Organizational Theory: The importance of Stakeholders in Project Management

Term Paper , 2013 , 15 Pages

Business economics - Business Management, Corporate Governance

Contemporary project management recognizes the importance of stakeholder involvement in project initiation, planning and execution. This is particularly so as stakeholder’s interests, involvement and expectations all influence project execution as well as its impact. Project management is the planning, organizing, directing and controlling of resources for a relatively short-term objective that has been established to complete specific goals and objectives . Stakeholders refers to any individuals, groups, or institutions who have a vested interest in the natural resources of the project area and who potentially will be affected by project activities and have something to gain or lose if conditions change or stay the same . Thus in the context of project management, stakeholders are all those who need to be considered in achieving project goals and whose participation and support are crucial to its success. Stakeholders can be internal to the project or external. The major stakeholders in project management are the project managers, project team, sponsors of the project, customers or project beneficiaries, government, local communities among others. In project management, stakeholders are identified through stakeholder analysis. Stakeholder analysis identifies all primary and secondary stakeholders who have a vested interest in the issues with which the project or policy is concerned . The main aims of stakeholder analysis are to identify the interests of stakeholders and potential areas of conflict as well as ways to reduce negative impacts on vulnerable and disadvantaged groups . The importance of stakeholders is in project management is evident at different levels. Firstly, it gives the concerned people say over how projects may affect their lives. Secondly, it is essential for project sustainability. Thirdly, it generates a sense of ownership if initiated early in the development process. Fourthly, it builds capacity and enhances responsibility. Fifthly, it provides opportunities for learning for both the project team and stakeholders themselves. This paper thus examines the importance of stakeholders in project management informed by the view that all the important decisions during initiation, planning and execution stages of the project are made by these stakeholders.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Key Terms
• Key Stakeholders Considered in Project Management
• Importance of Stakeholders in Project Management
• Gives People Say on How Projects May Affect Their Lives
• Generating a Sense of Project Ownership
• Building Capacity and Responsibility
• Ensuring Project Sustainability
• Provides Learning Opportunities for Both the Project Team and Stakeholders
• Reduces Negative Impact on Vulnerable Groups
• Enables Identification of Potential Areas of Conflict
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to discuss the crucial role of stakeholders in project management, highlighting how their involvement impacts project initiation, planning, execution, and overall success. The paper emphasizes the significance of stakeholder analysis, recognizing the need to understand their interests, potential conflicts, and ways to mitigate negative impacts on vulnerable groups. Here are some key themes explored in the text:

• The importance of stakeholder involvement in project management
• The identification and analysis of key stakeholders
• The impact of stakeholder attitudes on project outcomes
• The benefits of stakeholder engagement for project sustainability and success
• The challenges of managing diverse stakeholders and building consensus

Zusammenfassung der Kapitel (Chapter Summaries)

Introduction

The introduction sets the stage by emphasizing the crucial role of stakeholders in contemporary project management. It defines stakeholders as individuals or groups with vested interests in the project, highlighting their influence on project execution and impact. The text emphasizes the need to consider stakeholders in achieving project goals and securing their support for success. It also introduces the key stakeholders involved in project management, including project managers, project teams, sponsors, customers, government, and local communities.

Key Terms

This section provides definitions of key terms related to project management, such as "project," "project team," "constraints," "critical path," "stakeholders," and "milestone." These definitions provide a foundational understanding of project management terminology used throughout the paper.

Key Stakeholders Considered in Project Management

This section delves into the specific key stakeholders involved in project management. It highlights the critical role of sponsors, project managers, and project teams in achieving project objectives. The section emphasizes the importance of a comprehensive stakeholder analysis to identify and build synergies with all relevant stakeholders. The text discusses the challenges of managing diverse stakeholders and building consensus, particularly in developing countries where projects often rely on foreign donors.

Importance of Stakeholders in Project Management

This section explores the multifaceted importance of stakeholders in project management. It outlines seven crucial benefits of involving stakeholders, including:

• Giving people a voice in how projects may affect their lives.
• Generating a sense of project ownership.
• Building capacity and responsibility.
• Ensuring project sustainability.
• Providing learning opportunities for both the project team and stakeholders.
• Reducing negative impacts on vulnerable groups.
• Enabling identification of potential areas of conflict.

Schlüsselwörter (Keywords)

The main keywords and focus topics of this paper include project management, stakeholders, stakeholder analysis, project initiation, planning, execution, project sustainability, project success, project teams, project sponsors, project customers, vulnerable groups, and conflict management.

• College: ( Atlantic International University )
• Author: Temba Munsaka (Author)
• Publication Year: 2013
• Pages: 15
• Catalog Number: V265449
• ISBN (eBook): 9783656553250
• ISBN (Book): 9783656553281
• Language: English
• Tags: organizational, theory, stakeholders, project, management