21.

ans Does your organization have a clear and coherent strategy for recruiting, training and retaining employees in all three categories? Are you in the category appropriate to your talents? Use Ratings Distribution Management (RDM). Also called ratings calibration, this gives you the ability to calibrate ratings to ensure that the dissemination of erformance scores is more consistent across an organi!ation. "n a ty ical diverse, global organi!ation, erformance rating scales differ from division to division. RDM ensures that em loyees are rated consistently and fairly across the entire organi!ation, and as a result, incentives and re#ards can be a lied more a ro riately. Enable pay-for-performance. $uild a merit%based culture. &rograms that align em loyees' com ensation ( merit increases, bonuses, long%term incentives ( to their erformance have roven to be very effective in driving actual erformance. )ften called ay%for% erformance (&*&), the conce t is to build a culture of to erformers by aligning goals, erformance, and re#ards across an entire organi!ation. Motivating, re#arding, and retaining to erformers is a +ey business ob,ective for any com any that see+s to successfully maintain or e-ceed gro#th e- ectations. $est%in%class organi!ations focus on a erformance%driven re#ards system that com ensates individual contributors directly ro ortionate to #hat they achieve and #hat they contribute to the bottom%line. .he challenge lies in effectively aligning em loyee goals #ith organi!ational ob,ectives, automating erformance management rocesses, and lin+ing them #ith com le- com ensation olicies or time%based incentive lans at an enter rise level. &*& and merit%based ay rograms ( es ecially those that relate to e-ecutives ( have received rene#ed interest lately due to emerging legislative and regulatory com liance ressures stemming from the global financial system crisis. /et only 012 of organi!ations have made significant technology investments to automate and im rove &*& rocesses. 3learly, there is an o ortunity to both es ouse the virtues of a merit%based culture #hile at the same time #or+ing to#ard becoming com liant as ne# regulations are ut into effect. .he latter issue #ill be articularly im ortant for ublically%traded com anies. "deally, a single, centrali!ed 4R latform that natively connects all of the re5uired com onents for &*& is re5uired because it facilitates cross%functional re orting and eliminates the technical challenge and cost of integrating and managing dis arate systems. Link performance processes to career development and learning While the output of the performance management process is a finalized performance review between a manager and his/her direct report, the process also identifies employee skill, competency, and behavior gaps. Along #ith other forms of self%assessment, as #ell as 016 feedbac+ (if used #ithin the organi!ation), a clear icture of em loyee ga s emerge. 7ith this icture in hand,

em loyees are better able to build career develo ment lans that focus on im rovement in their current role, better re are them for a future role of interest, or both. .he im ortance of career develo ment cannot be underestimated. According to a survey of global 4R leaders conducted by 8um.otal, fully 9:2 of 4R leaders believe that a systematic career develo ment rocess ositively im acts em loyee retention and engagement. 4R leaders also believe that roviding career advancement o ortunities as #ell as dedicated career develo ment lanning to em loyees are the t#o most im ortant mechanisms for retaining high erformers. . How are reward, benefits and employee development systems aligned with strategy in your organization ! "ive e#amples of reward systems that fail to provide incentives, or in fact provide disincentives, to efforts and activities that advance organizational mission and strategy ;very com any needs a strategic re#ard system for em loyees that addresses these four areas< com ensation, benefits, recognition and a reciation. .he roblem #ith re#ard systems in many businesses today is t#ofold< .hey=re missing one or more of these elements (usually recognition and>or a reciation), and the elements that are addressed aren=t ro erly aligned #ith the com any=s other cor orate strategies. A #inning system should recogni!e and re#ard t#o ty es of em loyee activity% erformance and behavior. &erformance is the easiest to address because of the direct lin+ bet#een the initial goals you set for your em loyees and the final outcomes that result. ?or e-am le, you could im lement an incentive lan or recogni!e your to sales eo le for attaining eriodic goals. Re#arding s ecific behaviors that made a difference to your com any is more challenging than re#arding erformance, but you can overcome that obstacle by as+ing, @7hat am " com ensating my em loyees forA@ and @7hat are the behaviors " #ant to re#ardA@ ?or e-am le, are you com ensating em loyees for coming in as early as ossible and staying late, or for coming u #ith ne# ideas on ho# to com lete their #or+ more efficiently and effectivelyA "n other #ords, are you com ensating someone for innovation or for the amount of time they=re sitting at a des+A .here=s obviously a big difference bet#een the t#o. .he first ste , of course, is to identify the behaviors that are im ortant to your com any. .hose activities might include enhancing customer relationshi s, fine%tuning critical rocesses or hel ing em loyees e- and their managerial s+ills. 7hen business o#ners thin+ of re#ard systems, they ty ically ut com ensation at the to of the list. .here=s nothing #rong #ith that, since fe# eo le are #illing or able to #or+ for free. $ut the right strategy should also include an incentive com ensation lan that=s directly lin+ed to the goals of your com any for that eriod. /ou might #ant to include some ty e of longer%term re#ards for +ey individuals in your organi!ation. 4istorically, this has often included some form of e5uity o#nershi .

$rive continuous improvement by leveraging workforce analytics %raditional transactional reporting and spreadsheet-based tools have been available to H& for many years. )ften infle-ible, difficult to use, and inaccessible, these tools nevertheless are #hat 4R rofessionals currently rely on for critical #or+force metrics (e.g., em loyee retention, time%to%hire). $ut they can hardly be classified as strategic. And given the global economic conditions, 4R leaders are under increasing ressure to consistently measure and communicate the im act of their 4R rograms, es ecially to secure funding for strategic initiatives. Unfortunately, transactional re orting tools rovide little hel . 8trategic #or+force analytics, on the other hand, rovide more meaningful methods for measuring 4R efficiency and effectiveness. Be#, re%integrated technologies have emerged that enable 4R rofessionals to focus more on analysis, insight, and action rather than on data collection and mani ulation. ?or e-am le, #hat 4R leader #ould not li+e to +no# the true im act of learning and training rograms on em loyee erformance, or the effect of em loyee engagement rograms on #or+force roductivityA &art of the challenge facing 4R leaders is the fact that data is s read out in various silos across the organi!ation and there is no common em loyee system of record. A single, fully%connected 4R latform that covers the gamut of talent functions including &erformance management can alleviate some of the roblems, since the data is all in one lace. And #ith a robust analytic and re orting function, along #ith re%defined metrics, reviously unavailable insight can be gained. How can middle managers mitigate the undesirable effects of these kinds of misalignments? Middle manager can mitigate the undesirable effects by being a trans arent interface #hich often acts as trouble ma+er #hen missing. .his often trigger false o inions and reason #hich might not e-ist at all so middle manger should bridge ga bet#een su reme boss and lo#er subordinate 22.ans Tannen analyzes gender differences in communication within organizations. Does her analysis resonate in your e perience? Have gender!specific differences in communication become less pronounced as participation by women at all levels of employment has increased or do they remain stubbornly fi ed and infle ible? ' (n your e#perience are female bosses that speak and manage like their male counterparts perceived differently by their subordinates /es, basically 7e live in a male dominated society is a #ell +no# fact to us and also eo le are having reoccu ied vie# #here do's and donot's are established #ell before our time.Due to the imbalance in the vie# e-isting in the society certain thing done by male are erceived differently from that done by female. 8o yes #omen mangers are erceived com letely o osite to that of male.

Do women managers confront more resistance from male or female employees or is there no observable difference? 7omen mangers do confront resistance from male and more so in fe# cases #ith reference to #oman also. 8ome#here along the line gender feeling come in bet#een #hen it comes to men versus #omen and as far as #omen are concerned they has ego issues in mind. Cust to stress the obvious everything said above are general vie# and does not account for some e-ce tion #hich may resent here or there. "hat about managers from minority religions? As far as mangers from minority case is concerned " thin+ that most of them have balanced vie# and are unbiased its ,ust that manager it too good osition to have biased ideas. "hat about managers from )ld and young managers /oung managers bring refreshing change and ne# energy is um ed in the circuit #hile old managershave e- erience on their side. "hat about managers from #anagers with disabilities? Managers #ith disabilities com ensate for their inability that they are generally sho#n in their erformance and result they obtain. "hat about $ay or lesbian managers Day or lesbian managers degrade the re utation and side trac+ the em loyees intrest to#ards the #or+ #hich bane for organisation R;?;R;B3; .his ans#er is com letely drafted by me M.8AB.)84 EUMAR 20.ans
Provide examples from your work experience of ways that managers strike the balance between their organizations commitment to systems of control and to empowering employees

A rimary goal of em loyee em o#erment is to give #or+ers a greater voice in decisions about #or+%related matters. As .heir decision%ma+ing authority can range from offering suggestions to e-ercising veto o#er over management decisions. Although the range of decisions that em loyees may be involved in de ends on the organi!ation, ossible areas include< ho# ,obs are to be erformed, #or+ing conditions, com any olicies, #or+ hours, eer revie#, and ho# su ervisors are evaluated.

Many e- erts believe that organi!ations can im rove roductivity through em loyee em o#erment. .his occurs in one of t#o main #ays. ?irst, em o#erment can strengthen motivation by roviding em loyees #ith the o ortunity to attain intrinsic re#ards from their #or+, such as a greater sense of accom lishment and a feeling of im ortance. "n some cases, intrinsic re#ards such as ,ob satisfaction and a sense of ur oseful #or+ can be more o#erful than e-trinsic re#ards such as higher #ages or bonuses. Motivated em loyees clearly tend to ut forth more effort than those #ho are less motivated. .he second means by #hich em loyee em o#erment can increase roductivity is through better decisions. ;s ecially #hen decisions re5uire tas+%s ecific +no#ledge, those on the front line can often better identify roblems. ;m o#ering em loyees to identify roblemsFcombined #ith higher%level management involvement in coordinating solutions across de artmental boundaries #ithin the firmF can enhance the overall decision%ma+ing rocess and increase organi!ational learning.
Provide examples?

?or e-am le, .oyota Motor 3om any em o#ers some of its em loyees to identify and hel remedy roblems occurring during roduct assembly. An automobile coming off .oyota=s assembly line #ith a aint defect is seen as an o ortunity to delve into the root cause of the defect, as o osed to merely fi-ing the defect and assing it on to distributors for resale. 8olutions resulting from em loyee involvement tend to have more em loyee buy%in #hen it comes to im lementation. $ecause such solutions are generated from the front lines, this further enhances the otential for roductivity im rovements by reducing the attitude that solutions are @ assed do#n from above.@
Are there systematic strategies to address these challenges?

A number of different human resource management rograms are available that grant em loyee em o#erment to some e-tent. A number of these are discussed in the follo#ing sections, including informal artici ative decision%ma+ing rograms, ,ob enrichment, continuous im rovement, and self%managed #or+ teams.

(*+)&,-L .-&%(/(.-%(0E $E/(1()*-,-2(*" .&)"&-,1

"nformal artici ative decision%ma+ing rograms involve managers and subordinates ma+ing ,oint decisions on a daily basis. ;m loyees do not en,oy blan+et authority to ma+e all #or+%related decisionsG managers decide ,ust ho# much decision%ma+ing authority em loyees should have in each instance. .he amount of authority varies de ending on such situational factors as decision com le-ity and the im ortance of em loyee acce tance of the decision. 7hile it may seem obvious, one +ey to em o#erment is choosing under #hat conditions to em o#er em loyees. ;m loyees should be em o#ered in situations #here they can ma+e decisions that are as good as, or better than, those made by their managers.

)ne ossible roblem is that the interests of #or+ers may not align #ith those of the organi!ation. ?or e-am le, at one university a de artment head delegated the tas+ of determining ,ob erformance standards to the faculty. $ecause the faculty believed that it #as not in their o#n best interest to develo challenging standards, the standards they eventually develo ed #ere easily attainable. .he success of em o#erment also often hinges on #hether em loyees #ant to artici ate in decision ma+ing. 8ome em loyees, for instance, have no desire to ma+e #or+%related decisions. 8uggestions for increasing em loyee artici ation levels include #or+ situations #here< 1. All ossible solutions are e5ually effective. ?or e-am le, consider em loyee vacation schedules. "f one solution is as good as another, em loyee grou s can be em o#ered to #or+ out the scheduling. 2. Managers do not ossess sufficient information or e- ertise to ma+e a 5uality decision #ithout em loyee in ut. Managers should at least consult their em loyees before a decision is reached to revent overloo+ing solutions that may a ear obvious to front%line em loyees, but #hich may be more evasive for higher%level managers #ho are unfamiliar #ith front%line ractices. 0. Managers do not +no# e-actly #hat information is needed or ho# to find it. Again, managers should at least consult their em loyees before a decision is reached to determine #hether em loyees have the information re5uired to ma+e an effective decision. *. .he grou =s acce tance of or commitment to effective im lementation is crucial and the grou is unli+ely to acce t a manager=s unilateral decision. "f em loyees= acce tance is crucial, artici ative decision%ma+ing should be used. As alluded to reviously, em loyees tend to acce t decisions more #illingly if they have had a voice in the decision%ma+ing rocess. )ne caveat is that the artici ation should be genuineG managers should not as+ for em loyee in ut sim ly to give the a earance of artici ation. ;m loyees can usually recogni!e this loy and, if they do, feelings of distrust #ill li+ely develo . H. ;m loyees= goals are aligned #ith those of management. "f em loyees do not share management=s goals, artici ative decision%ma+ing #ould be ina ro riate, because the t#o arties #ould be at odds. 8everal studies have e-amined the effects of informal artici ative decision%ma+ing rograms. 7hile the results have been mi-ed and thus cannot be considered definitive, most studies have found that informal artici ative decision%ma+ing rograms do, in fact, have a ositive im act on roductivity.

