Managers as decision makers

• Managers have to make decisions, whether they are simple or extremely

complex.
• Making a good decision is a difficult exercise. It is the product of
deliberation, evaluation and thought.
• To make good decisions, managers should invariably follow a sequential
set of steps.
• Decision making is a process involving a series of steps as shown in the
Figure on the next page
First Step: The first step is recognition of the problem.

The manager must become aware that a problem exists and that it is important enough
for managerial action.

Identification of the real problem is important; otherwise, the manager may be

reacting to symptoms and fire fighting rather than dealing with the root cause of the
problem.

In order to monitor the problem situation(decision-making environment), managers

may have to look into management reports, check progress against budgets, compare
the results against industry competitors, and assess factors contributing to employee
efficiency or inefficiency, etc.

They have to use judgement and experience in order to identify the exact nature of the
problem. In other words, the manager must determine what is to be accomplished by
the decision.
Second Step: The second step in the decision-making process is gathering
information relevant to the problem.

A successful manager must have the ability to weed out the wheat from the chaff
before deciding on a specific course of action.

Once aware of a problem, he must state the real problem.

He must try to solve the problem, not the symptoms.

The manager must pull together sufficient information about why the problem
occurred.

This involves conducting a thorough diagnosis of the situation and going on a

fact-finding mission.
Third Step: The third step is listing and evaluating alternative courses of
action.

Developing alternative solutions (to the problem) guarantees adequate

focus and attention on the problem.

It helps managers to fully test the soundness of every proposal before it

is finally translated into action.

During this step, a thorough "what if" analysis should also be conducted
to determine the various factors that could influence the outcome.
Fourth Step: Next, the manager selects the alternative that best meets the decision objective.
If the problem has been diagnosed correctly and sufficient alternatives have been identified, this
step is much easier. Peter Drucker has offered the following four criteria for making the right
choice among available alternatives:

1. The manager has to weigh the risks of each course of action against the expected gains.

2. The alternative that will give the greatest output for the least inputs in terms of material
and human resources is obviously the best one to be selected.

3. If the situation has great urgency, the best alternative is one that dramatizes the decision
and serves notice on the organisation that something important is happening. On the
other hand, if consistent effort is needed, a slow start that gathers momentum may be
preferable.

4. Physical, financial and human resources impose a limitation on the choice of selection. Of
these, the most important resources whose limitations have to be considered are the
human beings who will carry out the decision.
Final Step: Finally, the solution is implemented. The manager must seek
feedback regarding the effectiveness of the implanted solutions.

Feedback allows managers to become aware of the recent problems

associated with the solution. It permits managers to monitor the effects of
their acts to gauge their success.

They can evaluate their own decision-making abilities. Consistent monitoring

and periodic feedback is an essential part of the follow-up process.
What is Rational Decision-Making Process?
Rational decision making is considered logical and consistent with the intent to maximize
the value, quality, or likelihood of achieving the intended outcome.

Rational decision-making can be explained as several procedural steps:

Identify Problem - Problems or potential problems may present themselves or become

evident through appropriate monitoring. In carrying out this process, managers should
identify goals at the outset of the decision-making process.

Decision Criteria - Managers should identify criteria for potential solutions - as this will
help you avoid bias in choosing an alternative.
Allocate Weights - Some criteria will be more important to some stakeholders than others.
The decision-making process necessary includes considering the interest of stakeholders. In
some instances, it involves seeking stakeholder input.

Develop Alternatives - Its important to develop as wide an array of potential solutions as

possible.

Analyze Alternatives - You will need to determine which criteria are most important and to
what extent it is necessary to sacrifice one for another.

Select an Alternative - After diligent evaluation of the alternatives, the manager must select
an option to deal with the problem or situation.

Implement the Decision - Selecting an approach is only part of the managers responsibility.
Then comes the process of overseeing the implantation of the solution.
Evaluate the Effect - Finally, the manager must evaluate the progress and effectiveness of the
approach.
What is Intuitive Decision Making?
Intuitive decision making, as the name implies, relies on intuition in making a
decision. That is, managers often arrive at a decision to address a problem or
situation without conscious reasoning.

Instead, decisions are based on experience, feeling, and accumulated judgment.

Managers routinely face decisions in challenging contexts, such as environmental
uncertainty, stakeholder interests, time pressures, and the fallout from the
decision.
This reality can limit the ability to follow the rational decision-making process.
Intuitive decision-makers will use environmental scanning to identify patterns
based upon prior experience or knowledge.

This allows the decision-maker to develop a course of action. The decision-making

process is replaced by the individuals understanding of the situation.

Importantly, the decision-maker evaluates one choice at a time.

Generally, a decision-maker who lacks sufficient experience or acquired knowledge

is unable to make such intuitive decisions.
A policy: It provides a broad guideline for managers to follow when
dealing with important areas of decision making.

Policies are general statements that explain how a manager should

attempt to handle routine management responsibilities.

Typical human resources policies, for an instance, address such matters as

employee hiring, terminations, performance appraisals, pay increases,
and discipline.
A procedure: Because it explains how activities or tasks are to be carried out. Most
organisations have procedures for purchasing supplies and equipment, for example.

This procedure usually begins with a supervisor completing a purchasing requisition.

The requisition is then sent to the next level of management for approval. The
approved requisition is forwarded to the purchasing department.

Depending on the amount of the request, the purchasing department may place an
order, or they may need to secure quotations and/or bids for several vendors before
placing the order.

By defining the steps to be taken and the order in which they are to be done,
procedures provide a standardized way of responding to a repetitive problem
A rule: Because it tells an employee what he or she can and cannot do.

Rules are “do” and “don’t” statements put into place to promote the
safety of employees and the uniform treatment and behavior of
employees.

For example, rules about tardiness and absenteeism permit supervisors

to make discipline decisions rapidly and with a high degree of fairness
Decision making styles
 Managers who follow this style assess few
alternatives and consider limited information while
Directive or Autocratic Decision taking any decision.
Making They do not find it important to consult with others
or seek information in any form and use their logic
and idea while taking decisions.

Managers using analytic decision making style would

like to have more information and consider more
alternatives before coming to a conclusion.

Analytical Decision Making They seek relevant information from their sources
and consider factual and detailed information before
taking any decision. Such managers are careful
decision makers as they have the ability to adapt or
cope with unique situations.
 Leaders who follow this model believe in
participative management and consider the
achievement of subordinates and always take
suggestions from them.
They try to get inputs from subordinates
Behavioral Decision Making
through meetings and discussions. They try to
avoid/resolve conflicts as acceptance by others
is important to them.

Managers using conceptual decision making

style are intuitive in their thinking and have high
Conceptual Decision Making tolerance for ambiguity.
They look at many alternatives and focus on
long run outcomes.
Common Biases And Errors In Decision-Making
Let’s look at some common decision-making biases and errors that have a
powerful influence on how we think, feel and behave.

Confirmation Bias
We tend to favor information that conforms to previously held beliefs. We don’t
want to change our opinions and rethinking something is uncomfortable and
difficult. For example, a hiring manager wants to hire employees only from
premier institutes of the country because they’re considered to have the
smartest and most talented candidates.
Availability Heuristic
We estimate the probability of something happening by placing importance on
the first thing that comes to our minds. We judge something by how we
remember certain information. For example, you may be afraid of speaking up in
group meetings because your suggestions were heavily criticized in the previous
one.

