Literature Review On The Importance Of Stakeholder Management

Introduction

Effective and formal Stakeholder management is a key area in the management of projects and critical in achieving stakeholders need and satisfaction. Correctly identifying key players, managing them and influencing them is crucial for the success of the project as well as to achieve the objectives of the organization (Crawford & Chung, 2015). This literature review, point to early proponents of stakeholder thinking and in addition to this, it also points to recent concepts and developments outside the project management field that are relevant in the project management context (Eskerod, Huemann, & Savage, 2015). The purpose of this literature review is to find more about the importance of stakeholder management, to identify different

The stakeholder theory is a conceptual framework outlining how organizational leadership can satisfy the interests of stakeholders – morally and ethically and the concept was first proposed in Strategic Management a Stakeholder Approach by (R. Edward Freeman). There are numerous definitions given for the term stakeholders, Friedman and Miles present a summary of at least 55 definitions of ‘stakeholder’ (Friedman, 2006) however the traditional definition for stakeholder is given by (Freeman, 1984) is “stakeholders are any individual or a group of individuals who can affect or is affected by the achievement of organization goals and objectives”. These stakeholders can be clients, end users, contractors, consultants, labour unions, public authorities, financial institutions, media, competitors, etc. Effective stakeholder management is an important aspect of any project. The first and foremost task of the project managers to manage the stakeholders of an organization effectively as to ensure their satisfaction and achievement of organizational objectives because without an effective stakeholder management it would be difficult for an organization to complete its project successfully.

These impressions of progress or failures are vigorously impacted by the viability of the project's communication and connections with its stakeholder community, especially those who are in management or central to decision making roles. From the perspective of a firm the origins of undertaking project stakeholder management are not found in the project management field itself, rather they come from theories of strategic management. (Eskerod, Huemann, & Savage, 2015)

Today almost every project happens in a setting where stakeholders play a noteworthy part in the achievement of the tasks. Regularly the project is sensitive to the actions and choices that are made by the stakeholders (Karlsen J. T., 2002). The general thought for the stakeholder concept is the redefinition of an organization, or in other words, we can say that all in all, the idea is about what the organization ought to be and how it ought to be conceptualized (Fontaine, Haarman, & Schmid, 2006). Friedman expresses that the organization itself ought to be thought of as a group of stakeholders and the reason for the organization ought to be to deal with their interests, needs, and perspectives. This stakeholder management is believed to be satisfied by the managers of a firm. The managers should, from one viewpoint, deal with the corporation for the advantage of its stakeholders keeping in mind the