3)4 E*&(/H,E*%
8ometimes, em loyees are not motivated because of the #ay their ,obs are designed. ?or e-am le, consider the ,ob of an assembly%line #or+er #ho does nothing but lace a scre# in a hole as the roduct asses by on the roduction line. 8uch a ,ob rovides little o ortunity for #or+ers to gain intrinsic re#ards. Cob enrichment aims to redesign ,obs to be more intrinsically re#arding. 3ertain ,ob characteristics hel managers to build enrichment into ,obs. .hese characteristics (summari!ed in ;-hibit 1) include<

8+ill varietyF.he various s+ills needed to erform a given tas+, #here increased s+ill re5uirements are associated #ith increased motivation .as+ identityF.he degree to #hich em loyees erceive ho# their ,ob im acts the overall roduction of a roduct or service .as+ significanceF7hether the tas+ is meaningful beyond the tas+ itself AutonomyF;m loyee discretion over ho# to erform a tas+ ?eedbac+F"n ut from eers and su ervisors regarding the 5uality of an em loyee=s #or+

Exhibit 1 Job Characteristics That Enhance Intrinsic Motivation

5! 1kill 0ariety6 %he degree to which a 7ob re8uires a variety of different activities to carry out the work! - 7ob has high skill variety if it re8uires a number of different skills and talents! 9! %ask (dentity6 %he degree to which a 7ob re8uires completion of the whole and identifiable piece of work! - 7ob has high task identity, if the worker does the 7ob from the beginning to end with a visible outcome! :! %ask 1ignificance6 %he degree to which the 7ob has a substantial impact on the lives of other people, whether these people are in the immediate organization or in the world at large! - 7ob has a task significance if people benefit greatly from results of the 7ob! ;! -utonomy6 %he degree to which the 7ob provides the workers with autonomy! - 7ob has high autonomy if workers are given substantial freedom, independence, and discretion in scheduling the work and determining the procedures to be used in carrying it out! <! 3ob +eedback6 %he degree to which the 7ob provides the worker with knowledge of results! - 7ob has high 7ob feedback if carrying out the work activities re8uired by the 7ob provides the individual with direct and clear information about the effectiveness of his or her performance! 7hen these characteristics are resent in a ,ob, em loyees tend to be more motivated than #hen these characteristics are not resent. 4o#ever, there is not a @silver bullet@ for motivating em loyees through em o#ermentG there is considerable variation in the degree to #hich each of these em o#erment factors motivates individuals. )n the other hand, it is a mista+e to thin+ that because certain individuals do not res ond e5ually to such ,ob designs, overall roductivity #ill not increase as a result of em o#erment through ro er ,ob design and enrichment. "n general, roductivity tends to increase des ite the inherent variation of s ecific effects. )nce a ,ob has been identified as needing enrichment, the organi!ation must redesign it to incor orate these characteristics< s+ill variety, tas+ identity, tas+ significance, autonomy, and feedbac+. 8ome s ecific ,ob enrichment techni5ues include<

3ombining tas+s. .his involves assigning tas+s erformed by different #or+ers to a single individual. ?or e-am le, in a furniture factory, rather than #or+ing on ,ust one art of the roduction rocess, each erson could assemble, sand, and

stain an entire table or chair. .his change #ould increase s+ill variety, as #ell as tas+ identity, as each #or+er #ould be res onsible for the ,ob from start to finish. ;stablish client relationshi s. 3lient relationshi s could be established by utting the #or+er in touch #ith customers. ?or e-am le, an auto dealershi service de artment could allo# its mechanics to discuss service roblems directly #ith customers, rather than going through the service manager. $y establishing client relationshi s, s+ill variety is increased because #or+ers have a chance to develo inter ersonal s+ills. "t also rovides them #ith a chance to do a larger art of the ,ob (tas+ identity), to see ho# their #or+ im acts customers (tas+ significance), and to have more decision%ma+ing authority (autonomy). Reduce direct su ervision. 7or+ers gain autonomy #hen they are given res onsibility for doing things reviously done by su ervisors. ?or instance, cler+s could be allo#ed to chec+ for their o#n errors or be allo#ed to order su lies directly.

Many organi!ations have successfully enriched other#ise dull ,obs, thereby em o#ering em loyees to have greater control over their #or+ and the decisions affecting them. "n addition to increased roductivity, em o#erment also may lead to im rovements in roduct or service 5uality, reduced absenteeism rates, and increased em loyee retention. "n situations #here enriched ,obs become less automated, ho#ever, roduction may become less efficient. Cob enrichment #ould thus be ill%advised in situations #here the loss in efficiency cannot be offset by roductivity gains stemming from increased motivation. Moreover, em loyees referring highly automated, easy ,obs are li+ely to o ose ,ob enrichment efforts.

/)*%(*=)=1 (,.&)0E,E*%
3om anies ado ting continuous im rovement attem t to build 5uality into all hases of roduct or service design, roduction, and delivery. )ften referred to as total 5uality management, these rograms em o#er #or+ers to trace roduct or service roblems to their root causes and redesign roduction rocesses to eliminate them using various roblem%solving and statistical techni5ues. "n these situations, em o#erment arises from the need to involve em loyees at nearly all organi!ational levels in continuous im rovement efforts. .he use of continuous im rovement rograms have gro#n ra idly, built on the successful e- eriences of numerous com anies. Iero-, for e-am le, #as able to decrease the number of customer com laints it received by 0J ercent after im lementing continuous im rovement methods, and Motorola reduced the number of defects in its roducts by J6 ercent. &ro onents of self%managed #or+ teams claim they succeed because they are customer%focused and romote sound management ractices li+e team%#or+, continuous learning, and continuous im rovement.

1EL+-,-*-"E$ W)&2 %E-,1

8elf%managed #or+ teams have the authority to manage themselves. Rather than having managers control their #or+, self%managed #or+ teams incor orate grou norms to

regulate activities. .hey lan, organi!e, coordinate, and ta+e corrective actions. 8ome can hire, fire, and disci line team members #ith little intervention from higher levels of management. "n short, self%managed #or+ teams are given res onsibilities usually held by managers, but control comes from the concertive influence of the team rather than from more formal means. Bot sur risingly, managers= ,obs are minimi!ed and grou norms are ma-imi!ed #hen self%managed #or+ teams are used. 8elf%managed #or+ teams are not for all organi!ationsG characteristic needed for success include<

.echnical s+ills. 3ross%training, #hich allo#s team members to move from ,ob to ,ob #ithin the team, is essential. .hus, team members should receive training in the s ecific s+ills that #ill broaden their ersonal contributions to the overall effort. "nter ersonal s+ills. .eam members must communicate effectively, both one%on% one and in grou s. 3oo erative decision%ma+ing #ithin and among teams demands the s+ills of grou roblem solving, influencing others, and resolving conflicts. .eam members must learn roblem%solving s+ills that assist in !eroing in on roblem areas, gathering facts, analy!ing causes, generating alternatives, selecting solutions, and other related facets. Administrative s+ills. 8elf%managed #or+ teams must erform tas+s formerly handled by su ervisors. .he team must learn ho# to +ee records, re ort rocedures, budget, schedule, monitor, and a raise the erformance of team members.

Research findings concerning self%managing teams have been largely ositive. &ro onents claim that self%managed #or+ teams are effective because they em o#er em loyees to ma+e decisions that affect their day%to%day business lives. .hus, these teams radically change the #ay that em loyees value and thin+ about their ,obs. )ther benefits associated #ith self%managed teams include greater fle-ibility to res ond to mar+et changes and com etitive ressures. 4o#ever, there are a number of dra#bac+s. As noted reviously, self%managed teams are not for every organi!ation. 8ome may be better served by other #ays of em o#erment, rather than the dramatic em o#erment seen #ith self%managed teams. Dra#bac+s can include<

Rivalry #ithin and across teams A shortage of time and s+ills on the team to deal #ith conventional management concerns li+e hiring, training, and resolving inter ersonal dis utes Difficulty a raising em loyees in the absence of a traditional management figure

"n addition to these concerns, one of the most difficult issues com anies face #ith self% directed #or+ teams is deciding ho# to effectively im lement them. A number of obstacles must be overcome. 8ometimes, managers are reluctant to relin5uish control and em loyees are reluctant to acce t ne# res onsibilities. .o re are team members fKor self%management, the organi!ation must rovide a considerable amount of training.

7ithout ro er training, teams are li+ely to become bogged do#n ermanently in mid% rocess. As the revious discussion suggests, em o#erment is not a single event or rocess, but rather ta+es a variety of forms. .he degree of em o#erment ranges from as+ing em loyees for in ut to allo#ing total discretion. "nformal artici ative decision%ma+ing rograms, ,ob enrichment, continuous im rovement, and self%managed #or+ teams are some of the #ays that organi!ations em o#er em loyees, giving them more control, but at the same time increasing overall organi!ational roductivity.

2*.ans
Does a good manager need to be a leader?

Leadershi is an effective instrument by #hich a manager can establish a feeling of mutual ob,ectives and unity in a grou , thereby ensuring ma-imum efficiency of the grou . .o achieve this, a manager has to have s ecial s+ills in understanding im ersonal and grou behaviour, establishing interactions and communication, and romoting coo eration. .he 5uality of leadershi determines the success or failure of an organi!ation. Leadershi can be defined here as the effort to influence the behaviour of individuals or grou members in order to accom lish organi!ational, individual or ersonal goals. "t is an essential com onent of organi!ational effectiveness. A leader has to ossess one or more forms of powers to orient others to the desired direction (?rench and Raven, 19H9)< charisma, a osition of authority, e- ert +no#ledge, and o#er of re#ard and unishment. .he o#ers of authority, re#ard and unishment are rimary o#ers, #hich add strength to leadershi 5uality and influence. .hese are o#ers #hich are delegated to a manager by the organi!ation. ;- ert +no#ledge and charisma o#er are ersonal, intrinsic to the leader, and add to his or her strength.
Is a leader necessarily a good manager?

.o be effective, a manager should have a good understanding of leadershi , of motivating factors, of ho# eo le thin+ and act, and should ado t a ersonal and active attitude to#ards designated goals. Leadershi should be both effective and successful. 7hile successful leadershi dra#s a res onse from individuals or grou members on the basis of re#ards and unishments, effective leadershi is based on mutual understanding and social e-change. An effective leader ma+es the individual or grou members understand the roblem and reasons for

any actions or for changes needed in their o#n erce tual terms, and then ma+es a #ell reasoned decision. More recently, the conce t of the super leader has been develo ed. A su er leader is one #ho leads others to lead themselves. 8u er leadershi ins ires, stimulates and su orts self%leadershi in subordinates. "t recogni!es self%influence as a @ o#erful o ortunity for achieving e-cellence, rather than as a threat to e-ternal control and authority@ (Man! and 8ims, 19J:). 8trategies for self%leadershi include< (i) effective behaviour and action, (ii) strategies focused on behaviour, and (iii) cognitive focused effective thin+ing and feeling.

Leadership theories
Leadershi is influenced by numerous factors relating to traits, behaviour and situation. "t is the outcome of a com le- relationshi bet#een leaders, subordinates, the organi!ation, social values and economic and olitical conditions. .he conce t of leadershi is understood mainly through three theories, based on trait, behaviour and situation.
ithin any group a leader typically emerges! "ow can a manager effectively supervise an employee that emerges as a group leader and turn the leader# employee into a managerial asset?

.he traditional conce t is that effective leaders have ersonality traits #hich distinguish them from the common herd. Leadershi effectiveness has been found to be associated #ith age, height, intelligence, academic achievements, ,udgmental ability and insight. 4o#ever, none of these have been correlated #ith leadershi in all situations. .he #illingness to lead transcends all these traits. .he trait a roach has been o ular, but controversial. 8togdill (19:*) identified several general factors #hich differentiate leaders from non% leaders< Capacity refers to roblem solving ca abilities, ma+ing ,udgments and #or+ing hard. Achievements relate to accom lishments such as academic record, +no#ledge and s orts. Responsibility refers to de endability, reliability, self%drive, erseverance, aggressiveness and self%confidence. Participation and involvement mean highly develo ed social interaction, o ularity, s#ift ada tation to changing situations, and easier coo eration com ared to non%leaders. Socio-economic status, i.e., effective leaders usually belong to higher socio%economic classes.

