Identification of Key Stakeholders
It is very important for any business to identify its key stakeholders and scope their involvement as they play a vital role right from strategizing to implementation of outcomes throughout the lifetime of a business. Different stakeholders have different interests in the organization and the management has to consider all their interests and create a synergy among them to achieve its objectives. Identifying all of a firm’s stakeholders can be a daunting task. It is important to have the optimum number of stakeholders, neither too many nor too few. Having too many stakeholders will dilute the effectiveness of the company objectives by overwhelming decision makers with too much information and authority. Following are some effective techniques to identify key stakeholders: Brainstorming - This is done by including all the people already involved and aware of the company and its objectives, and encouraging them to come out with their ideas. Stakeholders can be brainstormed based on categories such as internal or external. Determining power and influence over decisions - Identify the individuals or groups that exercise power and influence over the decisions the firm makes. Once it is determined who has a stake in the outcome of the firm’s decisions as well as…
Stakeholders
Any individual or groups/group of individuals who believe and have an interest in an organization’s ability to deliver intended results and affect or are affected by its outcomes are called stakeholders. Stakeholders play an integral part in the development and ultimate success of an organization. An organization is usually accountable to a broad range of stakeholders, including shareholders, who are an integral part of an organization’s strategy execution. This is the main reason managers must consider stakeholders’ interests, needs, and preferences. A stakeholder is anybody who can affect or is affected by an organization, strategy or project. They can be internal or external and they can be at senior or junior levels. Types of Stakeholders Stakeholders are people who have the power to impact an organization or a project in…
Values
Every organization has a set of values. Sometimes they are written down and sometimes not. Written values help anorganization define its culture and belief. Organizations that believe and pledge to a common set of values are unitedwhile dealing with issues internal or external. An organization’s values can be defined as the moral guide for its business practices. Core Values Every company, big or small, has its core values which forms the basis over which the members of a company makedecisions, plan strategies, and interact with each other and their stakeholders. Core values reflect the core behaviors orguiding principles that guide the actions of employees as they execute plans to achieve the mission and vision. Core values reflect what is important to the organization and its members. Core values are intrinsic - they come from leaders inside of the company. Core values are not necessarily dependent on the type of company or industry and…
Role Played by Mission and Vision
Organization mission and vision are critical elements of a company's organizational strategy and serves as thefoundation for the establishment of company objectives. Mission and vision statements play critical roles, such as: They provide unanimity of purpose to organizations and spell out the context in which the organizationoperates. They communicate the purpose of the organization to stakeholders. They specify the direction in which the organization must move to realize the goals in the vision andmission statements. They provide the employees with a sense of belonging and identity.
Management – Mission, Vision, & Values
Every organization to be successful needs to be guided by a clear strategy. Vision, mission, and values form the ground for building the strategic foundation of the organization. They direct and guide the purpose, principles and values that govern the activities of the organization and communicate this purpose of the organization internally and externally. Successful organizations ensure that their goals and objectives are always in synergy with their vision, mission and values and consider this as the basis for all strategic planning and decision making. By developing clear and meaningful mission and vision statements, organizations can powerfully communicate their intentions and inspire people within and outside the organization to ensure that they understand the objectives of the organization, and align their expectations and goals toward a common sense of purpose. Importance of Mission, Vision, and Values Vision and mission statements play an important role in strategy development by: Providing means to create and weigh various strategic plans and alternatives. Laying down the fundamentals of an organization’s identity and defining its purpose for existence. Providing an understanding of its business directions.…
Systems of Management
Professor Rensis Likert of Michigan University studied the patterns and styles of managers and leaders for three decades. He suggests four styles of management, which are the following: Exploitative-authoritative management: - Managers are highly autocratic, showing little trust in subordinates. - The prime drivers are motivating people through fear and punishment. - Managers engage in downward communication and limit decision making to the top. Benevolent-authoritative management: - The manager has condescending confidence and trust in subordinates (master-servant relationship). - Management uses rewards and upward communication is censored or restricted.…
Leadership Continuum
Propounded by Robert Tannenbaum and Warren H. Schmidt, according to the Leadership Continuum, leadership style depends on three forces: the manager, employees and the situation. Thus, instead of suggesting a choice between the two styles of leadership, democratic or autocratic, this approach offers a range of styles depicting the adaptation of different leadership styles to different contingencies (situations), ranging from one that is highly subordinate-centered to one that is highly boss-centered. Features of Leadership Continuum The characteristics of individual subordinates must be considered before managers…
Is Management an Art or a Science?
Like any other discipline such as law, medicine or engineering, managing is an art – at least that is what most people assume. Management concepts need to be artistically approached and practiced for its success. It is understood that managing is doing things artistically in the light of the realities of a situation. If we take a closer look at it, Management, when practiced, is definitely an art but its underlying applications, methods and principles are a science. It is also opined that management is an art struggling to become a science. Management as an Art The personal ingenious and imaginative power of the manager lends management the approach of an art. This creative power of the manager enriches his performance skill. In…
Leadership Styles
Leadership can be stated as the ability to influence others. We may also define leadership as the process of directing and influencing people so that they will strive willingly and enthusiastically towards the achievement of group objectives. Ideally, people should be encouraged to develop not only willingness to work but also willingness to work with confidence and zeal. A leader acts to help a group achieve objectives through the exploitation of its maximum capabilities. In the course of his survey of leadership theories and research, Management theorist, Ralph Stogdill, came across innumerable definitions of leadership. Qualities/Ingredients of Leadership Every group of people that perform satisfactorily has somebody among them who is more skilled than any of them in the art of leadership. Skill is a compound of at least four major…
The Many Aspects of Leadership
The character of top executives and their philosophy have an important influence…
