This document provides summaries of key concepts in several management topics: - Strategic management involves determining mission, vision, goals and roles to focus an organization. Strategic planning helps organizations adapt to changing environments. - Knowledge management involves getting the right information to the right people at the right time. Innovation is the most evolved stage of knowledge management. - Information management is the process of acquiring, organizing, distributing and using information to add value. It involves reducing costs and risks while creating new value. Data becomes information when given context, and knowledge results from reasoning about information. - Project management provides valid status updates for management decisions. Project planning balances work scope, time and resources to allow for change assessment.

1. MANAGEMENT FAQs
STRATEGIC MANAGEMENT What is strategic management?
What is strategic planning?
What is the difference between strategic and long-range planning?
What is strategic thinking and strategic management?
What strategic planning is not!
What is a strategic plan?
When should a strategic plan be developed?
How are strategies developed?
What are some tools for analysis and planning?
What is SWOT Analysis?
What is the MacMillan Matrix?
KNOWLEDGE MANAGEMENT What is knowledge management
How are innovation and knowledge management related?
INFORMATION MANAGEMENT What is information management?
What are the benefits of information management?
What is the difference between data, information and knowledge?
What is an information strategy?
PROJECT MANAGEMENT What is the purpose of project management?
Why should the project be planned?
What is the most important safe guard provided by project planning?
Why should a company have a project management system?
Does each project have to create its own management system?
What are the tools needed for a project management system?
What should a project manager look for in a scheduling system?
What is a Work Breakdown Structure (WBS)?
DELEGATION MANAGEMENT Why use delegation?
What are the benefits of delegation for the manager?
What are the benefits of delegation for team members team?
How does delegation help decision making?

2. STRATEGIC MANAGEMENT
What is strategic management? Strategic management can be used to determine mission, vision,
values, goals, objectives, roles and responsibilities, timelines, etc.
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What is strategic planning? Strategic planning is a management tool, period. As with any management
tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure
that members of the organization are working toward the same goals, to assess and adjust the
organization's direction in response to a changing environment. In short, strategic planning is a
disciplined effort to produce fundamental decisions and actions that shape and guide what an organization
is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning
in Public and Nonprofit Organizations).
A word by word dissection of this definition provides the key elements that underlie the meaning and
success of a strategic planning process: The process is strategic because it involves preparing the best way
to respond to the circumstances of the organization's environment, whether or not its circumstances are
known in advance; nonprofits often must respond to dynamic and even hostile environments. Being
strategic, then, means being clearr bout the organization's objectives, being aware of the organization's
resources, and incorporating both into being consciously responsive to a dynamic environment.
The process is about planning because it involves intentionally setting goals (i.e., choosing a desired
future) and developing an approach to achieving those goals. The process is disciplined in that it calls for
a certain order and pattern to keep it focused and productive. The process raises a sequence of questions
that helps planners examine experience, test assumptions, gather and incorporate information about the
present, and anticipate the environment in which the organization will be working in the future.
Finally, the process is about fundamental decisions and actions because choices must be made in order to
answer the sequence of questions mentioned above. The plan is ultimately no more, and no less, than a set
of decisions about what to do, why to do it, and how to do it. Because it is impossible to do everything
that needs to be done in this world, strategic planning implies that some organizational decisions and
actions are more important than others - and that much of the strategy lies in making the tough decisions
about what is most important to achieving organizational success.
The strategic planning can be complex, challenging, and even messy, but it is always defined by the basic
ideas outlined above - and you can always return to these basics for insight into your own strategic
planning process.
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What is the difference between strategic planning and long-range planning? Although many use
these terms interchangeably, strategic planning and long-range planning differ in their emphasis on the

