Impact of stakeholder management in the construction industry

An example would be local residents with concerns about loss of public areas to a new project. Stakeholders are vital to the successful completion of a project because their unwillingness to continuously support the vision or objectives of the project leads many projects to fail.

In the 2x2 grid, the X horizontal axis identifies the level of interest. In that usage, "constituent" is a synonym for "stakeholder". Engaging stakeholders in construction is a formal process of relationship management through which clients, contractors and sub-contractors engage with a set of primary and secondary stakeholders, in an effort to align their mutual interest to reduce risk in projects [ 1920 ].

This paper reports the results of an exploratory study involving interviews with construction project practitioners that are involved in sustainability in some way. There is much waste and it encounters problems caused by myopic control [ 12 ].

The paper is structured as follows: The goal of a successful communications approach is to manage expectations and minimize surprises. Then, multiple case studies were conducted. This is the measure of how much a stakeholder can affect the outcome of a project from low to high.

Stakeholder Analysis, Project Management, templates and advice

Involve Stakeholders with high power levelseven those with low legitimacy, need to be involved in all activities in the project according to their interest since they have the power to make decisions that impact on the project. The argument is that debt holders, employees, and suppliers also make contributions and thus also take risks in creating a successful firm.

A communications planning matrix takes the stakeholder analysis and identifies each stakeholder or stakeholder group, the role they play on the project, what must be communicated, when how oftenhow format of communication and whether a response is required.

The issues that they will have an interest in.

Stakeholders in development projects

Identify the potential impact or support of each stakeholder: Interaction frequency, emotional intensity, familiarity, and reciprocity were selected as the metrics to measure stakeholder collaborative management.

Where the intention is to involve stakeholders in the development of the projectthey should be involved early on to allow them to influence key stages such as brief developmentrather than just allowing them to comment on designs after they have been completed see the article consultation process for more information.

In her current role, she is responsible for coordinating the efforts of project teams, overseeing the implementation of project standards, managing the corporate IT strategic plan, and leading the program to re-engineer the membership platform for MMS. Senior leaders in organizations can adopt stakeholder engagement as an opportunity to influence other organizations and create alignment to structures and processes to support the vision and mission of sustainability [ 17 ].

During the development stages of a projecta stakeholder management strategy should be developed. This can be achieved by revising and tailoring project strategies, objectives, and outcomes if necessary to win their support. Needless to say, the project sponsor is very active and visible in project governance, especially to help keep all stakeholders focused on their common goal.

What You Must Know About Stakeholder Management

Stakeholders may not all have the same objectives. The literature is presented in chronological order. Extant literature on stakeholder engagement and its relationship with sustainability. Top left is high power, low interest: Some stakeholders are generally recognized as important, i. The management should work directly with these stakeholders to ensure that their concerns are consistently understood, considered, and reflected in the projects development.

Excluding important stakeholders from participating in key project decisions is always a losing strategy. This includes not only vendors, employeesand customersbut even members of a community where its offices or factory may affect the local economy or environment.

Show how they proactively prioritize, make themselves available, accept accountability, show an interest, support and motivate the team. Considering all these above issues in the construction industry the aim of this paper therefore is to examine the processes for engaging stakeholders in construction projects.

The findings are useful for setting up a benchmark framework for cost management and project management mode in OSC. The next step is to assess their key characteristics and present this information in a way that helps the project team implement effective stakeholder management initiatives.

By attempting to fulfill the needs and wants of many different people ranging from the local population and customers to their own employees and owners, companies can prevent damage to their image and brand, prevent losing large amounts of sales and disgruntled customers, and prevent costly legal expenses.

This may result in the preparation of a stakeholder management plan outlining strategies for stakeholder communication and consultation. Since the secondary stakeholders with higher power but lower legitimacy need to be kept onboard they should be consulted in order to seek their opinions and input for key decisions that directly or indirectly affect them.

Unilateral cost and production cost of precast components were used to depict OSC cost performance. Inform This category contains those stakeholders who require minimal effort.

Yet sustainability is a complex concept in projects and there are many diverse stakeholders.

Stakeholder management for building design and construction

Then there are various more intimate ways to discuss project health, involve key players in getting decisions made, and sharing those decisions. Here communication, opinions and proposals flow in both directions and the organization can change its behavior as a result of engagement.

For instance, by simultaneously addressing customer wishes in addition to employee and stockholder interests, both of the latter two groups also benefit from increased sales.

While it may not be possible to please all stakeholders on every projecteffective stakeholder management should aim to satisfy as many as possible, which will often involve strategic prioritisation of different stakeholders needs.To analyze the underlying meanings of stakeholders' attributes, behaviors, and decision-making strategies from the practitioners' perspectives, and indicate the influence of stakeholder-related factors on decision-making strategies, an interview, questionnaire survey, and case study were adopted.

This paper presents a systematic and generic framework reference for the practice of stakeholder management in the construction industry. It contains findings from empirical studies, comprising six interviews, a pilot study, a questionnaire survey in Hong Kong, and 15 interviews in Australia.

“stakeholder interests and influences”, “stakeholder management process”, “stakeholder analysis methods” and “stakeholder engagement”. This study reveals that SM approaches in MCP are subject to national context of the project, indicating a need to identify the impact of national culture.

AN OVERVIEW OF STAKEHOLDER MANAGEMENT IN CONSTRUCTION INDUSTRY Yogita M. Waghmare1, Nikhil Bhalerao2 groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, Construction, Management Stakeholder, I INTRODUCTION Project.

Evidence shows that the construction industry accounts directly for 10% GDP growth in the UK (Cridland and Wates p.5),this goes to justify the need to investigate the impact of stakeholder management and its contribution to project success in the construction industry and also fulfil the academic requirement of the award of Masters.

construction project imposes new and demanding stakeholder management requirements on the hospital organisation, as noted by an interviewee, “Major construction projects are completely foreign to the day to day work of a hospital.

Impact of stakeholder management in the construction industry
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