Managers, leadership and decision making - 2.3 Flashcards
Why do stakeholders need to be considered when making decisions?
For example, shareholders want a steady return on investment in the form of dividends. This means expensive decisions cannot be fulfilled in a crisis as dividends will need to be paid. Customers may also want to seek safe products which can affect decisions.
How to conduct stakeholder mapping:
Mapping power and interest can help consider decisions. On a map there is minimal effort, keep informed, keep satisfied and key players.
How can stakeholders needs overlap/ contrast one another?
They have different objectives. For example, a decision to raise prices is a disadvantage to customers but an advantage to shareholders who sees the possibility of raising dividends.
What are the influences on relationships with stakeholders?
-Business objectives
-Management and leadership styles (autocratic approaches are likely to focus less on employees)
-Size and ownership (small businesses involve stakeholders more because it’s easier to)
-Market conditions (competition means businesses want to stay close to customers)
-Power of stakeholder groups
How do you manage relationships with stakeholders?
Analysing stakeholder mapping to see stakeholders degree of power and level of interest.
-Partnership is where businesses involve the stakeholder group closest in the decision
-Participation is a lesser form of partnership and usually used in stakeholders with high power but low interest.
What is the role of communication and consultation in managing stakeholder relationships?
-Consultation is finding out views of relevant stakeholders usually used in high interest but low power
-‘Push’ communications is emails, podcasts and used as one-way communication (restaurant may tell community new hours)
-‘Pull’ communications is only received if stakeholders choose to engage with business
