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Managing teams and ensuring better collaboration among the different departments of the organisation is not so easy. It is important for the businesses to ensure that they are having better management in the firm which allows them in managing all the different stakeholders and ensuring that all the stakeholders are getting benefitted. Businesses focuses on making use of different approaches and implementing diverse theories for managing the stakeholders and ensuring better collaboration in the teams with the help of relationship development. It can be said that it is important for the firms to understand that every single stakeholders is very important for them and needs to be managed in an appropriate manner (Albats et. al. 2020). All the important stakeholders such as employees, suppliers, customers, shareholders, investors, government authorities, etc. are equally important for managing a business in an appropriate manner.
In this report the researcher will discuss that how the businesses are making use of different approach for managing the stakeholders in the business context. Along with this benefits of cross functional working will be discussed. While working in the businesses there are multiple factors which create conflicts among the stakeholders so the report will also focus on explaining the impact of collaboration working over conflict resolution and how the disputes are being resolved among the internal and external stakeholders. Moreover different important theories related to stakeholder management and relationship development will be explored. With the help of real life examples of the businesses the report will focus on exploring that how the firms are making use of different theories in the practical world for managing the stakeholders.
Approaches adopted to manage and improve performance through better engagement of internal and external stakeholders
- When the businesses are operating in the business environment then it is important for them to ensure that they are taking care of all the important stakeholders which are having impact on the firm. There are both the primary and secondary stakeholders which are having direct or indirect impact on the organisation. Due to this reason it is important for the firms to ensure that they are managing their stakeholder& s in such a way that all of them are satisfied. Either the business is operating at the global level or at a small level it is important for them to ensure that they are managing their stakeholders in an appropriate manner. Both the internal stakeholders such as employees, owners, managers, board members and shareholders are having major role to play in business decisions. Apart from this the external such as suppliers, government, investors and the customers are also very important.
- For managing the stakeholders it is important for the firms to performance stakeholder& s analysis which can help the businesses in identifying the stakeholders and how they are affecting the businesses success. When the company is having better knowledge about its stakeholders then it will help them in managing the stakeholders appropriate. Along with this it helps them in developing better strategies and approaches for managing the stakeholders in an appropriate manner. Let us take an example of an real life company Apple Inc. Apple is one of the leading firm of the firm. For apply managing its stakeholders is very important as the great success of the company is because of better management of the stakeholders. David, (2020) has stated a report for analysing the stakeholders of Apple Inc. In this report the researcher had stated about the internal and external stakeholders of Apple in detail for exploring that how the different stakeholders are important for Apple. In this research the researcher has stated that the top executives of the company, shareholders, employees and the executives. All these are having major role to play in all the internal affairs of the company and big role in leading the firm towards success and development. Employees are playing major role in high level of innovation of the company and leading the firm towards success. When it comes to external stakeholders then the government, community at large, customers, competitors and suppliers are the important external stakeholders of Apple.
- The government and the community to which the company is offering the products are the important stakeholders of the company. Due to this reason Apple always focuses on following all the rules and regulations and managing the business as per the government guidelines. The great competitors of Apple such as Samsung, Oppo, Xiaomi, etc are helping the company in moving towards better technological advancement and developing better products. Suppliers are also important stakeholders as they are helping the company in manufacturing the products and delivering them on time. So the report has stated that Apple focuses on communicating effectively with all the important stakeholders of the company which helps them in better management of the stakeholders.
- Apple has implemented the stakeholder& s model in their organization for managing their stakeholders. According to this model the businesses needs to manage their stakeholders in such a way that it should help them in achieving the business goals. This model is helping Apple in understanding the needs of their stakeholders and ensuring that their needs are being satisfied in an appropriate manner. Along with this it allows Apple in valuing all the stakeholders in an effective way and managing them in a successful manner. For an instance for managing the customers the company is offering high quality products to them. For working effectively towards a sustainable growth the company also ensures better relationships with all the different stakeholders which includes it's employees, suppliers, government authorities, customers and others.
- Maintaining better relationships with the stakeholders is also very important for the company. When the businesses are having better relations with all the stakeholders then it allows them in managing the business performance in an appropriate manner. For this large firms like Apple focuses on having regular communication and involving the important stakeholders in different decision making processes (Pedrini and Ferri, 2018). This allows them in managing the stakeholders in an appropriate manner and in such a way that all the stakeholders should work effectively with each other for leading the firm towards success. Here the businesses need to understand that better collaboration among the different stakeholders is also very important. When the different stakeholders are having better relationships among them then it helps them a lot in managing the firm in an appropriate manner.
Theories for stakeholder management and relationship development
There are different important theories and approaches which are being used by the businesses for managing the stakeholders and development better relationships among them. Some of the important theories which can be used by the businesses for better management of the internal and external stakeholders are being suggested below such as:
Stakeholders Theory is one of the effective theories which are required to be implemented by the complex businesses for managing the stakeholders in an appropriate manner. This theory helps the businesses in understanding the relationship among the different stakeholders and their impact on the businesses (Freeman, 2010). As per this theory it is important for the businesses to ensure that they are working for the best interest of all the stakeholders. The managers and the top executives of the company should take care of interest of all the stakeholders into account for ensuring that the needs of all the stakeholders should be satisfied in an appropriate manner. This will help them in managing the stakeholders in an effective manner.
This is also an important theory which is being used by the businesses while managing the stakeholders and developing better relationships among them. According to the social exchange theory for having better relationships among two people it is important that they should have an cost benefit analysis among them which means that the relationship should offer better benefits to both the people. When the company understand that what are the benefits they are receiving from a particular stakeholders then it allow them in working for the best interest of the stakeholders so that the stakeholders should also get benefitted. For an instance the customers are the important stakeholders of businesses as they are helping the company in generating higher revenue (Xia et. al. 2018). Due to this reason it is not important for the businesses to develop effective products which can satisfy the needs of the customer and can offer better utility of the products to them. This will develop an effective relationship among them and will help the businesses in managing stakeholders in an appropriate manner.