3. "assumed" environment. Long-range planning is generally considered to mean the development of a plan
for accomplishing a goal or set of goals over a period of several years, with the assumption that current
knowledge about future conditions is sufficiently reliable to ensure the plan's reliability over the duration
of its implementation. In the late fifties and early sixties, for example, the US. economy was relatively
stable and somewhat predictable, and, therefore, long-range planning was both fashionable and useful. On
the other hand, strategic planning assumes that an organization must be responsive to a dynamic,
changing environment (not the more stable environment assumed for long-range planning).
Certainly a common assumption has emerged in the nonprofit sector that the environment is indeed
changeable, often in unpredictable ways. Strategic planning, then, stresses the importance of making
decisions that will ensure the organization's ability to successfully respond to changes in the environment.
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What is strategic thinking and strategic management? Strategic planning is only useful if it supports
strategic thinking and leads to strategic management - the basis for an effective organization. Strategic
thinking means asking, "Are we doing the right thing?" Perhaps, more precisely, it means making that
assessment using three key requirements about strategic thinking: a definite purpose be in mind; an
understanding of the environment, particularly of the forces that affect or impede the fulfillment of that
purpose; and creativity in developing effective responses to those forces. It follows, then, that strategic
management is the application of strategic thinking to the job of leading an organization.
Dr. Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following
framework for understanding strategic management: continually asking the question, "Are we doing the
right thing?" It entails attention to the "big picture" and the willingness to adapt to changing
circumstances, and consists of the following three elements: formulation of the organization's future
mission in light of changing external factors such as regulation, competition, technology, and customers
development of a competitive strategy to achieve the mission creation of an organizational structure
which will deploy resources to successfully carry out its competitive strategy. Strategic management is
adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the
traditional approach of "if it ain't broke, don't fix it."
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What Strategic Planning Is Not! Everything said above to describe what strategic planning is can also
provide an understanding of what it is not. For example, it is about fundamental decisions and actions, but
it does not attempt to make future decisions (Steiner, 1979). Strategic planning involves anticipating the
future environment, but the decisions are made in the present. This means that over time, the organization
must stay abreast of changes in order to make the best decisions it can at any given point - it must
manage, as well as plan, strategically. Strategic planning has also been described as a tool - but it is not a
substitute for the exercise of judgment by leadership.
Ultimately, the leaders of any enterprise need to sit back and ask, and answer, "What are the most
important issues to respond to?" and "How shall we respond?" Just as the hammer does not create the
bookshelf, so the data analysis and decision-making tools of strategic planning do not make the
organization work - they can only support the intuition, reasoning skills, and judgment that people bring
to their organization.
Finally, strategic planning, though described as disciplined, does not typically flow smoothly from one
step to the next. It is a creative process, and the fresh insight arrived at today might very well alter the

4. decision made yesterday. Inevitably the process moves forward and back several times before arriving at
the final set of decisions. Therefore, no one should be surprised if the process feels less like a comfortable
trip on a commuter train, but rather like a ride on a roller coaster. But even roller coaster cars arrive at
their destination, as long as they stay on track!
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What is a strategic plan? In strategic planning it is critical to formally consider how your organization
will accomplish its goals. The answer to this question is a strategy. There are a variety of formal
definitions for strategies, but everyone fundamentally agrees that a strategy is the answer to the question,
"How?" "Strategies are simply a set of actions that enable an organization to achieve results." MAP
for Nonprofits, St. Paul, MN. "Strategy is a way of comparing your organization's strengths with the
changing environment in order to get an idea of how best to complete or serve client needs." Jim Fisk &
Robert Barron, The Official MBA Handbook.
Essentially, there are three different categories of strategies: organizational, programmatic, and
functional. The difference among the categories is the focus of the strategy: Organizational strategy
outlines the planned avenue for organizational development (e.g., collaborations, earned income, selection
of businesses, mergers, etc.). Programmatic strategy addresses how to develop, manage and deliver
programs (e.g., market a prenatal care service to disadvantaged expectant mothers by providing
information and intake services in welfare offices). Functional strategies articulate how to manage
administration and support needs that impact the organization's efficiency and effectiveness (e.g., develop
a financial system that provides accurate information using a cash accrual method).
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When should a strategic plan be developed? Strategy development follows the creation and affirmation
of the organization's purpose statement, environmental and program data collection and analysis, and
identification of critical issues. It is critical that strategy development follow these steps because the
information gathered and decisions made in these phases are the foundation for strategy creation and
selection. Each of these steps provides the following: The purpose statement, the statement of the
organization's ultimate goal, provides the direction to which the strategies should ultimately lead.
External market data and program evaluation results provide critical data to support strategy development.
Without this information and insight, the organization's strategies will not be in alignment with or
effective in the marketplace. The critical issues list serves as the specific focus and framework for the
activities of the organization and the pattern of these activities (developing and selecting the strategies).
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How are strategies developed? Strategy formulation is a combination of rational, scientific examinations
and educated, intuitive best guesses. Many individuals are overwhelmed by the idea of developing
strategies, but it can be a fun and invigorating process.
The process entails: examining the organization's critical issues determining how the organization's
strengths and skills can be employed to address the critical issues analyzing opportunities and strengths
and looking for ways to synthesize the two exploring and choosing the best approaches for the
organization. During this evaluation ask these key questions: Does the strategy meet/address critical
issues? Is this aligned with our mission? Is this approach financially viable? One effective method of
strategy generation is to list critical issues and organizational strengths onto flipcharts and then have staff

