Introduction
Social performance refers to the organizational processes of achieving the social mission of an organization (Performance Improvement Institute, 2009, 45). In the process of achieving the social mission of an organization, practices should rhyme with the set and accepted social values of the organization.
These values are related to the mission of satisfying customers, especially those in the minority groups, ensuring that financial practices of an organization are of high quality and developing a system that gives benefits to the organization’s clients (Performance Improvement Institute, 2009, 47).
At Global Star Corporation, social performance is satisfactory in the fulfillment of the organization’s mission. However, a few changes and adjustments could go a long way in improving performance in this area.
This would involve the participation of the corporation’s stakeholders. Their participation would involve the formation of a coalition that would be monumental in the achievement of GSC’s goals.
Global Star Corporation
Global Star Corporation (GSC) is a medium sized company that deals in the manufacture and sale of furniture and office equipment.
GSC’s social mission is to use environmentally friendly materials in the manufacture of goods, maintain quality of the products to keep customer satisfaction high, foster transparent financial services at the corporation and improve the lives of clients through the provision of our goods and services.
For maximum efficiency and productivity at GSC, the role of stakeholders cannot be ignored. The success of GSC can be attributed to the contributions of both primary and secondary stakeholders, who serve different roles and have different relationships to the corporation.
The main motivation is their stakes in the corporation and their benefit stems from its good performance and high output.
Stakeholder groups and their roles
There are two stakeholder groups at GSC. These include the primary and secondary stakeholders. Primary stakeholders include people who are affected directly by the performance of an organization, whether the performance is positive or negative (Performance Improvement Institute, 2009, 44).
These groups include the cities’ women welfare group and the Association of businesspersons. These two groups own the largest portion of the corporation. Their roles include certifying organizational projects, overseeing the making of the budget and making the most crucial corporate and financial decisions of GSC.
In addition, they are responsible for the formulation of the corporation’s mission and guiding principles, developing procedures and policies for decision making processes and determining different timelines for different outcomes of the corporation’s goals (Performance Improvement Institute, 2009, 51).
Other roles include promotion of community education and overseeing activities and projects that improve the corporation’s organizational culture.
Secondary stakeholders include people who are not directly affected by the outcome of an organization’s performance (Performance Improvement Institute, 2009, 48). The secondary stakeholders include financial institutions and several government agencies.
Their role is to provide help to primary stakeholders in decision-making and to offer financial support. Precisely, government agencies oversee the execution of established policies and procedures in the corporation.
In addition, they are involved in certain corporate roles such as ensuring good financial management and improving the quality of the corporation’s management systems.
Financial institutions role is to provide financial assistance such as funding projects and financial advice on investments and projects undertaken by the corporation.
They benefit from the outcome of GSC’s performance but not as directly as the primary stakeholders do.
Stakeholders influence on GSC
Stakeholders play a key role in the success of a business. At GSC, stakeholders could be instrumental in determining the destiny of the corporation.
Stakeholders could do this by making well-informed decisions on behalf of the organization, investing in new technology, establishing policies and procedures that encourage the attainment of the organization’s mission and objectives and supporting the organization’s management and employees.
In addition, stakeholders could offer financial assistance, offer networking opportunities and help define different job roles and responsibilities at the corporation.
Stakeholders’ coalition
A coalition made up of the primary and secondary stakeholders is a key factor in the attainment of an organization’s goals.
Such a coalition promotes collective responsibility and encourages broad support of the corporation’s management in the attainment of goal and objectives (Craig and Campbell, 2012, 38).
In order to get stakeholders to form a coalition, a plan would be necessary. The plan would involve a two-day seminar for all stakeholders. The first day would involve primary stakeholders training and the second, secondary stakeholders training.
The theme would be how to improve the organizations performance by forming a coalition of all stakeholders. They would be informed of the inherent benefits of such a coalition and what they would lose if they failed to form one.
This would involve demonstration of the benefits of a coalition by using successful companies as case studies. The plan would also include results of past studies of companies that operate under such a stakeholders’ coalition and their achievements.
A stakeholders’ coalition could assist in the attainment of goals through financial assistance, passing of policies and procedures vital to the organization and offering corporate help in the process of decision-making.
Challenges in forming a coalition
There are potential challenges in convincing stakeholders to form a coalition because they have different interests in the corporation (Craig and Campbell, 2012, 38).
The main challenge would lie in the creation of value for each stakeholder and the inclusion of the goals and objectives of each stakeholder group into the company’s goals and objectives, and involvement of each in the process of decision-making.
One on one discussion with each stakeholder group would overcome this challenge effectively. The discussion’s objective would be to demonstrate the importance of the coalition and its benefits to the stakeholders.
In addition, seeking professional assistance in handling the issue would help overcome the challenge. A professional would successfully convince the stakeholders to form a coalition based on research studies and corporate experience.
Conclusion
Social performance refers to the organizational processes of achieving the social mission of an organization. Organizational practices should rhyme with the set and accepted social values of the organization.
These values are related to the mission of satisfying customers, especially those in the minority groups, ensuring that financial practices of an organization are of high quality and developing a system that gives benefits to the organization’s clients.
The role of stakeholders is very important for organizational success. The success of GSC can be attributed to the contributions of both primary and secondary stakeholders, who serve different roles and have different relationships to the corporation.
To improve social performance at GSC, it would be necessary to form a coalition between the two groups of stakeholders. The inherent benefits of such a coalition would be sufficient to convince them into forming a coalition.
References
Craig, T., and Campbell, D. (2012). Organizations and the Business Environment. New York: Routledge.
Performance Improvement Institute. (2009). Social Organizational Performance Review: Concepts and Research. New York: Author house.