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Organisational Behaviour

A stakeholder of a company or business in simple terms can be explained as an individual or a group of investors that has an interest in the success of that business and are involved in the growth and progress of that firm (Benn, Abratt, & O’Leary, 2016). These stakeholders are interested in the outcome of the business as they are a part of it and have invested in that business in some way. Among others, these stakeholders are also affected by the organization’s performance, activities and policies. Primary stakeholder of Air New Zealand of this company are the owners/directors/board members/company executives, its customers, its employees, the government and regulators, the investors, suppliers, tourism industry and unions.

Stakeholder conflict arises when the needs of some stakeholder groups clash with the expectations of other stakeholders (Canavan, 2017). Similar stakeholder conflict might be witnessed by Air New Zealand company between its two stakeholders i.e. employees and the owners or management of the company. The management at times propose for salary/pay cut of its employees to reduce operating cost. This will give rise to conflicts among the employees (Canavan, 2017). Another clash of interest is usually witnessed when the management introduces new work protocols or machinery in its operations. Employees often tend to and oppose such sudden changes, which give rise to conflicting interests. Stakeholder conflicts can also arise between the customers and the management of the company (Canavan, 2017). The company might sometimes increase the selling prices of its product and service to increase its profit margin. This creates discomfort among the customers, and they might lose interest in the company.

Reference for Air New Zealand Stakeholder Analysis Report

Benn, S., Abratt, R., & O’Leary, B. (2016). Defining and identifying stakeholders: View from management and stakeholders. Journal of Business Management, 47(2), 58-59.

Canavan, B. (2017). Tourism stakeholder exclusion and conflict in a small island. Journal of Leisure Studies, 36(3), 409-422. https://doi.org/10.1080/02614367.2016.1141975

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