Understand The Responsibilities of Three Key Stakeholders: Executive Management, Human Resources

February, 24 2025

Success in any company is seldom the work of an individual. It is the work of numerous stakeholders who work together for one common purpose. Three of these stakeholders are most essential: executive management, human resources (HR), and employees. Each of these has its specific function, but they rely considerably on each other. To properly understand the dynamics of an organization, one must address the roles of these three stakeholders, i.e., executive management and human resources, who determine the tone for the rest of the employees.

Executive Management: The Visionaries and Decision-Makers

Executive management is the most senior level within the organizational hierarchy, generally holding positions like CEOs, CFOs, and COOs. They lead the company to its objective in the long run. That encompasses determining the vision, mission, and long-term strategic path of the corporation. Executive management makes first-order decisions for the entire organization, from investment decisions to expansion strategies for the markets.

The most critical task of executive management is to render the organization sustainable and competitive. That involves a deep understanding of the market trends, customer requirements, and internal capabilities to the extreme. The executive managers need to nurture organizational culture as an innovation and adaptability culture so that the organization can act as a reaction to problems as well as leverage opportunities.

But executive management is not strategy alone. They also have to build credibility and trust among the stakeholders such as investors, employees, and customers. Executive management leads the rest of the company by example through ethics and openness. Their actions and decisions filter down to all departments of the company and impact work culture, employee attitude, and company productivity.

Human Resources: The Bridge Between Strategy and People

While executive management can afford to view the larger picture, human resources come into play to translate that vision into action on the ground for employees. HR is regarded as the backbench of a company, holding it together through the most critical asset: people. From the recruitment and induction process to training and performance management, HR ensures organizational objectives are met with the right talent.

Among the most important functions of human resources is to develop and ensure a positive work environment. This includes formulating diversity, equity, and inclusion policies, addressing employees' issues and conflicts, and so on. HR is also very important in staff engagement, where employees feel appreciated and encouraged to perform their best.

Talent management is also a primary responsibility that HR carries out. This includes skills gap analysis, offering professional growth, as well as implementing succession planning programs. HR balances the workforce's skills with business strategic goals, putting the business in a position to expand in the future.

In addition, human resources is also a go-between between the workers and the executive management. It translates the mission and vision of the leadership to the workers and, on their behalf, acts as a representation of their interests and needs. It is a balancing act that HR needs to perform to ensure that the company and those working within it flourish.

The Interplay Between Executive Management and Human Resources

Executive management and human resources strongly depend on each other. Executive management requires leadership, vision, and guidance, and HR makes sure the appropriate individuals and processes are utilized within the company so that these directions are put into action. Executive management might have to expand into a new geography, so then HR has to find the right kind of employee with the right kinds of skills and knowledge to fuel this initiative.

Likewise, HR depends on executive management for guidance and support. Without leadership support, HR initiatives like diversity initiatives or employee health initiatives might not get the budget and attention required to be successful. Such a mutual relationship highlights the need for cooperation between these two stakeholders.

The Role of Employees: The Heart of the Organization

Executive management and HR are important, but employees' roles must be identified as the second most important stakeholder. Employees are the doers of strategies and generators of outcomes. Employees' productivity, satisfaction, and engagement are directly impacted by what executive management and HR do. Executive management and HR enable employees to do their best by creating a positive and inclusive culture.

Conclusion: A Joint Endeavor towards Success

One must understand the roles played by executive management, human resources, and employees in creating a successful enterprise. Executive management lays out the vision and direction, and human resources provide the manpower with empowerment to achieve such objectives. They are collectively the cornerstones of success, who develop innovation, growth, and employee satisfaction.

Ultimately, it is not just the job of human resources and executive management to control processes or work but to control individuals. Based on this realization of interdependence in their positions, the stakeholders will collaborate and build an organization that works, but also an organization that is sustainable and enjoyable for all. The success of the delicate balance is with the understanding of the position of executive management, human resources, and employees.