Traditionally, the word constituency is interpreted as a group of people, who share common goals, identity, moral values, ethical principles, and so forth. However, if we are speaking about management, we should say that this concept acquires a different meaning; it denotes a group of people, on whom the company or organization is dependent and who subsequently rely on the company. In other words, constituencies are the stakeholders, for example, the owners, clients, employees, trade unions, and so forth. While developing the strategies human resource department has to take into consideration their interests or at least find certain compromises.
The main task which HR management has to resolve is how to make all parties involved feel satisfied. At present, the preference is given to the multiple-constituency approach, which means that none of the stakeholders is disregarded or ignored. It stands to reason that such an approach sets rather high standards for the HR department. On the whole, the interests of stakeholders determine the goals and strategies of human resource management.