5. or board members brainstorm possible uses of those strengths or other skills to address the critical issues.
Once the brainstorm session is completed, use a roundtable discussion to investigate and evaluate the
possible strategies. Remember to develop a list of alternative strategies to investigate and keep in the
contingency planning file. It is important not to discount the ideas that come to people during non-
working hours.
The Polaroid camera is the result of a three year old's question to her father: "Dad, why can't I see the
picture now?"
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What are some tools for for analysis and planning? A number of analytical tools have been developed
to assist organizations with the planning process. Many nonprofit organizations have adapted these tools,
modifying the questions and criteria to align with their own specific services and markets. Listed below
are analytical tools frequently used by nonprofit and for-profit organizations.
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What is SWOT Analysis? SWOT analysis is a methodology of examining potential strategies derived
from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT). The
partnering of the different elements and the extensive data collected as a result of the analysis can serve as
a spark for roundtable discussions and refinement of current strategies or generation of new strategies.
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What is the MacMillan Matrix? This strategy grid, developed by Dr. Ian MacMillan, is specifically
designed to assist nonprofit organizations to formulate organizational strategies. There are three
assumptions underlying this approach: the need for resources is essentially competitive and all agencies
wanting to survive must acknowledge this dynamic given that resources are scarce, there is no room for
direct duplication of services to a single constituency -- this is wasteful and inefficient mediocre or low
quality service to a large client population is less preferable to delivering higher quality services to a more
focused population. These assumptions have implications that are difficult and painful for many
organizations and individuals. It might mean terminating some programs to improve core services and
competencies, giving programs and clients to more efficient, effective agencies, or competing
aggressively with those programs that are less effective or efficient. MacMillan's matrix examines four
program dimensions that guide placement on the strategy grid and indicate implied strategies.
Alignment with Mission Statement: Services or programs that are not in alignment with the organizational
mission, unable to draw on existing organizational skills or knowledge, unable to share resources, and/or
unable to coordinate activities across programs should be divested.
Competitive Position: Competitive position addresses the degree to which the organization has a stronger
capability and potential to fund the program and serve the client base than the competitive agencies.
Program Attractiveness: Program attractiveness is the complexity associated with managing a program.
Programs that have low client resistance, a growing client base, easy exit barriers, and stable financial
resources are considered simple or "easy to administer." The level of program attractiveness also includes
an economic perspective or a review of current and future resource investments.

6. Alternative Coverage: Alternative coverage is the number of other organizations attempting to deliver or
succeeding in delivering a similar program in the same region to similar constituents.
The MacMillan Matrix provides ten cells in which to place programs that have been reviewed in terms of
these four dimensions. Each cell is assigned a strategy that directs the future of the program (s) listed in
the cell (e.g., aggressive competition, joint venture, orderly divestment, etc.). One cell of the matrix,
"Soul of the Agency," requires additional explanation. These are the difficult programs for which the
organization is often the clients' "last, best hope." Management must find ways to use the programs in
other cells to develop, piggyback, subsidize, leverage, promote, or otherwise support the programs in this
category.
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KNOWLEDGE MANAGEMENT
What is knowledge management? Getting the right information to the right people at the right time -- to
enable the right actions.
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How are innovation and knowledge management related? Innovation is the most evolved stage in the
development of knowledge management. The first stage is data, the second is information, the third is
knowledge, and the fourth is innovation.
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INFORMATION MANAGEMENT
What is information management? Information management (IM) is the harnessing of the information
resources and information capabilities of the organization in order to add and create value both for itself
and for its clients or customers. Information management is the management of organizational processes
and systems that acquire, create, organize, distribute, and use information. We adopt a process view of
information management. In this view, IM is a continuous cycle of five closely related activities:
 identification of information needs;
 acquisition and creation of information;
 organization and storage of information;
 information dissemination;
 information use.
The idea underlying IM is that just as an organization purposefully and systematically manages its human
resources or financial assets, it should do likewise for its information resources and processes. All the
classic functions of managing an organizational activity apply to IM as well: defining goals, providing
leadership, developing policies, allocating resources, training staff, evaluation and feedback.
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What are the benefits of information management? Generally speaking, there are four kinds of
benefits from managing information strategically:

