Importance of stakeholders, including both external and internal stakeholder
Stakeholders are individuals who play a crucial role in an institution’s performance as well as to people affected by the organizations’ environment. External and internal stakeholders usually have interest in an organization daily operations.
Both external and internal stakeholders are important since they are involved in an organization’s decision making process. The stakeholders can either support or threaten the organization due to their varied goals and interest. According to Marquis and Huston (2017) involving them in the process can solve problems and give the organization competitive advantage. Stakeholders support the hospitals objective by ensuring health care improvement and protection. They aid in enhancing hospital effectiveness due to their close interest in a hospital outcome for instance hospital governance, patient service and financial reimbursements.
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External and internal stakeholders engage in strategic planning. Their inputs are used to perform long term planning for a hospital, since contribution from top managers, directors, middle level managers and subordinates are considered, which makes implementation of organizations’ strategic plan successful.
In large organizations representatives of stakeholders are included to manage change process (Marquis & Huston, (2017). The stakeholders act as a communication channel between individual championing the change and those expected to implement the fresh approaches. The representatives also use their political, relational and developmental expertise to ensure that the plans are implemented.
Examine the organization where you currently work and identify the stakeholders
I currently work in a HCA Healthcare/Hospital which specializes in caring for patients, practicing high level of integrity and improving human life. The hospital was founded more than fifty years ago and has been constantly evolving and improving. The hospital has internal and external stakeholders. Internal stakeholders include nurses working in the facility, patients, hospital employees, board of directors and the physicians. External stakeholders include health agencies, unions, professional organization, insurance companies and school of nursing.
In your opinion do you feel these stakeholders are supportive or threatening to your organization?
I feel that they are threatening to HCA Healthcare. Stakeholders have different interests and goals thus sometimes conflict of interest might arise hence making the duty of managing the hospital complex. The public, special groups and patients have more expectations concerning the services they receive. Meeting all their expectations may be challenging because of the cost the hospital incurs which might tarnish the hospitals reputation. The labor union and professional association also present financial pressure by using manipulation and threats thus threatening the hospital’s survival. Stakeholders’ power in health care has increased; however, their level of support towards the hospital has decreased over time.
Identify the sources of power for each group of stakeholders. Which group has authority?
Most stakeholders have normative and utilitarian power because of their symbolic and financial resources.
The medical staff
The hospital highly depend on the medical staff individual’s input. The group provide the hospitals’ major services, which makes them important and powerful. However their power is dependent on the labor market that is supply and demand of professional staffs. Their power is enhanced in case of high demand and reduced when there is increased supply.
The board of trustees
Their source of power is their authority and degree of control (Xin & Shen, (2016). The trustees represent a wide range of significant citizens in the society. Thus their main concern is the community needs and the hospitals’ profitability as well as image.
Patients
The stakeholders are individuals the hospital depends on to generate income and sustain itself. Their source of power comes from their ability to select the service providers of their choice and their capability to sway other prospective patients. The patients are solely concerned with service cost and quality.
The group with authority
The board of trustees oversee the running of the hospital and are involved in management of risks. They have a high level of control and authority conferred on them.
Reference
Marquis, B.L. & Huston, C.J. (2017). Leadership roles and management functions in nursing: Theory and application (9th Ed.). Philadelphia, PA: Lippincott, Williams & Wilkins.
Xin, L., Ho, M. F., & Shen, Q. P. (2016). Implementing Social Responsibility in Construction Project: An Empirical Investigation on Stakeholders’ Interest and Power. Building up business operations and their logic Shaping materials and technologies , 3 , 81.
