Chapter 1: Introduction and Background

1.1 Introduction

The integral notion of the South African community states that “ nothing for us without us”.This makes the management of stakeholders a crucial aspect of any project. Especially when it comes to a government-funded infrastructural project, in South Africa where a large population becomes a stakeholder. All of the stakeholders have a significant impact on the government-funded infrastructure project that is being measured through this research.

The central aim of the research revolves around multiple categories of stakeholders in such Infrastructural projects that involve community organization, funder( client), user client, and a team of professionals, who play an important role in the successful implementation of the project. The impact of each of the categories has been critically evaluated, considering the risk associated with the project and enabling strategies that provide guidance in the successful implementation of the project.

1.2 Background to the study

The management of external, why stress external: stakeholders is becoming increasingly important since sustainable business projects gained popularity. It is a component of modern project management due to the risks and complexity of government infrastructure projects. Because the various stakeholders are internal and external to the organization. In developing countries such as South Africa, Pakistan, and Columbia .each have unique requirements from its government, it is essential that these countries take this into account when formulating policies and planning infrastructure programs as it helps in achieving the objective of sustainable development of the developing country (Ministry of housing community and local government (U.K.), 2021). External stakeholder engagement is considered crucial to generate values in the project that are inter-organizational ( Lehtinen & Aaltonen, 2020). The study tends to identify how government tends to manage external stakeholders by initiating engagement programs and delivering a solution that generates value. The large-scale infrastructural development and implementation of the project have an effect on the different interests of its stakeholder. The positive influence of such a project can lead to improvement in communication, and generate a higher standard of living for external stakeholders. Contrary to this, infrastructural project such as construction creates degradation and modification on a regional scale. External stakeholders like society, citizen associations, etc invest their related concerns in the project (Pacagnella Júnior et al., 2015).

It is necessary for the internal project stakeholders like employees board of directors as well as the project managers to communicate with the external project stakeholders in a manner that is not detrimental to the project goals. Therefore, the process of stakeholder management needs to be planned out in order to improve projects within the public sector, particularly from the perspective of a country that is still in the process of developing its economy like South Africa. In the context of Thulare High School, the purpose of this research was to determine the frequency within which external stakeholder management is utilized in the construction of public sector infrastructure (Tirumala & Tiwari, 2022).

1.3 Statement of the problem

Government-funded projects involve numerous stakeholders with different technical backgrounds and different levels and types of project goals. So, if project managers want to meet the goals of continuous improvement, good stakeholder management, and customer satisfaction, it is important to pay attention to the interdependencies and competing interests of stakeholders, the dynamics of projects with a high degree of unpredictability, financial oversight, and public scrutiny (Thizy et al., 2019).

The project that involves the development of infrastructure involves a massive amount of capital (Inga et al., 2020).Due to this, the management of the project needs support from the external stakeholders, as it helps in attaining the edge in competition (Ninan et al., 2020). In projects that include inter-organizational efforts there is an excessive requirement of support from external stakeholders as it offers information about the function related to the project, duties and the required arrangements, and initiative to manage different interests (Lehtinen & Asltonen, 2020).

1.4 Research questions

The qualitative research questions are as follows

• What is the importance of project stakeholder management?
• What is the impact of project stakeholder management on Government projects like Thulare High School?
• What recommendations can be given to improve project stakeholder management?
• What is the significance of stakeholder management in government-funded infrastructure projects in South Africa, particularly in the context of Thulare High School?
• What are the key factors that influence the success of stakeholder management in government-funded infrastructure projects, and how do they impact the outcome of the project?
• Based on the findings of the study, what recommendations can be made to improve stakeholder management in government-funded infrastructure projects, particularly in South Africa and for Thulare High School specifically?

1.5 Research objectives

The research objectives are as follows:-

• To analyze the importance of project stakeholder management
• To evaluate the impact of project stakeholder management on Government projects like Thulare High School
• To analyze different recommendations that can be given to improve project stakeholder management
• To assess the extent to which effective stakeholder management contributes to the success of Government-funded projects, using Thulare High School as a case study.
• To identify the key stakeholders involved in the Thulare High School project and analyze their roles, interests, and power dynamics.
• To evaluate the effectiveness of stakeholder management strategies used in the Thulare High School project and identify areas for improvement.
• To develop a set of recommendations for improving stakeholder management practices in Government-funded projects, based on the findings from the Thulare High School case study.
• By making the objectives more specific and measurable, the student can focus their research efforts more effectively and provide a more in-depth analysis of the research problem.

