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A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organizations objectives. (R.Edward Freeman, 46).

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Introduction

The term "stakeholders" appears to have invited in the early 60's as a deliberate play on the word "stakeholder" to signify that there are other parties having a "stake" in the decision. A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives. (R.Edward Freeman, 46). To understand the meaning of stakeholders, the word stake is also equally important. A stake is an interest of a person or the sharing an understanding. If a group of people is doing a particular job then they should have a stake, or interest in the group's decision. For an example if a group of people are going out for a dinner then each of the group members should have a stake and interest. In this situation the member sees for their own interest (priority, taste, preference) in the decision. Stake can be also seen as the term claim, which means someone has the right to something. A claim is a demand for something because it has its due. Therefore, the term stake defines the interest and understanding in a particular thing and has the legal ownership at the certain extreme. "A stakeholder, then, is an individual or group that has one or more of the various kinds of stakes in a business. Just as stakeholders may be affected by the actions, decisions, policies, or practices of the business firm, these stakeholders also may affect the organization's actions, decisions, policies, or practices. ...read more.

Middle

Therefore every organization has to take care not only for the needs of their direct owners, but also of various other groups, like employees, public interest groups like environmental organizations, strategic partners, journalist. Management has to assess and evaluate these external forces in order to adjust them with corporate objectives. Whenever an organization is making decisions, it is necessary to know about the expectations of different stakeholders and to determine, to what extend they could and would exert an influence. Hence, the importance of stakeholder management is based on a long term strategic decisions. Stakeholder management is important to the marketers in the 21st century because an organization can use the opinions and ideas of other stakeholders who are powerful enough to guide the organization from the early stage. Continuous support from these stakeholders can help the firm to make an improvement in their projects and products. The project that an organization has been running could be more successful if these powerful stakeholders keep on giving more important resources and information. These stakeholders can help actively to the organization if there is better communication between them. Frequent communication with these stakeholders can help the firm to understand clearly the benefits of their work and their role towards the projects. So, the firm can have a clear idea what the people thinks about the product and make improvement to reach the peoples desire. Therefore, the stakeholder management helps to identify who are the most powerful, influencing and interested stakeholders in an organization. ...read more.

Conclusion

Communicating of various information with the stakeholders are some of the factors which brings motivation in the project. That is the reason why the sharing of information between the stakeholders and organization plays a vital role and needed to plan how to manage communication with the different stakeholders. The reason for the communication is to bring out good relation with the stockholders and to gain the maximum support from them to complete the project. An organization identifies the most important stakeholders and gives them priority according to their powers and interest. Then it is necessary for them to know the things that influences and motivates these stakeholders to stay with them. Stakeholder planning is the next step that helps the organization to manage their stakeholders and gain their support to complete their task effectively and efficiently. In stakeholder planning the stakeholders are categorized according to their power, interest and then they are assessed according to their abilities. The time taken to allocate the stakeholder management depends on the size and the complexity of the project, the time utilized for the communication and the expectation of the firms results. Stakeholder planning helps the organization to think the level of support that gives and the role that organization wants them to play. So, basically it helps to think what the firm wants for the each stakeholder. It helps passing the message to every stakeholders and persuade then to support the project. The message can make the stakeholders aware of what an organization are doing and motivates them on the key performance to achieve improvement and increasing profit. ...read more.

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