Behaviourial approach
.he behaviourial a roach to leadershi is based on the conce t of ho# a leader behaves and #hat actually is done to achieve leadershi effectiveness. De ending on artici ation and sharing in decision ma+ing, leaders have been classified (Le#in, Li it and 7hite, 1909, 5uoted in .osi, Ri!!o and 3arroll, 19J1) as< Autocratic leaders, #ho e-clude subordinates from the rocess of decision ma+ing. .hey assign #or+ #ithout consulting subordinates or +no#ing their inclinations and desires.

Democratic or participative leaders are effective and more roductive because they consult subordinates on various matters and include them in the rocess of decision ma+ing. .as+s are assigned on the basis of interests and references of subordinates.
Laissez-faire leaders have little or no self%confidence in their leadershi ability, do not set goals for the grou , and do not enhance grou interaction and communication. "n fact, the laisse!%faire ty e of leader do little su ervision. 3onse5uently, the grou has to ma+e many on%the%,ob decisions. 8tudies at )hio 8tate University focused on tas+ and social behaviour of leaders, and identified initiatin structure and consideration as t#o im ortant determinants of successful leadershi behaviour. .he studies observed the effect of various leadershi styles on grou erformance and ,ob satisfaction (8togdill, 19:*). "nitiating structure is the e-tent to #hich a leader conce tuali!es the roles of both the leader and the subordinates to#ards goal achievements. "t relates to organi!ational structure, communication channels and evaluation of grou out ut. 3onsideration is the degree to #hich ,ob relationshi s are associated #ith mutual trust, faith, res ect, friendshi , su ort from subordinates and informal communication. )n the basis of these dimensions, four leadershi styles have been identified, namely lo# structure % lo# considerationG lo# structure % high considerationG high structure % high considerationG and high structure % lo# consideration. .he high structure % high consideration style of leadershi has been found to be most effective (8togdill, 19:*).

Theory X and theory Y

.here are t#o basic classes of eo le< those #ho #ant to lead and ta+e res onsibility, i.e., the leaders and managersG and those #ho #ant to be directed and do not #ant to ta+e res onsibilities. )n this basis, McDregor (1916) classified leadershi as either an authoritarian style (.heory I), or a more egalitarian style (.heory /). %heory > .heory I assumes that< man is inherently la!y, disli+es #or+ and avoids it #henever ossibleG

 as a result, leaders must use strong measures to control the behaviour of subordinates and ro erly control them so that they #or+ to#ards organi!ational goalsG and most human beings are inca able of self%direction and control, referring to res ond to direct orders rather than assume res onsibility for their o#n actions. According to .heory >, management does not trust em loyees #ith im ortant decisions. .hey are altogether e-cluded from the decision ma+ing rocess. Management assumes com lete res onsibility for organi!ing, lanning, ma+ing im ortant decisions, directing and motivating eo le. "f management does not act, em loyees #ill do little or nothing. %heory ? .he .heory / style of leadershi is based on Maslo#=s conce t of self%actuali!ation. "t considers that< #or+ can be en,oyable, eo le #ill #or+ hard and assume res onsibility if they have the o ortunity to satisfy their ersonal needs #hile at the same time achieving organi!ational goals, eo le have a great deal more ca ability and otential for imagination and creativity than they are given credit for, given ro er conditions, individuals #ill #or+ hard to do a good ,ob, and an individual=s erformance is actually based on innate rather than e-ternal controls. "m lementing a .heory / a roach, a manager nurtures an environment #hich is favourable to the gro#th of both organi!ation and subordinates. .he theory recogni!es that em loyees have the ca ability to be high erformers, to develo and assume res onsibility, and to be self%motivated. .herefore management only has to ensure the a ro riate #or+ing conditions to bring out all these abilities. 7ith the right +ind of leadershi , em loyees #ill not be inactive and resistive. )n the contrary, management can trust em loyees and assign res onsibility for ta+ing im ortant decisions to lo#er levels. .he overall effect is to ma+e #or+ inherently satisfying to the em loyee.

Managerial grid approach

.he managerial grid a roach utili!es % #ith modifications % the consideration and initiating structure dimensions of leadershi . As discussed earlier, these dimensions are directed to#ards eo le and roduction res ectively ($la+e and Mouton, 1919). Using this a roach, five ty es of leadershi styles have been identified<

 .he improvised or e!tempore style, #hich considers neither eo le nor roduction. "t is an ineffective style of leadershi . .he country club style of leadershi is oriented to#ards eo le, but has the least concern for roduction. .he autocratic type of leadershi is oriented to#ards roduction. "t has most concern for roduction and least concern for eo le. .he middle-of-the-road type of leader maintains a balanced bet#een roduction and eo le. .he team type of leadershi style influences grou members into a vibrant, effective, roblem solving and decision ma+ing team, #hich is essential for organi!ational effectiveness. .his is the most effective style of leadershi , since it has concern for both roduction and eo le.

Li ert!s "our syste#s

According to Li+ert (1911), o timal erformance can only be achieved if attention is aid to the human as ects of subordinates= roblems and behaviourial as ects, such as motivating forces, communication rocesses, interaction%influence rocesses, decision ma+ing rocesses, goal setting rocesses, control rocesses, and erformance characteristics. $ased on these considerations, leadershi styles could be either ,ob centred or em loyee centred, and then further classified as follo#s< 3ob centred ;- loitive%authoritative ty e of leadershi , #hich is similar to the high structure%lo# consideration ty e discussed earlier. "t is mani ulative and results in lo# roductivity. $enevolent%authoritative style of leadershi , #hich is a slight im rovement on the e- loitive%authoritative ty e of leadershi . "t roduces average results. Employee centred An em loyee%centred leadershi style can either be consultative or artici ative. A consultative style of leadershi is ideal. Although control is basically #ith to management, it is shared #ith managers at middle and lo#er levels. )verall roductivity is good. A artici ative grou style ma-imi!es the 5uantity and 5uality of erformance, and is thus an ideal a roach.

$ituational approach
A situational a roach to leadershi is based on the remise that environmental factors affect a leader=s style and effectiveness. 3onse5uently, effective and successful leadershi de ends on the relationshi bet#een organi!ational situations and leadershi styles. ?iedler=s situational theory identifies effective leadershi styles under changing situations (?iedler, 3hemers and Mahar, 19::). .hese can be either relationshi motivated or tas+ motivated. A relationshi %motivated leadershi style relies on good ersonal relations and grou artici ation to accom lish tas+s. Leaders #ith this style erform most effectively in modest control situations #hich resent mi-ed roblems related to tas+, grou members and authority. .he relationshi %motivated leader gets coo eration from the grou by being sensitive, di lomatic and tactful. .as+%motivated leaders refer clear guidelines and standardi!ed or atterned #or+ methods to com lete successfully the tas+ they have acce ted. .hey have strong tas+ orientation and erform best in high%control or lo#%control situations. .he high%control situations are those #here leaders get su ort from grou members and the tas+s are clearly s ecified. "n addition, leaders have high authority, #hich enables them to use their o#ers of re#ard and unishment a ro riately. Lo#%control situations % the o osite of high%control situations % are relatively difficult, challenging and straining. .annenbaum and 8chmidt=s situation theory contends that the most effective leadershi style de ends on forces in the leader, the follo#er and the situation. A leader chooses his or her leadershi style based on the interactions and revalence of these forces for o timi!ing organi!ational roductivity (.annenbaum and 8chmidt, 19HJ).

%unctions o" leaders

.he basic ob,ective of leaders is to ensure that the grou accom lishes its goals. Leaders= functions de end on the grou being led, #ith actions ad,usted to different situations. .herefore, they have to develo a feeling of mutual interest among the grou members, romote coo eration and effective communication to ensure ma-imum efficiency of the grou , foster a feeling of team s irit among the grou members, and manage strife and dissension efficiently and constructively.

$roadly s ea+ing, managers erform tas" and maintenance functions (Erech, 19*J), de ending u on different ositions and situations. %ask functions .as+ functions are the activities #hich are erformed to reali!e organi!ational goals. .hey concern leaders as< Policy-ma"ers# .he rimary function of leaders is to establish grou goals and olicies in accordance #ith broader olicies and organi!ational goals. Planners# Leaders lan #ith a time ers ective and develo a methodology for im lementation, including use of human and hysical resources. &artici ation of team members in the lanning rocess facilitates smooth im lementation. $!ecutives# An im ortant res onsibility of leaders is to coordinate the activities of the various grou s and individuals in their team. $!perts# Leaders are e- ected to be e- erts in their areas of s eciali!ation and their ,ob, so as to enhance the ability and effectiveness of grou members. %roup representatives# Leaders re resent their grou s and e- ound grou demands, achievements and constraints to su eriors. .his is the =gate%+ee ing= function. Controllers# Leaders control grou activities and inter ersonal relations #ithin the grou so that the goals of the organi!ation can be achieved effectively. Purveyors of rewards and punishments# Leaders have o#ers of re#ard and of unishment, by virtue of the authority they en,oy. .hese o#ers can be used for disci lining, motivating and controlling. ,aintenance functions Maintenance functions are those activities that hel in gratifying the needs of grou members. .hese relate to leaders as< Arbitrators and mediators# Leaders act as arbitrator%negotiators and as mediators in resolving intergrou conflicts and re%establishing good grou relations. &deal role models# De ending on the situation, leaders sometimes have to ortray themselves as ideal role models for the grou members to follo#. %roup symbols# Leaders have to augment, reinforce and maintain a sense of belonging and involvement #ithin the grou . .hey therefore have to have a strong sense of identity #ith their grou s. )nly then can they ro erly re resent the grou .

 Surro ates for individual responsibility# Leaders have to assume res onsibility for decision ma+ing #hen grou members do not #ant to be involved in the rocess and refer to esca e from res onsibility. &deolo ists# "nfluential and effective leaders are a source of beliefs and basic tenets for grou members, #ho start acce ting the leader=s ideas and thin+ing. 'ather fi ures# Leaders serve as a erfect focus for the ositive emotional feelings of individuals in the grou . .hey are considered ideal for identification, transference and feelings of submissiveness. Scape oats# Leaders are an obvious target for the hostility and onslaught of frustrated, disa ointed or disenchanted grou members. 8ince leaders are res onsible for grou activities and achievement, they have to acce t the blame for failure.

Characteristics o" leaders

?rom the vie# oint of a follo#er, the characteristics of leaders are< (r anization# 8ubordinates li+e leaders #ho lan and are #ell organi!ed. .hey should follo# the chain of command in issuing instructions. .hey should also delegate authority as necessary. 'earlessness# Leaders should not be afraid for their ositions, nor afraid of their su eriors, the toughness of a ,ob, colleagues or the honest mista+es of their staff. Respect for the wor" of others# Leaders should recogni!e that the #or+ of their teammates is as im ortant as their o#n #or+, and deserves e5ual recognition. 7hile they should be e-cited about their o#n #or+, leaders should simultaneously cultivate the right climate so that their teammates can also be enthused about their #or+. Satisfaction# Leaders should have a feeling of satisfaction and gratification #hen a teammate achieves something #hich they themselves thought #ould be im ossible. Promotion of the interests of subordinates# "f leaders believe that their subordinates are right, they should fight for them no matter #hat the odds and the situation. 'ran"ness# Leaders should tal+ to subordinates directly and inform and e- lain #ithout losing tem ers or creating stress. .hey should be candid and critici!e constructively. Respect for the individual# 8ubordinates refer leaders #ho res ects an individual=s identity and e- erience. Leaders should never sho# bias. )nowled e# 8ubordinates #ant leaders #ho are +no#ledgeable and +no# most of the ans#ers. At the same time, leaders should admit ignorance #hen they do not +no# the

ans#er to a roblem, and be #illing to see+ hel from other sources. .hey should also be #illing to learn from others. "n fact, they should never sto learning. Predictability# Leaders should be redictable, usually the same all the time and not enigmatic. *olerance# Leaders should be tolerant of small mista+es #hich teammates may occasionally ma+e. +nderstandin # 8ubordinates should erceive their leaders to be humane and understanding, and should not be afraid to go to them if they have committed a foolish mista+e, are ashamed or are roud and satisfied. Leaders should create confidence and should be neither hasty nor rude. ,onesty and transparency# 8ubordinates #ants leaders #ho are trans arent in their dealings and cannot be bribed by anyone. Leaders should be able to see through erfidious designs in any form, and should cultivate strong moral fibre and earn the res ect of their teammates. Leaders should al#ays be committed to good moral rinci les. Accessibility# Leaders should be easily a roachable #hen needed, and subordinates should be able to get a#ay from their leader #hen their business is settled. Providin opportunities# Leaders should be #illing to rovide ne# o ortunities and chance for #or+ even if it is something ne# and the subordinate may not have e- erience in that #or+. %uidance# Leaders should lead by training others. .hey should be able to sho# their subordinates ho# to do a ,ob, but, in doing so, they must not sho# off. 8ubordinates li+e eo le #ho gro# out of their o#n ,ob to become leaders. Leaders should try to match eo le and ,obs. -illin ness to listen# Leaders should be #illing to listen #hen a subordinate has something to say, but should be able to end the conversation gracefully if necessary. %enuineness# 8ubordinates should believe that their leaders sincerely #ants them to succeed and #ill be roud of them #hen they do. Discretion# Leaders should res ect the rivacy of their teammates. .hey should not admonish them in the resence of others, nor gossi about them. At the same time, leaders should give credit to and acclaim their eo le ublicly #hen a ro riate. &nformed# Leaders should be #ell informed about #hat is ha ening around them. .hey should not give credence to gossi .