Hindsight Bias
One of the most common decision-making biases, hindsight bias is the tendency
to look back at past events and say “I knew it all along”. For example, if a manager
is uncertain about an employee’s ability to meet a deadline but the employee
manages to do so, the manager is likely to behave as if they had faith in the
employee all along.
Optimism Bias
This psychological bias is rooted in the availability heuristic. The tendency to be
extremely optimistic and overestimate the likelihood of good things happening is
known as optimism bias. For example, many of us procrastinate because we’re
certain of finishing our projects just on time. While it may not be necessarily bad,
optimism bias can give us a false sense of hope—affecting our mental and emotional
well-being in the absence of desirable outcomes.

Halo Effect
Human brains get lazy sometimes and rely on the first impression they have of
others. The halo effect bias encourages us to focus on certain attributes (mostly
outward appearance) to form the initial impression about a person. For example,
you’re more likely to team up with someone who can present themselves well and
make a positive impression with their thoughts and ideas.
 Talent Management

A conscious, deliberate approach

Commitment undertaken to attract, develop and retain
people with the aptitude and abilities to
Competence Contribution
meet current and future organisational
needs.

Talent
 Purpose of Talent Management

1. To compete effectively in a complex and dynamic

environment to achieve sustainable growth.
2. To develop leaders for tomorrow from within an organisation.
3. To maximise employee performance as a unique source of
competitive edge.
4. To empower employees:
Cut down on high turnover rates.
Reduce the cost of constantly hiring new people to train.
 What is talent management?
 Talent management is your organization’s strategy related to the attraction,
recruitment, retention, and development of people. It includes your
company’s practices pertaining to seven critical facets of HR:
1. Recruiting
2. Onboarding
3. Performance management
4. Compensation planning
5. Succession planning
6. Learning and development (L&D)
7. Workforce planning
Manager's Key Role in Talent Management
• HR can provide support, training, and backup, but the day-to-day
interactions that ensure the new employee's success come from the
manager. Developing and coaching the employee comes from his or her
active, daily interaction with the manager.

• HR can take the lead in some of the activities, especially in recruiting and
selecting new employees, and in the case of employment termination. HR is
also deeply involved in the performance management system, career
planning.

• But, managers are the means to carry them out for the overall recognition
of the employee's work and ongoing retention of the employee.
High attrition rate plagues Indian Pharma
Sector – A Report
 Global rate of attrition is 10-12 %.
 Rate of attrition in India > 30% at the field level
 It is 10 - 15% at the managerial level

A report by Interlink marketing services, IBS and

International journal report Aug 2011-12.
Out of 30% leaving at the field level more than 50% leave within 6 months to
1 year.

27
 Attrition rate – Causes and percentage
Personal Others
problems 3%
9%

Dissatisfaction
at work
12%

Better
growth/career Better pay
opportunities 58%
18%
 Selection as a source of competitive advantage.

1.It is related with

work performance.
2.Hire people with
competence as well as
willingness to work.
3.Careful and correct
selection will reduce
attrition rate and
minimise overall cost
factor. 29
 Interviews & Objectives
1.Judgement of
applicant information.
2.Share and exchange
information.
3.Develop rapport and
goodwill
4.Help build about
company’s image.
5.Clarify doubts if any/
solve problems.
6.Valuation tool.

30
Preliminary Interviews

31
Types of interviews Type of questions Usual applications
Structured Predetermined Useful especially in
checklist of questions dealing with large
asked to candidates. number of applicants.
Unstructured Few planned Useful to probe
questions, questions personal questions to
are prepared during analyse why a
interview. candidate is not
suitable
Mixed Combination of A realistic approach
structured and that yields comparable
unstructured answers, insights.
questions.
Behavioural Questions limited to Useful to understand
hypothetical applicants reasoning
situations. and analytical ability.
Stressful A series of harsh, Useful for stressful jobs
32
rapid fire questions such as sales,
intended to upset. marketing.
 Guidelines for Interviewer
Do’s Don’ts
Plan the interview Start the interview unprepared
Establish an easy and informal Start demanding/ leading
relationship questions.
Encourage the candidate to talk Talk to much. Swayed by negative
information.
Cover the ground as planned Jump to the conclusion quickly.
Probe where necessary Pay too much attention to a single
trait, favouritism, halo effect.
Analyse career and interest Allow candidate to gloss over
important facts.
Maintain control over direction Making snap judgements early.
and time Urgency to fill the vacancy.
33
 A report by Interlink marketing services

 The medical representatives look up to their area supervisors not just as

immediate supervisors but also as their guides and counsellors.
 A number of medical representatives change jobs in the initial period of their
career owing to inadequate skills of frontline managers,"
– Associate Consultant

34
When everything ends future still remains
Affects
Vacant
territory
territory
coverage

Unhappy
Image
customers

Burden on
Affects
the
the sales
manager

35
 Need for a proper induction program

Survey on the new entrants: Stages of induction:

 First few days were anxious and disturbing.  General introduction by HR dept
 Anxiety interfered with the training process.  Specific introduction by ASM/ RSM
 Reluctant to discuss problem with their managers.  Specific/ work related instructions by
ASM/ RSM
 Initial turnover was caused due to anxiety.
 Follow up meetings with RSM/ ZSM
 Induction check list ( New MR/ ME )

 Detailing and visiting cards

Theoretical  Promotional material
skills
Practical
skills  Current circulars and reporting formats
 Addresses and telephone numbers
 Customer list
Interaction
skills  Physician’s samples
 Any other

Induction Program
 The Induction Report
SN Key Areas Observations Plan of Action
1. Product knowledge
2. Detailing
3. Retail Audit
4. Planning the day’s work
5. Knowledge of
competitors
6. Reporting
7. Attitude
38
Training and Development

39
Training Development
 Application oriented  Provides GK and attitude
 Impart specific skills  Helpful in the long run.
 Relatively narrow perspective  Broad perspective.

Training and development NEED ~ Field person’s deficiency,

which is computed as follows:

Training and development need =

Standard Performance – Actual Performance.

40
 Need for training and development

Personality development

Product, customer, territory knowledge

Soft skills

Reporting Communication Skills

Planning Detailing Handling objections

Implementation
42
 1.Identify the training needs – Skills & Knowledge audit
Skills Level required Current status Development
needs
Knowledge – Anatomy Knowledge of various Satisfactory but Need special sessions
and Physiology human systems and needs improvement to provide required
disease profile etc details
Product knowledge Pharmacokinetics & New entrant – Lacks Need product-wise
pharmaco-dynamics the required product training sessions
of product range knowledge
Territory knowledge Geographic location Satisfactory None required
of the customers knowledge of the
territory
Communication Ability to Need improvement in Special session to be
communicate handling objections followed in the field
effectively and work
handle objections
Effective Ability to do effective Not confident in Need specific
presentation presentation to presenting to the exposure to group
customers group of customers presentation
Report writing Professional quality Already presents None required
reporting quality reports 43
 2.Provide the training
Methods and techniques of training
On the job Off the job Others

Orientation training Lecture and special Computer based

study training
Job instruction training Conference or Distance and internet
discussion based training
Apprentice training Case study Action learning

Internship Role playing Job rotation

Assistantship Simulation Management games

Job rotation Programmed instruction University related

programmes
Coaching Laboratory training Outside seminars
44
 3.Evaluate the training

Identify
Assess the
program's Find out the
content,
strength and beneficiaries
admin. part etc.
weaknesses