1.6 Research hypotheses

The research hypothesis is as follows:-

H0: Effective project stakeholder management positively impacts the success of government-funded projects, specifically in the case of Thulare High School.

H1: Effective project stakeholder management does not have a significant impact on the success of government-funded projects, specifically in the case of Thulare High School.

1.7 Rationale/motivation/justification for the study

Projects are becoming an increasingly common tool for managing policy and ensuring that public services are carried out effectively as an increasing number of organizations are collaborating to provide public services through networks. People typically believe that participating in projects will provide them with opportunities to be flexible and generate new ideas (Urbinati et al., 2021).

The empirical results will show what practices should be avoided and how projects can be made to be more innovative. When done properly, involving various stakeholders in the development of public sector projects is believed to have an impact on innovation.

Public sector organizations' motive is to serve the public at a large scale, there are many problems that a project manager might face in managing the projects of the public sector, which include conflicts in setting up the goals, dealing with the management of multiple layers of stakeholders, problem in managing cooperation and performance external agencies for ensuing quality purchasing, hiring and in performing other functions (Wirick, 2009).

There are vast risks and complexities involved in the development of public infrastructural projects this has increased the role of management of external stakeholders in project management, as in countries that are in their developing phase management of stakeholders becomes essential for managing the policies and developing plans for the infrastructure as it assists in meeting out the expectation of different stakeholders, especially those who are external to the organization. When these external parties are considered while developing the goal this helps in overcoming the barriers in making decisions and enables smooth communication (Karlsen, 2002).

1.8 Significance of the study

The objectives of the project provide a clearer definition of both the perceived value and the reason for undertaking the project. The most challenging aspect of project management is overcoming obstacles to completing a task while maintaining adherence to requirements regarding quality, timeline, scope, and finances. It's possible that the managers and sponsors of a project will consider their consensus on the project's goals and milestones to be a legally binding contract. Indicators for large-scale projects can be adjusted on an individual basis. Indicators of a project's success can be improved by including the project's most important stakeholders in the process of identifying these indicators at an earlier stage in the project. The study utilized standard metrics for the purpose of measuring performance, such as the satisfaction of the users, the duration of the project, and the cost (Thizy et al., 2019).

1.9 Assumptions of the study

There are different assumptions made in the study. The stakeholder theory is driven by a variety of factors in addition to profits and productivity. It is not only the right thing to do, but it is also the ethical thing to do. Employers have discovered that when workers are satisfied with their jobs, their mental health sees significant improvement. It will also improve the social and economic standing of the company in the neighborhood where it is located. When one business implements stakeholder theory, it serves as motivation for other businesses to do the same. This results in a competitive environment that is beneficial for both the companies and the people they serve as stakeholders (Urbinati et al., 2021).

1.10 Limitations of the study

This research is based on Government funded projects. Therefore, all the information may not be available publically.

1.11 Delimitation of the study

 This includes the development of management plans to maintain their active involvement in the project as well as their interest in it. It's possible that there will be more than one kind of stakeholder involvement in the project, and that their goals won't always align perfectly with one another.

1.12 The theoretical foundation

The theoretical foundation will be based on stakeholder theory and stakeholder management. Customers, suppliers, employees, investors, and communities are all considered to be "stakeholders" under the umbrella term of "stakeholders" because they all have an interest in the prosperity of a business. According to this school of thought, a company has an obligation to look out for more than just the interests of its shareholders (Thizy et al., 2019).

1.13 Theoretical/conceptual framework – discuss this in detail

The conceptual framework is as follows:-

Figure 1: Conceptual Framework

1.14 Summary of the chapter

The social and economic partners of a company, whether they are employees or customers, are collectively referred to as the company's stakeholders. These individuals, who are either immediately or indirectly impacted by the activities of the company, have some degree of influence over the direction that the company takes. Therefore, the company is responsible to all individuals and must take into consideration what they have to say. It is necessary for users to not only determine who the stakeholders are but also plan how they will interact with those stakeholders. There are some participants in the project who can fulfill multiple roles at the same time. Depending on how they participate in the project, stakeholders can either help it or hurt it. The extent to which a project's stakeholders are managed proactively is one of the most important factors that can determine the outcome of the project.

