The document discusses various techniques used to develop decision-making and interpersonal skills in executives through assessment and training exercises. It describes the in-basket technique, business games, case studies, role playing and structured insight. The in-basket involves responding to work materials within a time limit. Business games simulate industry operations through competitive team decision-making. Case studies present real situations for analysis and solution development. Role playing simulates job interactions. Structured insight increases self-awareness through comparing espoused and actual leadership behaviors.

1. Decision Making
Skills
Knowledge, Skills and
Attitude
Communication
and
Interpersonal
Skill
Strategic
Knowledge
Procedural
Knowledge
In-basket
In-basket is a popularly used device in identifying executive potential in executive assessment
centres. It can also be utilized in teaching decision making skills.
Procedures of in-basket technique:
1. Give the trainees a description of their role (a current or future job) and general information
about the situation.
2. Then give them a packet of materials (such as requests, complaints, memos, messages, and
reports) which make up the in-basket.
**They are asked to respond to the materials supplied within a particular period of time (usually 2 to 4 hours).
3. When the in-basket is completed, the trainer asks the trainee to identify the processes used in
responding to the information and to discuss their appropriateness.
4. The trainer then give feedbacks to the trainee
**Trainer must reinforce appropriate decisions and processes and explain some alternatives it to the trainee.
Abilities can be developed encompass
(1) Situational judgment in being able to recall details,
establishes priorities, interrelate items, and determine need
for more information
(2) Social sensitivity in exhibiting courtesy in
written notes, scheduling meetings with involved
personnel, and explaining reasons for action
taken
(3) Willingness to make decision and take action.
In one variation, the trainee is allowed to place simulated phone calls for more
information. If he or she calls the correct person in the organization, more written data on the
issue will be provided. Group conference discussions on separate individual handlings of the in-
basket can elicit further developmental values.

2. Business games
Over the years, a variety of simulations have been developed to portray the operations
of the firms, or some component part. These exercises introduce some uncertainty in as much
as they are often played on competitive bases. Teams of trainees are formed to meet, discuss,
and arrive decisions concerning such subjects as production amount, research and
development, inventories, sales, and a myriad of other activities for a simulated firm. Games
can be relatively simple permitting rapid decision making to be affected, or extremely
complicated, entailing long and detailed analysis of trends in costs, inventories, and sales.
Obviously, the requirement that decision be made as a team provides trainee experience in
cooperative group processes. The multiple facet of a realistic simulation lead to appreciation of
the complex and interlocking nature of business systems, necessitating decisions that require
breadth of viewpoint as well as attention to detail.
One general business firm simulation requires seventeen decisions from each team for each
round (usually covering a quarter of a year). There are three products differentiated only by
price level. For each product, decisions must be made concerning price to be charged, in the
next chapter, amount to be produced, cost to be placed in product as a measure of quality,
advertising expenditures, and research and development investment. Teams must also
determine if the physical planet should be expanded in view of anticipated production and
decreasing size caused by depreciation. Conversion of cash into interest- earning securities can
also be done if desired. General industrial information is provided that is accurate within 10
per cent, e.g., other competitors’ prices, sales, share of market, etc. Special versions of games
are offered and designed for a particular portion of the enterprise, e.g... The marketing analysis
training exercise is a refinement of the Carnegie Tech Management Game and concentrates on
pricing, advertising, expenditures, sales force size, call time allocation to brands, and retail
allowance.
As in the case of the in-basket, playing a business game provides practice in sticking one’s neck
out and making decision. Immediate feedback of results demonstrates the relative accuracy of
the decision, taking into account the uncertain nature of competitors’ decisions. Interjection of
major changes in the environment can give practice in achieving flexibility. Organizational
ability, financial acumen, quickness of thinking, and the ability to adapt under stress can also be
developed through the use of game simulations.
Business games attempt to reflect
 The way an industry, company, or functional area operates
 Set of relationships, rules, and principles derived from appropriate theory (e.g., economics, organizational
behaviour, etc.)
Business games may represent the total organization (provide a far better understanding of the big picture) or
focus on the functional responsibilities of particular positions within an organization (e.g., marketing director,
human resource manager).

