Management

The Effective Use of Power

This definition of organizational stakeholders includes those internal and external to the organization. The definition highlights that organizational stakeholders will have similar overall goals and objectives but there will be some key differences not only in the importance placed on each but also how the organization achieves them. An organization’s stakeholders can include an almost endless list of employees, suppliers, customers, shareholders, etc that can be broken down and sorted into various groups with independent goals and objectives designed to meet their own view of effective organizational behavior. An example of stakeholder conflict can be seen at The Countryside Agency, a government body with the aim of improving the quality of the Countryside for those who use it and the quality of life for people in rural communities. Simply by dissecting the aim of the body, it is possible to see that there are clearly conflicting interests at an organizational level because it is trying to satisfy two major external groups at the outset by balancing the needs of those who live in The Countryside with those who visit it. Internal stakeholders such as the finance department view their role as ensuring that any public money that has been spent was justifiable and recorded and stored accurately. This is often to the annoyance of the Policy work areas who feel stronger about improving the countryside than the bureaucratic process of justifying and recording public spending often seeing the financial procedures as a time-consuming hindrance. This conflict means that each stakeholder will have a different view of whether the organization is successful or not and will have different solutions to what they individually see as being the key obstacles to success. When looking at how the management of people can contribute to effective organizational behavior, development and good health through leadership it is important to establish thedifferences between management and leadership. Some theorists hold the opinion that leadership is one area of the management role and in order to be a successful manager they must possess some leadership skills by default.

Back To Top