7.  reduce costs;
 reduce uncertainty or risks;
 add value to existing products or services;
 create new value through new information-based products or services.
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What is the difference between data, information and knowledge? Consider a document containing a
table of numbers indicating product sales for the quarter. As they stand, these numbers are Data. An
employee reads these numbers, recognizes the name and nature of the product, and notices that the
numbers are below last year’s figures, indicating a downward trend. The data has become Information.
The employee considers possible explanations for the product decline (perhaps using additional
information and personal judgment), and comes to the conclusion that the product is no longer attractive
to its customers. This new belief, derived from reasoning and reflection, is Knowledge. Thus, information
is data given context, and endowed with meaning and significance. Knowledge is information that is
transformed through reasoning and reflection into beliefs, concepts, and mental models.
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What is an information strategy? An information strategy describes the overall direction and general
framework in which the organization’s information resources and processes should be managed so that
the organization would achieve its most important goals. An Information Strategy typically consists of
the following: IM goals and objectives that are well aligned with the organization’s mission and vision
IM principles that articulate desirable outcomes and form the foundation for developing information
policies One or more areas of strategic focus: this could be some critical information content; common
information to be shared; some information-intensive process; or new information-based products or
services.
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PROJECT MANAGEMENT
What is the purpose of project management? To provide management with valid, auditable status on
which to base management decisions.
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Why should the project be planned? The main reason for planning a project is for cost expediency.
Proper project planning will insure that the amount of work to be accomplished, the time allotted to
satisfactory complete the work scope, and the resources required to complete the work scope are equally
balanced. Every project undergoes some amount of change while in progress. Proper planning allows for
the assessment of the impact of change prior to implementing the change.
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What is the most important safe guard provided by project planning? Proper planning includes the
documentation of the work scope in language that is understandable by the individuals who must
accomplish the work scope. This single step when properly accomplished will save many false starts as
well as preventing the waste of resources working on efforts which are not required to obtain the desired
goals of the project.

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Why should a company have a project management system? The customer may wish to know how
the company manages a project. The customer wants some assurance that the company can deliver the
project on time and within budget. Senior management wants a valid insight on how the project is
progressing. History is required of past performance so that new proposals can be created based on fact.
The company desires to be a superior performer when compared to the competition.
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Does each project have to create its own management system? The style of the individual project
manager will normally vary for each project. It is the responsibility of senior management to put in place
a policy and procedure, supported by a selection of project management tools and formats, which will
assure that the status reporting is readable, auditable, and valid.
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What are the tools needed for a project management system? A work definition policy and format, a
scheduling procedure, a resource budgeting methodology and format, a real time data collection/reporting
system, a material control and accountability subsystem, a change control subsystem, and a monthly
formal status review format to be used by senior management.
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What should the project manager look for in a scheduling system? The three basic elements that the
project scheduling systems should provide are; a common basis for communication at all operational
levels of the project, a basis for regular status reporting, the use of the management by exception
technique.
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What is a Work Breakdown Structure (WBS)? The work breakdown structure defines the total
project. A work breakdown structure is a product oriented, family tree composed of hardware elements,
software elements, and service elements. The work breakdown structure relates project elements or work
scope definitions to each other and to the end product. The work breakdown structure is not an
organization chart of company personnel.
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DELEGATION MANAGEMENT
Why use delegation? Although delegating is one of the most difficult aspects of any management job,
there are many important benefits derived by the organization as well as the manager when tasks and
responsibilities are properly delegated. Through delegation, you can ease the job of managing and thereby
increase your own effectiveness and that of the work group.
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What are the benefits of delegation to the manager? Everybody wins with effective delegation, but