3. Business games representing the total organization provide a far better understanding of the big picture. They
allow trainees to see how their decisions and actions influence not only their immediate target but also areas that
are related to that target.
Functional simulations- focus on the functional responsibilities of particular positions within an organization (e.g.,
marketing director, human resource manager).
Procedures:
1. Trainer gives trainees the information, describing a situation
2. Trainer discuss the rules for playing the game
3. Trainees then start playing the game, usually being asked to make decisions about the given situation with
the certain information.
4. Trainer provides feedback to the trainees about the results of their decisions, and asks them to make
another decision.
**This process continues until some predefined state of the organization exists or a specified number of
trials have been completed.
For example:
If the focus is on the financial state of a company, the game might end when the company has reached a
specified profitability level or when the company must declare bankruptcy.
Business games involve an element of competition, either against other players or against the game itself. In using
them, the trainer must be careful to ensure that the learning points are the focus, rather than the competition.

4. Case Studies
The case method of development utilizes actual case examples collected from various
organizations for diagnostic purposes. It is most often used to simulate strategic decision-
making situations, rather than the day-to-day decisions that occur in the in-basket.
The trainee must:
(1) Identify the major and minor problems in the case
(2) Filter out the significant facts from the insignificant
(3) Analyse the issues and use logic to fill in the gaps in the facts
(4) Arrive at some means for solving the identifiable problem
Cases in personnel management are presented after each major section in this text.
In ensuring group discussions concerning the case, the trainee will usually see that other
candidates differ from him or herself about what is important and what action should be undertaken.
One is thus taught tolerance of others viewpoints as well as the difficulty arriving at absolutely correct
answers in complex problems. It has been found that some candidates are excellent in analysis and can
pursue ramifications endlessly, sometimes to the point of self-immobilization. They clearly see that any
decision chosen will have some undesirable dysfunctional consequences. Nevertheless, the instructor
must press for some stand to be taken. Decision choice is an inescapable responsibility of a manager.
Procedures:
1. Trainer presents the history of the situation in which a real or imaginary organization finds itself to the
trainee. The key elements and problems, as perceived by the organization's key decision makers, maybe
provided. Case studies range from a few pages in length to more than a hundred. .
2. Trainer asked trainees to respond to a set of questions or objectives through written or oral form.
**Longer cases require extensive analysis and assessment of the information for its relevance to the
decisions made. Some require the trainee to gather information beyond what was in the case.
3. Once individuals (trainees) have arrived at their solutions, they discuss the diagnoses and solutions that
have been generated in small groups, large groups, or both.
** In large groups a trainer should facilitate and direct the discussion. The trainer must guide the trainees
in examining the possible alternatives and consequences without actually stating what they are.
4. Then, trainer evaluates the oral/written responses provided by the trainees. The trainer should convey
that there is no single right or wrong solution to the case, but many possible solutions depending on the
assumptions and interpretations made by the trainees.
Value of the case approach
 Trainees' application of known concepts and principles
 Discovery of new concept

