Effect of Stakeholder Management on the Performance of the Organization in Case of Bank of Abyssinia
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Date
2024-07-30
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A.A.U
Abstract
This study aimed to examine the effect of stakeholder management on organizational performance in bank of Abyssinia. Stakeholder management is the process of identifying and understanding all the people, businesses, governments, internal stakeholders, shareholders and other groups of people that are involved in, or affected by, the organization. Managing stakeholders can enhance firm’s ability to outperform competitors in terms of long-term value creation. It is important to the bank to create positive relationships with stakeholders through the appropriate management of their expectations and agreed objectives. In order to succeed and be sustainable over time, executives must keep the interests of customers, suppliers, employees, communities, shareholders, and stakeholders in general aligned and going in the same direction For this study, the researcher applied a quantitative research approach with both descriptive and explanatory research design. The primary data was gathered through structured questionnaire from 150 employees of bank of Abyssinia. The collected data was analyzed using statistical package for social science (SPSS) version 25 with PROCESS Macro Procedure for SPSS version 3.5. Both descriptive and inferential statistics were used to analyze the data. Research findings revealed stakeholder management has and positive relationship with the performance of bank of Abyssinia.
Based on the research findings, the study concluded that a good stakeholder management has a significant positive effect on organization performance of bank of Abyssinia so Executives and management of the bank have to take the interest of stakeholders while making major decision of the bank since stakeholders have significant impact on the performance of the bank., These findings were in line with the theoretical conceptions and empirical findings that indicated stakeholder management influence organization performance.