Determine
financial Compile relevant Compare costs
benefits and information and benefits
costs

45
 The Training Process

Establish
Org. objectives Assessment of
T and D
and strategies training needs
objectives

Evaluation of Implementation Design the

training of training training
program program program

46
 The Training Process
Step 1. Organizational Objectives and Strategies.
A. Nature of business? B. Who are the customers?
Step 2.Assessment of training needs.
Step 3.Establish the training and development objectives/goals.
Objectives/goals should be practical, tangible, verifiable,
measurable.
Step 4.Designing training and development program.
A. Who are the participants? B. Who are the trainer?
C. Methods and techniques of training. D. Venue of training.
Step 5.Implementation of training program.
Deciding the location, scheduling the program, conducting and
monitoring.
47
Step 6.Evaluation of training program.
 Training Benefits
To individual To organization Group relations /
policy
implementation
Develops various Better corporate image Improves coordination
skills
Sense of growth Improves quality of Communication
work
Self development Adjust to change Working environment

Eliminates fear Improves team spirit Cohesiveness

Improves confidence Overall productivity Orientation, morale

Identify organizational Communication

goals between individuals
and groups
Healthy work 48

environment
 Talent Management strategy

Strategy 2
Strategy 1 Strategy 3
Hire Promising Specialists and
Hire Only Top Employees Combine Strategies 1 and 2
Develop Them
•Advantage: •Advantage: •Advantage:
•Immediately receive top talent •Save money on salaries •Gives you best of both strategies
•Able to grow company faster •Employee has the potential to •It leads to knowledge transfer —
become a skilled and loyal •top talent can teach other
professional employees.
•Disadvantage:
•Expensive •Disadvantage:
•Difficult to retain top talent •Disadvantage: •If you have specific requirements
•Hiring process is longer •Company may grow slower (such as you are in urgent need
•Investment in development of growth or if you are on a tight
budget), sticking to a single
strategy may be more
appropriate
Talent Management - Benefits

• Right person in right job.

• Retaining the top talent
• Better hiring.
• Understanding
employees better.
• Better professional
development decisions.
 HR’s role in succession planning
Identifying developmental needs of
the workforce

Assisting in identifying needed

future job skills

Noting employees who might fill

future positions

Communicating the succession

planning process to employees

Tracing and regularly updating

succession plan efforts.
 Succession Planning – Value and Benefits

• Having adequate supply/ provision of employees for future

key openings.
• Providing career paths and plans for employees which helps
in employee retention and performance motivation.
• Continually review the need for individuals as organisational
changes occur.
• Enhancing the organisational brand and reputation as a
desirable place to work.
 Knowledge and
skill Coaching
Professional aspect
Existing gap
Willingness/
Commitment Counseling
Personal aspect

53
 Coaching process and benefits
Coaching process Coaching benefits
DETERMINE THE NEED - Develop overall interest
Understand organisational
culture, objectives, goals and
challenges.
Establish coaching goals that Helps to empower.
meet organisational need and
EXPLAIN.
Create coaching plan based on Helps energise.
the need of the individual or
team and DEMONSTRATE.
PRACTICE - Run coaching sessions Challenge the person.
FEEDBACK and review outcomes Results should be concrete,
meaningful and lasting.
Coaching results
Concrete

Meaningful

Lasting
 Counseling
1.It is gentle, respectful and
supportive process.
2.Based on the trusting and
confidential relationship
between the equals.
3.Understanding the
situation.
4.Clarifying experiences and
feelings.
5.Looking at new
perspectives.
6.Handling the situation in
different way.
56
 Productive counseling

Ask questions
Advice style Advice Yes Sir
Question style
Suggestion Or
Guidelines Yes. But .. Push for details

Maintain silence

Arrive at grass
root solution

57
Performance Appraisal 58

Systematic Not only

assessment of confined to
overall past, present
performance performance
against certain but future
work related potential is
parameters also assessed
 Objectives of Performance Appraisal
Work related objectives Career development
objectives
To provide control for work To identify strong and weak
done areas.
To improve efficiency To Identify remedies for
weaker areas through training
and development.
To help in assigning work and To plan developmental –
plan future work assignments ( promotional or lateral )
assignments .
To carry out job evaluation To determine career
potential.
To plan career goals.
 Objectives of Performance Appraisal
Objectives of Administrative objectives
communication
To provide adequate To serve as a basis of
feedback on performance. promotion etc.
To establish goals ( future To serve as a basis of
performance and assignments allocating incentives.
) through discussions.
To provide counselling and To serve as a basis of
job satisfaction through open determining transfers.
discussion
To let employee assess where To serve as a basis of various
they stand within admin. work related
organisation on basis of their recommendations.
performance.
 Appraisal as source of competitive advantage 62

Improves
performance

Take correct Guide towards Help achieve

decisions goals, policies the goals

Minimize
Ensure legal
dissatisfaction
compliance
and turnover
 The Appraisal Process 63

Design
Fix the Establish job
appraisal
objectives expectations
program

Use of
Performance Appraise the
appraisal
interview performance
data
 64
Step 1: Objectives/Goals of Appraisal

 Career growth
 Transfers
 Training needs
 Incentives
 Increments
 Lay offs
 Others
 65
Step 2. Establish Job Expectations

Performance
expected

Continuous Delivering Focus on the

improvement results customers

Maintaining
Achieving Customer
the Accounts
Sales plans coverage
receivables
 66
Step 3. Design the Appraisal Program

Whose
Format of Who are the
performance
the appraisal raters?
to be rated?

Methods of Frequency of Problems in

appraisal appraisal rating
 67

Formal Appraisal Informal Appraisal

 Sales person is new and  Sales person is experienced
underachiever. and performing well.
 Usually take place at  There is no specific time
specific time period. period.
 More helpful in cases of  Helpful in collecting the
primary evaluation. performance feedback.
 Many companies use the  Informal appraisal can not
combination of both. substitute formal appraisal.
 68

Problems in Rating:

 Leniency/severity
 Central tendency
 Halo effect.
 Rater effect.
 Wishful thinking.
 69
Frequency of Appraisal:
 More than 50% companies --- once a
year.
 Other companies ---- once in 3 to 6
months.
 Newly hired are rated more often than
older.
 Performance of trainees and
probationers is rated immediately after
the completion of the programme.
 Methods of Appraisal 70

Past Oriented Method Future Oriented Method

 Simpler and most  Assessing future potential
popular
 Focus on future potential
 Performances are
 Setting future
checked against rating
performance goals.
scale.
 MBO’s
 Total number of points
received are linked with  Assessment center
benefits.
Step 4. Appraise the Performance factors 71

Co- Quantity
operation of output

Timeliness Quality of
of output output
 72

Step 5. Performance Interview

Recognize the Maintain the Change the

behavior behavior behavior

• Encourage • Who are • Who do not

superior performing in meet the
performance respectable expected
to continue manner requirements
 73
Reasons for Appraisal Failure

 Do not understand the

purpose and
procedures
 Lack of information.
 Lack of sincerity.
 Lack of preparation.
 Lack of skill and time.
 Lack of clarity.
 74
Step 6. Use the Appraisal data

Remuneratio Validation of Training and

n Selection development

Grievance HRP and

Promotion
and research
transfer etc.
discipline purposes
Name ____________ H.Q. ____________ Date: 75
___________

Appraiser’s Name: ________ Designation:

____________________
Performance factor - 1 Focus on customer - Rating
Customer coverage.
Frequency of visits.
Outstanding 1.Focus on customer interest.
contributor 2.Develops customer rapport
3.Provides best service
Satisfactory 1.Focus on customer needs.
performance 2.Customer satisfaction.
Need improvement 1.Loses sight of customer
needs and interests.
2.Misses opportunity to act
 Deliver Results - 76
Sales objectives.
Performance factor Management of Ratings
-2 receivables.
Outstanding 1.Exceeds objectives.
contributor 2.Achieves right results.
3.Keeps commitments.