Chapter 2: Literature Review

2.1 Project Stakeholder Management through Stakeholder Theory

When discussing the management of a project or an organization's stakeholders, the stakeholder theory discusses the ethics, morals, and values of the business. It makes an effort to get the most out of relationships with stakeholders, which ultimately improves the operation of the entire project or organization. The concept of stakeholders is applied in a wide variety of significant domains, including strategic management, corporate social responsibility, project management, and business ethics (Lehtinen & Aaltonen, 2020).

Urbinati et al., (2021) argue that the topic of project governance has become an increasingly popular topic of conversation among stakeholders involved in public sector projects. The concept of governance raises questions about the economic and social responsibilities of various institutions, as well as the manner in which these institutions can collaborate to share power and get things done without having to rely on the government (Martinsuo, Vuorinen & Killen, 2019). Over the course of the past few years, a significant amount of study has been conducted on the topic of how to evaluate the success of public sector infrastructure projects. People in less developed nations are only just beginning to understand how to make use of the various tools and strategies involved in project management (Thizy et al., 2019).

If economies that are still growing want to keep growing and reach the same level of economic success as developed countries, they need to pay attention to their infrastructure. Because of the large number of different people who are involved in a public sector infrastructure project from the beginning to the end, even more components of the project are missing. Now more than ever, successful management of the project's stakeholders is absolutely necessary for its completion. It is essential to involve the people who have a vested interest in a project and gain an understanding of what their wants and needs are in order to guarantee the project's success. The neglect of the project's stakeholders is one of the primary factors contributing to the failure of large-scale infrastructure endeavors (Martinsuo, Vuorinen & Killen, 2019).

They need an effective method of project management in order for public-sector infrastructure development projects such as in Thulare High School to be successful over the course of their entire lifespan. The mechanism needs to ensure that all stakeholders are represented in order to lend legitimacy to the decisions that are made regarding the projects. Without proper governance, only the voices of those who are the most outspoken will be heard, and the likelihood of crises and failed projects will increase infrastructure (Tirumala & Tiwari, 2022).

2.2 Impact on Project Stakeholder Management on Government Projects

The practice of public procurement is gaining more and more recognition as a respected profession that plays an essential part in the efficient administration of public resources. A number of nations have also developed a greater awareness of the significance of procurement as an area that is prone to mismanagement and corruption, and they have made efforts to include procurement in a more strategic view of the work that the government does. As a part of their efforts to take a long-term and strategic view of their procurement needs and management, the majority of nations have turned to their annual procurement plans as a possible way to solve problems as part of their efforts to take a strategic view of their procurement needs (Martinsuo, Vuorinen & Killen, 2019).

According to the stakeholder theory, there are various parties besides stockholders who should be taken into consideration when making business decisions. Communities, community groups, trade unions, trade associations, environmental organizations, government agencies, associated corporations, employees, customers, and the general public are all considered to be part of these groups. The theory of stakeholders has predicated on the premise that an organization maintains connections with a wide variety of groups and that it can win and maintain the support of these groups by taking into account and attempting to strike a balance between the relevant interests of these groups (Thizy et al., 2019).

According to the stakeholder model, all individuals or organizations that have legitimate interests and participate in a business do so in order to gain something from it, and the model also states that no one set of interests and benefits is more important than another set of interests and benefits infrastructure (Tirumala & Tiwari, 2022). According to stakeholder theory, all of the following should be considered: communities, community groups, trade unions, trade associations, environmental groups, government agencies, related corporations, potential employees, potential customers, and the general public.

There are two distinct types of activities that fall under the category of stakeholder management: demonstrating and discussing the significance of stakeholder management for managers, and investigating the function and worth of the stakeholder management process. The vast majority of research on how managers interact with project stakeholders has taken a practice-oriented approach and focused on the conceptual development of various frameworks, tools, and processes that managers can use to locate, categorize, and manage project stakeholders. This approach has been adopted by the majority of the research that's been conducted (Martinsuo, Vuorinen & Killen, 2019).

