Germany and US Stakeholders Essay Example | Topics and Well Written Essays - 1250 words

Germany and US Stakeholders - Essay Example Through this collaboration, they would be able to achieve two-fold objectives. Firstly, the employees and board representatives would be able to safeguard own interests and pursue their objectives. Secondly, when their objectives are achieved, the larger organizational aims is fulfilled as well (Petrick, 2010). In the stakeholder capitalism model, an employee representative is given a seat on the board of directors. The major responsibility of the employee representative is to communicate to each and every stakeholder about concerns of the employees. The presence of employee representatives within the board also enables the top-level management to establish a robust corporate governance framework for facilitating smooth operation of the organization. By working in collaboration with each other, the employee representative and the management representative can make sure that workflow within the organization is smooth. In addition, they are able to secure achievement of operational efficiency (Fauver&Fuerst, 2006). Achieving operational excellence is one of the most important objectives that organizations aim to attain. Operational efficiency can be facilitated only if the top-level management possesses very good knowledge about the workforce available to the firm. Such knowledge would allow the managers to allocate resources effectively according to the skills and experience of the workforce as well as the operational objective. By allocating resources effectively, managers are able to achieve operational efficiency and therefore maximize value for the shareholders. However, only satisfying the needs of the shareholders do not guarantee a company’s success. The management also has to be concerned about employee needs. They need to identify and understand interests of the employees, as they are perhaps one of the most important stakeholders (Faccio, Lang,& Young, 2001). In order to meet the employee needs,