Study On Stakeholder Management And Culture Management Essay

1.0 Introduction

The procedure of placing and pull offing undertaking stakeholders and civilization is one of the most of import procedures in undertaking execution because non merely is project success judged by stakeholder satisfaction, but because every stakeholder makes an indispensable part to the undertaking ( Verzuh 2008, p.48 ) . Beside stakeholder designation and direction, undertaking directors are required to set up a balance between implementing planetary criterions and reacting to local demands in their attempts to efficaciously pull off the diffusion of stakeholder rules and patterns ( Nicolod 2007, p.484 ) .

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Despite the great importance associated with stakeholder and civilization direction processes, these thorny procedures in undertaking execution have received less attending particularly when comparings are done comparative to other countries dependant on them ( Sharp et al. 1999, p.1 ) . Such countries include, but are limitless to, scenario-based demands and user engagement in the undertaking development phases.

It was from the above position that this instance survey aimed to analyze the function and the influence of assorted stakeholders in the execution of undertakings. In undertaking this instance survey, the writer began by saying the purpose and the demand for this subject.

This was followed by a reappraisal of the literature. The literature reappraisal clearly established who the undertaking stakeholders were. In add-on, their function and their influence across undertakings were clearly identified. Furthermore, the literature reappraisal defined organisational civilization and went in front to set up its nexus with stakeholder direction.

After reexamining the literature, the writer, in a holistic position, explored how a reputable Saudi engineering house, Zuhair Fayze Partnership ( ZFP ) , identified and managed its stakeholders during a multi-million undertaking implemented by the company. This undertaking, which the writer had been attached on the function of FMS designer, involved the analysis, design, development, installing and commissioning of a Facilities Information System to the Royal Saudi Air Forces ( RSAF ) – a renown air power subdivision of Saudi Arabia ‘s Airbases.

Having explored on the findings from his survey, the writer conclude by giving a critical analysis of his experience.

It should be highlighted that this instance survey, holding been compiled after the execution of a military IT undertaking, presented a alone construction and experience. This was so because it involved the development of a military system and as such some of its inside informations could non be studied openly due to security limitations. As such, some cognition spreads might be present in this instance survey therefore representing its major restriction.

2.0 Aim and principle of this paper

This paper ‘s purpose was to place who the key undertaking stakeholders were, how they were managed and how their outlooks came to act upon the success of any undertaking. In add-on, the writer assessed how organisational or national civilization shaped the outlooks of cardinal stakeholders.

More so, in composing this paper, it should be noted that the writer was motivated by the fact that despite the many developments in techniques and development tools to efficaciously pull off undertakings, several undertakings have still experienced troubles that have affected their overall quality taking to clip and cost overproductions. Mohammed ( 2006 ) in reexamining Morris and Hough ( 1987 ) research on an estimated 3500 undertakings established that “ overproductions ” were the norm in undertaking execution since they ranged between 40 to 200 per centum. The figure below depicted general statistics associated with undertaking success from this research.

Parameter

% -age evaluation

Succeeded

29

Failed

18

Challenged

53

Table 1 demoing the statistics of undertaking success and failure

Pie chart 1 picturing the statistics of undertaking success and failure

3.0 Literature reappraisal

3.1Project stakeholders

Singleton ( 2007 ) defined stakeholders as organisations or persons who are actively involved in undertakings and whose involvements may be negatively or positively affected in the classs of completion or executing of these peculiar undertakings ( p.12 ) . Harmonizing to him hence, stakeholders were made up of two classs ; indirect stakeholders and direct stakeholders. Indirect stakeholders were summed up by those persons who, despite holding some degree of influence or involvement in the operations of the concern, were non straight involved in the operations of the undertaking.

On the other manus, direct stakeholders were composed of persons who were straight involved in the operations of any undertaking lifecycle. As such, they were affected by the peculiar undertaking, had the power to act upon it or had bets in the successful completion of the undertaking. The undermentioned figure 1 showed the degrees of stakeholder influence and involvement.