The majority of the time, challenged projects are completed and fully functional; however, they end up costing more than anticipated, taking longer than anticipated, and having fewer features and functions than were originally planned. Those projects that are deemed to have fatal flaws or to have been unsuccessful are scrapped at some point during the development process. Using this method, it is simple to distinguish between complete successes and partial successes, which are accomplishments that have been achieved but do not fully satisfy all requirements. Even though the functionality is still pretty subjective, it also enables you to make clear comparisons between the time and cost that was budgeted and the actual time and cost that were incurred (Urbinati et al., 2021).

2.3 Impact of Infrastructural Project on South Africa

Infrastructure is a crucial component in ensuring the development of the economy of South Africa, it facilitates in accumulation of capital and increases productivity.The infrastructural project involves communication, transportation, highways, etc. It is observed that the return derived from the external network is higher in the case of social infrastructure when compared to private (Estache & Garsous, 2012).

There is a long-term observation of South African human development policy that revealed the fact that there is a significant amount of underinvestment in this field that is negatively impacting the quality of human capital. This provides an indication of the requirement of African industries towards strong human capital. The poor education policy by the government of South Africa serves negatively in sectors that are based on knowledge within the economy (Fedderke & Bogetic, 2009).

2.4 Recommendations to improve project stakeholder management

For a project to be successful participation from a wide variety of individuals is required; a shrewd project manager will identify these individuals and determine which aspects of the project influence. It is not uncommon for a forgotten stakeholder to rear their head at the worst possible moment, causing the project to be plagued with a wide variety of issues (Martinsuo, Vuorinen & Killen, 2019).

On the other hand, many project teams do not do a good job of figuring out who the project's stakeholders are and how to convince them to agree with the project's goals. A significant number of those involved have an incorrect understanding of all of this. They want precise estimates at the beginning of the project, which is precisely when there is the most room for error. The reserves for both cost and time are called into question and cut as if they were merely extra padding that the project team added to make themselves look better. The only person who can adequately explain why sound project management principles are effective is a project manager who exudes confidence and strength. Project managers now have a new area of concentration and concern to focus on stakeholder management (Lehtinen & Aaltonen, 2020).

2.4 Summary

This research focused on some ideas, tools, and techniques that can assist working project managers in dealing with the various challenges they face when setting and managing the expectations of stakeholder groups. There were some suggestions made to assist the project manager and the team with establishing structured processes and acquiring tools to assist in this vital area.

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction

The term "research methodology" means "a system of carefully planned ways to do research." It talks about the pros and cons of each method and what it would take to use them (Taherdoost, 2021). From this part, readers will be able to figure out the researcher's strategy, approach, and method, as well as what they expect to find. This section also helps the reader learn more about the study and the methods and techniques that were used to get the results of the relevant research.

3.2 Research paradigm and orientation

This study is based on positivism, which explains society by focusing on facts and scientific methods. Positivism says that the world can be seen and measured in an objective way. Through collecting and analyzing quantitative data, the researcher tries to find causal relationships and patterns that can be applied to a wider group. Positivism will be used in this study to find the best ways to improve the management of project stakeholders (Thizy et al., 2019).

3.3Research approach

This study is a good fit for a descriptive research method because its main goal is to figure out the best ways to manage project stakeholder management A descriptive study will allow data to be collected from a sample of Government officials and other project stakeholders in order to describe the current state of project stakeholders management, the problems it faces, and the possible solutions that could be used.

3.3.1 Research approach to data collection

When conducting an analysis with SPSS, one is able to generate a variety of descriptive statistics, including the mean, the standard deviation, and the frequency distribution, amongst others. Additionally, because of this, it is possible to find significant differences between groups, which can then be utilized to test hypotheses in research. The use of SPSS analysis also makes it simpler to create graphical representations of data, which in turn makes it less difficult to comprehend and present the findings of the study. Therefore, the SPSS analysis is a good choice for this study because it provides a dependable and accurate way to look at the data and assists in achieving the objectives of the research.

3.3.2 Research approach in data analysis

The research is quantitative and uses a cross-sectional methodology. The survey is the first step in the research process, and it enables us to collect sufficient data while adhering to the constraints imposed by time and resources. The purpose of the questionnaire is to collect numerical data that is relevant to the objectives of the study (Taherdoost, 2022).

