Question

Give a presentation (or 3-4 paragraphs) with the following purpose: raise management’s awareness of stakeholder relationships and their importance in organizational communications. The presentation has both explanatory and persuasive aims. The presentation should include the following:

- gets the attention of the audience.

- brief explanation of the technique of stakeholder analysis

- position is clearly stated and reasons and evidence support it

- Focus is on audience position and interests throughout the communication.

Answer 1

STAKEHOLDER RELATIONSHIPS AND THEIR IMPORTANCE IN ORGANIZATIONAL COMMUNICATIONS

Slide 1

The stakeholders of a corporation are the people who are directly or indirectly connected with it. They have varied interests in the corporation. They bear the impact of its decisions and can too impact it in strongest to weakest manner. They need to be classified according to their strength of impact on organization and this is conducted through stakeholders’ analysis.

Slide 2

The stakeholders should be supplied with pertinent information and good relationships should be established with them. This is possible when company institute an effective organizational communication. In the ambit are company’s’ employees, customers, vendors, shareholders, other financiers, associates / partners, community, government agencies and regulators.

Slide 3

Techniques of stakeholder analysis

Power vs. Interest grid: This is the most popular method.

They are highly influential and have considerable interest in company. They should be very well managed and suitably kept in loop. Their buy-in and consultation is of high priority. They may be approving or veto authority.

Stakeholders who are very powerful but don’t have significant interest in company activities can be informed regularly in broad terms. Giving daily update is not necessary. Financiers, investors fall in this category.

The stakeholders who are less influential but have significant interest in company activities should be given information in detail. They can be vendors in business. They can be the outsource partners / ancillary companies.

The stakeholders who are less in their power and don’t have any big interest should be just monitored. General information should be provided through standard methods. Customers fall in this category.

Slide 4

Advantages of organizational communications for developing better stakeholder relationships:

The stakeholder should know what company is achieving and their benefit in it. By this they will then be helpful for the same, banks / investors can provide loans or purchase securities and customers can be loyal and buy products. Unions will be supportive.

Any change in the company that would affect community will require their support and approval form government authorities. Thus their buy in crucial and it is possible through effective communication with them depending on the analysis.

Helps in development of good relations with media that affects relations with other stakeholders: The company could work on its press releases, public address etc. The company can have meet ups with interest and environmental groups for enhancing its image.

Generating feedback system helps the company understand attitudes, interest and priorities of stakeholders. This helps them solving their matters and get better connect with them.