High Interest

Pull off them closely

Keep informed of undertaking operations

High Influence

Low Influence

Keep satisfied

Monitor their operations

Low Interest

Figure 1 demoing the degrees of stakeholder influence and involvement.

On their portion, Walker and others ( 2008 ) , in seeking to set up a valid description of who the stakeholder were, discovered that stakeholders were groups or persons who possessed some right facets or involvement in the operations of a undertaking and therefore contributed to or were impacted by say, the result or the work of the undertaking ( p.648 ) . To them, stakeholders could be classified into four groups viz. ; upstream stakeholders, downstream stakeholders supply-chain spouses, undertaking squad stakeholders and external stakeholders. Figure 1 below showed these groups of undertaking stakeholders.

Figure 1 picturing the assorted types of stakeholders ( Adapted from Walker et Al. 2008, p.649 ) .

Walker and his group ( 2000 ) in measuring the influence of undertaking stakeholders and their function by undertaking squads, came to the decision that “ placing stakeholders could assist trip a class of probe that leads to a better apprehension of the nature and types of power and influence that may be exerted on, within and to project direction squads ” ( p.648 ) . Nevertheless, Frooman ( 1999 ) expounded on this point by saying that in placing the undertaking stakeholders, undertaking directors were probably to find whether their undertakings were to be awarded with the needful resources.

On their portion, Post and others ( 2002 ) though admiting Freeman ‘s popularised description of stakeholder as the involvements and entities that are either involuntarily or voluntarily involved in a house ‘s operations, went on to develop their ain “ stakeholder position ” that stressed on the demand for stakeholder relationships in any undertaking that involved creative activity of any organisational wealth ( p.1 ) .

In add-on, Sharp and others ( 1999 ) merely merely defined a stakeholder as “ any single or group who affected or were affected by accomplishment of a undertaking ‘s aims ” ( p.1 ) . They went in front to name assorted classs of stakeholders as including directors of a undertaking, end-users, applied scientists involved in system analysis, design and development, clients who are traveling to do usage of the developed system, external organic structures for case system regulators, sphere experts and many more ( Sharp et al.1999, p.1-2 ) . The three bookmans expounded on their definition by giving another position that stakeholders may be composed of three classs viz. ; those external on the undertaking squad ; but who are internal in the organisation, those internal on the undertaking squad and those who are external to both the organisation and the undertaking squad ( Sharp et al. 1999, p.2 ) .

3.2 Understanding organisational or national civilizations

Weiss ( 2008 ) defined organisational civilization as “ the shared values and significances as held by organisational members in common, and are articulated and practised by an organisation ‘s leaders ” ( p. 300 ) . To Weiss hence, corporate civilization is transmitted through:

Leadership manners and values as espoused and practised by organisational leaders.

The heroes and heroines that the company wagess and holds up as theoretical accounts ( Weiss 2008, p.300 ) .

The rights or symbols valued by organisations.

The manner of communicating that exists between undertaking caputs and their stakeholders.

Weiss ( 2008 ) went in front to foreground that though organisational civilizations were both unseeable and seeable, informal and formal, undertaking directors needed to analyze and understand organisational civilizations through observation, listening and interacting with undertaking or organisational stakeholders. Furthermore, they could analyze organisational civilization in the undermentioned ways: analyzing an organisation ‘s physical scene and reading company policies to familiarize themselves with its expected norms or behaviors.

On his portion, Chinyio ( 2007 ) defined organisational civilization “ as affecting the degree of deeper and basic beliefs and premises as shared by the members of organisations, that unconsciously operate and defined in the basic ‘taken for granted ‘ manner, as ‘organizations ‘ position of themselves and their environment ” ( pp.176-177 ) .

Ideally, House and his group ( 2002 ) in their GLOBE research plan theoretically defined organisational civilization as “ any shared motivations, beliefs, values, readings and individualities or significances of of import events that emerge from most common member experiences and are passed across coevalss of age ” ( p.5 ) .

