Stakeholder Management and Organizational Effectiveness in Private Banks in Kampala Central Division, Uganda

ABSTRACT This study aimed at establishing the effect of stakeholder management on organizational effectiveness in Kampala Uganda. Three specific objectives guided this study and these were i) examining the effect of stakeholder management on market share in private banks in Kampala, Uganda ii) determine the effect of stakeholder management on financial growth in private banks in Kampala, Uganda; and (iii) determine the effect of stakeholder management on customer satisfhction in private banks in Kampala, Uganda. The researcher administered a questionnaire to 133 respondents (sample size). Findings revealed that stakeholder management in private banks in Kampala Uganda was rated satisfactory and organizational effectiveness. The researcher concluded that stakeholder management contributes to the market growth which sufficiently leads to increase in the market share, stakeholder management significantly influences the financial growth of private banks in Kampala Uganda, this also meant that improvement in stakeholder management also leads to an increase in the financial growth of private banks in Kampala Uganda, and finally stakeholder management insignificantly influences customer satisfhction. The researcher recommended that: there is need to improve stakeholder management especially through improving coordination, tooling and improving the state of the stakel4lders in order to increase market share growth, there is need to improve tile management of stakeholder in banks especially since some ofthe aspects of customer care were insufficiently handled and managed, hence calling for improving in the customer handling thtt much affects the effectiveness of the private banks in Kampala Uganda. The study contributed to new knowledge and revealed the following as indicators to stakeholder management i1 private banks in Kampala Uganda; participation, stakeholder relationship and communication. The following ;: are tij4~ measurements of organizational ‘effectiveness; market share, financial growth and • custo#~er ~atisfhcticñi.