Organizational stakeholders refer to parties who have an interest in the company’s performance. And they are directly affected by the company’s practices. They include employees, managers, and staff.
Please remember, in this article, we distinguish between organizational stakeholders and business stakeholders. The latter includes organizational stakeholders, product market stakeholders, and capital market stakeholders. Product market stakeholders include customers and suppliers. Meanwhile, capital market stakeholders include creditors and shareholders.
They want to participate in the company when the benefits they get are commensurate with the value of their contribution to the company. Those benefits can take the form of salary, benefits, facilities and work environment, and power. Meanwhile, the value of their contribution depends on their skills, knowledge, and expertise.
Why organizational stakeholders are important
Employees like companies that provide large salaries and benefits. They became excited the company offered it. Not only that. They also expect companies to provide a comfortable work environment. They also prefer it when companies provide appropriate rewards and career paths.
Their satisfaction is the key to success for the company. They can be more productive when they are satisfied. It also facilitates the company to achieve its goals and to create value for customers. They serve customers generously, eager to innovate and synergize in gaining competitive advantage. In short, employee quality is a competitive weapon affecting strategy implementation and company performance.
Company managers and executives are responsible for allocating company resources and performance. They manage resources to create value. They take strategic steps to exploit opportunities and minimize threats, taking into account internal resources and capabilities. The way they organize the company can have a significant effect on the company’s ability to compete in the market.