Furthermore, in assisting us to broaden our apprehension of civilization, Schein ( 1996 ) highlighted that civilization manifested itself at 3 degrees viz. “ the degree of deep tacit premises, the degree of espoused values that reflected on what a group wished to be and the twenty-four hours to twenty-four hours behaviour. For any undertaking success, undertaking implementers needed to hold a clear apprehension of all the identified degrees.

From their position, Osland and Bird ( 2000 ) noted that there was a inclination “ for perceivers to confound single with group values ” ( p.69 ) . As such, there was demand for undertaking expatriates to transport out acute observations to place the “ discrepancy in behavioral norms for persons, organisational civilizations, subcultures every bit good as altering subdivisions of the society ” ( p.70 ) .

More so, Schein ( 1996 ) when analysing why advanced undertakings failed to proliferate and last noted that there was deficiency of alliance amongst the undermentioned classs of civilization: the “ operator civilization ” which existed amongst the subsidiaries of an organisation, the “ technology civilization ” which existed amongst the in-between degree directors and the “ executive civilization ” which was present amongst the company top direction ( p.9 ) .

3.3 The nexus between stakeholders and organisational civilization

Surveies on undertaking direction have shown that coupled with leadings, organisational civilizations are cardinal to undertakings ‘ operating on efficiency and overall effectivity. Surveies have by and large revealed that civilizations are the “ gum ” that holds other organisational dimensions ( scheme, construction, people and systems ) together ( Weiss 2008, p.300 ) . Undertaking success will merely be achieved if undertaking leaders come to tie in themselves with modeling, edifice and assisting to prolong ethical and legal organizational or national civilizations via comprehensive and decently defined conformity and moralss plans.

3.4 Key stairss in stakeholder direction

Singleton ( 2007 ) identified the undermentioned as the cardinal stairss in any stakeholder direction procedure:

Designation of cardinal stakeholder groups

Determination of stakeholder influences and involvements

Development of direction schemes for each identified groups.

On his portion, Gibben ( 2010 ) postulated that before traveling in front to implement any undertaking, undertaking leaders or directors needed to take into history the undermentioned issues ( p.14 ) ;

Clearly identify undertaking stakeholders ;

Gather cardinal informations or information of the identified stakeholders ;

Use the collected information to find or place stakeholder precedences ;

Establish the strengths and failings of the assorted stakeholders ;

Identify the stakeholder support ;

Predict the stakeholder behavior. This can be determined by analyzing organisational civilization and eventually ;

Fix a stakeholder direction scheme.

All the above phases can be summarized under stakeholder analysis attack.

Tellingly, Strong and Rath ( 2005 ) argued that the attack of stakeholder direction contained three cardinal stairss viz. ; stakeholder designation, stakeholder analysis and stakeholder planning ( p.173 ) .

Furthermore, on their portion, Carayannis and his group ( 2005 ) averred that the followers as the cardinal stairss involved in stakeholder direction ( p.184 ) .

Identifying and sorting the stakeholders of the undertaking ( against, impersonal, for ) and analysing their possible undertaking impacts. This could be done utilizing the undertaking lifecycle.

Isolating and analysing undertaking stakeholders with any likely negative impacts

Integrating and affecting cardinal primary undertaking stakeholders ( included and non limited to the clients, labour brotherhood, providers, contractors, advisers, and authorities bureaus ) in the undertaking program and in every subsequent stage of the undertaking

Guaranting that the needed information is on a regular basis availed to the identified stakeholders at appropriate times. This will guarantee that the identified key stakeholders will clearly agree with undertaking aims taking to a successful completion of the peculiar undertaking.

3.5 Stakeholder direction schemes

These are the attacks used by undertaking directors in minimising the influences caused by the identified undertaking stakeholders.

From his research, Karlsen ( 2002 ) found out that in most undertakings, systematic or formal stakeholder direction schemes did non be ( p.22 ) . From his research, stakeholders were managed on a random footing since there were no programs, procedures, methods or well-functioning schemes. As a consequence, undertaking directors decided on the best solutions of pull offing any identified stakeholder failings.

