LEC 3.5 - Stakeholder

Question 1

According to the video, how is a stakeholder of an organisation defined?

Answer 1

A stakeholder of an organisation is any group or individual who can affect or is affected by the achievement of the organisation’s objectives.

Question 2

What three key attributes determine a stakeholder’s salience to an organisation?

Answer 2

The three key attributes are power, legitimacy, and the urgency of their claim.

Question 3

Describe stakeholder power as discussed in the video. Provide examples of different types of power.

Answer 3

Power is the ability of a stakeholder to influence the organisation. The video mentions three types: coercive power (force), utilitarian power (control over resources), and normative power (ability to command attention, prestige).

Question 4

How does the video define stakeholder legitimacy?

Answer 4

Legitimacy is defined as a generalised perception that the actions of the organisation (or the stakeholder’s claim) are desirable, proper, or appropriate within a social system.

Question 5

What constitutes the urgency of a stakeholder’s claim?

Answer 5

Urgency refers to claims that are time-sensitive and critical to the stakeholder.

Question 6

What are latent stakeholders, and what attribute characterises each type of latent stakeholder?

Answer 6

Latent stakeholders possess only one of the three attributes and have lower salience. They are: Dormant stakeholders (possess power only), Discretionary stakeholders (possess legitimacy only), Demanding stakeholders (possess urgency only).

Question 7

Describe expectant stakeholders and the combinations of attributes they possess.

Answer 7

Expectant stakeholders possess two of the three attributes and have moderate salience. They are: Dominant stakeholders (possess power and legitimacy), Dependent stakeholders (possess legitimacy and urgency), Dangerous stakeholders (possess power and urgency).

Question 8

What is a definitive stakeholder, and what combination of attributes do they have?

Answer 8

A definitive stakeholder possesses all three attributes: power, legitimacy, and urgency.

Question 9

Can a stakeholder’s salience change over time? How might this happen?

Answer 9

Yes, stakeholder salience can change over time because the attributes of power, legitimacy, and urgency are not fixed.

Question 10

Why is conducting a stakeholder analysis important for an organisation?

Answer 10

Stakeholder analysis helps organisations understand who in their environment can make legitimate claims, has the authority to intervene, or has urgent needs regarding the organisation’s actions and decisions.

Question 11

What is the definition of a stakeholder according to the video?

Answer 11

A stakeholder of an organisation is any group or individual who can affect or is affected by the achievement of the organisation’s objectives.

Question 12

What is the purpose of a stakeholder analysis?

Answer 12

A stakeholder analysis maps the so-called force field of an organisation, identifying stakeholders in the organisation’s environment who influence what the organisation pays attention to, what it does, and what it can or cannot ignore. It also helps understand who gets heard and who is ignored.

Question 13

What are the three key attributes of a stakeholder that determine their potential salience?

Answer 13

The three key attributes are power, legitimacy, and the urgency of their claim.

Question 14

Define stakeholder power and provide examples of its different forms.

Answer 14

Power is the ability of a stakeholder to influence the organisation. It can manifest as:
* Coercive power: The ability to force someone to do something (e.g., through force or a loaded gun).
* Utilitarian power: Control over resources (e.g., the ability to spend or withdraw resources).
* Normative power: The ability to command attention or influence through prestige, esteem, or normative symbols (e.g., media attention, the King criticizing government response).

Question 15

How is stakeholder legitimacy defined?

Answer 15

Legitimacy is a generalised perception or assumption that the actions of an entity (or the stakeholder’s claim) are desirable, proper, or appropriate within a socially constructed system of norms, values, and beliefs. Multiple actors generally agree on what is legitimate, and it is often culturally embedded.

Question 16

What constitutes the urgency of a stakeholder’s claim?

Answer 16

Urgency exists when a stakeholder’s claim is both time-sensitive (requiring immediate attention) and critical or important to the stakeholder. These claims can change rapidly.

Question 17

What is stakeholder salience related to?

Answer 17

Stakeholder salience is related to the cumulative number of attributes (power, legitimacy, urgency) that a stakeholder possesses in the eyes of the organisation.

Question 18

What are latent stakeholders and how many attributes do they possess?

Answer 18

Latent stakeholders possess only one of the three key attributes and have lower salience. There are three types of latent stakeholders: dormant, discretionary, and demanding.

Question 19

Describe dormant stakeholders. What attribute do they possess, and what is their level of interaction with the organisation usually like?

Answer 19

Dormant stakeholders possess power but lack legitimacy and urgency. They often have little to no active involvement in the sense-making process but have the potential to intervene.

