Stakeholders
Internal and external stakeholders, their expectations and conflicts of interest, Mendelow's power-interest matrix and the attitude to take in each box.
- 20 cards
- 5 topics
- Free
The outline, topic by topic
Each topic is weighted the way the exam weighs it.
- Concepts
- Questions
- Sort and link
- Scenarios
- Understand
A few cards from the deck
Stakeholder: what is it?
Show the answer
Any player that the organisation's activity affects or who can bear on it, not only its owners.
Employees, customers, banks, neighbours, the State: all have expectations and a way to act. Ignoring them exposes the organisation to blockages.
A company opens a warehouse near a village. Which of these stakeholders is external?
- The neighbours, who will bear the lorry traffic
- The warehouse employees, who will work there
- The shareholders, who fund the opening
- The staff representatives, who sit on the committee
Show the answer
The neighbours, who will bear the lorry traffic
An internal stakeholder belongs to the organisation (managers, employees, shareholders, staff representatives). Neighbours, the town, the State or suppliers act from outside.
A stakeholder with high power and high interest is …; with low power and high interest, it is ….
Show the answer
A stakeholder with high power and high interest is managed closely; with low power and high interest, it is kept informed.
Power decides the negotiation effort, interest decides the communication. A concerned player without leverage mostly needs to be informed.
Stakeholder theory: what is it?
Show the answer
A thesis, associated with Freeman, that a manager must answer the expectations of all the players concerned, not only those of shareholders.
It stands against the view that the company answers only to those who provide the capital. It often serves as a foundation for corporate social responsibility.
A town hall's payroll-software project fails: the payroll clerks, who use it every day, were never consulted and refuse to use it. Which analysis error explains the failure?
- Placing them in high power and low interest, so to be kept satisfied
- Mixing up internal stakeholders and external stakeholders
- Giving too much weight to the mayor, who launched the project
- Judging them without power or interest, so only to be monitored
Show the answer
Judging them without power or interest, so only to be monitored
Weak formal power does not rule out de facto power: users who refuse a tool make it useless. High interest calls at least for information, and better for involvement. Managing the mayor closely was right: the mistake was ignoring the users.