12

Chapter

3 BUSINESS SUCCESS THROUGH

PEOPLE DEVELOPMENT
Introduction

People play a vital part in the internal and social system processes of an organization.
These systems may consist of individuals and groups who are dynamic and are flexible enough
to adapt to changing conditions. People are the living, thinking, and feeling beings who work in
an organization to achieve its objectives. Thus, it is said that, organizations exist to serve
people, rather than people existing to serve the organization.

Objectives

discuss adequate understanding and knowledge about people motivation and positive
reinforcement
explain the basic guidelines on what the employees expect from management
illustrate a clear picture of excellent people and enterprises.

Motivating People

People perform in accordance with the expectations of their superiors. If they are told
that they are winners, they become winners. If they are told that they are losers, they become
losers. Label an employee inefficient, and he will start acting like one. Research made by
Warren Bennie in his book, The Unconscious Conspiracy, shows that in a study of school
teachers, those who held expectations of their students have increased 25 points in the
students' IQ scores.

Likewise, self-perception affects performance. In an experiment, adults were given ten

puzzles to solve. All ten puzzles were exactly the same for all the examinations takers. When
the examination papers had been finished and submitted, the results were announced.
However, such results were fictitious. Half of the examination takers were told that they had
performed well, while the other half were told they had poor ratings.
 Afterwards, the examination takers were given another ten puzzles, the same for each
person. Those who were told that they had done well in the first examination really performed
well in the second examination, while the other half became worse.

Positive Reinforcement

Not a few enterprises have negative attitudes on their employees. They scold their
employees for poor performance. They instill fear among their employees. Although they
encourage risk-taking ventures, they punish even tiny failures.

On the other hand, successful enterprises let their employees feel they are winners. And
they design systems to reinforce such positive attitudes. At the IBM, management ensures that
70 to 80 percent of its people meet their quotas. The systems of successful corporations are not
only tailored to create winners, but also reward and celebrate the winning through monetary
and non-monetary incentives. The President of IBM gives a check on the spot-for achievement
he observes.

B.F. Skinner, in his Treatise, Beyond Freedom and Dignity, says that we are all simply a
product of the stimuli that we get from the external world. He claims that jobs done well should
be rewarded. According to him, positive reinforcement produces desirable behavior in the
intended direction. On the other hand, repeated-negative reinforcement does not produce good
results. Skinner claims that a person who is punished only learns how to avoid punishment,
instead of doing the right thing.

Employees' Expectations from Management

Security of tenure
Opportunities for advancement as business grows
Treatment as human beings - respect and dignity
Participation in decision-making
Sharing of authority and responsibility
Open and sincere communication
Rewards for achievements
Opportunities for personal growth
Infusion of a sense of pride in a job well-done
Involvement in setting precise goals.

How to get Peak Performance

A. Careful placement. An employee should be given a job tailored to his competence and
interests. It is easier to motivate an employee who loves his work.

B. Keep the employee informed. Management should give the employee sufficient and
necessary information to perform his job well. He should know the relation of his work
 to the work of the whole enterprise. He should also know his contributions to the
enterprise and to society. Without such information, the employee lacks incentives and
the means to improve his performance.

C. Opportunities for participation. An employee who participates in planning and decision-

making within his competence gets the feeling of importance and a sense of
achievement. He tends to perform well because he is an important part of the activity.

D. High standard of performance. A job that makes a high demand on employees

challenges them to improve their performance. Such job gives employees more pride of
workmanship and accomplishment. However, it is also important that management put
up a high performance on itself.

E. Give them responsibility. Many believe that giving satisfaction to employees motivates
them to peak performance. Peter Drucker did not agree with this. He said that employee
satisfaction is not enough to fulfill the needs of the enterprise. According to Drucker, it is
responsibility that motivates employees to reach peak performance.

In addition, Drucker states that monetary rewards are important motivating factors. But
these are not enough. The money factor can only motivate if the employee is able and willing to
assume responsibility. He said the use of fear is not advisable. Instead, the employee should be
induced to assume responsibility.