Question 20

What are discretionary stakeholders characterised by? Which attribute do they hold?

Answer 20

Discretionary stakeholders possess legitimacy but lack power and urgency. They have some legitimate involvement in the sense-making process but do not actively exert power or have urgent claims.

Question 21

What are the defining features of demanding stakeholders? Which attribute do they possess?

Answer 21

Demanding stakeholders possess urgency in their claims, which are time-sensitive and critical, but they lack power and legitimacy. Media can often be an example, having deadlines and urgent news but not necessarily direct power or legitimate immediate involvement.

Question 22

What are expectant stakeholders, and how many attributes do they possess?

Answer 22

Expectant stakeholders possess two of the three key attributes, giving them moderate salience. Their claims are consequential to the organisation and need to be addressed. The three types are dominant, dependent, and dangerous stakeholders.

Question 23

Describe dominant stakeholders. What two attributes do they possess?

Answer 23

Dominant stakeholders possess power and legitimacy. For the assignment, the local triangle (police, prosecution, and mayor) is the definite stakeholder, and you need to identify the dominant stakeholders in relation to them. The video notes that it can be tricky to argue why an actor has power and legitimacy but not urgency.

Question 24

What characterises dependent stakeholders? What two attributes do they possess?

Answer 24

Dependent stakeholders possess legitimacy and urgency but lack the power to enforce their claims; they depend on other stakeholders for this power.

Question 25

Explain dangerous stakeholders. What two attributes do they possess?

Answer 25

Dangerous stakeholders possess power and urgency but lack legitimacy. The video uses the example of a school shooter as a dangerous stakeholder, highlighting their coercive power and urgent (though illegitimate) claim. It's crucial to identify them to mitigate dangers.

Question 26

What are definitive stakeholders, and what combination of attributes do they have?

Answer 26

Definitive stakeholders possess all three attributes: power, legitimacy, and urgency. In the context of the assignment, the local triangle of police, prosecution, and the mayor is identified as the definite stakeholder.

Question 27

Can a stakeholder's salience change over time? How might this happen?

Answer 27

Yes, a stakeholder's salience is dynamic. Stakeholders can gain or lose attributes (power, legitimacy, urgency) over time, causing them to shift from one stakeholder type to another. For example, dangerous stakeholders can gain legitimacy, dependent stakeholders can gain power, or dominant stakeholders can gain urgency.

Question 28

In the group assignment, who is identified as the definite stakeholder, and what is the task regarding other stakeholders?

Answer 28

In the assignment, the local triangle (police, prosecution, and the mayor) is the definite stakeholder. The task is to identify and analyse the other six stakeholder types (dormant, discretionary, demanding, dominant, dependent, and dangerous) in relation to this definite stakeholder during the first hours of a crisis.

Question 29

When analysing stakeholders for the assignment, what specific time frame should you focus on?

Answer 29

You should focus on the first hours of sense-making during a crisis, specifically until the lockdown is lifted in the Utre case. Your analysis should consider stakeholder dynamics within this timeframe.

Question 30

What is crucial when identifying and classifying stakeholders in your assignment?

Answer 30

It is crucial to define what characterises each stakeholder type in your own words and then substantiate your classification with empirical evidence from the case study by Walbert, including specific page numbers. You also need to explain why other attributes might not be relevant.

Question 31

Why is it important to consider the absence of certain attributes when classifying stakeholders?

Answer 31

The absence of an attribute can be equally defining for a stakeholder type as the ones they do possess. For example, a dormant stakeholder is defined by having power but lacking legitimacy and urgency.

Question 32

What does the video say about simply labeling stakeholders without explanation or evidence?

Answer 32

Simply labeling an actor as a particular type of stakeholder without explaining why and substantiating it with empirical evidence will not be convincing and will not earn you points. You need to build an argument.

Question 33

What are some examples of how stakeholders can gain or lose salience over time (stakeholder dynamics)?

Answer 33

Dangerous stakeholders can gain legitimacy through participation in elections. Dependent stakeholders can gain legitimacy through court rulings or new legislation. Dominant stakeholders can gain urgency when the organisation is involved in a scandal. A bystander intervening becomes a different type of stakeholder. A dormant stakeholder (like a political executive) acting up and intervening changes their stakeholder type.

Question 34

Why is conducting stakeholder analysis a valuable skill for professionals?

Answer 34

Stakeholder analysis helps professionals constantly scan their organisation's environment to identify who has legitimate claims, authority to intervene, or urgent needs, allowing them to make more informed decisions.