However, Wolper ( 2004 ) went in front to suggest the four generic schemes of pull offing stakeholder relationships ( p.172 ) . These were:

Collaborating carefully with the stakeholders who were found to hold a ‘mixed approval relationship ‘ on the undertaking.

Involving and swearing the supportive stakeholders

Implementing defensive schemes that are pro- active in nature for the non-supportive stakeholders ; and

Monitoring the stakeholders with little/marginal relationships with efficiency.

4.0 Project instance survey

4.1 How ZFP identified and managed its cardinal stakeholders

This being a military engineering system, ZFP used a different but distinguishable attack of implementing the system. The procedure of stakeholder designation was the 3rd in its undertaking execution phases after the definition of the strategic issue and the finding of implicit in factors. The followers is a elaborate analysis of how ZFP carried out this of import but largely overlooked procedure of undertaking execution.

The company undertaking execution commission started by placing the cardinal stakeholders. In making this, the commission categorised the stakeholders into two wide classs. These were the primary and secondary stakeholders.

The following were identified as belonging to the primary stakeholder class:

Customers or users of the FIS system ( Saudi Arabian air force soldiers )

Undertaking directors, supervisors and applied scientists from ZFP and RSAF.

RSAF stockholders ( all Saudi Arabian air force bases: Dhahran, Tabuk, Taif, Al Kharj and Khamis Mushait and the Saudi Government )

Suppliers/contractors/subcontractors of hardware and any package bundles

Undertaking ‘steering ‘ commission

Primary stakeholders were considered as those persons or groups who had cardinal involvements in the FIS undertaking. As such, they were likely to be affected by the operations in the FIS undertaking lifecycle.

On the other manus, secondary stakeholders were described as those persons who had no or really few involvement on the FIS undertaking. They were considered critical in this undertaking since their actions may hold, in one manner or another influenced the quality of the general system that was to be developed so. For case, the maneuvering commission had pointed out that the Saudi Arabian media constituted a cardinal secondary stakeholder since any negative covering on this immense populace and military undertaking might hold caused great harm to the successful completion of this undertaking. This was so because negative promotion towards the undertaking may hold raised public call which would hold resulted in the Saudi exchequer suspending the funding of this complex and multi-million FIS undertaking.

Besides the media, other persons or groups who made it to the secondary stakeholder class included and were unlimited to the followers:

The licensing bureau ( Malath Cooperative Insurance Reinsurance )

Saudi Arabian conservationists

The general Saudi Public

Professional organisations in the Saudi Kingdom for case, Legalized Institutes for Project direction in Saudi Arabia.

Rivals ( those houses who lost their commands to present the system )

Anyone one who validly claimed to hold a “ interest ” in the FIS undertaking

Having ‘successfully ‘ identified FIS undertaking stakeholders, the ‘steering ‘ commission left it to the undertaking director to analyze their influence and make a direction scheme for this undertaking. As such, the undertaking director, after close audience with undertaking supervisors, developed the followers as the stakeholder analysis and direction scheme:

Stakeholder ( s )

Interest/Issues of concern

Action ( s )

Saudi air force soldiers, RSAF stockholders, direction squads and undertaking applied scientists

They were to be the cardinal users of the system and as such were to supply a supportive relationship. Were low as possible menaces but high on guaranting possible co-operation.

Since they had a supportive relationship, their relationship direction was likely to be managed on a rare footing. ZFP was to affect these supportive stakeholders in all its relevant undertaking issues.

The licensing bureaus, conservationists, professional organizational, rivals and the general Saudi populace

These were to show three types of dealingss ; assorted approval, non-supportive and fringy stakeholder relationship. As a consequence of these relationships, they were to represent high possible menaces and therefore needed high possible co-operation from the undertaking directors to turn to their hidden and bad purposes.

