The Role of Stakeholders
Role of Stakeholder
MGT/ 420
November 1, 2012
Roger Ellis
Role of Stakeholder
Quality management is an approach to managing a business that focuses not only on customers and profits, but also takes into consideration anyone who can influence the business to be more profitable. These might include employees, suppliers, investors, market analysts, government regulators and trade associations. These entities need to have a positive working relationship with one another and collaborate with each other to promote the business. Lack of collaboration between them can cause issues with the success of the business itself (Susienes & Vanegas, 2005). Quality management considers the actions of stakeholders to be very important in the overall success of the operation.
R. Edward Freeman defines a stakeholder as “anyone that can be affected by a company’s actions, objectives, and policies. This includes both internal stakeholders, such as employees and managers, and external stakeholders, such as shareholders, suppliers, customers, surrounding communities, creditors, the government” (DowellDoGood, 2012).
Stakeholders
Stakeholders can be divided in two groups: internal stakeholders and external stakeholders.
Internal stakeholders are the employees, from the upper managers to the production workers – anyone who works in the company and is a part of the business structure of the company itself. Internal stakeholders are also customers, suppliers, and shareholders. All of these groups make a difference in the growth of the company. Balancing these relationships that provide satisfaction in the long run is the focus of quality management structure. Employees need satisfaction with fair salaries ad benefits packages, customers need quality products and fair prices, suppliers need the opportunity to sell and make a profit, and, finally, shareholders want a return on their investments. Organizing meetings, communicating through E-mail, letters, and seeking consensus on
MGT/ 420
November 1, 2012
Roger Ellis
Role of Stakeholder
Quality management is an approach to managing a business that focuses not only on customers and profits, but also takes into consideration anyone who can influence the business to be more profitable. These might include employees, suppliers, investors, market analysts, government regulators and trade associations. These entities need to have a positive working relationship with one another and collaborate with each other to promote the business. Lack of collaboration between them can cause issues with the success of the business itself (Susienes & Vanegas, 2005). Quality management considers the actions of stakeholders to be very important in the overall success of the operation.
R. Edward Freeman defines a stakeholder as “anyone that can be affected by a company’s actions, objectives, and policies. This includes both internal stakeholders, such as employees and managers, and external stakeholders, such as shareholders, suppliers, customers, surrounding communities, creditors, the government” (DowellDoGood, 2012).
Stakeholders
Stakeholders can be divided in two groups: internal stakeholders and external stakeholders.
Internal stakeholders are the employees, from the upper managers to the production workers – anyone who works in the company and is a part of the business structure of the company itself. Internal stakeholders are also customers, suppliers, and shareholders. All of these groups make a difference in the growth of the company. Balancing these relationships that provide satisfaction in the long run is the focus of quality management structure. Employees need satisfaction with fair salaries ad benefits packages, customers need quality products and fair prices, suppliers need the opportunity to sell and make a profit, and, finally, shareholders want a return on their investments. Organizing meetings, communicating through E-mail, letters, and seeking consensus on
References: Definition of Shareholders & Stakeholders. (2012). Do Well Do Good. Retrieved from http://dowelldogood.net/?p=545 HRSA U.S. Department of Health and Human Services. (2012). What are the roles of key stakeholders in QI? Retrieved from http://www.hrsa.gov/healthit/toolbox/HealthITAdoptiontoolbox/QualityImprovement/whatarerolesofkeystkholders.html Susniene, D., & Vanagas, P. (2005). ISSN 1392-2785 Engineering Economics2005. No 4 (44) Commerce of Engineering Decision- Integration of Total quality management into Stakeholders management Policy and Harmonization of their Interests. Retrieved from http://internet.ktu.lt/lt/mokslas/zurnalai/inzeko/44/1392-2758-2005-4-44-71.pdf Tonning, B., & MacPherson, C. (2012). Getting in Step: Engaging and Involving Stakeholders in Waterwaste. Retrieved from http://cfpub.epa.gov/npstbx/files/stakeholderguide.pdf