Project management Essay Example | Topics and Well Written Essays - 1500 words

Project management - Essay Example External groups, Individuals, Clients, Contractors, Funding Partners, Consultants, Employees and Work Force, and other government / regulatory organizations can be identified as stakeholders in a project, (Bourne, 2010). Further, categorizing the stakeholders according to the degree or level of impact they can put on a project activity or can get impacted by it. This knowledge of stakeholders assists in evaluating how the various interests of stakeholders should be addressed and managed in an efficient manner. 1.1. Role of Stakeholder Management The role of stakeholder management is to create utility for the project manager in order to get acquainted with all the participants / stakeholders of the project and their respective interests, create an equilibrium between the inputs / contribution and the incentive given by and to the stakeholder, set up an unbiased basis for effectively managing individual stakeholder requirements, decide the participation level of each stakeholder during the planning and execution part of the project, promoting stakeholder interests in the project through effective communication strategy and offering rewards to shareholders. Stakeholder analysis can be carried out at the commencement of the project or at regular intervals during the execution to track the changes in the attitudes of project stakeholders as the project advances, (Patrick, 2008). 1.2 Significance The significance of Stakeholder management lies in the need to make clear the consequences of predicted modifications, potential risks, and opportunities that face the project. Stakeholder management is also vital since it helps to identify the risks and planning for strategies to reduce the effects of risks on the project, (Deming, 1982). 1.3 Stakeholder Categories Stakeholders can be easily classified into four different categories depending upon their potential to collaborate or threaten the project execution or results. 1. Supportive stakeholders are those who do not wis h to threaten the project proceedings and desire to support the project goals and objectives. These types of supportive stakeholders may include the suppliers, funding organizations, company management and consultants. 2. Marginal Stakeholders are those who are neither extremely menacing nor helpful, even though they possess a large stake in the project and can affect the decisions, but are not in general concerned. These may consist of environmentalist groups, and media. 3. Non Supportive Stakeholders are those that have an elevated potential to influence the project in a threatening manner but are short on the potential for cooperation and are the most worrying source of concern for the project manager. These may include the labor unions, governmental organizations, and at times the media. 4. The  mixed stakeholders possess an equal potential to assist or threaten the project and usually consist of clients, end users of the project, (Rowley, 1997). 1.4 Efficient management of St akeholder management Lastly, in order to effectively manage stakeholders within a project environment, it is