 %race# Leaders should neither denigrate nor undermine a teammate for any reason. Authority# Leaders should have authority to mete out re#ards and unishment as necessary. People orientation# Leaders should li+e eo le, be coo erative and ins ire their teammates. Positive personality# 8ubordinates li+e leaders #ho are active, humble, gracious, thoughtful and confident. Leaders should be firm but fair to everybody, and, if necessary, should be able to com romise, but should not lacate. %ood communication# 8ubordinates li+e to be informed of the actions of their leader and the reasons for them. Dood leaders have to be good communicators. 7hen discussing business leadershi , the distinction bet#een good management and good leadershi is often made. Leading and managing are t#o distinct yet symbiotic 5ualities that every organisation loo+s for in a erson #ho is moving u the ladder. 4o#ever, this right blend is rare and cannot be easily found. Dood managerial s+ills are all about lanning and utilising time, resources and man o#er to get the #or+ done. 4o#ever, having good leadershi s+ill is a different ball game all together. A leader is a visionary, #ho must have the ability to see the bigger icture of things. .his 5uality #ill hel a good manager build a self driven team. Delegation becomes easy for a manager #ho has a self driven team. Managers must become good leaders too. .his #ill not only hel their subordinates but also hel the organisation achieve its short term and long term goals. )rganisations must understand the difference bet#een leaders and managers. .he learning and develo ment team in the organisation should ta+e cogni!ance and should consciously train eo le to be both leaders and managers. "t is often believed that it is easy to be a good manager, but it is seldom true. A good manager must have clear convictions and manifest those convictions into reality. A erson, #ho has successfully achieved this fundamental rinci le and understands the dee er role of a guide, is a leader. .oday's business environment is over%managed and under%led. .oday, em loyees as ire to #or+ under bosses #hom they can follo#. .hey #ant to lace trust in someone #ho is not only #or+ing for the greater good of the organisation, but also hel ing his or her subordinates to gro# and achieve bigger milestones. Dood Managers #ith leadershi 5ualities al#ays #or+ on being good mentors for there subordinates. Dood managers not only use their M ositional o#er' to direct, su ervise and manage the resources of an organisation but also lay ins ire, influence and challenge eo le to achieve greater goals. .his hel s in achieving the organisational vision in a very short s an of time. .he collective effort of the organisation and its em loyees can only be

successful #ith ro er facilitation of the managers. An organisation that has smart managers is al#ays ahead of the com etition because they rovide necessary on ground information to the to management, #hich hel s it strategise for the organisation. .hey also hel in the ro er im lementation of staff to achieve the target vision of the firm. A good manager al#ays contributes to the bottom line of the com any by ensuring that the tas+ assigned to an em loyee is successfully com leted. 8o, ho# does he or she achieve this ob,ectiveA % 3ommunication is the +ey< A good manager al#ays communicates the business ob,ectives to the em loyees. .his allo#s them to see ho# their de artment and ersonal ob,ectives su ort and contribute to the bigger icture. % Assessment s+ills< A good manager also needs to be able to evaluate their subordinates s+ills, +no#ledge and abilities. .his gives them the ability to assign tas+s and res onsibilities to the a ro riate team member so de artment ob,ectives can be achieved successfully. % ;m o#ering eo le< Dood managers must encourage their subordinates to ta+e o#nershi of the tas+ assigned to them. .hey must facilitate their learning rocess of there subordinates. Delegation is an art. Dood managers must lan #ell, so as to +no# #hat to delegate and #hom to delegate and ho# much time should be allocated for the erson #ho #ill be erforming this tas+. .his also ensures that eo le under good managers gro# as better managers in due course of time % 4andling eo le< Dood managers often get the most from their em loyees. .hey al#ays orient their teams to the e-isting or changing rocesses, rovide ,ob information and align erformance e- ectations to the ,ob allocatedG they identify training re5uirements and rovide eriodical feedbac+. Ultimately, a great manager is somebody #ho can ma+e the sum of a team greater than a collection of individuals. Dreat managers handle eo le #ith grace and ease, caring for them and encouraging them to achieve their goals. ?inally, a great manager allo#s the team to flourish and creates value to each individual as #ell as for the com any % 3onflict resolution< A team>organisation com rises of eo le #ho come from various mind sets and different bac+grounds. 3onflict resolution through smart inter ersonal s+ills is a very im ortant role to be layed by a manager. % Re#arding em loyees< A good manger al#ays highlights an em loyee's achievement to the to management and hel s his recognition rogramme in lace. A art from managing, motivating and utilising the com any's resources to scale u businessG smart managers have the ability to deal #ith set bac+s, failures and unforeseen challenges. During hard times, managers can only become leaders if they have the ability to communicate hard truths to the com any and em loyees. Managers not only have the ability to deal #ith tough challenges but also to mentor others to stand tall during crises.

Leadershi starts individually, and the #ay in #hich an individual a roaches his daily life. ;very erson must be self driven and learn to lead his life only then #ill they be effective in dealing #ith other eo le. N7hen the Doing Dets .ough, the .ough Det Doing.O A true leader must follo# this religiously. 3om anies #ho have thin+ing managers have a ool of leaders in them. "n tough times, these managers +ee their thin+ing hats on and come u #ith many alternative solutions and lans so that the business continuity of the organisation is never at sta+e. Many innovations in organisation have been introduced by such managers and hence, it gives the com any a cutting edge over its com etition. ;very e-ecutive's career goes through four im ortant ste s i.e., hire, ins ire, admire and retire. "n a middle management level, a good manager must start ins iring eo le to have goals and achieve them and if they are successful in doing so, during the end of their careers, they #ould #in eo le's admiration. Most good managers are good leaders since they have the right vision in lace and they manage eo le and organisational riorities and most im ortantly hel the organisation ma+e more leaders and good mangers.

7hen discussing business leadershi , the distinction bet#een good management and good leadershi is often made. Leading and managing are t#o distinct yet symbiotic 5ualities that every organisation loo+s for in a erson #ho is moving u the ladder. 4o#ever, this right blend is rare and cannot be easily found. Dood managerial s+ills are all about lanning and utilising time, resources and man o#er to get the #or+ done. 4o#ever, having good leadershi s+ill is a different ball game all together. A leader is a visionary, #ho must have the ability to see the bigger icture of things. .his 5uality #ill hel a good manager build a self driven team. Delegation becomes easy for a manager #ho has a self driven team. Managers must become good leaders too. .his #ill not only hel their subordinates but also hel the organisation achieve its short term and long term goals. )rganisations must understand the difference bet#een leaders and managers. .he learning and develo ment team in the organisation should ta+e cogni!ance and should consciously train eo le to be both leaders and managers. "t is often believed that it is easy to be a good manager, but it is seldom true. A good manager must have clear convictions and manifest those convictions into reality. A erson, #ho has successfully achieved this fundamental rinci le and understands the dee er role of a guide, is a leader. .oday's business environment is over%managed and under%led. .oday, em loyees as ire to #or+ under bosses #hom they can follo#. .hey #ant to lace trust in someone #ho is not only #or+ing for the greater good of the organisation, but also hel ing his or her subordinates to gro# and achieve bigger

milestones. Dood Managers #ith leadershi 5ualities al#ays #or+ on being good mentors for there subordinates. Dood managers not only use their M ositional o#er' to direct, su ervise and manage the resources of an organisation but also lay ins ire, influence and challenge eo le to achieve greater goals. .his hel s in achieving the organisational vision in a very short s an of time. .he collective effort of the organisation and its em loyees can only be successful #ith ro er facilitation of the managers. An organisation that has smart managers is al#ays ahead of the com etition because they rovide necessary on ground information to the to management, #hich hel s it strategise for the organisation. .hey also hel in the ro er im lementation of staff to achieve the target vision of the firm. A good manager al#ays contributes to the bottom line of the com any by ensuring that the tas+ assigned to an em loyee is successfully com leted. 8o, ho# does he or she achieve this ob,ectiveA % 3ommunication is the +ey< A good manager al#ays communicates the business ob,ectives to the em loyees. .his allo#s them to see ho# their de artment and ersonal ob,ectives su ort and contribute to the bigger icture. % Assessment s+ills< A good manager also needs to be able to evaluate their subordinates s+ills, +no#ledge and abilities. .his gives them the ability to assign tas+s and res onsibilities to the a ro riate team member so de artment ob,ectives can be achieved successfully. % ;m o#ering eo le< Dood managers must encourage their subordinates to ta+e o#nershi of the tas+ assigned to them. .hey must facilitate their learning rocess of there subordinates. Delegation is an art. Dood managers must lan #ell, so as to +no# #hat to delegate and #hom to delegate and ho# much time should be allocated for the erson #ho #ill be erforming this tas+. .his also ensures that eo le under good managers gro# as better managers in due course of time % 4andling eo le< Dood managers often get the most from their em loyees. .hey al#ays orient their teams to the e-isting or changing rocesses, rovide ,ob information and align erformance e- ectations to the ,ob allocatedG they identify training re5uirements and rovide eriodical feedbac+. Ultimately, a great manager is somebody #ho can ma+e the sum of a team greater than a collection of individuals. Dreat managers handle eo le #ith grace and ease, caring for them and encouraging them to achieve their goals. ?inally, a great manager allo#s the team to flourish and creates value to each individual as #ell as for the com any % 3onflict resolution< A team>organisation com rises of eo le #ho come from various mind sets and different bac+grounds. 3onflict resolution through smart inter ersonal s+ills is a very im ortant role to be layed by a manager. % Re#arding em loyees< A good manger al#ays highlights an em loyee's achievement to the to management and hel s his recognition rogramme in lace.

A art from managing, motivating and utilising the com any's resources to scale u businessG smart managers have the ability to deal #ith set bac+s, failures and unforeseen challenges. During hard times, managers can only become leaders if they have the ability to communicate hard truths to the com any and em loyees. Managers not only have the ability to deal #ith tough challenges but also to mentor others to stand tall during crises. Leadershi starts individually, and the #ay in #hich an individual a roaches his daily life. ;very erson must be self driven and learn to lead his life only then #ill they be effective in dealing #ith other eo le. N7hen the Doing Dets .ough, the .ough Det Doing.O A true leader must follo# this religiously. 3om anies #ho have thin+ing managers have a ool of leaders in them. "n tough times, these managers +ee their thin+ing hats on and come u #ith many alternative solutions and lans so that the business continuity of the organisation is never at sta+e. Many innovations in organisation have been introduced by such managers and hence, it gives the com any a cutting edge over its com etition. 7hen an em loyee is romoted to a ne# managerial ,ob or hired directly into a ne# managerial ,ob ( erha s straight from college, the ne# manager is re5uired to use additional s+ills to the ones he>she used to rise as a star inde endent contributor to the com any. Many com anies and their stars fail to recogni!e this fact and leave their success to luc+ and the roverbial Nthro#ing s aghetti at the #all to see if it stic+s.O .his is bad strategy, as Nnearly 162 of frontline managers under erform during their first t#o years in the seat, driving erformance ga s and em loyee turnover across the entire frontline.O 4o#ever, the mindful develo ment and training of ne# su ervisors and managers in eo le s+ills, customer focus, and erformance management s+ills leads to Nhigh% erforming direct re ortsO that create value for the customers and a #inning, successful business formula.

People Skills in the Beginning

7hile some level of technical e- ertise is necessary for su ervisory ositions ( de ending on the s ecific su ervisory ,ob ( nothing ma+es u for failure to develo eo le s+ills. .here are basically t#o +inds of bosses< good bosses and bad bosses. Dood bosses demonstrate clear and consistent atterns of challenge and su ort..hey are neither NsoftiesO nor eo le #ho don't re5uire best efforts. At the same time, good bosses are often credited #ith roviding true encouragement and su ort that enables high erformance. Dood ne# managers also< ,odel appropriate behavior! $ad bosses use a #ide variety ofa#ful> oor behaviors ( and many of them are character issues. 3haracter issues tric+le do#n to em loyees, often resulting in lac+ of discretionary effort, com any loyalty, and ina ro riate behavior. -re patient! Doing slo#ly in the beginning earns the res ect and credibility necessary to ma+e changes ( even those that not everyone agrees #ith ( in the future. Ma+ing changes and 5uic+ can hurt effectiveness.

