The following case study interprets the importance of good decision making and balancing the interests of stakeholders:Balancing Stakeholder Interests and Corporate Values: A Cummins Strategic Decision.Read the case study and respond to the following question: How would you, as an organizational leader, apply and use the stakeholder management approach as a means for planning and implementing collaborative relationships to achieve win-win outcomes among stakeholders?Use citations and references in APA style.’
Reply to these two post:
1. Stakeholder and issues management approach is a vital tools to corporate leaders and their stakeholders. In secular world, it is all about making deals and compromise. As Weiss (2014) suggests, it is used to achieve a win-win outcome. It is about making moral decisions for the good of many. Stakeholder management approach is used to resolve corporate crisis and also used to track the socio-political environment in order to avoid risks and crises. In addition, it helps to obtain essential environmental scanning information for strategy development or adjustment, and secure the organization’s reputation and access to vital resources (Boutilier, 2012).
From a risk management perspective, it is tempting to focus on stakeholders who are likely to cause disruption to organizational projects. In such situation, I would use stakeholder management approach through a collaborative communication to identify and investigate why they have different opinion about the direction of the organization. Equally, it is important to establish interpersonal relationship with those stakeholders who view your project favorably or may benefit from it. Identify these stakeholders and investigate opportunities to leverage their positive perception as project advocates. In this way, I would be able to influence and change the perceptions of those stakeholders who are not in agreement.
2.The stakeholders management approach is important for dealing with several corporate matters especially when it comes to handling conflict, negotiating between parties, managing crisis and most of all, doing all of this with compliance to ethics. A collaborative relationship has to be maintained so a structured dialogue can be maintained for achieving these objectives and applying them to the contexts in order to achieve a win-win situation for the stakeholders. Firstly, it is important to be aware of ethical frameworks and principles which need to be applied to individual, group, and organizational belief systems, policies, and motives. Secondly, a collaborative communication strategy should be adopted so all voices are heard and structured dialogue is facilitated appropriately (Weiss, 2014, p.117). It is also important to be rational and responsible in decision-making and looking at all contexts and all parties involved along with the consequentialist approach before reaching a conclusion. In the case of Cummins, he made an influential decision by making sure that the pull ahead initiative was delayed which was a way in which the stakeholder management approach was used to achieve positive outcomes among the stakeholders (Bert & Vujovich, 2014).