Essay Sample on Importance of Stakeholders

Introduction

For an organization to function effectively, stakeholders are required since they help shape and coordinate organizational activities. Organizations are, therefore, faced with various challenges whose solutions can be solved jointly when the stakeholders come together and combine their ideas as a unit. In practice, stakeholders play very crucial roles such as identifying and providing possible solutions to emerging issues which are meant to challenge the smooth operation of a business. An organization has several departments which are run by different managers and professional but all fall under a common chief executive officer. For a college, there is various academic department such as the VA which has its leadership structure but fall under the college vice chancellor who acts as the overall head of the institution ("Customers, stakeholders and gap analysis," 2006)

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In a college set up, the stakeholders include the chancellor, vice chancellor, the directors the departmental coordinators as the hierarchy goes down.one of the challenges faced by the stakeholders include the problem of staffing which leads to underperformance. It has been noted in different organization that staffing issues begin with a low wage bill that the organization may be willing to spend hence making most of the staff members to relocate to find new pastures. The exit of the existing staff creates a working vacuum which filling proves to be very hectic and challenging. It, therefore, requires an intelligent mind to manage the human resource in order to avoid the problem of understaffing or overstaffing as noted by (Eriksson, 2010)

The staffing problem in the college from the research conducted on 26th may 2016 shows that the college lost about 40% of the staff which eventually resulted to loss of about 4800 students who transferred to other institutions within a period of one year. The effect of the transferred was that the college lost about $500,000. The research, therefore, brings out the bitter side of management which the stakeholders had to address to avoid any future loses. In order to address the challenge, the stakeholders led by the chancellor decided to take a feasibility study about the same and hence undertook to pressurize all the departments to take actions. It came out that the staff who were present lacked proper training which led to the low performance and hence making the students transfer. The chancellor received the report with much exposure having in mind that he had to act very fast to counter the vice. The first step was, therefore, to train the existing staff and then add more staff.

The chancellor approved the use of additional $60, 000 to train the staff and another $70, 000 to add their staff. The chancellor, therefore, contracted a professional organization to arrange the training for his staff together with employing the additional staff required for better performance of the college. All other stakeholders including the directors and coordinators were trained on their duties and job description in aid of improving quality. After two years, the registration of the students had surpassed its original number due to improved quality. It showed that all the training and activities undertaken were not in vain.

According to (Goodpaster, 1998), in an organization, all the stakeholders are very important since each of them work independently to achieve a common goal. However, there must be their leader who bears all the blames in case there is a lapse in management. In a college set up, the most important stakeholder who bears all the blames is the chancellor who must ensure that all his staff is well managed to give out quality output desired by the students. Once he creates order and the flow of events, all other stakeholders play their roles effectively (Perqueux, 2005)

References

Customers, stakeholders and gap analysis. (2006). Management of Event Operations, 53-71. doi:10.1016/b978-0-7506-6362-5.50012-3

Eriksson, T. (2010). Advances in the economic analysis of participatory and labor-managed firms. Bingley: Emerald.

Goodpaster, K. E. (1998). Business Ethics and Stakeholder Analysis. The Corporation and Its Stakeholders. doi:10.3138/9781442673496-008

Perqueux, Y. (2005). Stakeholders in perspective. Bradford: Emerald Group Pub.