Features of Excellent Enterprises

1. They solve their own problems. The standard operating procedure is "Do it, fix it,
try it." Whenever there is a big problem, the best senior executives study the
problem, come up with an answer, and implement it. In testing ideas on
customers, several small groups, instead of one big group, are formed. They
employ several practical devices in solving the problems of the enterprise.

2. The customer is No. 1. At the IBM Corporation, the customer is always the first
priority. And the customer is always right. IBM and other excellent enterprises
learn from their customers. In response, they provide quality, reliability, and
service to their customers.

3. They develop the spirit of entrepreneurship. They encourage risk-taking and

innovation in their business organization. There is a substantial tolerance for
failure. Records show that most giant corporations stop innovating. But in the
case of excellent enterprises, their bigness is not an obstacle, because they act
small. They stimulate entrepreneurial spirit among their employees.

4. Productivity through people. Excellent enterprises are people oriented. To them,

their employees are the most valuable asset. They treat their employees as
adults and as partners. They are treated with dignity and respect. IBM's most
important philosophy is respect for the individual. Mr. Watson, the founder of
IBM, loves to talk with his employees, not as a supervisor, but as an old friend.
 Furthermore, employees of excellent enterprises are well-trained and they get
abundant monetary and nonmonetary rewards. They want their employees to be
happy so that they become productive. However, recruitment of their employees
is extremely rigid. They want the best and the brightest.
5. The Philosophy of the enterprise. Excellent companies expect and demand
superior performance from their people. At Apple Computer, they hire great
people, and they create an environment where their people can make mistakes
and grow. Top executives of excellent enterprises spent most of their time in the
field talking with employees and customers.

Here are some modified basic values of excellent companies:

A belief in being the best

A belief in doing the job well
A belief in informal and friendly atmosphere to enhance communication
A belief in the importance of economic growth and profits
A belief in corporate social responsibility

6. They stick to business in which they are competent. Not a few successful
companies branch out to other kinds of business with which they are not familiar
for the sake of diversification. Almost always they fail. In the case of excellent
companies, they remain close to business they know, where they have the skills,
competencies, and experiences.

7. Simplicity. Excellent companies are elegantly simple. Their organizational

structure is simple. The central staff is small. Such simplicity enhances flexibility.
They utilize task forces, project centers, and other temporary schemes to get
fast results. Excellent companies believe in "small is beautiful." New divisions are
created when there are new or expanded activities.
8. Simultaneous centralization and decentralization. They provide maximum
individual independence, but they strictly require compliance to their few core
values, such as excellent quality and service, respect for individuals; the
sovereignty of the customer, and others.

Success Techniques of Famous People

A. Positive Assumption. A very successful businessman in Toronto used positive

assumption. Before approaching a prospect, he assumed positively in his conscious mind
that the sale was already finished. So, he was confident in approaching his prospect. He
told his prospect that he has the best product, and that they should prepare an effective
advertising for all others to know. Such technique of the salesman requires an
affirmative attitude to influence the other person.

B. Visualization. According to William James, the father of American psychology, mental

pictures, if supported by strong beliefs, become realities. Henry Ford used his technique
of visualization in creating his dream car. His vision became a reality - the second
 largest automobile company in the United States. Other famous persons, like Napoleon,
Onassis,' and Hilton practiced visualization. Napoleon imagined his moves before going
to the battle filed. Onassis, the Greek shipping magnate, dreamed of being the owner of
many ships when he was a boy. Indeed, he became very rich and very famous. Hilton,
during his teens, visualized the hotels he wanted to own. Now, his hotels are found in all
the great cities of the world.

C. Affirmative repetition. This is a sincere request supported by conviction and faith. If

success is desired, in-plant thoughts of success into the subconscious mind. Henry
Kaiser, the office boy who became a billionaire, made a regular practice of repeating to
himself 'I am a Success." He implanted in his mind that every business project he
undertook was successful. His gigantic industrial empire includes steel, cement,
aluminum, construction, hospitals, and a radio and television station.