Satisfactory 1.Meets objectives.

performance 2.Accepts challenging
assignments.
3.Usually meets them.
Needs improvement 1.Does not meet
objectives 2.Gives up
too early / find excuses.
 Willingness to Improve
77
Product knowledge.
Performance factor - 3 Implementation Ratings
strategy.
Outstanding contributor 1.Active initiator not
content with status quo.
2.Shows willingness to
learn
3. Accepts new ideas
readily
Satisfactory 1.Active co-operator.
performance 2.Supports the initiative.
3.Open to feedback.
4.Works to improve
performance.
Needs improvement 1.Needs to be convinced.
2.Avoids/ delays dealing
 A good Performance Appraisal

Qualities Guidelines
It is factual Select a good time
It is fair Start on a positive note
It describes the whole period Encourage discussion
It describes the whole job Rate behaviour not
personality
It has no surprises Lay out development plan
Focus on mutually agreed
goals
Positive encouraging end
What is team?
 A team is a group of people who
are mutually dependent on one
another to achieve common goal.
 A team has two or more members
and a specific performance
objective.
 Co ordination of activity between
the members is a must and they are
mutually accountable.
What is team building?
 It refers to a process of
selecting and creating
team from a scratch.
 It is an important factor in
any organisation.
 It’s focus is to specialise in
bringing out the best in a
team to ensure self
development, positive
communication,
leadership skills and ability
to work closely together as
a team to solve problems.
Stages of team development – The
process of working together effectively is called
team development.
 Stages of team development
Research has shown that teams go through definitive stages
during development. Bruce Tuckman, an educational
psychologist, identified a five-stage development process that
most teams follow to become high performing.
1.Forming stage
 The forming stage involves a period of orientation and getting
acquainted. Uncertainty is high during this stage, and people are
looking for leadership and authority.
 A member who asserts authority or is knowledgeable may be
looked to take control. Team members are asking such questions
as “What does the team offer me?” “What is expected of me?”
“Will I fit in?”
 Most interactions are social as members get to know each other.
 1. Forming Stage
High degree of guidance Affiliation may emerge
needed from the manager

Individual roles are very Confusion may exist

clear
Processes/ systems are not Polite behaviour
usually well established.

Objectives are unclear Watchful interactions

2.Storming stage:
 The storming stage is the most difficult and critical stage to pass
through. It is a period marked by conflict and competition as
individual personalities emerge.
 Team performance may actually decrease in this stage because
energy is put into unproductive activities.
 Members may disagree on team goals, and subgroups and
cliques may form around strong personalities or areas of
agreement.
 To get through this stage, members must work to overcome
obstacles, to accept individual differences, and to work through
conflicting ideas on team tasks and goals.
 Teams can get bogged down in this stage. Failure to address
conflicts may result in long-term problems.
 2. Storming Stage

Understand how team Power struggle, difficulties.

decisions are made

Purpose is clear but Criticism, confrontation,

relationships are not conflict
established
Formation of subgroups Energy spent on unproductive
within the team activities
Need to find solution soon Some one may opt out
3.Norming stage:
 If teams get through the storming stage, conflict is resolved and some degree
of unity emerges.
 In this stage, consensus develops around who the leader or leaders are, and
individual member’s roles.
 Interpersonal differences begin to be resolved, and a sense of cohesion and
unity emerges.
 Team performance increases during this stage as members learn to cooperate
and begin to focus on team goals.
 However, harmony is precarious, and if disagreements re-emerge the team can
slide back into storming.
 3. Norming Stage

Relationships are well Achievements, Cohesiveness

understood within the team

Commitment to team goals Established procedures

Start working towards team Give/ get feedback

progress

However harmony is Cope with various issues

precarious
4.Performing stage:
 In the performing stage, consensus and cooperation have been well-
established and the team is mature, organized, and well-functioning.
 There is a clear and stable structure, and members are committed to the
team’s mission.
 Problems and conflicts still emerge, but they are dealt with constructively.
Disagreements do occur but now hey are resolved within the group positively.
 The team has high degree of autonomy and is focused on problem solving and
meeting team goals.
 4. Performing Stage

Team is committed to Synergy, Success

performing well

Focus on being strategic Resourcefulness

Team runs well with little Flexibility, openness

oversight

Focused on problem solving Satisfaction, Success

and meeting team goals
5.Adjourning stage:
 In the adjourning stage, most of the team’s goals have been accomplished. The
emphasis is on wrapping up final tasks and documenting the effort and results.
 As the work load is diminished, individual members may be reassigned to
other teams, and the team disbands. There may be regret as the team ends, so
a ceremonial acknowledgement of the work and success of the team can be
helpful.
 If the team is a standing committee with ongoing responsibility, members may
be replaced by new people and the team can go back to a forming or storming
stage and repeat the development process.
Handling Conflict

93
CONFLICT -
DEFINITION
Disagreeing with
another person.
Speaking out of
belief.
Defending rights
when they are
ignored.
Someone acting in
direct opposition.
94
The three views of conflicts are as follows:
Traditional View:
a. The traditional approach that viewed all conflicts as bad, and synonymous with violence,
destruction, and irrationality.
b. Since, it was perceived as harmful, management had a responsibility to eliminate it completely.
c. This view persisted till about 1940s.
Human Relations View
a. This position argued that conflict was natural and inevitable occurrence in humans. Therefore, it
must be acceptable in an organisation. At times, it could even benefit the organisation.
b. This view was dominant from 1940s to 1970s.

Interactionist View
a. This is the current theoretical perspective on conflicts. It encourages conflicts to avoid organisational
inertia.
b. A harmonious, peaceful, tranquil, and cooperative organisation is prone to become static, apathetic,
and non-responsive to needs of change.
c. Hence the need for creativity, self-criticism, feedback, continuous improvement and reflection.
Sources of business conflict

• Incompatible goals and

time horizon.
• Overlapping authority
• Task interdependencies
• Status inconsistencies
• Scares resources
• Styles and values
• Incompatible evaluation
and reward system
97
 Orientations to conflict management
Orientation Description Emphasis on Emphasis on
Task Relationships
Competitive Conflict is pursued as a Very High Very Low
win/lose situation. Will to win
supersedes any concern for
other members.
Compromising Trying to find a middle position High Low
in which all parties give a little
to gain something.
Collaborative Trying to find a solution in High High
which the needs of both or all
parties are completely met.
Avoidance Deciding not to engage in Low High
conflict.
Appeasing the other side by Very Low Very High
Accommodating
changing positions. 98
 Strategies to manage conflicts:

Avoidance
Best used when
1. The conflict is trivial, emotions are running high and time is needed to calm people down.
2. Or when the potential disruption from an assertive action outweighs the benefits of the
disruption.

