To identify the stakeholders with the most power
- To evaluate the effectiveness of stakeholder communication strategies
- To determine the level of interest stakeholders have in a decision
- To plot each stakeholder according to their power and interest, and identify the key players (correct)
What is the result of plotting each stakeholder on the power-interest matrix?
What is the result of plotting each stakeholder on the power-interest matrix?
- A plan for stakeholder communication and engagement
- A list of all stakeholders affected by the decision
- A ranking of stakeholders by their level of power
- The identification of key players, whose needs must be considered (correct)
Why is it important to identify the dominant stakeholder in a conflict?
Why is it important to identify the dominant stakeholder in a conflict?
What is the primary purpose of stakeholder mapping?
What is the primary purpose of stakeholder mapping?
What is the result of a stakeholder having a high level of power and interest in a decision?
What is the result of a stakeholder having a high level of power and interest in a decision?
What is the term for stakeholders who have a high level of power, but a low level of interest in a decision?
What is the term for stakeholders who have a high level of power, but a low level of interest in a decision?
What is the term for stakeholders who have a low level of power, but a high level of interest in a decision?
What is the term for stakeholders who have a low level of power, but a high level of interest in a decision?
Why is it important to manage stakeholder relationships effectively?
Why is it important to manage stakeholder relationships effectively?
What is the primary source of power for employees in a conflict with management?
What is the primary source of power for employees in a conflict with management?
Study Notes
Stakeholders in Business Organisations
- Stakeholders can be internal, external, or connected to the organisation
- External stakeholders tend to have no direct link to the organisation but can influence or be influenced by its activities
External Stakeholders
- The community at large can be a stakeholder, especially if their lives are affected by the organisation's decisions
- Environmental pressure groups may stage protests or 'sit-ins' if they feel the organisation is harming the environment
- Governments are stakeholders as they provide legislation and regulations that organisations must follow
- Trade unions take an active part in the decision-making process to ensure employees' interests are represented
Characteristics of Stakeholders
- Stakeholders have diverse objectives and needs that must be taken into account by the organisation
- Stakeholders can have conflicting objectives, such as employees vs managers, customers vs shareholders, and the general public vs shareholders
Managing Stakeholder Expectations
- Organisations must manage stakeholder expectations and needs to maintain productive business relationships
- The Mendelow framework can be used to identify the dominant stakeholder(s) and their needs
- The power-interest matrix can be used to plot stakeholders according to their power and interest in a particular decision
Mendelow's Power-Interest Matrix
- The matrix is used to identify the dominant stakeholder(s) and their needs
- The matrix plots stakeholders according to their level of power and interest in a particular decision
- The four quadrants of the matrix are:
- Low power, low interest: minimal effort required
- Low power, high interest: keep informed
- High power, low interest: keep satisfied
- High power, high interest: key players
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Identify and understand the different types of stakeholders in a business organisation, including external stakeholders and their diverse objectives.