These classs of stakeholders were to be managed through cautious, monitoring and proactive defense mechanism schemes. Besides utilizing these schemes, generic schemes, most appropriate to any new diagnostic class, was to be adopted. For case, alternatively of ZFP supporting itself against negative promotion, it was to develop a high quality system at an low-cost competitory monetary value. The quality of the FIS system would therefore talk for itself taking to the non-supportive relationships losing their credibleness in their attempts to challenge the undertaking

Table 2 demoing how ZFP analysed and developed stakeholder direction scheme

As noted earlier, the declaration that a undertaking was successful can merely be justified if the particular undertaking clearly answered to the demands or outlooks of most, if non all, stakeholders. In this engineering undertaking, the identified primary and secondary groups of stakeholders had their ain unique outlooks which were clearly and suitably addressed by the overall undertaking director ( with the aid of the ‘steering ‘ commission members ) .

5.0 A treatment of my experience

5.1 Identification of cardinal stakeholders

As antecedently highlighted, the ‘steering ‘ commission that was chosen to supervise the execution of this immense IT undertaking had, in affair with the undertaking director, held several Sessionss in the initial phases upon which cardinal FIS undertaking stakeholders were identified. From the workshops held, it was established that two classs of stakeholders claimed ownership to this undertaking. These were the primary and secondary stakeholders.

Primary stakeholders were constituted by Saudi air force soldiers, RSAF stockholders, undertaking direction, undertaking applied scientists, undertaking providers, contractors and sub-contractors amongst others.

Secondary stakeholders were constituted by the licensing bureau ( Malath Cooperative Insurance Reinsurance ) , conservationists, professional organizational, rivals and the general Saudi populace.

5.2 Understanding cardinal stakeholder outlooks

Other than the RSAF ‘s pull offing supplying a elaborate description of the demands of the FIS system that was to be developed, the undertaking director and the ‘steering ‘ squad had to make their best to guarantee that extra financess were provided to the assorted stages of the undertaking on a need footing. Furthermore, the direction from both companies were often updated on the position of the FIS undertaking amongst other stakeholder outlooks. In the terminal, a high-tech Facilities Information System was delivered, installed and commissioned to the delectation of the many undertaking stakeholders.

5.3 The appraisal of cardinal stakeholder influence

The FIS undertaking ‘steering ‘ members and the overall undertaking director carried out a comprehensive analysis of the two classs of stakeholders. This was done with the chief purpose of finding their influence and the demand to counter it. During this analysis phase, four stakeholder relationships were identified by the direction squad. It is from these relationships that the influences of these stakeholders were determined. The two types of relationships were:

The supportive relationship which was constituted by all the primary stakeholders as listed above. This class of stakeholders posed a low possible menace to the success of the FIS undertaking since they to the full supported the purpose and ends of the FIS undertaking. They therefore worked difficult to assist accomplish the undertaking purpose and ends.

The non-supportive relationship was made up of a few secondary stakeholders for case the rivals. They formed a most distressful relationship and as such were high possible menaces.

5.4 direction of cardinal stakeholder influence

In pull offing the influences of cardinal stakeholders, the ‘steering ‘ commission members decided to utilize a collaborative and proactive defense mechanism to turn to the influence of the non-supportive stakeholders. In following this scheme, the direction intended to turn the negative non-supportive relationship into a supportive stakeholder relationship. For illustration, when conservationists tried to ask on the suitableness of the FIS system in conserving the environment, the ‘steering ‘ commission took it upon them to form a advisory and awareness forum where this specific stakeholder was comprehensively updated on the strengths of the FIS system in conserving and continuing the environment. At the decision of the forum, all stakeholders had joined the supportive stakeholder relationship.

The influences of supportive stakeholders were addressed through a scheme that was dubbed as “ trusty engagement ” . This scheme placed small attending to the direction of these stakeholders since they posed a low menace to the endurance or successful completion of the FIS undertaking.