Accommodation
Best used when
1. The issue under dispute is not very important or when you want to build up credit for later
issues.
2. The accommodative gesture can build a base or resolving future conflicts amicably and building
trust.
Forcing
Best used when
1. You need a quick resolution on important issues that require unpopular actions to be taken and
2. When commitment/ support by others to your solution is not critical.

Compromise
Best used when
1. Conflicting parties are almost equal in power,
2. It is desirable to achieve a temporary solution to a complex issue, or
3. When time pressures demand an expedient solution.

Collaboration
Best used when
1. Time pressures are minimal
2. All parties seriously want a win-win solution and
3. When the issue is too important to be compromised.
 Important steps to handle conflict

Focus on
top
Begin to priority
solve solution
Summarize problem in
the mind
Clarify questions
that the
conflict
exists

103
Conflicts

Mutual
Expectations
not fulfilled

104
Module

Managing Change

Foundation of behavior

Strategic Management
There is nothing permanent except change.

It has become an inescapable fact of life; a fundamentalaspect of historical evolution.

Change is inevitable in a progressive culture.

Revolutions are taking place in political, scientific, technological and institutional areas.

Organisations cannot completely insulate themselves from this environmental instability.

Change is induced by the internal and external forces.

Meeting this challenge of change is the primary responsibility of management. An

organisation lacking adaptability to change has no future.

Modern managers have the responsibility to devise management practices that best
meet the new challenges and make use of the opportunities for the growth of the
organisation.
Change management
 No organization can afford to stand still. There are
always new challenges to meet, and better ways of
doing things.
 However, every change you need to make should be
planned and implemented with care, otherwise it
could end up doing more harm than good!
 That's where change management comes in. It's a
structured approach that ensures changes are
implemented thoroughly and smoothly – and have the
desired impact.
 Change management is the creation and
implementation of the roles, processes and tools that
each of these groups use to effectively manage the
people side of change.
Who is involved in change management?

 Project team
 Senior leaders
 Managers and supervisors
 Employees

 “Change management requires

each of the gears in the picture to
fulfil their specific role”.
Tips to Manage Change Effectively
Based on our experience, here are six key change management best practices to follow to ensure an
effective change transition.

1. Create a sense of urgency

Based on the ‘Enhanced Kotter’s 8-Step Change Model’, this focuses on presenting the change as an urgent
and exciting opportunity. You must showcase to those impacted by the change that it will help them be more
productive and do their job more effectively.

2. Roll out in phases

Breaking your initiative into phases helps you avoid overwhelming your team with too much change all at
once. Small, gradual change is more accessible to adopt than significant changes all at once.

You should also start with an initial beta test to a small test group or department. Once you work out any
bugs in the beta phase, roll out the change to a large group, and then to the entire company.
3. Address resistance
Explain how the change will impact specific departments and individuals. You can avoid resistance and help
your employees adapt to change by addressing any internal hesitancies from the beginning.

4. Use a variety of training methods

Not everyone learns in the same way, so it’s important to provide guidance through a variety of training
methods and types of employee training formats. You should support your end-users and employees with a
mix of learning styles, including using:

Traditional instructor-led training

Online learning with an LMS
Videos
In-app guidance and on-demand support
5. Establish change leaders
Without internal buy-in, your initiative is over before it even begins. Change leaders help motivate the
entire team to push forward with the transformation. Your change leaders should include a mix of
employees from various departments impacted by the change. These leaders should be well-liked across
the company and can influence opinions.

6. Ask for feedback

Listening to your team is a great way to improve your change management process and address any
concerns or resistance. This will provide you with ways to improve future change rollouts, and get your
individual employees involved with the process.
Change Management Model - ADKAR

 ADKAR is easy to remember and is

a foundation tool for
understanding, “how, why and
when” to use different change
management tools.
 Awareness for need for change
 Desire to support the change
 Knowledge on how to change
 Ability to implement new skills
 Reinforcement to cement the
change
Individual behaviour

Individual behavior can be defined as a mix of responses to external and internal stimuli. It is the
way a person reacts in different situations and the way someone expresses different emotions like
anger, happiness, love, etc.

To get a brief idea about the individual behavior let us learn about the individual behavior
framework and other key elements related to it.

Individual Behavior Framework

On the basis of these elements, psychologist Kurt Lewin stated the Field theory and outlined the
behavior framework. This psychological theory studies the patterns of interaction between an
individual and the environment. The theory is expressed using the formula

B = F(P,E)

where, B – Behavior, F - Behavior Function, P – Person, and E - Environment around the person.

Say for example, a well payed person who loses his job in recession may behave differently when
unemployed.
Factors Affecting Employee Behaviour

There are several internal as well as external factors affecting employee behaviour. Let us go through them
in detail:

Leadership
Managers and leaders play an important role in influencing the behaviour of individuals at workplace. It

is the responsibility of leaders to set a direction for team members. In majority of the cases, it has been
observed that employees do not feel like going to work when they have strict bosses. You need to stand by
your team always.

Guide them and help them in their day to day operations and help them acquire new skills and upgrade their
knowledge. Make them feel important. As a leader, you need to be a strong source of inspiration for your
subordinates. If you do not reach office on time, how can you expect your team members to adhere to the
rules and regulations of organization?
Work Culture
Employees need to feel comfortable at workplace for them to stay positive and happy. Rules and
regulations should be same for everyone.

Employees ought to be encouraged to respect their reporting bosses and follow the code of ethics.
Do not have complicated reporting systems.

Transparency at all levels is essential. You must know what your team member is up to and vice-a-
versa. Job security is one of the most crucial factors affecting employee behaviour. Stand by your
team at the times of crisis. Do not throw them out during bad times. Believe me, they will never
leave you.

Job Responsibilities
Employees should be asked to do what best they can perform. Do not overburden employees.
Encourage them to upgrade their skills from time to time.
Effective Communication
Managers need to communicate effectively with team members. The moment, employees feel left out, they
lose interest in work. They need to have a say in organization’s major decisions.

Let them express their views and come out with their problems. Grievances need to be addressed
immediately.

Family and Personal Life

Trust me, if you fight with your family members or relatives in the morning, you feel restless the whole day.
It has been observed that individuals with a troubled background or problematic family life tend to behave
irrationally at workplace.

Employees who have strained relationships with family members like to sit till late at work and spoil the
entire work culture. Individuals from very poor families also have a habit of stealing office stationery and
taking things to home.

Conflicts in personal life lead to stress and irrational behaviour. Also, individuals should try not to bring their
personal problems to work. Try to keep your personal and professional life separate.
Relationship at Work
It is necessary to have friends at the workplace. You need people around to talk to, discuss and
share experiences.

It is really not possible to work in isolation. Not allowing employees to interact with fellow
workers leads to frustration and stress at workplace. Avoid arguing with team members
What is strategy and why is it important?
 The history of strategy

The first treatises that discuss strategy are from the Chinese during the period of 400 – 200 B.C.
Sun Tzu’s The Art of War, written in 400 B.C. has received critical acclaim as the best work on military strategy,
including those that have followed it centuries later.
What Do We Mean By “Strategy”?

