Reference no: EM131186959

PLEASE RESPOND AND ANSWER EACH OF THE FOLLOWING QUESTIONS OR POST STATEMENTS. MUST BE 150 WORDS (PLEASE), WRITE IN 3RD PERSON.ONLY ONE REFERENCE CAN BE USED FOR EACH ANSWER.

DQ 1

Organizations have a tremendous task balancing interests of all stakeholders. Greenley, &Foxall, (1997) state that with all the diverse interests of all stakeholders it could create potential problems however failure to address the various interests of the stakeholders could be detrimental in achieving organizational goals. There are many ways stakeholders are able to assess organizational effectiveness depending on the type of stakeholder group. For example, shareholders might be able to assess organizational effectiveness through reports of sales, collections and profits. Other stakeholders could assess organizational effectiveness by evaluating the retention of employees at targeted levels or the introduction of new products to consumers successfully in terms of predetermined standards. There is not one way or complete way to assess an organization's strategy is working, with all the different stakeholders' interests multiple approaches are needed. There are however many instances in which stakeholders wield too much influence in an organization. There are times when employees might be able to shut down production and cause an organization to stop producing or there might be times when a vendor that provides a specific raw material could wield power to drive up costs. Organizations must be able to foresee these types of issues that allow a stakeholder group to wield the power to bring down an organization.

Greenley, G. E., &Foxall, G. R. (1997). Multiple stakeholder orientation in UK companies and the implications for company performance. Journal Of Management Studies, 34(2), 259-284.

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DQ 2

Stakeholders, by the nature of their role, conduct ongoing assessments of the effectiveness of organizations. What are some of the ways stakeholders assess organizational effectiveness? Which of these is most valid? Why? Is there ever a time when stakeholders wield too much influence on the organization? Why or why not?

The stakeholders assess organizations effectiveness when their goals, needs and interest are being respected and considered. Initially, when the relationship is established there are specific goals and objectives that stakeholders feel are important to them in being affiliated with an organization. Beardshaw&Palfreman (1990) states stakeholders want to have their demands and interest valued and the way an organization meets those goals will greatly determine the success or failure of the organization. It is important to establish a positive, mutually respected relationship that is ongoing.

Stakeholders are a diverse group and their interests are varied. In turn they expect a return on their investment that is they are vested in the organization and it becomes the organizations responsibility on how to address those needs. Stakeholders align their interest, goals and values with that of an organization and when the organization works towards meeting these needs the effectiveness is validated. Necmi and Mezuno (2012) state that the basic issue in determining return on investment becomes how to capture different stakeholder perceptions on a common set of performance measures and distill this information into a single and workable organizational plan.

When the organization has a comprehensive plan in place that balances the needs of stakeholders and is consistently assessing those needs in relation to the organization this establishes a more cohesive relationship. The most valid way to assess stakeholder's effectiveness is when the organization consistently communicates with them and establishes an ongoing relationship with them with mutual respect.

Research has indicated that the average time when stakeholders wield too much of an influence on organizations is when they are "consumers." Normally, their key strategic plans focus on the needs of the consumer. Campbell and Young (1991). Employees as stakeholders can be influential as well depending on the organization.

References

Beardshaw, J., &Palfreman, D. (1990) The organization and its environment(4thed.)England Pitman Publishing

Grand Canyon University, 2012 Lecture Notes ORG-807

Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance

Greenley, G. E., &Foxall, G. R. (1997). Multiple stakeholder orientation in UK companies and the implications for company performance. Journal of Management Studies, 34(2), 259-84.

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Necmi, A. &Mizumo,M. (2012) Measuring bank peer performance from a multiple shareholder perspective.

DQ 3

All organizations have a multiplicity of stakeholders and all play a balancing act of addressing the needs of these stakeholders which is difficult under the best of circumstances given the diverse nature of not only the stakeholder groups but their interests as well.

Balancing stakeholder interest as and addressing their needs is a critical variable for organizational success and Greenly and Foxall (1997) make the point that failure to address the interests of the multitude of stakeholder groups may be detrimental to organizational performance.

On the other hand, stakeholders are continuously assessing organizational performance and the question becomes what tools do they use in such assessments. Given the diverse nature of such groups the tools used are not all similar as there is not one universal tool for such assessments as different factors matter to different groups or constituencies. Amirkharyan, Kim and Lam bright (2014) For some stakeholders both internal and external, performance may be a function of the profit margins of the organization, the achievement of its objectiveness or its effectiveness or the cost of the achievement of its objectives (efficiency) For others it may boil down to staff turnover or how employees are being treated.

Given the diverse nature of stakeholder groups each pursuing their own self interests, they would poses a multitude of approaches to assess performance and for many such groups' performance is normally viewed through their own lens.

In a study piloted by Willems, Jegers and Faulk (2016) he concluded that stakeholders use a tripod of mechanism to assess performance and such assessments are normally done based n their own perceptions which has been shaped by their own experiences of that particular organization and compared to a similar organization.

Willems et al (2016) concluded that stakeholders evaluate an organization based on the degree to which they can trust the organization and trust has been defined the degree to which the organization through its leaders is acting sincerely. In the second instance assessment is based on the reputation of the organization which is the perceived quality of the signals received by the stake holder for example satisfaction with organizational communication. The third approach is the extent to which perceived interests are pursued by the organization.

Gomes and Gomes (2011) in a study derived a more conventional approach of how stakeholders assess performance and concluded that performance is based on stakeholder's perception of efficiency, effectiveness and equity. These tools were developed statistically based on an evaluation of the diverse complaints and the nature of such complaints by stakeholders.

I am not sure whether there is a satisfactory response regarding the validity of the various approaches. I think the answer is based on whether the method provides the stakeholder with satisfactory results which is reliable and can used to initiate action.

Lawrence and Weber (2014) has demonstrated that it is in the best interest of the organization to always address stakeholders concerns as this can influence further organizational success . however, occasions may arise where the influence of one stakeholder may actually prevent an organization from paying attention to other stakeholders. Under such circumstances, an organization may have to review, the hold of the stakeholder on the organization.

References

Lawrence A T and Weber J (2014) Stakeholders Business and society, Stakeholders ethics, Public policy 14(1d) New York, New York, MC Graw Hill/ IRWIN

Willems J, Jagers M and Faulk L (2016) Organizational effectiveness reputation in the nonprofit sector. Public Performance and Management Review.39 (2)454-475 doi.10.1080/153095.762015.1108802

Amirkharyan A A, Kim N J and Lambright K T. (2014) The performance Puzzle. Understanding the factors influencing alternative dimensions and views of performance. Administrative Research and Theory.24 (1) 1-34

Greenly G E and Foxall G R (1997) Multiple stakeholder orientation, in Uk companies and the implications for company performance. Journal of Management Studies. 34(2) 259-84.

Gomes RC and Miranda Gomes L O (2011) Performance measurements and stakeholders perceptions. Assessing Performance through the dimensions of stakeholder expectations... BAR Brazilian Administrative Review 8(2) 133-149.