3.4 The quantitative or qualitative strand in the research approach

In order to collect the necessary information for this quantitative research study, we will be using survey questionnaires. A questionnaire will be developed in order to facilitate the collection of detailed information regarding the research questions and objectives. The users are provided with a method that provides readers with a structured way to collect data, ensuring that the questions the researcher asks and the answers they get are consistent at all times (Taherdoost, 2021).

It enables the collection of quantitative data that is then capable of being analyzed using statistical techniques. Because of this, determining the relationships between variables that are significant becomes much simpler. The survey questionnaire is another effective method for collecting data because it can be distributed to a large number of individuals all at once and completed at a distance, which saves both time and money.

3.4.1 Coverage of the study

The coverage of the study is about project stakeholder management of officials and parents of the student of Thulare High School.

3.4.2 Target population

The target population will be the officials and parents of the student of Thulare High School.

3.4.3 Sample size calculation (for quantitative study only)

The correctness and reliability of a research study are affected by the size of its sample. In this thesis, a sample size of 40 people has been chosen. The sample size is chosen based on a number of factors, such as the type of research, the size of the population, the level of accuracy needed, and the statistical analysis method used.

The sample size of 40 people is good for this study because it meets the needs of the research design and data analysis method that were chosen. Also, the sample size is representative of the target population, which makes it more likely that the results can be applied to the whole population. So, 40 people were chosen as a good sample size for this study, and the results can be considered valid and reliable (Martinsuo, Vuorinen & Killen, 2019).

3.4.4 Research design

The research design that was decided to use for this study was the descriptive one. The objective of a descriptive design is to provide a comprehensive and correct picture of whatever is being investigated by describing and explaining a phenomenon or event as thoroughly as possible. The data for this design were gathered by conducting surveys, interviews, and carrying out direct observations. After that, the data are summed up and analyzed statistically, and then the results are interpreted. Finding patterns and trends, determining how different variables are related to one another, and describing what a sample is like are the objectives of descriptive design (Taherdoost, 2021).

3.4.5 Sampling Methods

The sample size will be evaluated with the help of the random probability sampling method. To conduct this quantitative study, a probability sampling strategy was adopted. A random sample is one drawn from a population in which each individual has an equal chance of being chosen. This method ensures that the sample is representative of the whole, allowing for confident extrapolation of the results.This facilitates statistical analysis and lessens the potential for bias. Because of its ability to provide accurate and comprehensive data in support of the study's aims, probability sampling is a suitable methodology for this investigation. 

3.4.6 Data collection methods

When SPSS analysis is used, a number of descriptive statistics can be made, such as the mean, the standard deviation, and the frequency distribution. It also makes it possible to find big differences between groups, which can be used to test research hypotheses. Using SPSS analysis also makes it easier to make graphical representations of data, which makes it easier to understand and present the results. So, SPSS analysis is a good choice for this study because it is a reliable and accurate way to look at the data and help reach the research goal (Taherdoost, 2022).

3.4.7 Instrument for data collection

In order to collect first-hand information for the purpose of this study, questionnaires were used. The questionnaire contained questions that were quantitative as well as qualitative in nature. After going over the research, they were fabricated by the team. The qualitative questions were free-form, and their primary purpose was to elicit information about the topic being investigated. A Likert scale was utilized for the quantitative questions that were asked.

3.4.8 Pilot study

The given research will not use any form of a pilot study.

3.4.9 Validity and Reliability

The degree to which an instrument is able to accurately measure the phenomenon that it is designed to measure is referred to as its validity. It is a comparison of the differences that were found using a measuring tool to the actual differences that existed between the individuals who were being tested. Validity can be broken down into two primary categories: content validity and criterion-related validity. The extent to which a measuring tool covers the subject matter that is the focus of the research is known as its content validity. The ability to predict an outcome or to estimate the presence of a current condition is what we mean when we talk about criterion-related validity.

3.4.10 Administration of research instruments

The information was obtained in a reasonable and trustworthy manner by the researcher from reputable sources. In addition, the citations and references that were used were appropriate for the data that was collected, regardless of whether it was obtained through primary research or secondary research based on previously published works.

