PMGT 502: Stakeholder Management Paper

The stakeholder theory made popular by Ed Freeman (1984) does seem to represent a major advance over the classical view (Freeman, 1984). It might seem inappropriate to refer to the stakeholder position as neoclassical. Bowie (1991: 56-66) has defined stakeholders as a group whose existence was necessary for the survival of the firm--stockholders, employees, customers, suppliers, the local community, and managers themselves.

This perspective focuses on seeking and determining the target segments based on the expectation of stakeholders, which will be the guideline to improve the performance of the company. Additionally, the company should consider about the different interests of the different stakeholder groups to identify the appropriate objectives (Kaplan &Norton 2006). The main objectives for this perspectives are:

Every stakeholder have their own process and roles, it can affects or can be affects by organization’s action. All stakeholders have own satisfied and unsatisfied (appendix 2).

• Stakeholder Analysis- builds on each stakeholder’s information to determine their special interest in the project

The challenge is to take the viewpoints and actions of these specific groups into account. The objectives and interests of the people, social groups or institutions participating in or affected by the project should always be included in planning, through a stakeholder analysis. This step is generally done during the planning workshop, after a thorough analysis of the situation in the field. The objectives of the stakeholder analysis are: to list and characterise the major stakeholders to understand their present and potential roles and responsibilities to understand their interests, fears, problems and potentials to draw conclusions for the planning of the project.

It would be unrealistic to expect anyone to understand each of the complexities which make up the depth of each stakeholder. However, it is necessary to understand each person to a degree. An analysis of each stakeholder should be completed to provide for a positive outcome of the project. Each stakeholder should be categorized as to their contribution or influence on the project. This allows the Project manager to consider the value of each stakeholder. Then leverage the support of each stakeholder as to work towards the goals of the project. Many times stakeholder

Stakeholders are people or groups that are affected by your company 's operations. Shareholders or owners are a commonly recognized stakeholder group. However, you also need to consider how your customers, community, employees and business partners impact your business. Stakeholders can affect or be affected by the organization 's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Stakeholder Management is where people will use all of the information they have collected and develop a strategy to manage stakeholders. No matter how much they plan or how invested they are in a project, poor stakeholder management can easily cause a project to fail. It is a key component of executing and completing a successful project. A large portion of stakeholder management focuses on communication.

The fundamental issue in stakeholder management is to specify stakeholders or answer this question that who stakeholders are. There is not much agreement on stakeholder definition among researchers and project management experts. Mitchel states that various concepts in relation to stakeholder definition is due to their views to organisation or firm. So there are narrow and broad definitions. For instance, Freeman’s definition is broad one. He defines stakeholder as any group or individual who can affect or be affected by the achievement of organisation or firm’s objectives. In contrast, Clarkson has narrower view as he considers risk for stakeholder concept. He believes this risk is due to form of investment in that firm. In fact, basis of narrow view can be due to limitation in resources, budget, time or form of organisation’s asset. PMBOK’s stakeholder definition is similar to Freeman’s definition. The only difference is that organisation is also can be a stakeholder and influence or impact can be due to decision or outcome of a project.

Management environment has been described over the years by the stakeholder theory. The stakeholder's salience theory was developed by Mitchell, Angle and wood (1997) and further developed by Gifford (2010) (Majoch et., al, 2014). The theory brings together three essential concepts that are used by managers to categorize different stakeholders characteristically. These ideas include power, legitimacy, and urgency which refer to the various stakeholder's attributes. Stakeholder salience theory also rises to systematize what makes the claims of one stakeholder's group take precedence before the other groups. Power is the ability of stakeholders to impose their influence on the outcome of the different projects or deliverables of the organization mostly through coercive means. Legitimate stakeholders are those seen mainly as those who have appropriate actions and operates

It is important to mention at this stage of this paper that Freeman’s stakeholder theory mentioned above proposed extended focus of managers beyond traditional interest group of shareholders, in order to understand expectations, needs and values of groups which where perceived external to the organization. In this sense, stakeholders of a company can be defined as individuals, their groups or agencies that, either voluntarily or involuntarily, takes part in wealth-creating capacity and activities, and who will be or are benefited from company or can also be its risk bearers. Stakeholder theory has both normative (moral/ ethical) and instrumental (profit/ wealth enhancing) implications. These strategic approaches can be regarded as a responsibility to meet claims of all stakeholders and/ or as a means to maximize organizational wealth. (Donaldson and Preston, 1995).

This paper will discuss why a good corporate governance framework must incorporate stakeholder accountability. For the purpose of this paper, the term stakeholder governance will be used to incorporate all aspects of stakeholder accountability and engagement, that is; dialogue, decision making, transparent operations and implementation of solutions to common problems or goals.

To start with, the study presents a brief concept of project, project management, project environment and project life cycle. Further, stakeholder concept and stakeholder management method in a project are presented. This section of the dissertations will seek to appraise the salient points of literature on how key stakeholders are identified and prioritised, exploring approaches in managing project stakeholders and the incentive of managing key stakeholders. Finally, this section will search for what is holding back effective management of stakeholders.

Briefing is the preliminary and most critical phase in construction projects which contributes to the success or failure of the project. One of the common characteristics of mega construction projects is that they include multiple stakeholders: Organizations, Clients, Governments sometimes, Consultants and the Recipients. Therefore, variable conflicts might occur between these stakeholders as a result of variations in interests, requirements, perspectives, expectations or methods of communication. Many studies have addressed this partials with the aim to improve and develop the briefing process, where lots of conceptual frameworks were initiated to manage and control multiple stakeholders but it still a major problem in the briefing process. Among the identified areas this is to identify and manage multiple stakeholders, assessing and accommodating their conflicting needs, expectations and requirements, in order to achieve value for money. This study aims to highlight the weakness in traditional stakeholder analysis techniques and evaluate the impact of multiple stakeholders ' conflicts in mega construction projects through a literature review and case studies to identify and manage them in the briefing process, estimate their requirements, needs and conflicting expectations and their impact on the project influence. The paper concludes with a number of recommendations for stakeholders ' management.

Briefing is the preliminary and most critical phase in construction projects which contributes to the success or failure of the project. One of the common characteristics of mega construction projects is that they include multiple stakeholders: Organizations, Clients, Governments sometimes, Consultants and the Recipients. Therefore, variable conflicts might occur between these stakeholders as a result of variations in interests, requirements, perspectives, expectations or methods of communication. Many studies have addressed this partials with the aim to improve and develop the briefing process, where lots of conceptual frameworks were initiated to manage and control multiple stakeholders but it still a major problem in the briefing process. Among the identified areas this is to identify and manage multiple stakeholders, assessing and accommodating their conflicting needs, expectations and requirements, in order to achieve value for money. This study aims to highlight the weakness in traditional stakeholder analysis techniques and evaluate the impact of multiple stakeholders ' conflicts in mega construction projects through a literature review and case studies to identify and manage them in the briefing process, estimate their requirements, needs and conflicting expectations and their impact on the project influence. The paper concludes with a number of recommendations for stakeholders ' management.

There are many stakeholders in this issue. Some are directly affected by the issues that are regarded as the Primary Stakeholders and some are not directly related which are regarded as the Secondary Stakeholders. The primary Stakeholders are constituted the desired beneficiaries of the project, for instance, the imposing agencies. The secondary