• Consists of competitive moves and business

approaches used by managers to run the company
• Management’s “action plan” to
 Grow the business
 Attract and please customers
 Compete successfully
 Conduct operations
 Achieve target levels of
organizational performance
The How's That Define a Firm's Strategy

• How to grow the business

• How to please customers
• How to outcompete rivals
• How to manage each functional
piece of the business (R&D, production,
marketing, HR, finance, and so on)
• How to respond to changing market conditions
• How to achieve targeted levels of performance
Choosing the “How's” of Strategy

• Strategic choices about “how” are based on

 Trial-and-error organizational learning about
what has worked and what has not worked
 Management’s appetite for taking risks
 Managerial analysis and strategic thinking about
how best to proceed, given market conditions and
the company’s circumstances
In choosing a strategy, management is in effect saying:
“Among all the many different business approaches and ways of competing
we could have chosen, we have decided to employ this particular
combination of competitive and operating approaches in moving the
company in the intended direction, strengthening its market position, and
competitiveness, and boosting performance.”
Key Elements of a Successful Strategy

 Developing a successful strategy hinges on

making competitive moves aimed at
 Appealing to buyers in ways to set the
enterprise apart from rivals and
 Carving out its own market position
 Involves developing a distinctive “aha”
element to
 Attract customers and
 Produce a competitive edge

Copying competitive moves of other successful companies rarely works!

Definitions of strategy

Sources: A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13; M.E. Porter, ‘What is strategy?’,
Harvard Business Review, November–December 1996, p. 60; P.F. Drucker, ‘The theory of business’, Harvard Business Review, September–October
1994, pp. 95–106; H. Mintzberg, Tracking Strategies: Towards a General Theory, Oxford University Press, 2007, p. 3.
 • Strategic decisions are concerned with the
Strategic level acquisition of sustainable competitive advantage,
which involves the setting of long-term corporate
objectives and the formulation, evaluation,
selection and monitoring of strategies designed to
achieve those objectives.
• Strategic decisions are made by senior managers
(usually directors), they affect the whole
organization, are long-term in nature, are complex
and are based upon uncertain information.
• Managers at the strategic level require multi
conceptual skills – the ability to consider the
effects of multiple internal and external influences
on the business and the possible ways in which
strategy can be adjusted to account for such
influences.
Tactical level

• Tactical decisions are concerned with how corporate objectives are to

be met and how strategies are implemented.
• They are dependent upon overall strategy and involve its fine-tuning
and adjustment.
• They are made at head of business unit, department or functional area
level and affect only parts of the organization.
• They are medium-term in timescale, semi-complex and usually involve
some uncertainty, but not as much as at the strategic level.
Operational level

• Operational decisions are concerned with the shorter-term

objectives of the business and with its day-to-day management.
• They are dependent upon strategy and tactics.
• These decisions are made at junior managerial or supervisory
level, are based on a high degree of certainty and are not
complex.
• The procedures in a sales office are typical operational activities
– processing orders that have a tactical purpose in pursuit of the
overall strategy.
Comparison of strategic, tactical and operational decisions
Business strategy
• A business strategy is an outline of the actions and
decisions a company plans to take to reach its goals
and objectives.
• A business strategy defines what the company
needs to do to reach its goals, which can help
guide the decision-making process for hiring as
well as resource allocation.
• A business strategy helps different departments
work together, ensuring departmental decisions
support the overall direction of the company.
Why is a business strategy important?
• Planning: A business strategy helps you identify the key steps to take to reach your business
goals.
• Strengths and weaknesses: The process of creating a business strategy allows you to
identify and evaluate your company's strengths and weaknesses so you can create a
strategy that optimizes your strengths and compensates for or eliminates your weaknesses.
• Efficiency: A business strategy allows you to effectively allocate resources for your business
activities, which automatically makes you more efficient. It also helps you plan ahead for
deadlines, allocate job roles and stay on track for your project goals.
• Control: Creating a business strategy gives you more control over choosing the kinds of
activities that will directly help you reach your goals, as well as allows you to easily assess
whether your activities are getting you closer to your goals.
• Competitive advantage: By identifying a clear plan for how you will reach your goals, you
can focus on capitalizing on your strengths, using them as a competitive advantage that
makes your company unique in the marketplace.
Corporate strategy • A corporate strategy is a plan that helps an organization
decide what markets it wants to enter and how. Businesses
often use corporate strategies when they are trying to
diversify, or enter a new market. This strategy guides a
company's growth. A corporate strategy typically includes:

 What market the organization wants to compete in

 How different business units can add more value to the
organization
 How entering a new market can make the company more
competitive
 The timing and pace of the company's growth
• Business stakeholders and upper-level management use
corporate strategies to decide what industries they should be
involved with and how to acquire business units that can
help it be successful.
Strategic planning
• Strategic planning is the art of creating specific
business strategies, implementing them, and
evaluating the results of executing the plan, in
regard to a company’s overall long-term goals or
desires.

• It is a concept that focuses on integrating various

departments (such as accounting and finance,
marketing, and human resources) within a
company to accomplish its strategic goals.
Strategic planning process

• The development and execution of

strategic planning are typically viewed as
consisting of being performed in three
critical steps:

1. Strategy formulation
2. Strategy implementation
3. Strategy evaluation
Strategy formulation
• In the process of formulating a strategy, a company
will first assess its current situation by performing
an internal and external audit.
• The purpose of this is to help identify the
organization’s strengths and weaknesses, as well
as opportunities and threats (SWOT Analysis).
• As a result of the analysis, managers decide on
which plans or markets they should focus on or
abandon, how to best allocate the company’s
resources, and whether to take actions such as
expanding operations through a joint venture or
merger.
Strategy implementation
• After a strategy is formulated, the company needs
to establish specific targets or goals related to
putting the strategy into action, and allocate
resources for the strategy’s execution.

• The success of the implementation stage is often

determined by how good a job upper management
does in regard to clearly communicating the
chosen strategy throughout the company and
getting all of its employees to “buy into” the desire
to put the strategy into action.
Strategy evaluation • Any savvy business person knows that success today
does not guarantee success tomorrow. As such, it is
important for managers to evaluate the performance of
a chosen strategy after the implementation phase.
• Strategy evaluation involves three crucial activities:
reviewing the internal and external factors affecting the
implementation of the strategy, measuring
performance, and taking corrective steps to make the
strategy more effective.
• For example, after implementing a strategy to improve
customer service, a company may discover that it needs
to adopt a new customer relationship management
(CRM) software program in order to attain the desired
improvements in customer relations.
Strategic management

• By the term strategic management we mean, the

process that helps the organization to assess their
internal and external business environment forms
strategic vision sets objectives, establish direction,
formulate and implement strategies that are
aligned towards the achievement of the goals of
the organization.

• The figure provided explains the strategic process,

in the sequence of various stages.
Comparison chart
Basis for Strategic planning Strategic management
comparision
Meaning Strategic Planning is a future oriented Strategic Management implies a bundle of decisions
activity which tends to determine the or moves taken in relation to the formulation and
organizational strategy and used to set execution of strategies to achieve organizational
priorities. goals.

Stresses on stresses on making optimal strategic stresses on producing strategic results, new markets,
decisions. new products, new technologies etc.
Management Strategic planning is a management by Strategic management is a management by results.
plans.
Process Analytical process Action-oriented process

Function Identifying actions to be taken. Identifying actions to be taken, the individuals who
will perform the actions, the right time to perform
the action, the way to perform the action.
Definitions and Meaning of Leadership
There are many definitions of leadership. Some of the definitions of leadership are reproduced
below:

"Leadership" according to Alford and Beatty "is the ability to secure desirable actions from a
group of followers voluntarily, without the use of coercion.“

According to Chester I Barnard, "it (leadership) refers to the quality of the behaviour of the
individual whereby they guide people on their activities in organised efforts".

