Stakeholders are the parties that have some interest with the community hospital. Their actions can affect the hospital, while the actions of the hospital’s management can affect the organization. The management of the organization needs to create good relationships with stakeholders with the help of available, but limited resources. This is because the stakeholders add value to the organization; they are involved in the company’s actions and take risks making decisions influencing the company. Stakeholders can be classified as internal and external; furthermore, they can be ranked from the most valuable to the least valuable stakeholder. The stakeholders of the hospital include: employees, community, creditors, investors, government and patients. The major problem for the management is to maximize the self-interests and expectations of all stakeholders. However, conflicts of interests usually arise, for example, when the shareholders require the management to maximize profits; this would mean that the management has to minimize costs. Minimization of costs implies that employee’s interests of good pay would not be maximized.
The community has good relations with the internal stakeholders and the CEO should maintain these relations. In the case of stakeholders, the CEO should start by gathering information about all stakeholders. The CEO should prioritize the stakeholders from the most important to the least ones. The information gathered will assist the CEO in identifying the needs of the external stakeholders. To understand the needs the CEO has to establish a personalized and consistent communication with the shareholders. Communication with the stakeholders will assist the CEO to know the information they have and that is required. It is important that the stakeholders have proper information about the organization so as the can participate in the processes and culture of the organization.
Having understood the needs of the stakeholders, the CEO should meet stakeholder’s expectations. The CEO should establish reversible communication to be sure the stakeholders get the information they need. The stakeholders should receive the hospital’s newsletters and other important information via e-mail; they should be able to express claims about the hospital’s activities and should be assured of a response. The CEO can raise the effectiveness of the involved strategies by way of the survey about the reputation of the hospital and the perceptions of stakeholders towards the company.