Learn about direct reports! 7hat are an em loyee's strengths and #ea+nessesA Eno#ing #ho is good at #hat is critical to getting #or+ done. -re visible and accessible! .he more accessible a su ervisor or manager is, the smaller the Nlearning curveO for getting to +no# and understand the boss. .he more a manager is out%and%about (management by #al+ing around), the more dialogue #ill ta+e lace. $eing visible also im roves roductivity, as the mere resence of a su ervisor communicates su ervisory interest in the #or+ and attention to 5uality of the #or+.

Troubleshooting in the Beginning

?riendshi s are an area #here ne# managers often find trouble. A common mista+e ne# su ervisors ma+e is assuming that everyone else is as e-cited about their romotion as they are ( or that friends #ill have the same a roach to the relationshi as they do. ?or many, a ne# su ervisory or management role re5uires su ervising or managing friends or ast eers. .his must be handled #ith care. 3ommon itfalls the ne# manager needs to avoid< a ologi!ing for the ne# ositionG sho#ing favoritism instead of managing erformanceG em hasi!ing friendshi s beyond the #or+ lace #hile at #or+G and being artificial ( retending the friendshi doesn't e-ist. 8ome good%natured ribbing, es ecially from friends or co#or+ers, is normal. 4o#ever, others, for a variety of reasons, either might resent the romotion or not +no# #hen enough is enough and +ee u the teasing or sni es. 8ometimes, ,ust ignoring the needling sto s the behavior. )ther#ise, if it +ee s going, the best #ay to handle that situation is for the manager to +ee com osure. 4e>she neither needs to ,ustify their ne# osition> romotion nor humor the situation. Ma+e it clear that that commentary is unacce table. Maintain confidence. Dealing #ith the situation immediately increases the ne# manager's influence and gains him>her res ect from most eo le. .he fact is that the nature of friendshi s is changed and often challenged due to a su ervisor or managerial relationshi . .his must be managed effectively.

Get to Know the Boss

Cust as the successful manager understands the im ortance of Nbeing the customerO the ne# manager understands the im ortance of Nbeing the boss.O .he boss #ants the ne# manager to ma+e his>her #or+ life more roductive and stress free. .his means #or+ing effectively #ith the boss #ith a minimum of roblems that could easily be avoided by understanding #hat is im ortant to the boss. .here is one +ey rule for ne# managers to +ee in mind< Eee the boss informed. $osses don't li+e to be sur rised by ne#s they believe they should +no#, es ecially regarding im ortant ne#s. Be# su ervisors should follo# this NBo 8ur riseO rule even if it means giving the boss bad ne#s. "t's better to be forthright rather than letting the boss hear about otential roblems from others. )ther im ortant oints to +ee in mind are< 7hat s ecific to ic areas does the boss #ant to +no# aboutA 4o# does the boss li+e to receive informationA "n #ritingA PerballyA ?ormallyA "nformallyA 7hen is the best time to get some of his or her timeA MorningsA

AfternoonsA 4o# do other successful managers interact and deal #ith the bossA As+ them. 7atch the boss in meetings. Does the boss have any ersonal tendencies or 5uir+s #hen it comes to #or+, communications, and interactionsA Det to +no# the ty e of 5uestions the boss might as+ and antici ate them. 3ount on being 5uestioned by the boss regarding the reasons or su orting data for holding o inions or ma+ing decisions. "t's im ortant that the reasons and data su orting o inions and decisions are valid and #ell thought out. Double%chec+ and validate the information received before briefing the boss, es ecially in the beginning. A faulty thought rocess or reasoning and invalid data can result in a 5uic+ loss of confidence by the boss ( and ultimately hinder any autonomy and increased res onsibility in the future.

Do Not Pass the Monkey (i.e. Dont Make E tra !ork "or the Boss#
U #ard delegation of #or+ from the manager to the boss #hen the manager should ta+e the initiative to do the #or+ is a big roblem for the boss. "t creates more #or+ for the boss. .his action is called N assing the mon+ey.O 8ome of the more serious conse5uences of assing the mon+ey are< .he boss becomes frustrated #ith the managerFhaving direct re ort res onsibilities dum ed on him or her. .he boss loses confidence in the manager ( the manager can't handle the ,ob A de endent relationshi emerges ( the su ervisor becomes de endent on the boss as the roblem%solver and rovider of ans#ers. "nitiative is avoided. 7asted time ( the u #ard delegated #or+ com etes for the boss's o#n ,ob re5uirements and res onsibilities ( often delaying im ortant boss related issues. Lac+ of develo ment ( the manager learns little as the boss is doing the #or+ and tac+ling the issue. $y +ee ing #or+ mon+eys off the boss's bac+, ne# managers sho#s t#o im ortant 5ualities that a boss loo+s for in a good manager< initiative and ersonal res onsibility. .o revent unnecessary Mdum ing' on the boss, ne# laced managers must remember to communicate roblems and difficult issues #ith conse5uences of continuing #ith the status 5uo or resent ractice, and roviding best%effort recommendations or solutions. Also, ne# managers should frame issues and suggestions in a manner that

benefits the bottom line of the organi!ation. $y follo#ing these rules, the ne# manager can earn both the res ect and su ort of his or her boss.# be more intrinsically re#arding. 3ertain ,ob characteristics hel managers to build enrichment into ,obs. .hese characteristics (summari!ed in ;-hibit 1) include<

8+ill varietyF.he various s+ills needed to erform a given tas+, #here increased s+ill re5uirements are associated #ith increased motivation .as+ identityF.he degree to #hich em loyees erceive ho# their ,ob im acts the overall roduction of a roduct or service .as+ significanceF7hether the tas+ is meaningful beyond the tas+ itself AutonomyF;m loyee discretion over ho# to erform a tas+ ?eedbac+F"n ut from eers and su ervisors regarding the 5uality of an em loyee=s #or+

Exhibit 1 Job Characteristics That Enhance Intrinsic Motivation

@! 1kill 0ariety6 %he degree to which a 7ob re8uires a variety of different activities to carry out the work! - 7ob has high skill variety if it re8uires a number of different skills and talents! A! %ask (dentity6 %he degree to which a 7ob re8uires completion of the whole and identifiable piece of work! - 7ob has high task identity, if the worker does the 7ob from the beginning to end with a visible outcome! B! %ask 1ignificance6 %he degree to which the 7ob has a substantial impact on the lives of other people, whether these people are in the immediate organization or in the world at large! - 7ob has a task significance if people benefit greatly from results of the 7ob! C! -utonomy6 %he degree to which the 7ob provides the workers with autonomy! - 7ob has high autonomy if workers are given substantial freedom, independence, and discretion in scheduling the work and determining the procedures to be used in carrying it out! 5D! 3ob +eedback6 %he degree to which the 7ob provides the worker with knowledge of results! - 7ob has high 7ob feedback if carrying out the work activities re8uired by the 7ob provides the individual with direct and clear information about the effectiveness of his or her performance! 7hen these characteristics are resent in a ,ob, em loyees tend to be more motivated than #hen these characteristics are not resent. 4o#ever, there is not a @silver bullet@ for motivating em loyees through em o#ermentG there is considerable variation in the degree to #hich each of these em o#erment factors motivates individuals. )n the other hand, it is a mista+e to thin+ that because certain individuals do not res ond e5ually to such ,ob designs, overall roductivity #ill not increase as a result of em o#erment through ro er ,ob design and enrichment. "n general, roductivity tends to increase des ite the inherent variation of s ecific effects.

)nce a ,ob has been identified as needing enrichment, the organi!ation must redesign it to incor orate these characteristics< s+ill variety, tas+ identity, tas+ significance, autonomy, and feedbac+. 8ome s ecific ,ob enrichment techni5ues include<

3ombining tas+s. .his involves assigning tas+s erformed by different #or+ers to a single individual. ?or e-am le, in a furniture factory, rather than #or+ing on ,ust one art of the roduction rocess, each erson could assemble, sand, and stain an entire table or chair. .his change #ould increase s+ill variety, as #ell as tas+ identity, as each #or+er #ould be res onsible for the ,ob from start to finish. ;stablish client relationshi s. 3lient relationshi s could be established by utting the #or+er in touch #ith customers. ?or e-am le, an auto dealershi service de artment could allo# its mechanics to discuss service roblems directly #ith customers, rather than going through the service manager. $y establishing client relationshi s, s+ill variety is increased because #or+ers have a chance to develo inter ersonal s+ills. "t also rovides them #ith a chance to do a larger art of the ,ob (tas+ identity), to see ho# their #or+ im acts customers (tas+ significance), and to have more decision%ma+ing authority (autonomy). Reduce direct su ervision. 7or+ers gain autonomy #hen they are given res onsibility for doing things reviously done by su ervisors. ?or instance, cler+s could be allo#ed to chec+ for their o#n errors or be allo#ed to order su lies directly.

Many organi!ations have successfully enriched other#ise dull ,obs, thereby em o#ering em loyees to have greater control over their #or+ and the decisions affecting them. "n addition to increased roductivity, em o#erment also may lead to im rovements in roduct or service 5uality, reduced absenteeism rates, and increased em loyee retention. "n situations #here enriched ,obs become less automated, ho#ever, roduction may become less efficient. Cob enrichment #ould thus be ill%advised in situations #here the loss in efficiency cannot be offset by roductivity gains stemming from increased motivation. Moreover, em loyees referring highly automated, easy ,obs are li+ely to o ose ,ob enrichment efforts.

/)*%(*=)=1 (,.&)0E,E*%
3om anies ado ting continuous im rovement attem t to build 5uality into all hases of roduct or service design, roduction, and delivery. )ften referred to as total 5uality management, these rograms em o#er #or+ers to trace roduct or service roblems to their root causes and redesign roduction rocesses to eliminate them using various roblem%solving and statistical techni5ues. "n these situations, em o#erment arises from the need to involve em loyees at nearly all organi!ational levels in continuous im rovement efforts. .he use of continuous im rovement rograms have gro#n ra idly, built on the successful e- eriences of numerous com anies. Iero-, for e-am le, #as able to decrease the number of customer com laints it received by 0J ercent after im lementing continuous im rovement methods, and Motorola reduced the number of defects in its roducts by J6 ercent. &ro onents of self%managed #or+ teams claim they

succeed because they are customer%focused and romote sound management ractices li+e team%#or+, continuous learning, and continuous im rovement.

1EL+-,-*-"E$ W)&2 %E-,1

8elf%managed #or+ teams have the authority to manage themselves. Rather than having managers control their #or+, self%managed #or+ teams incor orate grou norms to regulate activities. .hey lan, organi!e, coordinate, and ta+e corrective actions. 8ome can hire, fire, and disci line team members #ith little intervention from higher levels of management. "n short, self%managed #or+ teams are given res onsibilities usually held by managers, but control comes from the concertive influence of the team rather than from more formal means. Bot sur risingly, managers= ,obs are minimi!ed and grou norms are ma-imi!ed #hen self%managed #or+ teams are used. 8elf%managed #or+ teams are not for all organi!ationsG characteristic needed for success include<

.echnical s+ills. 3ross%training, #hich allo#s team members to move from ,ob to ,ob #ithin the team, is essential. .hus, team members should receive training in the s ecific s+ills that #ill broaden their ersonal contributions to the overall effort. "nter ersonal s+ills. .eam members must communicate effectively, both one%on% one and in grou s. 3oo erative decision%ma+ing #ithin and among teams demands the s+ills of grou roblem solving, influencing others, and resolving conflicts. .eam members must learn roblem%solving s+ills that assist in !eroing in on roblem areas, gathering facts, analy!ing causes, generating alternatives, selecting solutions, and other related facets. Administrative s+ills. 8elf%managed #or+ teams must erform tas+s formerly handled by su ervisors. .he team must learn ho# to +ee records, re ort rocedures, budget, schedule, monitor, and a raise the erformance of team members.

Research findings concerning self%managing teams have been largely ositive. &ro onents claim that self%managed #or+ teams are effective because they em o#er em loyees to ma+e decisions that affect their day%to%day business lives. .hus, these teams radically change the #ay that em loyees value and thin+ about their ,obs. )ther benefits associated #ith self%managed teams include greater fle-ibility to res ond to mar+et changes and com etitive ressures. 4o#ever, there are a number of dra#bac+s. As noted reviously, self%managed teams are not for every organi!ation. 8ome may be better served by other #ays of em o#erment, rather than the dramatic em o#erment seen #ith self%managed teams. Dra#bac+s can include<

Rivalry #ithin and across teams A shortage of time and s+ills on the team to deal #ith conventional management concerns li+e hiring, training, and resolving inter ersonal dis utes Difficulty a raising em loyees in the absence of a traditional management figure

"n addition to these concerns, one of the most difficult issues com anies face #ith self% directed #or+ teams is deciding ho# to effectively im lement them. A number of obstacles must be overcome. 8ometimes, managers are reluctant to relin5uish control and em loyees are reluctant to acce t ne# res onsibilities. .o re are team members fKor self%management, the organi!ation must rovide a considerable amount of training. 7ithout ro er training, teams are li+ely to become bogged do#n ermanently in mid% rocess. As the revious discussion suggests, em o#erment is not a single event or rocess, but rather ta+es a variety of forms. .he degree of em o#erment ranges from as+ing em loyees for in ut to allo#ing total discretion. "nformal artici ative decision%ma+ing rograms, ,ob enrichment, continuous im rovement, and self%managed #or+ teams are some of the #ays that organi!ations em o#er em loyees, giving them more control, but at the same time increasing overall organi!ational roductivity.