9. delegation is especially important if you want to survive and grow in an organization. Here is how
delegation can help the manager:
 Allows the manager to achieve more. Probably one of the most signifi- cant benefits is that you
can achieve greater productivity. Through the proper selection, assignment, and coordination of
tasks, you can mobilize resources to achieve more than would have been individually possible.
 Allows time for managerial activities. Delegation gives you an opportunity to handle aspects of
the job that no one else can do. These activities might include project planning, monitoring team
members, and handling personnel problems as they arise. Using delegation, you can focus on
doing a few tasks well rather than too many tasks poorly. Increases managerial promotion
potential.
 Personal advancement. If you don't have people in the department who are trained to handle
responsibilities, you will be shackled to one area and won't be considered for promotion. John
Henry Patterson, founder of National Cash Register Company, used to walk into his departments
and order the managers to take two-week vacations. His motive: to determine whether a team
member had been adequately trained to take over the supervisor's job on short notice. The key to
such training, Patterson believed was delegating--providing the team member with the
experience, knowledge, and responsibility needed for a smooth transition. Managers who don't
delegate don't have trained team members to take their places. Managers who aren't able to
delegate at their current level won't be able to delegate at the next. Their ineffectiveness thus
multiplies with each level in the organization.
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What are the benefits of delegation for team members? Your team members are more highly
motivated with effective delegation.
 Develops team members' skills. Failure to effectively delegate deprives team members of
opportunities to improve their skills and assume greater responsibility. Team members realize
that they are not learning and gaining the experience they could. As a result, they may leave the
firm for more challenging and supportive environments. Unfortunately, the most talented team
members are the most likely to leave and those you least want to lose. A routine task for you is
often a growth opportunity for a team member. Delegating a wide variety of assignments not only
serves to train team members, it allows for backup personnel in times of emergency or
termination of other employees. When others are well-versed in handling the responsibilities of
different areas, you attain maximum flexibility and ensure that the project will not be at a
standstill in your absence.
 Increases team member involvement. Proper delegation encourages team members to understand
and influence the work the department does. It allows team members a chance to incorporate their
values in the workplace and, in many cases, to work on activities that especially interest them.
Increasing team members' involvement in the workplace increases their enthusiasm and initiative.
Increases promotion potential. As with managers, a team member who receives extensive
delegation will be ready and able to advance to new positions. In this regard, delegation serves
both to train and to test an employee. Benefits to the Organization If both managers and team
members benefit from delegation, it follows that the organization as a whole benefits.
 Maximizes efficient output. When you delegate tasks according to the skills and abilities of each
member of the work group, the department as a whole is likely to produce a higher level of work.
Work will also be completed more efficiently. Delegation helps you make the best use of
available human resources and achieve the highest possible rate of productivity. In addition, it
allows new ideas, viewpoints, and suggestions to flourish. Produces faster, more effective

10. decisions.
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How does delegation help decision making? Effective delegation makes for faster, more effective
decision making. An organization is most responsive to change in the environment when decisions are
made by those individuals closest to the problems; that is, responsibility and decision making are pushed
further down in an organization. Individuals closest to the problem have the most information on which to
base an intelligent decision. Decision making can be achieved more expediently through delegation, thus
allowing the organization to be more responsive and hence more competitive. When team members
participate in decision making there is an increase in employee motivation, morale, and job performance.
The greater the employee participation, the greater the employee commitment to the job and the
organization! Increases flexibility of operations.
Effective delegation trains many people to do the same assignments. This overlap allows for greater
flexibility of work assignments. When someone is absent or a crisis requires people to assist with tasks
not regularly a part of their jobs, they will already be familiar with the assignment. Delegation prepares
more individuals for promotion or rotation of responsibilities. And it allows you to appoint someone to
supervise the work group when you're absent.
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UNIT - 1
Thinking Strategies:
Strategic thinking:
Strategic thinking is defined as a mental or thinking process applied by an individual in the context of
achieving success in a game or other endeavor. As a cognitive activity, it produces thought.
When applied in an organizational strategic management process, strategic thinking involves the generation
and application of unique business insights and opportunities intended to create competitive advantage for a
firm or organization. It can be done individually, as well as collaboratively among key people who can positively
alter an organization‘s future. Group strategic thinking may create more value by enabling
a proactive and creative dialogue, where individuals gain other people's perspectives on critical and complex
issues. This is regarded as a benefit in highly competitive and fast-changing business landscapes.
Strategic thinking - Meaning:
The ability to come up with effective plans in line with an organization's objectives within a particular
economic situation. Strategic thinking helps business managers review policy issues, perform long term
planning, set goals and determine priorities, and identify potential risks and opportunities.

