3rd Chapter - Managment by Robbins & Coulter - Part 3

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ENVIRONMENT: THE CONSTRAINTS

HOW THE ENVIRONMENT AFFECTS MANAGERS

• Assessing environmental uncertainty ▫ Degree of unpredictable change

dynamic - frequent change stable - minimal change

▫ Environmental complexity the number of components in the

environment amount of information available or

required about those components▫ Managers attempt to minimize uncertainty

ENVIRONMENTAL UNCERTAINTY

STAKEHOLDER RELATIONSHIP MANAGEMENT

•Who are stakeholders?▫ Any constituencies that are affected by the

organization’s decisions and actions

include internaland external groupscan influence the organization

ORGANIZATIONAL STAKEHOLDERS

STAKEHOLDER RELATIONSHIP MANAGEMENT

•Why is stakeholder relationship management important?▫ The more secure the

relationship, the more influence managers will have over organizational outcomes

▫ It’s the “right” thing to do

STAKEHOLDER RELATIONSHIP MANAGEMENT

• How can these relationships be managed?▫ Four steps

identify the stakeholders determine real and potential concerns

of each stakeholder group determine whether stakeholder is

critical determine specific approach to manage

the relationship▫ Approach to a stakeholder group based

on the importance of the group and the degree of environmental uncertainty

MANAGING STAKEHOLDER RELATIONSHIPS

STAKEHOLDER RELATIONSHIP MANAGEMENT

•Boundary spanning▫ Important stakeholder and environmental

uncertainty▫ Interacting to gather and disseminate

information•Stakeholder partnerships

▫ Stakeholder is critical and environmental uncertainty is high

▫ Pursue common goal