Businesses and Stakeholder Involvement
Businesses do not exist in isolation; they have many individuals and groups to cater to be productive within the market (Van Buren & Greenwood, 2011). The market dynamics are changing continuously and to remain competitive and relevant in the market, businesses have set rules to ensure adequate incorporation of the stakeholders to ensure efficiency in business operations.
As the business grows, change is inevitable so are the rules governing the stakeholders and change management. Employees are organizational assets and important in the making of organizational decisions. Initially, most businesses used a top-down approach to make important institutional decisions. However, most of these decisions were ineffective since they reduced the productivity of the employees. The current market structure recognizes the significant roles of the employees as stakeholders. As a result, the bottom-up approach has become common in which the views of the employees are integrated into the decision-making process, which makes them feel part of the management.
Stakeholder Involvement and Market Dynamics
Over the last two decades, the values of the employees have changed. Employees have contacts with the customers at various levels. Thus, to understand the changing market dynamics, stakeholder involvement is critical. Every change in market dynamics present change management risks, and through the early and effective involvement of the stakeholders, businesses can mitigate these risks. Nonetheless, to determine the information regarding the motivations, abilities, expectations, and concerns of the employees, stakeholder analysis is critical (Peltokorpi et al., 2008).
Most business projects become successful when they achieve their objectives and meets the expectations of the stakeholders. Globally, most economies are shrinking, and with more businesses entering the markets, businesses need to engage the employees in important organizational decisions since they understand most of the market segments. The management rules are changing, and it is no longer the role of the top management alone to make institutional decisions.
References
Peltokorpi, A., Alho, A., Kujala, J., Aitamurto, J., " Parvinen, P. (2008). Stakeholder approach for evaluating organizational change projects. International Journal of Health Care Quality Assurance, 21(5), 418-434.
Van Buren, H. J., " Greenwood, M. (2011). Bringing stakeholder theory to industrial relations. Employee Relations, 33(1), 5-21.