D. Bulldog tenacity. Failures are stepping-stones to success. Failures should encourage

people to strive more. As the saying goes: "A quitter never wins, a winner never quits."
Hard work and perseverance lead to success. Thomas Edison used perseverance to
succeed. He experienced 10,000 failures before perfecting the electric light. His
multimillion laboratory, together with important notes and equipment, was destroyed by
fire. But he was not discouraged. There are many other rags-to-riches stories which are
full of human endurance and the will to succeed.

E. Dynamic first impressions. First impressions count much. This is also true in business
dealings. Andrew Carnegie used this approach. As a result, from a factory boy, he
became the owner of a giant steal corporation. As an employee, he applied positive
thinking to impress others of his capabilities. He projected a dynamic image - courteous
and respectful - to attract others during his first meetings with them.

Good Character Creates Success

A. Integrity. This is a key to our character. People can be hardworking and efficient, but if
they do not have integrity, they do not have permanent success. Employers want
individuals who are honest, dependable, fair, and honorable. This also applies to
business dealings. People want an honest, fair, dependable, and honorable
entrepreneur. Even in the government, the integrity of top officials can enhance the
success of programs and projects for the benefit of the masses.

B. Faith. This is a positive attitude of the mind. It makes the difference between success
and failure. Those who firmly believe that they can achieve prosperity and happiness,
get them. In fact, faith moves mountains.

C. Enthusiasm. It radiates energy, happiness, optimism, and inspiration. These are some of
the ingredients of success. An entrepreneur who lacks enthusiasm cannot motivate his
workers and customers. Without this, it is difficult to transform a good idea into a
successful reality.
 D. Discipline. Our minds and emotions are the sources of our success or failures. If we
know how to control our actions from it, then, we have discipline.

E. Appreciation. Human beings like to be appreciated for their good work. They like also to
be respected and to feel important. Evidently, business success depend on other -
employees, customers, and suppliers. Thus, an entrepreneur must be good in human
relations.

The Power of Prayer

Sincere prayers provide us with a deep sense of security, guidance, strength, and pure
happiness. We should pray to God, not to give us money, but to give strength and opportunity
to earn money. We should pray not for a lighter load, but to make our shoulders stronger so
that we can carry life's responsibilities. We should pray not to remove our problems, but to
grant us courage and wisdom to solve our problems. Effective prayers are self-reliant. They are
not substitutes for laziness or mendicancy.

We have experienced or witnessed the powers and miracles of prayers. There are
blessing for those who have remained faithful to God. We have surpassed several trials like
EDSA 1 and 2, which greatly depended on prayers. As a result, we survived several attempts of
military takeovers and numerous natural calamities. Not a few have recovered from deadly
diseases, far beyond the power of medical science.

In business, God is not against economic prosperity, as long as this is acquired through
honest and fair labor. Entrepreneurs can pray for business success. However, God likes them to
share their blessings with their employees, customers, and the community.

SUCCESS STORIES OF ENTREPRENEURSHIP -The stories are gathered to inspire

aspiring entrepreneurs in the future.
Name: ____________________________ Score: _________
Year/Program/Section: _____________ Date: __________

Test and apply your knowledge:

1. Self-perception affects performance. Why?

In terms of perceptions, research has shown that how employees view
their work environment has the greatest impact on their productivity.
Individuals who have a negative attitude about their employment are
more likely to be absent, have higher turnover, and have worse job
satisfaction.

2. What does an employee expect from management?

Security of tenure
Opportunities for advancement as business grows
Treatment as human beings - respect and dignity
Participation in decision-making
Sharing of authority and responsibility
Open and sincere communication
Rewards for achievements
Opportunities for personal growth
Infusion of a sense of pride in a job well-done
Involvement in setting precise goals.

3. Explain one feature of excellent enterprises.

They are capable of resolving their own issues. "Do it, fix it, try it," is the normal
operating procedure. Whenever a major issue arises, the finest senior executives
research the issue, devise a solution, then put it into action. Instead of one large
group, multiple small groups are formed while testing ideas on clients. In order
to solve the company's challenges, they use a variety of practical devices.

4. What is positive presumption? Give your own example.

5. Give at least two ways to make people important and satisfied.

6. What is a true measure of success?