Link Management – What is it, definition and concept | 2022

Link management is a type of management that is established through the public relations of an organization with its stakeholders.

In other words, it focuses on the fact that organizations should focus their efforts on linking or relating the interests of customers, suppliers, employees, shareholders and the community in general. In this way, value can be created for all interest groups or stakeholders of an organization. This makes public relations between these groups contribute to the good reputation of companies.

Without a doubt, the stakeholders or interest groups of a company can help the organization achieve its business objectives. The importance of interest groups for a company was first analyzed in the 1960s when the Stanford Research Institute (SRI) developed the idea.

However, it was not until the late 1970s and early 1980s that this form of management was developed. Thanks to the contributions of a group of researchers from the Wharton School of Business at the University of Pennsylvania.

What are interest groups in link management?

Stakeholders are all individuals or organizations that with their actions allow the operation of a company. But, at the same time, they are affected by any action carried out by the company.

As a consequence, it is necessary to consider the importance of interest groups in decision-making and in the definition of strategies applied by each organization. Without a doubt, not all stakeholders have the same level of importance for a company. But, no actor or group should be neglected. The views of each stakeholder can be critical to the success of an organization.

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Of course, it is necessary to satisfy the interests of each and every group for an organization to survive and grow. For this reason, it is essential to maintain communication links with all the actors. Only in this way is it possible to know the needs and opinions of all groups. Every organization has many interest groups that it must satisfy, which implies that it must define common objectives that favor the interests of all groups.

How can interest groups be classified in link management?

The interest groups or stakeholders of a company can be internal and external. Therefore, strategies must be created to meet the needs of each group, through the formulation of business objectives that favor common interests.

Internal interest groups

Among the internal interest groups we find:

  • Employees: They are the people who work for an organization in exchange for the remuneration of a salary or wages.
  • Owners: It refers to the natural or legal person who is constituted as the owner of the assets, the movable and immovable property of a company.
  • Shareholders: It is related to all individuals who own commercial, financial or industrial shares of a company or a firm.
  • Management and board of directors: It is the person or group of people whose function is to make the most important decisions within a company. They are responsible for the management process, management and administration of an organization.
Link Management 1
Link management
Internal interest groups

External interest groups

Among the external stakeholders we can mention:

  • Customers: They are the ones who have the decision-making power over the purchase or acquisition of the products that the company sells.
  • Providers: They supply inputs and raw materials to the organization.
  • Dealers: They market the products offered by the company.
  • Governments: They regulate the actions of companies and seek the common good.
  • Media: They disseminate all the activities carried out by the organizations to inform the interested parties. Public relations activities are very important here.
  • Organizations in general: They can be financial, environmental, social organizations, among some that we can mention.
  • Competition: These are all the companies that offer similar goods and services in the market. Any competing company is affected by the organization’s decisions.
Link Management 2
Link management
External interest groups

Communication and bonding in bonding management

Obviously, communication is the main tool to be able to link an organization with all interest groups. Communication makes it possible to build and maintain good relationships with stakeholders and with the activities they carry out.

Similarly, the company must know that stakeholders are only committed if they understand and value the company’s social responsibility. For this reason, communication is essential. Through communication, the company knows the opinions, experiences and interests of all groups. Thus, they manage to establish links and solid relationships with them. Naturally, the company must have adequate communication channels, both internal and external. In this way, advances in management and the results of social responsibility can be disseminated.

In conclusion, it can be stated that organizations that apply link management must take into account the interests of all their stakeholders. Above all, when defining objectives, making decisions, specifying strategies and when planning any change. Otherwise, the result of the entire business is put at risk.

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