Over years, organizations have moved from the goal of profit maximization to wealth creation for shareholders. The present era is of \u2018Stakeholders\u2019 and the organizational objectives revolve around creating value for them. \u2018Product \u2013 centric\u2019 view has made way for \u2018People \u2013 centric\u2019 approach. Stakeholders Value Management includes a whole gamut of activities, which aim to maximize value for all the stakeholders \u2013 shareholders, customers, and employees etc. Since the expectations of stakeholders are varied and ever evolving, it takes the effort of the entire organization to create value. Process such as Management by Objective (MBO) becomes very important because it involves willingness and commitment of employees at all levels. Organizations employ Activity-based Management (ABM) to distinguish between value adding and non-value adding activities, to reduce time and effort for performing an activity and to improve the overall performance of the company. Valuebased Management (VBM) is yet another process applied by organizations to generate value for its stakeholders by detecting areas of additional value creation. A whole range of activities \u2013 value-based analysis, target setting and managerial commitment, employee training and empowerment, gain sharing, etc. are intertwined to realize full potentials of VBM. To top it all, the concept of Balanced Scorecard (BSC) is being increasingly used by the organizations to generate and manage value for their various stakeholders. Perspectives related to financial, customers, internal processes and learning & innovation measures form the core of a Balanced Scorecard. It requires a concerted effort from a management team to convert the organization\u2019s mission and strategy into measurable targets, which can bring the desired change. All these tools and processes have empowered present day organizations to meet the value expectations of its stakeholders.
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Author: Prof. V. K. Gupta<\/p>\n","protected":false},"excerpt":{"rendered":"