11. Strategic thinking - Questions:
Refer all above questions
Things included in Strategic Thinking:
Process Consideration in S.T.:
Strategic Thinking Process
Overview
Traditionally, Strategic Planning omits the step of innovative thinking that is so critical to business
success, in particular, at the departmental level. Strategic Thinking is a more comprehensive planning
model that covers innovation, strategic planning and operational planning. Strategy has never been
more challenging, or more important, than in today's environment of global competition in which
corporate strategies must transcend the borders of nations and markets. Too many organizations try
to be everything to everyone, wasting resources in markets that may never provide a worthwhile
return on investment.
Strategic Thinking is a planning process that applies innovation, strategic planning and operational
planning to develop business strategies that have a greater chance for success.
Consulting Process
Business Improvement Architects focuses on the development of more creative and innovative
strategies, ensuring that departmental strategies are linked to the overall corporate strategic plan.
This includes understanding the voice of the customer, conducting benchmarking and identifying
opportunities to engage employees throughout the strategic thinking process. A focus on developing,
guiding and facilitating the strategic thinking skills of the leaders is made and these leaders will learn
how to create an inclusive, strategic conversation throughout the strategic thinking process. The
application of innovation to the development of key strategies is explored as well as how to ensure the
strategies are successfully implemented.
Key Elements of the Strategic Thinking Consulting Process
Understanding the Voice of the Customer
 We start with a review of the voice of the customer process. This includes determining
customer satisfaction levels by reviewing previously collected information (if it exists),
informal customer feedback and/or formal customer feedback. If there is little customer
feedback then we determine which data collection method to use including email or web-based
surveys, telephone interviews, focus groups, observation and prototyping. If there is a large
customer data based then we determine what customer sample size to ensure the "right"
number of customers is included.

12. Employee Involvement
 Success in the execution of the strategies is very dependent upon the buy-in and acceptance
of the employees. We ensure that the department gets employees involved in the
development of innovation, strategy and operational effectiveness through feedback sessions
before, during and after the strategic thinking process. Gaining employee understanding of
how the work they perform links to the realization of the departmental strategies and the
corporate strategic plan is critical to the successful implementation of the key strategies.
Benchmarking
 In order to bring into the department best practices we will engage the management team in
an exploration of benchmarking. This will include ensuring that there is a clear understanding
on how to benchmark against others to compare operational effectiveness. We will also review
the difference between a competitive analysis and a benchmarking analysis. The inclusion and
review of international quality awards is presented as another source of benchmarking.
Innovation
 The management team will then be taken through an innovation process in an effort to get
them into the realm of creative thinking. This will ensure that they develop the best overall
strategies, not just the obvious ones. The innovation process will guide the management team
to create the ideal future, the plans needed to achieve them, the wisdom to see them through,
and the team to develop them.
The Strategic Opportunities
 A review of the organizational strategic plan will help the management team understand how
to link their planning and strategy development with the corporate vision. Management will
gain an understanding on how the strategic thinking model will enable these leaders to
cascade the corporate plan throughout their departments to ensure success in the realization
of the strategic imperatives they're developing.
Operational Effectiveness
 The management will now be ready to develop an operational effectiveness plan which will
ensure that their strategic plan is cascaded through their department. There will be
discussions on how to ensure the involvement of all employees in the process. As well,
measurements will be defined and established to ensure success. These will become the
measurable standards against which to benchmark the successful implementation of the
strategic thinking process.
Strategic thinking competencies
Liedtka observed five ―major attributes of strategic thinking in practice‖ that resemble competencies.[14]

