INTERNAL STAKEOWNERS

Internal Stakeholder Analysis



TABLE OF CONTENTS

Internal Stakeholder Analysis3

Introduction3

Influence3

Responsibility4

Representation4

Discussion4

Information Requirements of Internal Stakeowners4

A brief critical discussion, of literature relating to information reporting within and by an organisation6

A discussion of the information needs of each of the following stakeholders in a typical manufacturing business and how those needs might be met.8

Production Manager9

Marketing Manager9

Director of Finance9

Chief Executive10

Shareholders10

Conclusion11

References13

Internal Stakeholder Analysis

Introduction

Organizations do not have the practical ability to satisfy all the stakeholder groups at the same time, as it might lead to accountability paralysis. Therefore key stakeholder groups should be recognised and prioritised by entity's for efficient functioning. A stakeholder is an individual, organisation or a group who is affected by or can affect the process of decision making in any organisation. In many jurisdictions they are referred to as interest groups and can have a powerful impact on the operational issues of the organisation. It is quite essential for entity's to identify and analyse the requirements and concerns of different categories of stakeowners. This exercise becomes most important when these stakeowners are involved in policy making. Identifying the needs of information to stakeowners possesses equal importance for strategic planning purposes.

To assess the need of information to different stakeowners requires an organization to analyse the different categories of stakeholder and their needs for information. As difference in the nature, power and interest of stakeowners will require different level of information being required.

This report attempts to explain the different types of stakeowners which exist, and can affect or be affected by the organization policies. It is also apprised in the report the different theories considering the stakeowners. Mendelow's power interest matrix has also been made part of the report to explain things effortlessly. Further, the report also considers the requirement of information needs to the internal stakeowners. The report further goes on to discuss the importance and appropriateness of information required by the different level of stakeowners. It is of significant importance to management that the information requirement of its stakeonwers stays well in hand, so that they remain satisfied. The information requirement for a hypothetical manufacturing concern has also been described further below.

For prioritising the stakeowners following criteria should be followed: influence, responsibility and representation.

Influence

Impact of influence is measured by the ability of stakeowners to bring a change in organisational policies. It may also refer to the degree to which needs and concerns of stakeowners which cannot influence the organisational changes should be considered as they are an integral part of the company. These stakeowners might not be as important as other, but they share the organisational successes as well.

The major advantage organisations have when they consider minority stakeowners during planning, will curtail the adverse effects of influence by reinforcing accountability systems already twisted towards certain stakeowners with control, at the mercy of those who are less influential but are disrupted by the entity's operations

Responsibility

Every organisation has different levels of responsibility and different structural level of its stakeowners. These responsibilities may include: Regulatory responsibilities owed to the state, ...