$%! hat distinguishes &uality initiatives like I'( )*** and the +aldridge ,ational -uality Program from .otal -uality /anagement 0.-/1 and similar managerial commitments?

2H.ans ". "". .otal Quality Management 1. .otal Quality Management Defined 2. Malcolm $aldrige Bational Quality A#ard Defined Quality 8 ecification and Quality 3osts A. Develo ing Quality 8 ecifications 1. Design Quality Defined 2. 3onformance Quality Defined 0. Quality at the 8ource Defined *. Rero Defects Defined H. Dimensions of Quality Defined $. 3ost of Quality 1. 3ost of Quality Defined 3. ?unctions of the Q3 De artment 8i- 8igma Quality 1. 8i- 8igma Defined 2. D&M) Defined $. 8i- 8igma Methodology 1. DMA"3 Defined 2. &D3A 3ycle Defined 0. 3ontinuous "m rovement Defined *. Eai!en Defined 3. Analytical .ools of 8i- 8igma and 3ontinuous "m rovement

"".

""". "P.

P. P".

D. 8i- 8igma Roles and Res onsibilities .he 8hingo 8ystem< ?ail%8afe Design A. ?ail%8afe &rocedures (&o+a%/o+e) Defined "8) 9666 1. "8) 9666 Defined 2. "8) 1*666 Defined $. .he "8) 9666 8eries 3. "8) 9666 3ertification ;-ternal $enchmar+ing for Quality "m rovement A. ;-ternal $enchmar+ing Defined 8ervice Quality Measurement< 8;RPQUAL A. 8;RPQUAL

2E? .)(*%1 .otal 5uality management is managing the entire organi!ation so it e-cels on all dimensions of roducts and services that are im ortant to the customer. "n today=s com etitive mar+et lace, the roduction and delivery of high%5uality goods and services is a +ey element of any organi!ation=s success. Quality can be used as a com etitive advantage or a strategic #ea on for an organi!ation. .QM, or total 5uality management is the ultimate stage of 5uality rograms, not only in Ca an, but also in ;uro e and Borth America. .he critical elements of a successful .QM rogram include leadershi , em loyee involvement, e-cellence in roducts or rocesses, and customer focus. .he Malcolm $aldrige Bational Quality A#ard is a 5uality a#ard s onsored by the U.8. 3ommerce De artment to recogni!e organi!ations that have achieved e-cellence in their total 5uality management rogram. .he A#ard #as created in 19J: to recogni!e total 5uality management in American industry and re resents the government=s endorsement of 5uality as an essential com onent of a successful business strategy. .he a#ard see+s to im rove 5uality and roductivity. .he a#ard consists of com rehensive criteria for evaluating total 5uality in organi!ations. A $oard of ;-aminers revie#s a licants. .he $aldrige is designed to be fle-ible and it evaluates 5uality in various business categories including health care, educational institutions as #ell as manufacturing and service com anies and small businesses. .he 5uality criteria focus on seven broad to ical areas that are integrally and dynamically related. .hese areas start #ith leadershi , #hich drives the entire 5uality system. Using 5uantitative and 5ualitative results, trac+ed over time, 5uality rogress is measured. 3ustomer satisfaction is the ultimate goal of the 5uality rogram. .he categories addressed in the a#ard #ere selected because of their im ortance to all businesses. 3om anies not a lying for the a#ard can use the criteria to assess their current o erations, design a total 5uality system, evaluate internal relationshi s, and to assess customer satisfaction. &artici ation in the a#ard rogram is declining but many state%s onsored 5uality rograms and a#ards are gro#ing. .he Deming &ri!e recogni!es

5uality e-cellence in Ca anese com anies. A ;uro ean Quality A#ard e-ists as #ell and is similar to the $aldrige A#ard. .he frame#or+ for this a#ard is also resented. Leaders in the 5uality revolution include Deming, Curan, and 3rosby. .hese three gurus researched and advanced the role of 5uality. 7hen considering 5uality, the conce t has many dimensions. )ne is the erformance of a roduct. Another dimension is the features of a roduct. 8till other im ortant 5uality variables include reliability, conformity, durability, serviceability, aesthetics, and finally erceived 5uality. .he customer erceives 5uality. .hat is #hy a customer%focus is critical to any 5uality im lementation. A +ey to a successful 5uality initiative is the use of lanning and management tools and rocedures to trac+ 5uality rogress. $oth 5uantitative and non%5uantitative measures are used to trac+ initial 5uality and 5uantity im rovements over time. An im ortant 5uantitative method for monitoring a rocess is statistical rocess control. 8&3 allo#s em loyees to distinguish bet#een random fluctuations in machines and rocesses and to determine #hen variations signal that corrective action is needed. Eey issues include the rocess of develo ing 5uality s ecifications and understanding the cost of 5uality. )ther +ey issues include understanding conformance 5uality, 5uality at the source, and the goal of !ero defects.
"ow can managers guard against this kind of 2relapse? 3 If you have been employed in an organization that has gone through the +aldridge or I'( process4 share your experiences! hat challenges did you face? as the payoff to the organization worth the effort?

3ontinuous im rovement has its o#n tools and rocedures including the conce t of Eai!en borro#ed from the Ca anese, the &D3A 3ycle, and benchmar+ing both internally and e-ternally in the industry. An alternative to the statistically based a roach is the 8hingo system, develo ed in Ca an. "t focuses on self%chec+s, source ins ections, and successive chec+s to ensure 5uality. Eey features of the 8hingo system include fail safe or o+a%yo+e systems that revent defects. "8) 9666 is a series of standards agreed u on by the "nternational )rgani!ation for 8tandards. Ado ted in 19J: these standards consist of five rimary arts and more than 166 countries no# recogni!e the 9666 series for 5uality standards and certification for international trade. "8) 1*666 standards cover environmental com liance by manufacturing com anies. "8) 9666 standards are com ared to the $aldrige 3riteria in this section. 8;RPQUAL is a 5uestionnaire used to oll customers about service 5uality. "t is an im ortant tool for customer satisfaction. Many methods are available to roduction ractitioners to measure 5uality. 4o#ever, 5uality is a strategic issue and should be matched to the internal organi!ational e- ertise along #ith the e-ternal environment. Quality rograms are valuable in all organi!ations %% both service and manufacturing.

hat risks does your organization face with respect to your areas of responsibility?

Almost all of the things #e do at #or+ involves ris+ of some +ind, but it can sometimes be challenging to identify it, let alone to re are for it. Ris+ analysis hel s you understand this ris+, so that you can manage it, and minimi!e disru tion to your lans. "t also hel s you control ris+ in a cost%effective #ay. "n this article, #e=ll loo+ at ho# you can analy!e and manage ris+ effectively.

What is &isk -nalysis

Ris+ analysis hel s you identify and manage factors that could undermine the success of +ey business ob,ectives or ro,ects. Ris+ is made u of t#o things< the li+elihood of something going #rong, and the negative conse5uences that #ill ha en if it does. /ou carry out a ris+ analysis by first identifying the ossible threats that you face, and by then assessing the li+elihood of these threats occurring. Ris+ analysis can be as sim le or as involved as you #ant, and it=s useful in a variety of situations. 4o#ever, if you #ant to do an in%de th analysis, you=ll need to dra# on detailed information such as ro,ect lans, financial data, security rotocols, mar+eting forecasts, or other relevant re orts.

When to =se &isk -nalysis

Ris+ analysis is useful in many situations, for e-am le, #hen you=re<

&lanning ro,ects, to hel you antici ate and neutrali!e roblems, or assess, say, the im act of going over budget. Deciding #hether or not to move for#ard #ith a ro,ect. "m roving safety and managing otential ris+s in the #or+ lace. &re aring for events such as e5ui ment or technology failure, theft, staff sic+ness, or natural disasters. &lanning for changes in your environment, such as ne# com etitors coming into the mar+et, or changes to government olicy.

"ow do you and your organization assess and mitigate these risks?

1& Identi"y Threats

.he first ste in ris+ analysis is to identify the e-isting and ossible threats that you might face. .hese can come from many different areas. ?or instance<

4uman ( ?rom illness, death, in,ury, or other loss of a +ey individual. ) erational ( ?rom disru tion to su lies and o erations, loss of access to essential assets, or failures in distribution. Re utational ( ?rom loss of customer or em loyee confidence, or damage to re utation in the mar+et. &rocedural ( ?rom failures of accountability, internal systems and controlsG or from fraud. &ro,ect ( ?rom going over budget, ta+ing too long on +ey tas+s, or e- eriencing issues #ith roduct or service 5uality. ?inancial ( ?rom business failure, stoc+ mar+et fluctuations, interest rate changes, or non%availability of funding. .echnical ( ?rom advances in technology, or from technical failure. Batural ( ?rom #eather, natural disasters, or disease. &olitical ( ?rom changes in ta-, ublic o inion, government olicy, or foreign influence. 8tructural ( ?rom dangerous chemicals, oor lighting, falling bo-es, or any situation #here staff, roducts, or technology can be harmed.

"t=s easy to overloo+ im ortant threats, so ma+e sure that you do as thorough an analysis as you can. /ou can use a number of different a roaches to do this<

Run through a list such as the one above to see if any of these threats are relevant. .hin+ about the systems, rocesses, or structures you use, and analy!e ris+s to any art of those. .hen, see if you can s ot any vulnerabilities #ithin these systems or structures. As+ others #ho might have different ers ectives. "f you=re leading a team, as+ for in ut from your eo le, and consult other eo le in your organi!ation or those #ho have run similar ro,ects.

.ools such as 87). Analysis and &;8. Analysis can also hel you uncover threats, #hile 8cenario Analysis hel s you e- lore threats that you might encounter in the @different futures@ that your organi!ation might face.

'& Esti#ate (is

)nce you=ve identified the threats you=re facing, you need to #or+ out the li+elihood of these threats being reali!ed, and assess their im act. )ne #ay of doing this is to ma+e your best estimate of the robability of the event occurring, and then multi ly this by the amount it #ill cost you to set things right if it ha ens. .his gives you a value for the ris+<

#e can also use a Ris+ "m act>&robability 3hart to assess ris+. .his hel s you thin+ about ho# li+ely each ris+ is to occur, and measure its im act on your ob,ectives. .his is useful #hen it=s difficult to identify the cost of the event occurring.

Don=t rush this ste . Dather as much information as you can so that you can estimate the robability of an event occurring, and its costs, as accurately as ossible.

)& Manage (is

)nce you=ve identified the value of the ris+s you face, you can start to loo+ at #ays of managing them. 7hen you do this, it=s im ortant to choose cost%effective a roaches ( in most cases, there=s no oint in s ending more to eliminate a ris+ than the cost of the event if it occurs. 8o, it may be better to acce t the ris+ than it is to use e-cessive resources to eliminate it. $e sensible in ho# you a ly this, though, es ecially if this involves ethical decisions or affects eo le=s safety. /ou can manage ris+s by<

=sing e#isting assets ( this may involve reusing or rede loying e-isting e5ui ment, im roving e-isting methods and systems, changing eo le=s res onsibilities, im roving accountability and internal controls, and so on. /ou can also manage ris+s by adding or changing things. ?or instance, by choosing different materials, by im roving safety rocedures or safety gear, or by adding a layer of security to your organi!ation=s ". systems. $eveloping a contingency plan ( this is #hen you acce t a ris+, but develo a lan to minimi!e its effects if it ha ens. A good contingency lan #ill allo# you to ta+e action immediately, and #ith the minimum of ro,ect control, if you find yourself in a crisis management situation. 3ontingency lans also form a +ey art of $usiness 3ontinuity &lanning ($3&) or $usiness 3ontinuity Management ($3M). (nvesting in new resources ( your ris+ analysis #ill hel you decide #hether you need to bring in additional resources to counter the ris+. .his can include insuring the ris+ ( this is articularly im ortant #here the ris+ is so great that it can threaten you or your organi!ation=s solvency.

/ou might also #ant to develo a rocedural revention lan. .his defines the activities that need to ta+e lace every day, #ee+, month, or year to monitor or mitigate the ris+s you=ve identified. ?or e-am le, you may #ant to arrange a daily bac+u of com uter files, yearly testing of your building=s s rin+ler system, or a monthly chec+ on your organi!ation=s security system.

"f you=re managing forecasting or financial ris+s, you can use Monte 3arlo Analysis to get a clearer vie# of ossible outcomes.

*& (evie+
)nce you=ve carried out a ris+ analysis and have managed ris+s a ro riately, carry out regular revie#s. .his is because the costs and im acts of some ris+s may change, other ris+s may become obsolete, and ne# ris+s may a ear. .hese revie#s may involve re%doing your ris+ analysis, as #ell as testing systems and lans a ro riately.

