The IUP Journal of Soft Skills
Effective Communication Management: A Key to Stakeholder Relationship Management in Project-Based Organizations

Article Details
Pub. Date : Dec, 2018
Product Name : The IUP Journal of Soft Skills
Product Type : Article
Product Code : IJSS31812
Author Name : Kirti Rajhans
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 20



Efficient stakeholder relationship management is an essential requirement for any successful organization. It is a decisive factor and has a direct impact on total environment and profit results of the organization. A methodological approach is needed for proactive stakeholder relationship management in view of the varied stakeholders who have altogether different sorts of expectations and needs. Effective communication management can serve as a strong tool to systematically manage the stakeholder relationships at multiple levels. The main objective of the study is to explore the use of effective communication in stakeholder relationship management and also to find out a methodological framework to use communication as an effective tool for managing successful stakeholder relationships at all levels. The study is conducted through a questionnaire survey and structured interviews of stakeholders working at different project organizations. The results indicate applications of communication in managing multiple functions of stakeholder management. A framework for effective communication management is suggested as a part of the results which can be used by practitioners in all types of project organizations for successful stakeholder relationship management.


Efficient stakeholder management is an essential requirement for any successful organization. Stakeholders are individuals, groups or organizations who may affect or be affected by the outcome of the project (Freeman and Reed, 1983). Most of the profitable business organizations today believe in having strong relationships with relevant stakeholder groups in their business, may it be customers, distributors, employees or shareholders. Stakeholder management is actively and effectively managing these important relationships. Yet there is a need for a methodological approach and an effective tool to manage these varied stakeholders who have altogether different sorts of expectations and needs. Especially, in the context of today’s global economy, achieving sustainable stakeholder relationships is a big challenge for most of the project organizations. A Project-Based Organization (PBO) is different from general organizations in the sense that within a PBO, a project is the primary business mechanism for coordinating and integrating all the main business functions of the firm (e.g., production, R&D, engineering, NPD, marketing, personnel, and finance) (Hobday, 2000). In contrast to the matrix, functional, and other forms, the PBO is one in which the project is the primary unit for production organization, innovation, and competition (Hobday, 2000). According to PMBOK®, PBO refers to various organizational forms that create temporary systems for carrying out their work. Businesses that need and expect fast innovation are most likely to be and suited to PBO.