Research Articles Base: Stakeholder Theory

STAKEHOLDER MANAGEMENT

Introduction One of the primary concerns of the analytic approach to governance is who actually plays what role in governance decision making. To address this question, taxonomy of roles must be identified and the concept of the stakeholder must be evoked. There are three distinct roles in administrative decision making. There are those who make the decisions; there are those that influence those decision makers by providing information or recommendation; and there are those that ratify decisions. The latter role involves having little involvement in the choice of a preferred course of action but, in the last stage, having the authority to accept it or veto it. For example, in many nonprofit organizations, the chief executive officers (CEOs) are the primary decision makers, but some of their decisions are put to the board for ratification ( 2001).   The great majority of the time, the board routinely approves these motions, though occasionally one may be vetoed and returned to the CEO to be reconsidered. The concept of stakeholder refers to any party that sees its interests being affected by the actions of a given organization. The potential stakeholders involved in governance decision for most nonprofits include some combination of the board as a whole, individual board members, board committees, the chief executive officer, other senior management staff, other paid staff and volunteers, users of the organization’s services, members, funders, and government regulators.  Various stakeholders have varying amounts and kinds of power, and those with the greatest influence shape a strategy from a number of specific decisions ( 2001). Stakeholders are given the outmost authority in any business setting. Their power and importance is beginning to gain slighter advantage when compared to an organization’s management team. The paper will discuss about stakeholder management. The paper will also discuss about the construction project. Moreover the paper will discuss about how stakeholder management affects a construction project.   Stakeholder management The managers of a firm have the responsibilities of establishing its overall direction and seeing to it that these plans are carried out. Consequently, managers have both long-term and short-term responsibilities. Before the stakeholder view of the firm became necessary, the social and competitive environments were stable and management’s task was relatively straightforward. Today, stakeholder management has become necessary and inevitable as many different groups demand to be recognized and satisfied. Experts have long known of the importance of managing people and consumers as an avenue of organizational success. In one sense, then, the premise of stakeholder theory is to expand the organizations’ horizons and managers’ thinking to be inclusive of other stakeholder groups and to see that these are groups that have a legitimate investment or stake in the enterprise’s operations, as well as the power to effect change. One could also argue that perhaps managers have been doing stakeholder management for decades, albeit in a piecemeal fashion, not fully perceiving the integral nature of working with stakeholders ( 2000).  What has been learned, however, is that today many diverse groups expect and demand to be treated as a vital part of the organization’s success. While still recognizing the primacy and necessity of profits as a return on the shareholder’s investments, people have also seen growing claims of other stakeholder groups-claims and expectations that they assume will be satisfied as well. With these perspectives in mind, it is useful to approach stakeholder management with the idea that managers can become successful stewards of stakeholders’ resources by gaining knowledge about stakeholders and using this knowledge to predict and deal with their behaviors and actions ( 2000).  Stakeholder management is an important concern for organizations because of the different implications such can bring to a company. Stakeholder management helps in creating and accomplishing long term goals for a company.   Construction project Construction firms divide into types based on where they place themselves in a system of subcontracting. General building contractors bid for and take on commercial and residential building projects. They, in turn, subcontract out part or even almost all of these building projects to specialty subcontractors who agree to do special aspects of the construction project. A second set of general contractors bids for, and takes on industrial, road, dam, and other heavy construction. These civil engineering contractors then subcontract some or almost all of the work they have won to subcontractors who may subcontract the work even further, to additional layers of subcontractors. The extent of subcontracting varies considerably from country to country. In addition, small construction companies or individuals working outside the subcontracting systems do small jobs of maintenance, repair, additions to existing buildings, and very small new construction ( &  2002).     Moreover, it is often common for distinct architectural firms and civil engineering firms to provide design and engineering services needed to plan the construction project. Project management firms may also contract with the final owner of the building project to assist the owner in purchasing the various contracts needed to set a construction project in motion. These project management firms may also play a role in overseeing the construction project or evaluating the project at completion ( &  2002). The overall exigencies of a construction project require a smooth flow from phase to phase. Therefore, productivity enhancements in one sphere or trade can have spillover effects on a related one. Efficiencies in false work construction can reduce labor hours for a host of trades, while advancements in concrete mixing or pouring can induce speed in the deck trades. As product development, legal restrictions, and consumer demand change, so does the final outcome of a construction project. Thus the challenge is not merely to develop reasonable weights and measures, but to determine a consistent database for any analysis ( 1997).  The construction project operates just like any business entity. It needs designation for different kinds of person and the result of the project depends on how the designated person works on his/ her task at hand. Stakeholder management and construction project The construction project needs direction just like other business entities. The construction project cannot easily work to achieve its goal without it following a certain direction. The stakeholder management can provide assistance to a construction project for it to achieve its objectives. The stakeholder management can help provide positive and useful directions that can help the construction project achieve success and prestige in its industry. The stakeholder management can also provide assistance in creating long term goals for the project. In this way the people involved in the project will not do unnecessary things that will hamper the achievement of the goal of the project. Moreover the stakeholder management can help in providing assistance for the construction project to make use of accurate and logical decisions before doing any actions.   Conclusion Stakeholders are given the outmost authority in any business setting. Their power and importance is beginning to gain slighter advantage when compared to an organization’s management team. Stakeholder management is an important concern for organizations because of the different implications such can bring to a company/. The construction project operates just like any business entity. It needs designation for different kinds of person and the result of the project depends on how the designated person works on his/ her task at hand. The stakeholder management can provide assistance to a construction project for it to achieve its objectives. The stakeholder management can help provide positive and useful directions that can help the construction project achieve success and prestige in its industry. Moreover the stakeholder management can help in providing assistance for the construction project to make use of accurate and logical decisions before doing any actions.   References Credit:ivythesis.typepad.com

STAKEHOLDER MANAGEMENT

Introduction One of the primary concerns of the analytic approach to governance is who actually plays what role in governance decision m...