STAKEHOLDER MANAGEMENT

Importance of Stakeholder Management in Managing Projects

[Institution Name]

Importance of Stakeholder Management in Managing Projects

Introduction

The paper covers the topic of importance of stakeholder management in managing projects. The discussion includes the concept of stakeholder management, its importance in project management, challenges and recommendations for dealing with those challenges in order to successfully manage projects.

In recent years, the concept of stakeholders is undoubtedly one of the most important contributions to the field of business ethics. This concept expresses a moral imperative under which managers must consider the interests of all stakeholders. In order to understand and drawings justified conclusions for the purpose and objective of understanding the impact of stakeholders, two major heads of considerations needs to be undertaken. These covers internal and external stakeholders; internal stakeholders imply that the actions of individuals - be it be employees at officer level or at the level of support staff -shall directly or indirectly impact the accounts of performance and the functioning of the overall organization. When it comes to stakeholders, not only does the financial contribution is considered a first priority, but to make more active contributions towards the functioning and welfare of the entire organization accordingly.

Stakeholder Management

In most organizations, the world over, groupings of people who are externally associated with the organization are the ones who receive most of attention from the marketing and management of the company. This is done rightly so, because the customers form the external relations with the company which bring in revenue. External relations are very important for a company to maintain because clientele are built by means of extraneous relations and customers believe that the products they are buying are worth spending money on (Magretta, 2002, pp. 86).

Importance in Managing a Project

Without customers, it is not possible for a company to survive in the competitive market. As mentioned here, most companies emphasize on catering to their customers, but oftentimes, an equally important group of people external to customers are stakeholder of a company. Stakeholder has the power to make or break a company (Giesen, Berman and Blitz, 2007, pp. 27). If a group of stakeholder have considerable power is associated with a company, and they are not being offered satisfactory deliverables in the right way, then a company must be ready to lose their clientele as the product would never reach in their hands.

The sooner a company identifies its stakeholder, the better it is for a company. This is because the company's service managers would be more prepared to deal with the interests of the stakeholder and come up to their mark. To sum up, stakeholder are people who are impressed by the services rendered by the managers of a company. Stakeholder can have a direct impact, or power over the enterprise or they may have an interest in the successful or failed conclusion.

Challenges in Stakeholder Management

Stakeholder Management is the process of communicating and working with stakeholders to meet their expectations and consider the issues as they occur (Brink and Holmén, 2009, pp. 109). Moreover, there are 3 major areas of challenges for effective stakeholder management:

1. Unclear Stakeholders

2. Unidentified Stakeholders

3. Unreasonable Stakeholders

The unclear stakeholders are the ones who do not clearly present their interest and views in the project, ...