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Various approaches to managing stake holder’s relationships

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i) When external stakeholders are important and environmental uncertainty is low,
managers usually rely on simply scanning and monitoring the environment for trends and
forces that may be changing. In this situation, it is not necessary for managers to take
specific actions to manage stakeholders, they just need to stay informed about what is
happening with them, what concerns they might have, and whether these concerns are
changing.

ii) When the stakeholder is important but not critical and environment uncertainty is high,
managers need to be more proactive in their efforts to manage the stockholders’
relationships, they need to do this using boundary spanning, which involves interacting in
more specific ways with various external stakeholders to gather and disseminate
important information. Here organizational members more freely between the
organization and external stakeholders. The boundary of the organization becomes more
flexible and permeable. Example of individuals who interact day in and day out like a
public relation manager who talks with newspaper and television reporters.

iii) When the stakeholder is critical and environment uncertainty is low, managers can
use more direct stakeholder management efforts such as conducting customer marketing
research, encouraging competition among suppliers, establishing government relations
departments or lobbying efforts, etc.

iv) Finally, when the stakeholder is critical and environment uncertainty is high,
managers should use stakeholders’ partnerships, which are proactive arrangements
between an organization and a stakeholder to pursue common goals. These types of
partnering activities allow organization-customer, organization-local communities, etc.
stakeholders partnerships involve significant levels of commitment among the partners to
be more interdependent rather than independent.

Titany answered the question on October 19, 2021 at 12:39

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Various approaches to managing stake holder’s relationships

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