Linking external and internal relationship building in networks of public and private a case study", International Journal of Public Sector Management, Vol. In this case, let's take a look at the difference between internal and external An internal customer is someone who has a relationship with your company, though who works within the company, such as general employees and managers. But internal relationship management also looks at how they impact the external consumer market. Employees represent “P” in the marketing model.
Identifying and managing internal and external stakeholder interests | Health Knowledge
Stakeholders placed here can be highly important but having low influence or direct power, however need to be kept informed through appropriate education and communication.
Stakeholders here have low influence and low importance and care should be taken to avoid the dangers of unfavourable lobbying and therefore should be closely monitored and kept on board. Stakeholders placed here can hold potentially high influence but low importance should be kept satisfied with appropriate approval and perhaps bought in as patrons or supporters. However, it is important to recognise, that the map is not static. Changing events can mean that stakeholders can move around the map with consequent changes to the list of the most influential stakeholders.
Monitor and manage stakeholder relationships Stakeholder management is essentially stakeholder relationship management as it is the relationship and not the actual stakeholder groups that are managed.Lesson 1 How Internal and External Factors Drive Organizational Change
Principle 1 Managers should acknowledge and actively monitor the concerns of all legitimate stakeholders, and should take their interests appropriately into account in decision-making and operations. Principle 2 Managers should listen to and openly communicate with stakeholders about their respective concerns and contributions, and about the risks that they assume because of their involvement with the corporation. Principle 3 Managers should adopt processes and modes of behaviour that are sensitive to the concerns and capabilities of each stakeholder constituency.
Principle 4 Managers should recognise the interdependence of efforts and rewards among stakeholders, and should attempt to achieve a fair distribution of the benefits and burdens of corporate activity among them, taking into account their respective risks and vulnerabilities. Principle 5 Managers should work cooperatively with other entities, both public and private, to ensure that risks and harms arising from corporate activities are minimised and, where they cannot be avoided, appropriately compensated.
Internal marketing strategy can be differentiated in two broad categories as follows: Employees as internal consumer and suppliers Customer oriented employee Internal customer concept The very thought of considering employee as customer suggests that internal market will have similar characteristics as the external market. Hence it is relevant to apply external market strategies for internal market as well.
Therefore, internal customer relationship is divided into three parts Employees are considered a customer of an organization Employees are customer and supplier of each other Functional departments are customer and supplier of each other Organizations craft their strategies taking into the account the external market.
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But along the way they assume that all the employee are also aware of these strategies. However, in reality employee may be aware of the organization overall objective and mission, but may not be fully aware of specific directions in challenging times.
Hence it becomes very important to treat the employee as customer of an organization. But the concept of bringing external marketing tools upon internal market may not always work. The condition or state of the internal market is way different compared to the external market. The company is not trying differentiation techniques here but rather communicating its philosophy and strategies to prepare employee in successfully facing the external market.
Organizations encourage employees to take a view that they exist to serve each other.
The focus is to ensure that employee across departments operate in smooth and efficient manner. This will help the organization deliver total quality management. Therefore, every employee performs his or her duty in such a way that it does not create any issues or affects the quality.
Employees are customers of each other is very similar to assembly type manufacturing, if a person fails to do his party correctly eventually the cascading effect will bring the whole process to halt. The final aspect of the internal market is the relationship between different functional departments. Many organizations create regulative systems to deal with functional departments.
This has led to development of the concept of internal profit and cost centers. In order to have efficiency, organization split operations into separate business unit or strategic business unit. Here each unit has its own internal targets it has to achieve to drive overall business profits.
Identifying and managing internal and external stakeholder interests
Employee-external customer relations Organizations by providing value want to create a long term and loyal customer. This value can be created in a way of differentiating. Therefore, it is important for employees to speak to a customer is single language and work towards the same goal.