5.5 Understanding the organizational civilization

Having established the above stakeholder direction scheme, ZFP held meetings and reviewed organisational policies. This was carried with the chief purpose of understanding RSAF ‘s organisational civilization. From the reviewed studies and the observations made, it was established that most air force soldiers in the four airbases were engineering ‘gigs ‘ and as such, would comfortable interact with the hi-tech FIS system that was being developed.

5.6 Cultural features of squad members and stakeholders

Bing a Saudi Arabian engineering house and holding sourced most of its manpower map from Saudi Arabia, ZFP did non see troubles in understanding cultural features of the Saudi Kingdom. The ‘steering ‘ commission had noted that most Saudis were tolerant, autonomous, efficient, logical, task-oriented, multi-tasking, collaborative, team-players and entrepreneurial. These features were manifest in most stakeholders and were even identified by the undertaking director as the cardinal strengths that propelled the FIS undertaking to emerge a success.

5.7 How my observations compared with the literature

The writer had reviewed a batch of literature both from the category talks and electronic beginnings. This literature had comprehensively covered amongst others the undermentioned aims:

To analyze some of the stakeholder constructs

To understand the nature of stakeholder battle in assorted undertakings

To clearly specify who the stakeholders were and travel in front to province their function in undertaking execution

To understand the assorted stakeholder influences and how stakeholder direction schemes were developed to antagonize the established stakeholder influences.

To specify national and organisational civilization and to set up their nexus with stakeholder direction.

Having participated in about all undertaking stages and keenly observed the assorted undertaking activities, the writer highlight that ZFP, as a reputable engineering house, was deserving its repute as one of the best Saudi Arabian engineering houses. This is because of the systematic mode in which its employees implemented the assorted undertaking stages. For case, before placing the cardinal stakeholders, the ‘steering ‘ squad had clearly stated and established the scheme for this undertaking. This had been followed by a comprehensive reappraisal of the factors act uponing the undertaking.

The stakeholder direction, though overlooked in most world-wide undertakings, received its value of attending with cardinal stakeholders being clearly identified, their analysis being carried out and a direction scheme established to antagonize their influences. All this matched the constructs studied in the literature reappraisal.

5.8 Effective execution of the undertaking

As the expression goes, it is ever difficult to accomplish 100 per centum success in any ( undertaking ) enterprise. Despite the FIS undertaking being declared a success, it should be noted that this undertaking, if objectively analysed, had some failings in its execution phases. The undermentioned recommendation can be made on the stakeholder and civilization direction stages ; which were the cardinal subjects of this survey:

The undertaking direction squad should specifically place the cardinal stakeholder in any hereafter undertaking. This will assist the direction to transport out comprehensive analysis of the specific stakeholders. As such, they will adequately suggest as many options of pull offing their influences. This is critical because it was noted that the direction squad had generalized some of their stakeholders. For illustration, alternatively of merely naming rivals as secondary stakeholders, they should hold gone in front to place who constituted these engineering rivals. For case, The Consolidated Contractors International Company had in many instances emerged as the greatest rival to ZFP. There was therefore need to set up a direction scheme that could antagonize its influence in such multi-million engineering undertakings.

Conclusively, it should be emphasized that the presented instance survey has reviewed theoretical research and highlighted its observations from a practical position. Through theoretical literature reappraisal, the writer had the chance to elaborate on his cognition on the classs of persons that summed up the undertaking stakeholders. Furthermore, the writer found out that rational attack to stakeholder direction involved thorough designation of stakeholders through function of their undertaking functions.

To add, the thought that the execution of suited communicating processes to undertakings with multiple stakeholders reinforced my cognition that communicating was the cardinal facet of winning the support of undertaking stakeholders.

In the terminal, in placing the restriction of this survey, the writer points out that the observations made in this undertaking were restrictive in nature. This is because the writer, being a scholar, was non granted permission to analyze all undertaking facets due the restrictive steps that accompanied few stages of this military undertaking. There is therefore demand for farther research to analyze such stages. For case, farther research is needed to analyze the relationships between public presentation and corporate actions, key facets which have been studied on a sketched lineation in this instance survey.

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