In this essay ,some theories about stakeholder,stakeholder analysis and stakeholder mapping will be disscused.Outlining the main ideas ,pointing out the strenght and limitation will be the tasks of the first parts of the assignment.Then apply the knowledges to certain higher education instituion (in this case, the University of Essex) later in the essay.More analysis and comparison can be found in this part.
First of all,the definition of stakeholder.In other words,who are they?The answer can be very easy— “any group or individual who can affect or is affected by the achievement of the organizations’ objectives” Freeman(1984,P46).They are people or groups who have interest relationships with a certain organization. Typical stakeholders could be:owners,shareholders,creditors,employees,government,trade unions,society,non-profit organizations etc.Secondly,what they want? Each of them has specific interest with the operation of the organization,for example,government concern about taxation ,shareholders want dividends,empolyees care about their payment,creditors want to know the ability of returning money.And two types of stakeholders can be identified in an organization ,the internal stakeholders(employees,shareholders,managers,owners).Generally,they directly engage in the financial matter of the organizaiton.And external stakeholders(government,customers,public,pressure groups) ,Compared with internal stakeholders,they are not related with the“money matter” so closely.And the most important thing is what they mean for the organization. They are“ those groups without whose support the organization would cease to exist” .There is no doubt stakeholders’ interests are closely related with the successful operation of the organization, for example , when customers discuss your products ,they may spread a good reputation.Empolyees’ hardworking affect the wealth of the company directly.And government is the key role when legislation issue is addresssed.Nutt(2002) studied 400 strategic decisions and found that half of the decision failed because didn’t attend to interests and information held by key holders.(Bryson,2004,p.23,cited in Boddy,p104) Since stakeholders play such imporant role in an organization ,it is an urge for identifying the views and influence of stakeholders,and the major issues that need to be managed(cited in Boddy p105),through the Stakeholder Mapping.One of such map is power/interest Matrix(Gardner et al 1986,Eden and Ackerman,1998) , shows in figure 1.This stakeholder map classified stakeholders in relation to their power to influence the result of issue or activity and the extent to which they are likely to show their interest in the issue or activity.
As indicated ,the stakeholders in group D , powerful and also have high level interest in the issue,are the key players whom the organisations need always to satisfy .On the contrary,the stakeholders in group A only require minimal effort of the organization.This grid can help managers to decide which groups are more important,and the methods they shold be dealt with. A latest stakeholder mapping model is called “Power,legitimacy and Urgency Model” created by Mitchell,Agle and Wood(1997,1999) ,it classfied stakeholder behavior into seven types by the combination of three following characteristics:Power of the stakeholder influence,Legitimacy of the relationship and actions of the stakeholder in terms of appropriateness, Urgency of the requirements of stakeholder. As we can see in figure 2 figure 2
The stakeholders in 1,2,3 only shows one characteristics,then they can be defined as Latent Stakeholders.Stakeholders who show two characteristics(4,5,6) are defined as Expectant Stakeholders, Those who show all of the three characteristics are Definitive Stakeholders(7).And all of the Latent and Expectant stakeholders from 1-6 could be further classfied as dormant,discretionary,demanding,dominant,dangerous or dependent stakeholders.It is the...
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