2ey .oints
Ris+ analysis is a roven #ay of identifying and assessing factors that could negatively affect the success of a business ob,ective or a ro,ect. "t allo#s you to e-amine the ris+s that you or your organi!ation face, and decide #hether or not to move for#ard #ith a decision. /ou do a ris+ analysis by identify threats, and then estimating the li+elihood of those threats being reali!ed. )nce you=ve #or+ed out the value of the ris+s you face, you can start loo+ing at #ays to manage them effectively. .his may include using e-isting assets, develo ing a contingency lan, or investing in ne# resources. $e thorough #ith your ris+ analysis, and be sensible #ith ho# you a ly your analysis. 2:.Does 5osabeth /oss 6anters article resonate in your experience? "ow? 3 Do
you feel empowered and able to innovate in the organization in which you work?

2:.ans
At one of the most recent com anies " #or+ed for, a start%u in 8ilicon Palley, this 5uote #as #ritten on the #all to remind us that #e #ere ,ust one good idea a#ay from fame and fortuneFand that #e needed to come u #ith that idea as soon as humanly ossible.

7hen " left the com any, the Nidea #hose time has comeO #as still ,ust a sign on the #all, a reminder that develo ing the ne-t big thing is much easier said than done. .he ressure to innovate is not limited to 8ilicon Palley startu s, it's felt by organi!ations every#here that are trying to do more #ith less #hile fighting to stay globally com etitive. $ut #hile all organi!ations feel the ressure to innovate, fe# are able to ma+e innovation a #or+ lace reality. Larry Eeeley of Doblin "nc. believes that innovation is ,ust another business rocess #aiting to be standardi!ed. According to Eeeley, once #e crac+ the Ngenetic codeO of innovation, it #ill be achievable by all businesses, and #ill be taught in schools alongside other management science courses li+e ris+ mitigation or strategic lanning. " don't +no# if " agree #ith Eeeley that innovation is as sim le as crac+ing a code, but " do agree that humans are born #ith the innate desire to roblem%solve, #hich can translate into innovation. 4ere are a fe# thoughts " have about ta ing into that natural roblem% solving instinct to develo a more innovative #or+force.

Enable people to solve their own problems

)ne #ay to activate the creativity of em loyees is to develo an environment #here roblem%solving is encouraged. " believe #e are all inclined to innovate and roblem% solve #ithin our o#n s ace, so em o#ering em loyees to see the #or+ lace as an e-tension of that s ace can give them the confidence they need to bring ne# ideas to the table. .a+e the case of ArenaFour organi!ation e-ists because our founders Michael and ;ric needed a better #ay to manage their roduct dataFthey had a roblem, and they fi-ed it. "'m not saying everyone needs to be a com any founder, but the desire to solve roblems is #hat creates com anies, and is #hat can lead to a more innovative #or+force. 7hile eo le can and do solve roblems in their ersonal lives, they don't al#ays feel em o#ered to ma+e changes #hen obstacles, difficult ersonalities or red%ta e get in the #ay at #or+. 7hen em loyees are regularly given o#nershi of their roblems, as #ell as the freedom to find and im lement solutions of their choosing, they begin to reali!e no obstacle is insurmountable. )nce roblem%solving becomes a art of one's daily #or+ res onsibilities, solving larger organi!ational issues becomes much less daunting.

,ake innovation cool

Another #ay businesses can encourage innovation is to ma+e it Ncool.O &romoting o ortunities for em loyees to try ne# and fun things in the #or+ laceFas #ell as offering re#ards for innovative activities outside the #or+ laceFteaches that e- erimentation, creativity and e- loration are #orth#hile ursuits. A com any that does a good ,ob of this is $o-.net, a soft#are com any in &alo Alto, 3A. $o- hosts all%night brainstorm>hac+%fests for its em loyees in #hich any idea is

encouraged #ith beer and i!!a. .he follo#ing day, the ideas and stories from the night before are highly raised and romoted by team membersFsome are even ado ted for the roductFma+ing it a fun and re#arding #ay to thin+ outside the bo-. ?or manufacturing organi!ations, a hac+%fest might not be the right outlet, but there are other #ays to romote innovation #ithin the #or+ laceFfor e-am le, Doogle as+s its em loyees to s end one day a #ee+ #or+ing on ro,ects outside their usual ,ob descri tion to encourage innovation. And there are lenty of events em loyees could be encouraged to attend outside regular business hours, li+e the recent Ma+er ?aire. Ma+er ?aire encourages eo le to Ncelebrate StheT right to t#ea+, hac+, and bend any technology to your o#n #ill.O "n other #ords, it encourages eo le to ta+e something old and ma+e something ne#. .o innovate. "f em loyees regularly see innovation dis layed in a ositive and fun light, and are re#arded for their more innovative ersonal ursuits, they #ill be much more li+ely to mimic that behavior in the #or+ lace.

?ou want to be different, so be different alreadyE

7e demand innovation from the #or+force, yet many businesses are still frightened by ideas, behaviors or lifestyles that brea+ #ith tradition or conventional #isdom. $usinesses as+ eo le to innovate, but only #ithin the set aradigm. .o truly encourage an innovative and NdifferentO +ind of culture and thin+ing, you have to brea+ free from this tra . Many of today's business heroes are eo le #ith life aths that deviated from the status 5uo. 8ome dro ed out of college, or for#ent the e- erience all togetherFincluding Mar+ Ruc+erberg , 8teve Cobs and $ill Dates. .omorro#'s business heroes may not do things in an e- ected #ay either, and may loo+ different than you e- ectFyour com any may not be ready for in+ hair, nose studs and leather boots, but allo#ing deviations from the norm #hen you can is a ste in the right direction. /ou #ant an organi!ation that does things differently, that thin+s differentlyA .hen be different.

Encouraging innovation in your workforce is an ongoing process

.here's no shortage of boo+s and resources #ith varying methodologies that can hel you get started if you're loo+ing to ado t more formal innovation rocesses. "f you're not 5uite there, encouraging em loyees to become more curious thin+ers could be a first ste to#ard a culture that see+s ne# solutions for business%related challenges.

4uman curiosity, #hen fostered correctly, is #hat leads eo le to ioneer ne# cures for diseases, more efficient forms of energy and ne# #ays to see the #orld. /ou don't need to hire a team of geniuses to achieve innovation, but you do need to give your #or+force the confidence and incentive to solve the roblems around them, until roblem%solving becomes ,ust another art of the culture. .he root of the #ord @manager@ comes from the same root as the #ords @mani ulate@ or @maneuver,@ meaning to @ada t or change something to suit one's ur ose.@ Although these #ords may carry a e,orative meaning for some of us, there is nothing inherently #rong #ith them. "ndeed, into each life a little mani ulation and maneuvering must fall. ?or e-am le, if the door to your office gets stuc+, a handyman might need to mani ulate it to get it #or+ing again. "f there is a log,am at the elevator, you might decide to maneuver around the cro#d and ta+e the stairs. Bo roblem there. 4o#ever, there is another +ind of mani ulation and maneuvering that is a roblem ( #hen managers use their osition to bend subordinates to their #ill. 7hile short%term gains may result, in the end the heart is ta+en out of eo le. /our staff may become good soldiers, but they #ill lose something far more im ortant in the rocess ( their ability to thin+ for themselves. Deneral Deorge &atton said it best, @Bever tell eo le ho# to do things. .ell them #hat to do and they #ill sur rise you #ith their ingenuity.@

%he new role of the enlightened manager

Unfortunately, ingenuity in many American cor orations has gone the #ay of the hula% hoo . $ut intellectual ca ital is the name of the game these days ( and it is the enlightened manager's duty to learn ho# to lay. )nly those com anies #ill succeed #hose eo le are em o#ered to thin+ for themselves and res ond creatively to the myriad changes going on all around them. 8im ly ut, managers must ma+e the shift from mani ulators to manifesters. .hey must learn ho# to coach their eo le into increasingly higher states of creative thin+ing and creative doing. .hey must reali!e that the root of their organi!ation's roblem is not the economy, not management, not cycle time or outsourcing, but their o#n inability to ta into the o#er of their #or+force's innate creativity. 7here does em o#erment startA ?irst, by recogni!ing #hat o#er is< @the ability to do or act.@ And second, by reali!ing that all o#er begins #ith an idea. 3learly, one=s ability to @do or act@ de ends on there being something #orth doing or acting u on. 7hat is an ideaA 7here does it come fromA And ho# can a manager increase the chances of a good one sho#ing u A Most managers, unfortunately, erceive ne# ideas as roblems ( es ecially if the ideas are not their o#n. 8im ly ut, you don't ay enough attention to the ideas of the eo le around you. /ou say you #ant them to innovate. /ou say you #ant @your eo le@ to do something different. $ut you do recious little to su ort your subordinates in their efforts to do so. /ou foist your ideas u on them and can't figure out #hy things aren't ha ening faster. .hat=s not ho# change ha ens. "f eo le are only acting out your

ideas, it=s ,ust a matter of time before they feel discounted, disem o#ered andU #ellU ,ust lain dissed. &eo le are more than hired hands, they are hired minds and hearts, as #ell.

How to empower your employees

Let=s start #ith the basics. ;verything you see around you began as an idea. .he com uter. .he sta ler. .he a ercli , the microchi and the chocolate chi . All of them began as an idea #ithin someone's fevered imagination. .he originators of these ideas #ere on fire. Did they have to be @managedA@ Bo #ay. "n fact, if they had a manager, he or she #ould have done #ell to get out of the #ay. "f you #ant to em o#er eo le, honor their ideas. Dive them room to challenge the status 5uo. Dive them room to move ( and, by e-tension, room to move mountains. 7hyA $ecause eo le identify most #ith their ideas. @" thin+ therefore, " am@ is their motto. &eo le feel good #hen they're encouraged to originate and develo ideas. "t gives their #or+ meaning, ma+es it their o#n, and intrinsically motivates. 7ho has the o#er in an organi!ationA .he eo le #ho are allo#ed to thin+ for themselves and then act on their ideasV 7ho doesn't have o#erA .he eo le #ho have to continually chec+%in #ith others. .hin+ about it. .he arrival of a ne# idea is ty ically accom anied by a #onderful feeling of u liftment and e-citement ( even into-ication. "t=s ins iring to have a ne# idea, to intuit a ne# #ay of getting the ,ob done. Bot only does this ne# idea have the otential to bring value to the com any, it tem orarily frees the idea originator from their normal habits of thin+ing. A si-th sense ta+es over, releasing the individual from the gravity of status 5uo thin+ing. "n this mindset, the idea originator is trans orted to a more e- ansive realm of ossibility. All bets are off. .he s+y=s the limit. All assum tions are seen for #hat they are ( limited beliefs #ith a history, but no future. "f you are a manager, you #ant eo le in this state of mind. "t is not a roblem. "t is not the shir+ing of res onsibility. "t is not a #aste of time. )n the contrary, it's the first indicator that you are establishing a com any culture that is conducive to innovation. .his is not to say, of course, that you have to fund every idea that comes your #ay. )n some level, ideas are a dime a do!en ( and only a handful of them are ever going to amount to much. $ut if you treat all ideas as if they are #orthless, you #ill never find the riceless ones. 3reativity, you see, is often a numbers game. ;instein had lenty of bogus theories. Mo!art #rote some cra . $ut they continued being rolific. And it #as recisely this self%generating s irit of creation #hich enabled them to access the good stuff. /ou, as a manager, #ant to increase the number of ne# ideas being itched to you. "t's that sim le. /ou #ant to create an environment #here ne# ideas are o ing all the time. "f you do, old roblems and ineffective #ays of doing things #ill begin dissolving. 8 ontaneously. .his, you see, is the hallmar+ of an em o#ered organi!ation ( a lace #here everyone is encouraged and em o#ered to thin+ creatively. 7ithin this +ind of environment managers become coaches, not gate+ee ers. @3oaching,@ of course, has been

#idely #ritten about and there are many fine boo+s on the sub,ect. 7hat hasn't been #ritten about very much is ho# to become an @idea coach@ ( ho# to create the +ind of environment that elicits the hidden genius of the eo le around you. "t's one thing to tell eo le @you #ant their ideas,@ it's 5uite another to create the +ind of environment that ma+es this rhetoric real. 3reativity cannot be legislated. "t cannot be sustained by mission statements and e tal+s. 7hat needs to ha en is you, as a manager, need to change the #ay you relate to eo le. ;ach encounter you have #ith another in the #or+ lace needs to 5uic+en the li+elihood that their une- ressed ideas #ill get a fair hearing ( enabling a far greater ercentage of their ideas to eventually ta+e root.

