Question

Based on your experience, and your knowledge of labor-management relations answer the following question:

Remembering the importance of balancing commitments to all stakeholders as part of long-term relationship building,

1. In any situation where jobs are outsourced to places where labor costs less, what stakeholder group(s) would be identified as primary stakeholders and which as secondary stakeholders?
2. What are the pros and cons for each group of stakeholders in such a situation?
3. What are the implications for HRPs?

Answer 1

primary stakeholders are those stakeholder who have a direct interest in a company example customer while secondary stakeholders are those stakeholder who have an indirect interest example general public etc

Jobs are outsourced to place where less cost these group identity as secondary stakeholders because those stakeholder have not direct interest.

Prons and cons

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Understanding and meeting your stakeholders’ needs with market research

Whether you’re a profit-focused e-commerce website or a not-for-profit social enterprise, if you have a business, you have stakeholders. Knowing who your stakeholders are and identifying their specific needs is the first step to securing your company’s success.

Stakeholder

September 6th 2016

What are stakeholders?

Stakeholders are individuals, groups or organisations that can affect, or be affected, by your business’ aims, actions and policies.

Business stakeholders fall into two broad groups, internal and external. Internal stakeholders work directly for, or have a vested interest in a business, for example, the owners, employees, policy makers, board members, investors and suppliers who deliver services on your behalf. Whilst external stakeholders are made up of those outside of the business who are influenced by its actions, such as customers, industry bodies, Government agencies and the local community in which the business operates.

Understanding internal and external stakeholders’ expectations has always been an essential component of organisational governance. However, with technological advances making communication easier than ever, identifying multiple stakeholders’ priorities – such as when and how they want to be communicated with - has complicated the relationship further.   

Dedicated stakeholder research

One way organisations are overcoming the challenge is through dedicated stakeholder research.

As well as mapping internal and external stakeholders’ needs and expectations, opinion research is able to shine a spotlight on how to enhance specific aspects of stakeholder relationships, for example, creating a better customer experience by moving from paper-intensive processes to automated systems, or developing a high-impact CSR campaign that resonates with consumers, the local community and environmental groups.

Advantages of internal stakeholder research – happy employees = happy customers

Employees, department managers, contract workers and third-party suppliers who deliver services on your behalf are the lifeblood of an organisation. Discovering internal stakeholders’ perceptions and attitudes to their role is an effective, measurable method of identifying concerns and improving employee performance.

The main advantages of conducting employee research include:

Increased productivity – regular company-wide employee satisfaction surveys provide an appropriate, secure outlet for employees to voice concerns and have problems addressed, helping to increase staff motivation and productivity.

Reduced employee turnover – it costs over £30k* to replace a staff member affecting the bottom line. Knowing how employees feel about their work and the company’s management style reduces churn and promotes staff loyalty.

Engaged employees – gaining insight into challenges employees’ face allows an organisation to make positive changes, from filling knowledge gaps to offering employees development opportunities. Employees who feel listened to and valued are more likely to take positive steps to promote and grow the business.  

Enhanced supplier relationships – suppliers are key internal customers, by understanding their expectations an organisation can build better supplier relationships bringing long-term added-value to the business.