Glossary / Lexicon

Deutsch: Stakeholder / Español: Parte interesada / Português: Parte interessada / Français: Partie prenante / Italiano: Parte interessata

Stakeholder in the quality management context refers to any individual or group that has an interest or is affected by the quality outcomes of an organisation’s products or services. This includes customers, employees, suppliers, shareholders, regulatory bodies, and even the community at large. The key element is that stakeholders have varying degrees of Influence on, or interest in, the quality processes and outcomes, making their input and Satisfaction critical in shaping quality strategies.

Description

In quality management, understanding stakeholders is crucial as their expectations often define the success of a product or service. Each stakeholder group may have different needs or concerns about quality. For instance, customers expect reliability, safety, and value, while employees focus on internal processes, work environment, and job satisfaction. Suppliers may seek clear communication and long-term partnerships, whereas shareholders focus on financial performance linked to product quality. Regulatory bodies ensure compliance with legal standards, and the community may be concerned with the company’s environmental and social impacts.

By identifying and managing the interests of various stakeholders, organisations can align their quality management systems to meet the needs of these groups. For example, ISO 9001, a widely recognized standard for quality management systems, emphasizes the importance of considering stakeholders' needs and expectations. This is part of the broader customer-focused approach that drives continual improvement in organisations.

The history of stakeholder Inclusion in quality management stems from the development of broader management theories in the 20th century, particularly in the 1980s and 1990s, when companies began to realize that focusing solely on internal processes was insufficient for delivering superior quality. The introduction of Total Quality Management (TQM) frameworks helped bring a more holistic approach, where all stakeholders’ needs became integral to ensuring long-term success.

Application Areas

In quality management, stakeholders are particularly relevant in:

• Product design: Involving stakeholders ensures that products meet the intended quality standards and customer requirements.
• Process improvement: Feedback from various stakeholders, especially employees and customers, drives continuous improvement.
• Compliance and standards: Regulatory stakeholders ensure Adherence to laws, regulations, and industry standards.
• Customer satisfaction: The primary goal of any quality management system is to meet or exceed customer expectations, which is achieved by involving customers as key stakeholders.
• Supply chain management: Involving suppliers as stakeholders fosters better communication and collaborative quality improvements.

Well-Known Examples

• Toyota: Through its famous Toyota Production System (TPS), the company integrates various stakeholders, including employees and suppliers, to continuously improve product quality and processes.
• Apple: Known for its customer-centric quality approach, Apple takes feedback from customers, ensuring that their products exceed expectations.
• ISO 9001: This quality management system standard mandates organisations to consider the needs and expectations of relevant stakeholders, ensuring that quality processes are aligned with their requirements.

Treatment and Risks

Focusing too heavily on certain stakeholders while neglecting others can lead to risks in quality management. For example, over-prioritising shareholder interests might push companies to cut corners, which could negatively impact product quality and long-term customer satisfaction. Similarly, ignoring regulatory stakeholders can result in Non-Compliance, leading to fines or legal action.

There is also the challenge of balancing conflicting interests. Employees might push for better working conditions, which could increase production costs, while customers may demand lower prices. Managing these divergent priorities effectively is essential for maintaining a high-quality output.

Similar Terms

• Interested parties: Used interchangeably in quality management to describe stakeholders.
• Key stakeholders: Refers to the most influential or critical stakeholders in a specific context.
• Shareholders: A specific group of stakeholders focused on financial returns.

Weblinks

• finanzen-lexikon.de: 'Stakeholder' in the finanzen-lexikon.de (German)
• umweltdatenbank.de: 'Stakeholder' im Lexikon der umweltdatenbank.de (German)
• top500.de: 'Stakeholder' in the glossary of the top500.de
• travel-glossary.com: 'Stakeholder' in the travel-glossary.com

Summary

In quality management, stakeholders play a central role as they influence or are affected by the quality outcomes of an organisation. Whether customers, employees, suppliers, or regulatory bodies, understanding and managing their expectations is essential for aligning quality management processes. Successful companies effectively balance the needs of different stakeholders to drive continuous improvement and ensure long-term quality excellence.

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