6. Interpersonal Skills
Traditional managers are likely to emphasize the rational portion of a manager’s task,
thereby emphasizing its decision making elements. Behaviourally oriented manager contend
that acceptance of the decision is just as important as its quality, thereby emphasizing the
necessity for developing interpersonal competence. Management is “getting things done
through others”. “Things” to do result from decision processes but getting the “others” to do
them willingly and effectively calls for unusual skills in interpersonal or human relations.
Role Playing
Role playing is a simulation in which the trainee is asked to play a part in a problem situation
requiring interaction with others. Basic mental sets are stated for all participants, but no
dialogue is provided. For example, a supervisor, on the advice of a motion and time study
engineer, has decided to change the work methods of subordinates. The supervisor’s role may
contain, among other items, such statements as, “ You get along well with your people; this
idea of the methods man makes pretty good sense for both the employees and the company;
the data provided by the expert are fairly clear”. Roles are also provided for each of the
subordinates. One may exhibit great suspicion against the motion and time study expert.
Another may be structured as a potential ally of the supervisor in the projected change. Still
another may show a fear of working himself or herself out of a job if methods are improved. All
will probably reflect the usual human resistance to any change, good or bad. No dialogue is
provided, and the trainees attempt to play themselves in the roles as structured. They are not
actors. Each will have to respond to the impromptu statements and questions of the other role
players.
Role playing is close to a laboratory situation in dealing with people in job situations. Playback
of the tape, if recorded, provides opportunities for the trainee to examine his or her
performance with the additional insight of participants and experienced observers. Videotapes
can be utilized to provide models of behaviour for the trainee. Ensuing role-playing sessions
can be directed toward influencing behaviour toward this model. Sorcher and Goldstein report
effective use of behaviour models for such interpersonal problem areas as giving recognition to
an employee, stimulating, acceptance of proposed changes, conducting a subordinate
performance appraisal, persuading an employee to improve performance levels, and inducting
a newly hired employee into the organization. Trainees were rewarded for successful role
emulation with praise by peers and trainers. It was found that attitude changes on the part of
the trainee tended to occur after the modelled behaviour was successfully duplicated. In order
to reduce dissonance created by differences between modelled behaviour and previously held
managerial beliefs, the trainees moved toward beliefs that were supportive of their newly
learned behaviour, e.g., importance of maintaining the subordinates’ esteem by not backing
them into a corner and the essentiality of making it clear that you are interested in the
employee’s personal success and of not demanding immediate solutions to employee
adjustment problems but allowing the employees to assist in working out an accommodation.

7. Structured Insight
Traditional method of courses, lectures, discussions, conferences, and cases have been
found lacking in effecting significant behavioural changes in trainees. Their knowledge is
increased, but much is lost in the transition to operational applications. On the other hand, the
laboratory approach of sensitivity training usually causes behavioural changes but is quite costly
in terms of time, money, and psychological inputs. A third approach has been developed in
recent years that strive to attain the personal insight or sensitivity training without many of its
costs. Emphasis is placed upon systematic collection of the trainee’s attitudes and assumptions
concerning the motives, abilities, and attitudes of others, particularly subordinates. This is
followed by a similar questionnaire assessment of preferences in leadership styles, e.g., close
authoritative supervision, establishment of good human relations, or a continually expanding
degree of subordinate participation and self-direction. In one particular scheme, these
assessments are located upon a 9 by 9 “managerial grid,” with concern for people shown on the
vertical scale and concern for production on the horizontal. A score of 1 indicates trainee low
concern and a score of 9 indicates high concern. Such assessments are then followed by
thorough group discussion of the meaning of the measured location of each trainee, usually
with the admonition that the group should move to a more balanced position of equal concern
for both people and productivity.
Chris Argyris suggests the use of another method that will provide self-insight into
leadership practices of top-level executives. Executives are first asked to write descriptions of
their espoused theories of leadership, particularly in reference to how they deal with people.
Secondly, a tape recording is made of an actual meeting conducted by the executive. In a later
gathering of all executives involved in the development program, each is asked to diagnose and
describe the actual theory in use or revealed by his or her own tape. In addition, they must do
the same for the tape of one other executive in the group. The ensuing discussion involves a
comparison of the espoused theory with the theory actually in use as revealed by the two
separate tape diagnoses. The goal of this process is to reveal the inevitable difference between
stated beliefs and actual behaviour; to reduce dissonance; one must change either the
espoused theory or the theory in use. Assuming a desire to change behaviour, a specific
program of action is then prepared by each executive. Rather than presenting general
resolutions such as “I’ll be less autocratic,” the executive is asked to specifically indicate what
will be said and done in probable situations. Three months later, another tape is made of an
actual meeting conducted by the subject executive, and this is analysed in a fashion similar to
that described above. Any systematic device that furthers understanding of one’s actual
behaviour in comparison with preferred behaviour can be labelled “structured insight”.