Overview of the 'new' St. Gallen Management Model and Stakeholder management concepts Flashcards
What 3 categories can the new St. Gallen Management Model be broken down into?
- Normative management dimension
- Strategic management dimension
- Operational management dimension
List some benefits of the model
- Constructs a frame of orientation, especially in uncertain and ambiguous situations
- Helps to prioritize and reduce complexity
- Forms an order framework that shows logical causal relationships
- Facilitates as a linguistic construction the classification of complex phenomena in one’s own leadership work in the sense of a ‘convention’
List the 2 main goals / achievements of the model
Increasing recognition to the very important following aspects:
1. The relevance of ethical, normative standards, including the social and ecological responsibilities of
corporate action resulting from the significantly increased challenges of identifying and involving all relevant stakeholders
2. And the significantly increased importance of the process orientation of entrepreneurial action, not
least due to the dramatic technological expansion credited to findings in the social sciences – also as an expression of an ‘interpretative world’
What are the 6 central dimensions of general management according to the new St. Gallen Management Model?
- Environmental spheres
- Stakeholders
- Interaction topics
- Ordering moments
- Processes
- Development modes
Which 2 EXTERNAL dimensions of the 6 central dimensions influence the requirements and concrete tasks of the management of a company?
Environmental sphere and Stakeholders
Give 4 examples of the external dimension ‘Environmental sphere’
- Society
- Nature
- Technology
- Economy
Give 7 examples of the external dimension ‘Stakeholders’
- Investors
- Customers
- Employees
- Public / NGO (Non-government organizations)
- Government
- Suppliers
- Competitors
Do Stakeholders have an affect / are affected by its involvement in the company?
YES. ‘Companies are never an end in themselves, but rather provide business activities in active interaction with various stakeholders.’
What are the 3 basic Stakeholder management concepts? Are these concepts, in practice, represented in their ‘pure’ form?
- Strategic stakeholder concept
- Shareholder value approach / concept
- Normative-critical (ethical) stakeholder concept
No, stakeholder concepts are usually represented in a ‘mixed’ form, meaning the interests of the stakeholders typically don’t conform to only one concept.
Explain Strategic Stakeholder concept
Stakeholder selection is primarily based on the effectiveness of the demands and interests of
the group. It seeks to answer the question of who has decisive influence on the future security of the company. The concept also aims at ensuring willingness to cooperate and acceptance
Explain Shareholder Value approach (concept)
Based on a utilitarian approach: the company’s primary goal is to maximize profits. Relevance with regard to profit orientation as the primary prioritization criterion for addressing stakeholders. The ‘stakeholder value
approach’ is a more diluted form.
Explain Normative-critical (ethical) Stakeholder concept
All stakeholders, regardless of their influence, power and position in securing the future of the company, are recognized as relevant stakeholders. The primary criterion is not the effectiveness of groups, but the
ethically justifiable legitimacy of the claims made. Aims at the communication-oriented handling of conflicts of interest.
HOW do Stakeholders affect companies?
The environment of a company consists of stakeholders who assert their interests against the background of standards and values. On the basis of this normative orientation framework, a company
must decide on strategic positioning in the network of relationships of all stakeholders.