According to Terry, "A leader shows the way by his own example. He is not a pusher, he pulls
rather than pushes".

According to Koontz and O'Donnell, Managerial leadership is "the ability to exert inter-personal
influence by means of communication, towards the achievement of a goal. Since managers get
things done through people, their success depends, to a considerable extent upon their ability to
provide leadership".
In the words of R. T. Livingston, Leadership is "the ability to awaken in others the desire to
follow a common objective".

According to the Encyclopedia of the Social Sciences, "Leadership is the relation between an
individual and a group around some common interest and behaving in a manner directed or
determined by him".

According to Peter Drucker, Leadership "is not making friends and influencing people, i.e.,
salesmanship is the lifting of man's vision to higher sights, the raising of man's performance to
higher standards, the building of man's personality beyond its normal limitations".

From the above definitions we can conclude that leadership is a psychological process of
influencing followers (subordinates) and providing guidance, directing and leading the people
in an organisation towards attainment of the objectives of the enterprise
 Basis Manager Leader
A person becomes a manager A person becomes a leader on
Origin
by virtue of his position. basis of his personal qualities.
Manager has got formal rights
Rights are not available to a
Formal Rights in an organization because of
leader.
his status.
The group of employees whom
The subordinates are the
Followers the leaders leads are his
followers of managers.
followers.
Leader influences people to
A manager performs all five
Functions work willingly for group
functions of management.
objectives.
A leader is required to create
A manager is very essential to a
Necessity cordial relation between person
concern.
working in and for organization.
Stability It is more stable. Leadership is temporary.
Mutual Relationship All managers are leaders. All leaders are not managers.
 Manager is accountable for self
Leaders have no well defined
Accountability and subordinates behaviour
accountability.
and performance.
A leader’s concern is group
A manager’s concern is
Concern goals and member’s
organizational goals.
satisfaction.
People follow manager by People follow them on
Followers
virtue of job description. voluntary basis.
A manager can continue in
A leader can maintain his
office till he performs his duties
Role continuation position only through day to
satisfactorily in congruence
day wishes of followers.
with organizational goals.
A leader has command over
Manager has command over different sanctions and related
Sanctions allocation and distribution of task records. These sanctions
sanctions. are essentially of informal
nature.
Leadership Styles – Autocratic/ Commanding
Autocratic Style Response
Modus Operandi/ Demands
Approach immediate
obedience/
compliance
In a single phrase Do what I tell you.

Underlying Leader shows self

emotional control, initiative
intelligence and drive to
succeed
Where does this In crisis to boost a
work? turnaround
( battlefield)
 Leadership Styles – Democratic/ Consensus

Democratic/ Consensus Response

Leaders Modus Operandi ( Approach ) Forges consensus through participation but
leader makes the final decision
In a single phrase What do you think?
Underlying emotional intelligence Collaboration, Team leadership and
communication.
Where does this work? Works well in developing ownership for a
project/ builds team momentum.
Leadership Styles – Vision leadership
Vision Leadership Response
Modus Operandi/ Mobilises people/
Approach team towards vision
or goal.
In a single phrase Come with me.
Underlying Self confidence,
emotional empathy, change
intelligence catalyst.
Where does this When change
work? requires new vision,
engaging people
with future
Leadership Styles – Affiliate leadership
Affiliate Leadership Response
Modus Operandi/ Creates harmony
Approach and build emotional
bonds.
In a single phrase People come first
Underlying Empathy and strong
emotional communication
intelligence skills relationship
building, conflict
resolution
Where does this Heal rifts and
work? ensures motivation
during difficult
times
Leadership Styles – Coaching Leadership
Coaching Leadership Response
Modus Operandi/ Develops people for
Approach future
In a single phrase Try this.
Underlying emotional Skills advancement,
intelligence empathy, self
awareness
Where does this work? Where performance or
results need
improvement. Most
effective when
followers are more
responsible,
experienced
Leadership Styles – Pace Setting Leadership
Pace Setting Response
Leadership
Modus Operandi/ Sets high standards
Approach for team performance

In a single phrase Do as I do now.

Underlying emotional Drive to succeed and
intelligence initiative coupled
through
consciousness
Where does this For quick results from
work? a highly competent
and motivated team.
laissez-faire leadership

Laissez-faire leadership is a method that assesses the unique talents of each

employee and assigns responsibilities accordingly.

Also known as delegative leadership, it's the direct opposite of autocratic

leadership.

With this leadership style, employees can use their skills and ideas to
complete their tasks how they prefer, as long as their actions aren't
adversely affecting the company.
"Great Man" Theories

Have you ever heard someone described as "born to lead?" According to this point of
view, great leaders are simply born with the necessary internal characteristics such as
charisma, confidence, intelligence, and social skills that make them natural-born
leaders.

Great man theories assume that the capacity for leadership is inherent—that great
leaders are born, not made. These theories often portray great leaders as heroic,
mythic, and destined to rise to leadership when needed. The term "Great Man" was
used because, at the time, leadership was thought of primarily as a male quality,
especially in terms of military leadership.

Such theories suggest that people cannot really learn how to become strong leaders.
It's either something you are born with or born without.
Trait Theories

Similar in some ways to Great Man theories, trait theories assume that
people inherit certain qualities and traits that make them better suited to
leadership.

Trait theories often identify a particular personality or behavioral

characteristics shared by leaders.

For example, traits like extroversion, self-confidence, and courage are all
traits that could potentially be linked to great leaders.
Situational Theories

Situational theories propose that leaders choose the best course of action
based upon situational variables. Different styles of leadership may be more
appropriate for certain types of decision-making.

For example, in a situation where the leader is the most knowledgeable and
experienced member of a group, an authoritarian style might be most
appropriate.

In other instances where group members are skilled experts, a democratic

style would be more effective.
Behavioral Theories

Behavioral theories of leadership are based upon the belief that great
leaders are made, not born.

Consider it the flip-side of the Great Man theories.

Rooted in behaviorism, this leadership theory focuses on the actions of

leaders, not on mental qualities or internal states.

According to this theory, people can learn to become leaders through

teaching and observation.
Management Theories

Management theories, also known as transactional theories, focus on the

role of supervision, organization, and group performance.

These theories base leadership on a system of rewards and punishments.

Managerial theories are often used in business; when employees are

successful, they are rewarded and when they fail, they are reprimanded or
punished.
What is Motivation?

161
 What is motivation?
• Have you ever wondered, what makes people work? Why do some people
perform better than others? Why does the same person act differently at
different times? The answer is motivation by a leader in the organisation.
• How do we get people to perform at a higher than “normal” percent of their
physical and mental capacities and also maintain satisfaction. This is the
challenge of motivation.
• Motivation is the process of rousing and sustaining goal-directed behaviour.
Motivation is one of the more complex topics in organisational behaviour.
Leadership is a process of influence on a group.
• Leadership is the ability of a manager to induce subordinates to work with
confidence and zeal.
Some of the widely quoted definitions are given below:

According to Gray Starke, "Motivation is the result of processes, internal or external to the
individual, that arouse enthusiasm and persistence to pursue a certain course of action.“

According to Stephen P Robbins, "We define motivation as the willingness to exert high levels of effort toward
organisational goals, conditioned by the effort's ability to satisfy some individual needs.“

According to S. Zedeck and M. Blood, " Motivation is a predisposition to act in a specific goaldirected way.“

According to Atkinson J.W, "(Motivation is) the immediate influences on the direction, vigour and persistence of
action.“

According to S.W Gellerman, "(Motivation is) steering one's actions toward certain goals and committing a
certain part of one's energies to reach them.“

According to M.R. Jones, "(Motivation is) how behaviour gets started, is energized, is sustained, is directed, is
stopped and what kind of subjective reaction is present in the organism while all these are going on."
All these definitions contain three common aspects of the motivation
process:

1. What energizes human behaviour?

2. What directs or channels such behaviour?

3. How is this behaviour maintained or sustained?

Sales/ Marketing person’s need for motivation:

 Unique nature of the job – handle

different customers and situations.
 Individuality of person – React to
different situations differently
 Diversity in company goals.
 Constant changes in market
environment.