3.4.11 Ethical considerations

In the field of research, ethics play a significant role, particularly during the dissertation phase, due to the fact that failing to adhere to them can result in unsatisfactory findings. When it comes to collecting, analyzing, and interpreting data for a research project, these core principles encompass all of the rules, standards, and guidelines that absolutely must be adhered to. Avoiding the practice of making up data is extremely important if one hopes to achieve the primary objective of gathering information that is factual, insightful, reliable, and valid.

For the purpose of this investigation, the researcher ensured that the individuals who participated in the survey were treated fairly by showing them the respect and dignity that was due to them. No one harmed or mistreated any of the respondents, which ensured that their self-respect and sense of worth were not violated in any way (Taherdoost, 2022).

3.4.12 Procedure for hypothesis testing

The quantitative data will be coded and put into SPSS after the data has been collected. The different points of view of the respondents about stakeholder management were found by looking at descriptive statistics.

3.4.13 Measurements (Quantitative studies)

The survey questionnaire is also an efficient data collection method because it can be administered to large sample sizes and conducted remotely, thereby reducing the time and resources required for data collection.

3.5 Summary of the chapter

The information the researcher required was obtained in a straightforward and truthful manner, and it came from reputable sources. In addition, the citations and references that were used were appropriate for the data that was collected, regardless of whether it was obtained through primary research or secondary research based on previously published works.

References

Erkul, M., Yitmen, I., & Celik, T. (2020). Dynamics of stakeholder engagement in mega transport infrastructure projects. International Journal of Managing Projects in Business, 13(7), 1465-1495.

Lehtinen, J., & Aaltonen, K. (2020). Organizing external stakeholder engagement in inter-organizational projects: Opening the black box. International Journal of Project Management, 38(2), 85-98.

Lumpkin, G. T., & Bacq, S. (2019). Civic wealth creation: A new view of stakeholder engagement and societal impact. Academy of Management Perspectives, 33(4), 383-404.

Martinsuo, M. M., Vuorinen, L., & Killen, C. (2019). Lifecycle-oriented framing of value at the front end of infrastructure projects.  International journal of managing projects in business ,  12 (3), 617-643.

Shackleton, R. T., Adriaens, T., Brundu, G., Dehnen-Schmutz, K., Estévez, R. A., Fried, J., ... & Richardson, D. M. (2019). Stakeholder engagement in the study and management of invasive alien species. Journal of environmental management, 229, 88-101.

Taherdoost, H. (2021). Data Collection Methods and Tools for Research; A Step-by-Step Guide to Choose Data Collection Technique for Academic and Business Research Projects.International Journal of Academic Research in Management, 10(1): 10-38

Taherdoost, H. (2022). What are Different Research Approaches? Comprehensive Review of Qualitative, Quantitative, and Mixed Method Research, Their Applications, Types, and Limitations. Journal of Management Science & Engineering Research, 5(1), 53-63. DOI: https://doi.org/10.30564/jmser.v5i1.4538

Thizy, D., Emerson, C., Gibbs, J., Hartley, S., Kapiriri, L., Lavery, J., ... & Robinson, B. (2019). Guidance on stakeholder engagement practices to inform the development of area-wide vector control methods. PLoS neglected tropical diseases, 13(4), e0007286.

Tirumala, R. D., & Tiwari, P. (2022). Innovative financing mechanism for blue economy projects. Marine Policy, 139, 104194.

Urbinati, A., Landoni, P., Cococcioni, F., & De Giudici, L. (2021). Stakeholder management in open innovation projects: a multiple case study analysis. European Journal of Innovation Management, 24(5), 1595-1624.

Wojewnik-Filipkowska, A., & Węgrzyn, J. (2019). Understanding of public–private partnership stakeholders as a condition of sustainable development. Sustainability, 11(4), 1194.

Estache, A. & Garsous, G. (2012). The impact of infrastructure on growth in developing countries. , 12-23.

Fedderke, J. W., & Bogetic, Z. (2009). Infrastructure and growth in South Africa: Direct and indirect productivity impacts of19 Infrastructure measures. World Development. 37(9). 1522-1539. 10.1016/j.worlddev.2009.01.008

Wirick, D.W. (2009). Public-sector management meeting the challenges and achieving the results. Public Sector Project Management. John Wiley & Sons. Inc.

Karlsen, J.T., (2002). Project stakeholder management. Engineering Management Journal. 14(4). 19-24.http://dx.doi.org/10.1080/10429247.2002.11415180

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