The Role of Stakeholders

Role of Stakeholder MGT/ 420 November 1, 2012 Roger Ellis Role of Stakeholder Quality management is an approach to managing a business that focuses not only on customers and profits, but also takes into consideration anyone who can influence the business to be more profitable. These might include employees, suppliers, investors, market analysts, government regulators and trade associations. These entities need to have a positive working relationship with one another and collaborate with each other to promote the business.Lack of collaboration between them can cause issues with the success of the business itself (Susienes & Vanegas, 2005). Quality management considers the actions of stakeholders to be very important in the overall success of the operation. R. Edward Freeman defines a stakeholder as â€Å"anyone that can be affected by a company’s actions, objectives, and policies. This includes both internal stakeholders, such as employees and managers, and external stakeholde rs, such as shareholders, suppliers, customers, surrounding communities, creditors, the government† (DowellDoGood, 2012).Stakeholders Stakeholders can be divided in two groups: internal stakeholders and external stakeholders. Internal stakeholders are the employees, from the upper managers to the production workers – anyone who works in the company and is a part of the business structure of the company itself. Internal stakeholders are also customers, suppliers, and shareholders. All of these groups make a difference in the growth of the company. Balancing these relationships that provide satisfaction in the long run is the focus of quality management structure.Employees need satisfaction with fair salaries ad benefits packages, customers need quality products and fair prices, suppliers need the opportunity to sell and make a profit, and, finally, shareholders want a return on their investments. Organizing meetings, communicating through E-mail, letters, and seeking con sensus on decisions made to facilitate each group’s needs, enable the business to have a common goal and smooth all internal and external conflicts. External stakeholders are the community, the government, business associations and political groups.All of these groups can have a strong influence on a business, regulating policies, laws and influencing customers to buy a product or service. Also, they can influence shareholders to be investors in the business, making a difference in the value of the company itself (Susienes & Vanegas, 2005). Two Examples The Department of Health and Human Services provides regulations to govern care in hospitals, medical centers, etc. The stakeholders in this organization are: patients, providers, payers, and public health professionals. The patients’ interest is to be provided with excellent care.FACCT (Foundation for Accountability) is an entity that addresses health care needs for the patient, and it is founded and lead by patients. IOM (Institute of Medicine) is a corporation that regulates the care delivered by providers. Medicare and Medicaid have programs that help patients to receive care and providers to be paid in order to continue operations. In addition, the National Committee of Quality Assurance and National Quality Forum assist in developing programs to improve health care, along with public health professionals who provide support by suggesting policies to improve care (HRSA, 2012).Another example of stakeholders being very proactive and an integrant part of an organization is the Watershed issue in the United States. Natural resource organizations for all the states involve stakeholders as their staff and to foster support in the community. Stakeholders include local organizations tired of being inactive when their water reserves in the city are being contaminated or ruined by discharge from farms or wastewater treatment plants. Other stakeholders are national environmental groups that support the organization by traveling around the States and motivating people to support their cause.Another organization of stakeholders is the business community – helping to save the environment by changing business operations to be environmentally safe and preserve water waste. Stakeholders also include government agencies which work as partners to preserve the watershed (Tonning & MacPherson, 2010). Conclusion Quality Management includes stakeholders in its structure as a vital element in the success of the business or organization that they are a part of.Stakeholders are any person or group who can aid or are a part of the organization with the purpose of bringing greater success to the business. Quality Management utilizes both external and internal resources as stakeholders to ensure that their organization has the necessary support and aid, which would cost more money and time if these resources were purchased outright. Instead, due to the common interest in making the organiza tion or business successful, this support is giving freely and with enthusiasm.This kind of help is priceless, considering the ramifications of knowledge and networking that it can bring to an organization. Involving stakeholders is brilliant and very useful.References Definition of Shareholders & Stakeholders. (2012). Do Well Do Good. Retrieved from http://dowelldogood. net/? p=545 HRSA U. S. Department of Health and Human Services. (2012). What are the roles of key stakeholders in QI? Retrieved from http://www. hrsa. gov/healthit/toolbox/HealthITAdoptiontoolbox/QualityImprovement/whatarerolesofkeystkholders. tml Susniene, D. , & Vanagas, P. (2005). ISSN 1392-2785 Engineering Economics2005. No 4 (44) Commerce of Engineering Decision- Integration of Total quality management into Stakeholders management Policy and Harmonization of their Interests. Retrieved from http://internet. ktu. lt/lt/mokslas/zurnalai/inzeko/44/1392-2758-2005-4-44-71. pdf Tonning, B. , & MacPherson, C. (2012). G etting in Step: Engaging and Involving Stakeholders in Waterwaste. Retrieved from http://cfpub. epa. gov/npstbx/files/stakeholderguide. pdf