165
 166

Motivation Criteria – A Study

Management view point Field/ sales person’s view

 Compensation  Interesting work
 Job security  Appreciation by
 Growth opportunity management
 Work environment  Being well informed
 Interesting work  Job security
 Compensation
 Three primary reasons for loss of motivation

• Lack of confidence: If you don’t believe you can succeed. What’s the point in
trying? Underlying causes can be fear of failure, comparison game or
disinterest.
• Lack of focus: If you don’t know what you want, do you really want anything?
Under lying causes can be burn out, disinterest or impatience.
• Lack of direction: If you don’t know what to do, how can you be motivated to
do it? Under lying causes can be impatience, being overwhelmed, comparison
game.
Self Motivation in Sales/ Marketing

 It is initiative to undertake or
continue a task or activity without
another’s prodding or supervision.
 Being self motivated is a hard work
that takes focused efforts, patience
and lot of discipline.
 10 – 15 % sales persons are self
motivated.
Hierarchy of Needs Theory – A. Maslow
Self
actualisation
Achieving
individual
potential
Esteem
Self esteem and
esteem for others
Belonging
Love, affection, part of
group

Safety
Home, shelter, protection

Physiological
Health, food , sleep
Individual needs Fulfilled through Managerial actions
Physiological needs Food, shelter, Provide/offer adequate income,
170
clothing, healthcare good benefits package
Safety needs Job security, safety, Provide safe work environment,
income security set mutually agreed
performance standards,
communicate job performance,
expectations, consequences of
failure to perform
Social needs Affiliation, Use team selling, hold social
friendship, functions, distribute employee
acceptance newsletter, hold sales meeting
Esteem needs Status, recognition Recognise achievements
personally and publically,
incentives, promotions
Self-actualization Self- development, Provide/ offer advance training,
needs challenge assignments, special projects,
more responsibility, authority
 Motivational Impact 171

Perceived Negative impact Positive impact

reasons
Ability Frustrated and Seek help, get
discouraged, may give additional training,
up. ask for FM
assistance.
Efforts No change in behavior Work harder, visit
more customers.
Strategy None Change selling
strategy, adapt
presentation.

Task difficulty Frustrated , Work harder, change

discouraged, may give strategies, seek
up. help.
Motivational criteria at different career stages 172

 Each stage will have a

specific career concerns,
depending upon how
he/she perceives,
interprets and reacts to
environment at each stage.
 Motivation is required at
each stage for greater
selling effort, enhanced
selling performance.
 Different career stages –
Different needs – Different
motivational criterias.
 Exploration/establishment stage
Exploration Establishment
20 – 30 years of age group. 30 – 40 years of age group.
Major concern – Finding right occupation which Major concern – Settling down and advancing in it
suits his abilities and needs. is the major concern due to social and family
Self image is shown by showing competence. pressures.
Career advancement is a major pressure, desirous
of promotion.
Balancing work and personal life is the challenge.
Stress arises due to many career options available Advancement depends on the fact that whether
which leads to job hopping. the organisation is having suitable positions.
Sales management is one of the choice.
If the person reaches maturity stage sales person
may switch over.
Generally they are dissatisfied with job due to Creation of senior sales position, dual career
lack of experience and are sceptical regarding options ( specialised non management
incentives. positions ) is an option which can avoid turn over.
It is a challenge for the manager to motivate
them.
 Maintenance/Disengagement stage
Maintenance Disengagement
Around 40 – 50 years of age group. 50+ age group
Psychological stress due to aging, limited No longer interested in maintaining the
growth opportunities, technical position, plans for retirement.
obsolescence etc. May attempt to withdraw from the career.
Tries to update himself to remain in/
maintain current status but may not feel
the need to compete with peers
Mostly feel satisfied and may not try to Some may go for early retirements and
improve their position irrespective of past involve in activities that gives personal
level of performance. satisfaction.
Some may continue/ some may choose an Managers can do very little to motivate
entirely new occupation. May be difficult to them.
motivate them.
Open and frank discussion may be the key Open and frank discussion is very important.
factor.
Extrinsic and Intrinsic Motivation (Incentive
theory) • Extrinsic motivation is when we are motivated to
perform a behavior or engage in an activity because
we want to earn a reward or avoid punishment.1 You
will engage in behavior not because you enjoy it or
because you find it satisfying, but because you expect
to get something in return or avoid something
unpleasant.

• Intrinsic motivation is when you engage in a behavior

because you find it rewarding. You are performing an
activity for its own sake rather than from the desire
for some external reward. The behavior itself is its
own reward.
Extrinsic Motivation Intrinsic Motivation

Participating in a sport to win awards Participating in a sport because you

find the activity enjoyable

Cleaning your room to avoid being Cleaning your room because you like
reprimanded by your parents tidying up

Competing in a contest to win a Solving a word puzzle because you find

scholarship the challenge fun and exciting

Studying because you want to get a Studying a subject you find fascinating
good grade
Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting

two aspects of human behaviour at work, or in other words, two different
views of individuals (employees):

one of which is negative, called as Theory X and

the other is positive, so called as Theory Y

According to McGregor, the perception of managers on the nature of

individuals is based on various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it
whenever possible.

Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals. A close supervision
is required on part of managers. The managers adopt a more dictatorial style.

Many employees rank job security on top, and they have little or no aspiration/
ambition.

Employees generally dislike responsibilities.

Employees resist change.

An average employee needs formal direction

Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.

Employees may not require only threat, external control and coercion to work, but they can
use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.

If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.

An average employee can learn to admit and recognize the responsibility. In fact, he can
even learn to obtain responsibility.

The employees have skills and capabilities. Their logical capabilities should be fully utilized.

In other words, the creativity, resourcefulness and innovative potentiality of the employees
can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’
nature and behaviour at work, while Theory Y presents an optimistic view of
the employees’ nature and behaviour at work.

If we correlate it with Maslow’s theory, we can say that Theory X is based on

the assumption that the employees emphasize on the physiological needs and
the safety needs; while Theory X is based on the assumption that the social
needs, esteem needs and the self-actualization needs dominate the employees.
Herzberg theory

Also known as Herzberg's motivation-hygiene theory, the two-factor

theory or the dual-factor theory, the Herzberg theory states that certain
elements within a workplace lead to job satisfaction, while others lead to
dissatisfaction.

Herzberg developed the theory to understand an employee's attitude

better and drive toward the job.
He interviewed employees about what pleased and displeased them at
work, studying both their good and bad experiences.

He theorized that an individual's job satisfaction depends on two types of

factors: motivators and hygiene factors.