How to do it
4o# does a manager do thisA ?irst off, by e- ressing a lot of ositive regard. Det interestedV &ay attentionV $e resent to the momentV .his is not so much a techni5ue as it is a state of mind. 8im ly ut, if your head is al#ays filled #ith your o#n thoughts and ideas, there #on't be any room left to entertain the thoughts and ideas of others. "t's a la# of hysics. .#o things cannot occu y the same lace at the same time. 4ere's an e-am le< Let's say someone comes u to you in the middle of the day and says something li+e, @" have this great idea for a ne# roduct that #ill generate over W266 million for our com any.@ .he first thing you need to do is reali!e the o ortunity you have. An idea is about to be shared, one that may herald a brea+through or, at the very least, solve a roblem, ca itali!e on an o ortunity, or ma+e your life easier. /our #illingness to sit u and ta+e notice needs to be ,ust as strong as if a customer #ere to call and com lain. "f ossible, dro #hat you're doing, focus all of your attention on the idea generator, ta+e a dee breath, and begin a series of 5uestions that demonstrate your interest. "f you cannot dro #hat your doing, schedule some time ( as soon as ossible ( for the idea originator to itch you. And #hether the itch is no# or later, your res onse ( in the form of e- loratory 5uestions (needs to be as genuine as ossible. 3onsider some of the follo#ing o eners<

@.hat sounds interesting. 3an you tell me moreA@ @7hat e-cites you the most about this ideaA@ @7hat is the essence of your idea ( the core rinci leA@ @4o# do you imagine your idea #ill benefit othersA@ "n #hat #ays does your idea fit #ith our strategic visionA@ @"f you only had 06 days to manifest your idea, #hat #ould you doA@ @7hat information do you still needA@ @7ho are your li+ely collaboratorsA@ @"s there anything similar to your idea on the mar+etA 4o# is yours differentA@ @7hat su ort do you need from meA@ @7hat is your ne-t ste A@

$asically, you #ant the idea originator to tal+ about their idea as much as ossible in this moment of truth. An idea needs to first ta+e form in order to ta+e root, and one of the best #ays of doing this is to encourage the idea originator to tal+ about it ( even if their idea is not yet fully develo ed. .he telling of the idea, in fact, is not unli+e someone telling you

their dream. .he telling hel s the dreamer flesh out the details of #hat they imagined and the subse5uent hearing of it firmly installs it in their memory ( and yours ( so the idea does not fade 5uite as 5uic+ly. Most of us, ho#ever, are so #ra ed u in our o#n ideas that #e rarely ta+e the time to listen to others. /our subordinates +no# this and, conse5uently, rarely share their ideas #ith you. $ut it doesn't have to be this #ay. And it #on't necessarily re5uire a lot of time on your art. 8ome time, yes. $ut not as much as you might thin+. $ottom line, the time it ta+es you to listen to the ideas of others is not only #orth it ( the success of your enter rise de ends on it. 3hoose not to listen and you #ill end u frantically s ending a lot more time do#n the road as+ing eo le for their ideas about ho# save your business from imminent colla se. $y that time, ho#ever, it #ill be too late. /our #or+force #ill have already tuned you out.
5oxburgh identifies some 2hidden flaws in strategy!7 8ive examples from your own experience! .he flaws identified by 5oxburgh are 1. (9:5;(,<ID:,;: 2. /:,.A= ;(>,.I,8 0. '.A.>' ->( +IA' *. A,;"(5I,8 H. .": '>,6 ;('. :<<:;. 1. .": ":5DI,8 I,'.I,;. 7. +-L1E /)*1E*1=1 J. /I':'.I/A.I,8 <>.>5: ":D(,I; '.A.:'

(9:5;(,<ID:,;: (ur brain is designed to fell confident about the thinking power and we feel that any business that we venture into will work but things like this make fell duller we have to encounter harder truth of business failure /:,.A= ;(>,.I,8

(t is defined as inclination to treat money differently like from where the is coming from , where it is going out, how money is spent!

=ike for example gambler sometimes feel they have not lost money but later finds that had they stopped playing some while ago they would have had some money in their pocket left!

'.A.>' ->( +IA'

.he status 8uo bias is a cognitive biasG an irrational reference for the status 5uo. "t should be distinguished from rational reference for the status 5uo er se due to, for e-am le, information effects, #hich cannot e- lain all e- erimental results. 8tatus Quo bias can be rational, due to informational or cognitive limitations but there is abundant evidence to sho# that it is also often irrational and therefor a bias. "t interacts #ith other non%rational cognitive rocesses such as< loss aversion, e-istence bias, endo#ment effect, longevity, mere e- osure, regret avoidance. ;- erimental evidence for the detection of status 5uo bias is seen through the use of the Reversal test. A vast amount of e- erimental and field e-am les e-ist. $ehaviour in regards to retirement lans, health, and ethical choices sho# evidence of the status 5uo bias. Libertarian aternalism mani ulates our status 5uo bias by changing defaults so that #e ma+e more o timal decisions.
/I':'.I/A.I,8 <>.>5: ":D(,I; '.A.:'

People are bad at estimating how much pleasure or pain they will feel if their circumstances change dramatically. Social scientists have shown that when people undergo major changes in circumstances, their lives typically are neither as bad nor as good as they had expectedanother case of how bad we are at estimating. People adjust surprisingly quickly, and their level of pleasure hedonic state! ends up, broadly, where it was before .

"ave you encountered strategic flaws that do not fit into the categories that 5oxburgh identifies?

$?!"ave you encountered situations that you would describe as examples of 8hosals allegation that @bad management theories are destroying good management practices?7

2J.ans "hoshalFs lament

7hat caused Dhoshal so much concernA "n effect, he #as loo+ing at, and #as dismayed by the large icture. 4e sa# the flurry of activity follo#ing the colla se of ;nron % business schools im lementing rograms of ethics and governments introducing ne# legislation ( and thought it all misdirected. "t #ould be better, he maintained, for business schools sim ly to sto doing a lot of #hat they are currently doing, namely, using and teaching bad theory. 4e gave e-am les of bad theory ( agency and com etition theory #ere t#o ( that influenced business ractice in negative and un roductive #ays. 4is criticism of social science hinged on its neglect of human intentionality and, hence, of ethics and morality. .his neglect, he maintained, has sha ed minds and attitudes, not only #ithin business schools but also #ithin business itself, #here it has lead to the dis lacement of ethical and moral considerations from decision%ma+ing. 4ence, the colla se of ;nron and other cor orate entities. 4e referred also to the destructive influence of the 3hicago 8chool across many academic disci lines #here hiloso hical ideas, such as those of 4ume, $entham and Loc+e, are used to ,ustify faulty ideas regarding human nature and business ur ose and ractice. .he notion of self%interest #as one e-am le, ma-imising shareholder return #as another, com etition theory yet another. /-=1E -*$ E++E/%1 4is a er generated much discussion in the Academy. Eanter, Mint!berg, &feffer and Donaldson, among others, res onded res ectfully. : Bone contested his essential argument. All agreed in some measure #ith the oints he madeG each offered some corrective or brought for#ard a notion #hich Dhoshal had not considered. 4is argument, as such, stood % his more com elling and serious oints left hanging solemnly over the Academy. Bo one too+ u his oints concerning the neglect of intentionality and the conse5uences of this neglect in bad theory, or intentionality's role in a recovery. )ne res ondent later argued for the scientific method, in articular that &o er's falsification theory has a role to lay. Dhoshal's contentions seem to have been ut to rest, osthumously, #ith him. "n a #ay, Dhoshal and his res ondents demonstrated that luralist vie#s are the nature of business theories. $ut the conse5uence of this osition is that there is no foundational osition from #hich to criti5ue another, or to ground a theory in reality, or to ro ose a #ay to resolve differences. Dhoshal, ho#ever, seemed to be going beyond luralism by having raised 5uestions about e istemology and the need to use common sense. 4e did not ma+e clear his o#n e istemology, though he advocated an Nimaginative common senseO of the +ind, he maintained, that had guided ?reud and Dar#in in their discoveries. )n the one hand, Dhoshal argues that business schools are teaching bad theories. )n the other, he offers some solutions ( resumably good theories ( but does not indicate the base u on #hich the good theories are formed and established, nor from #here the bad can be criti5ued. 4e intuits a solution in the field of intentionality, but seems to deny the ossibility of this being fruitful in the short term. 7ithin this hori!on, he advocates, in the meantime, a ne# luralism for faculty scholarshi along lines ro osed by $oyer. Dhoshal sa# that the NinfectionO from social sciences in articular #as far advanced, s reading beyond the business school into the minds, values and attitudes of those engaged in business. "t #as difficult to treat and more difficult to reverse.

9! LonerganFs intentionality analysis

Beither in this nor in his earlier a ers, did " detect in Dhoshal's #ide scholarshi and cited references, any familiarity #ith the thin+ing of Lonergan. Although he had raised the matter of .he 4uman &erson intentionality, Dhoshal seemed una#are of Lonergan's seminal contribution to intentionality analysis fifty years earlier in &nsi ht, of Lonergan's ideas on longer cycles of rogress and decline and of the difficulty of reversing #rong hiloso hical ideas. .his unfamiliarity is not remar+able. ;ven amongst his o#n, Lonergan is little +no#n outside of theology and hiloso hy, and anyone #ho has struggled #ith his difficult te-ts and unfamiliar conce ts #ould not immediately see their direct relevance to the #orld of business and organi!ation, es ecially to their leadershi and governance. 16 Lonergan had been, li+e Dhoshal, increasingly dissatisfied #ith dee er matters % in his case, #ith the status of his o#n classical formation to handle contem orary issues in hiloso hy and theology. "n this dissatisfaction, he turned to e-amine #hat he #as doing #hen he #as coming to +no#.# Lonergan's originality #as to use the achievements of understanding and +no#ing in science, mathematics and the familiar e- erience of ractical common sense, to coa- his readers to discover their o#n interior rocesses of understanding and +no#ing as a dynamic structure. 4is claims #ere large< N.horoughly understand #hat it is to understand, and not only #ill you understand the broad lines of all there is to be understood but also you #ill ossess a fi-ed base, an invariant attern, o ening u on all further develo ments of understandingO. 11 "n focussing on our o#n interior rocesses, es ecially that of NunderstandingO, #e are able to e- erience and confirm the lace of insight in its three e- ressions< direct, reflective and ractical, res ectively in acts of creativity, ,udging and deciding. .hese matters are of immediate interest to leaders of business, #here the rocesses of understanding and +no#ing % articularly regarding innovation and ris+ assessment % im act on decision%ma+ing. "n essence, one's Ninterior rocessesO are the source of all value%adding, irres ective of level, #hether it be board, e-ecutive, management or sho floor. .hrough an e-amination of Ninterior conscious rocessesO ( for #hich #e all have the re5uisite data in our o#n consciousness % Lonergan builds a ne# #ay to understand e istemology.

A structured decision making approach helpsresource managers by splitting a tough decision into its parts (referred to here as elements). For many complex decisions, making a better choice requires that eight key elements be considered (see able !). he first fi"e elements # $larifying the %roblem, &dentifying 'ey (b)ecti"es, $reating Alternati"es, Assessing $onsequences, and *xplicitly Addressing radeoffs (leading to the acronym %r(A$ , a reminder to be proacti"e) # constitute the core of astructured approach to decision making. he remaining three elements # +ncertainty, ,isk olerance, and -inked .ecisions # are more speciali/ed concepts that are 0ell kno0n to many professional managers (and are not described further here).
$)!5eviewing the theories of strategy that we have discussed in this course4 which seem to you most practical? /ost provocative? hy?

29.ans

" su

ort ghosal's theory

Dhoshal=s early #or+ focused on the matri- structure in multinational organi!ations, and the @conflict and confusion@ that re orting along both geogra hical and functional lines created. 4is later #or+ is more ambitious, and hence erha s more im ortant ( the idea that it is necessary to halt economics from ta+ing over management. .his, he theorised, is im ortant since firms do not lay on the eri hery of human life today, but have ta+en a central role. 4is treatment of management issues at the level of the individual led him to conclude that management theory that focuses on the economic as ects of man to the e-clusion of all others is incorrect at best. According to him, @A theory that assumes that managers cannot be relied u on by shareholders can ma+e managers less reliable.@ 8uch theory, he #arned, #ould become a self%fulfilling ro hecy, a articularly stinging criti5ue of the out ut of a ma,ority of his colleagues in business schools that made him controversial. .o his death, his fight #as against the @narro# idea@ that led to today=s management theory being @undersocialised and one%dimensional, a arody of the human condition more a ro riate to a rison or a madhouse than an institution #hich should be a force for good.@

Reference 8ome are ans#ers by me . 7"E"&;D"A Ageofbiginfo. df decisions. df Eey &rinci les to 8uccessful )rgani!ational 8trategy 4idden fla#s in strategy % McEinsey Quarterly % 8trategy % 8trategic .hin+ing Dhoshal1991. df DregoryXandXEeeneyX2662. df (a lication> df )b,ect) artXofXsu ervisionXguide. df (a lication> df )b,ect) Little?inal a er. df (a lication> df )b,ect) desgriffin.com Y 8umantra Dhoshal on Dovernance .heory and &ractice