13. The first competency, a systems perspective, refers to being able to understand implications of strategic
actions. "A strategic thinker has a mental model of the complete end-to-end system of value creation, his or her
role within it, and an understanding of the competencies it contains."
A second competency underlying strategic thinking is intent focused which means more determined and less
distractible than rivals in the marketplace. Crediting Hamel and Prahalad with popularising the concept, Liedtka
describes strategic intent as "the focus that allows individuals within an organization to marshal and leverage
their energy, to focus attention, to resist distraction, and to concentrate for as long as it takes to achieve a goal.
Thinking in time means being able to hold past, present and future in mind at the same time to create better
decision making and speed implementation. "Strategy is not driven by future intent alone. It is the gap between
today‘s reality and intent for the future that is critical." Scenario planning is a practical application for
incorporating "thinking in time" into strategy making. A fourth strategic thinking competency is being hypothesis
driven, ensuring that both creative and critical thinking are incorporated into strategy making. This competency
explicitly incorporates the scientific method into strategic thinking
The final strategic thinking competency is intelligent opportunism, which means being responsive to good
opportunities. "The dilemma involved in using a well-articulated strategy to channel organisational efforts
effectively and efficiently must always be balanced against the risks of losing sight of alternative strategies
better suited to a changing environment."
Importance of Strategic Thinking
Many companies struggle with understanding their customers and overall market. This is very
dangerous because it inhibits the firm to be able to develop and execute an effective strategy.
Another popular problem many companies experience is the tendency of trying to be everything to
everyone. This usually holds a company back from creating an excellent product. Instead, the firm
will have a large variety of mediocre goods. If the company has planned for this approach it can still
be quite effective; however, in order to efficiently maximize profits with this approach, the company
has to be a low cost leader. The whole point of this discussion is that employees need to learn how
to implement strategic thinking. They need to learn how to position their products and prices in the
market in order to create a competitive advantage. With this competitive advantage, companies will

14. capture a large market share and generate large profits. This will impress all steak-holders of the
firm and raise the overall company value.
When positioning a product in the market there are 5 general segments. These include the high cost,
performance, traditional, size, and low cost. As time goes on, consumers are going to demand all
goods to have better performance and smaller size. In many industries including: vehicles,
computers, cell phones, motorcycles, and many other products, these are two most important
characteristics. All of thefive segments are positioned on the same grid but in different areas. When
thinking about the different section think about a perceptual map that has two different criteria. Look
to the picture on the right hand of the screen but substitute the values with the ones I am going to
list. On one side there is the size of the good. The higher the unit is on the map the larger the size.
On the other vertices is the performance. As the product moves from left to right the performance
improves. These two criteria determine which segment the product fits under. The five different
segments are presented as large circles that move toward lower size and higher performance as
time goes on. These circles never intersect but move diagonal together. An example of this would be
a circle that represents the low cost division. It would be positioned in the upper left hand corner.
This would represent that it has the largest size and the worst performance. Directly below the low
cost is the size section. It has a lower size than the low cost, but has the same performance. In the
middle of the five segments is the traditional. It is a little bit bigger than the size section but smaller
than the low cost. It has better performance than both of them. The performance section is on the
right corner of the size section. It has a larger size than traditional but much better performance than
the other three. The last segment is the high-cost. It is positioned off the bottom right tip of the
traditional. It has the lowest size and the highest performance of all sectors. The costs of the goods
are going to be in direct correlation to the size and performance of the widget. Companies need to
think which segment they are going to pursue. They also need to plan for the future and design a
product that can be competitive in their industry.
There are many different factors that will determine what segment a person fits into. For example, a
family of 5 with total income at $50,000 is probably not going to be looking for a car in the
performance or high-cost section. They are going to be much more interested in purchasing a
traditional or low-cost vehicle. On the other end of the spectrum would be a single, college graduate
that makes $75,000 a year. He would be more interested in a car that fits in the size or high-cost
section. He is going to value a small performance based vehicle over a low cost minivan.
Companies need to determine which segment they can gain the most market share. This will help it
on the production side as well as the finance department.Strategic thinking is the art of looking at all
of the outside factors. It is thinking of a solution that solves all the problems in the least cost method
possible. Companies are constantly looking for employees that can implement strategic
thinking skills. They want people that are going to be able to solve difficult problems with creative
ideas. The first step in positioning a product is to gain a detailed understanding of the market. It is
important to do significant research so you can analyze the different forces in the market. After this is
done, you can proceed to look at your company‘s strengths, weaknesses, opportunities, and threats.
This will give you an idea on where you company should place its precious resources. The third

15. basic step is to give your actual suggestion on what the company should do. It is important to back
up your recommendations with marketing research and statistical facts. Lastly, it is essential to have
a control mechanism to keep track of how your recommendations are playing out.
Executing strategic problem solving is going to be very beneficial to your company, and raise your
overall market worth. Through practice and dedication it is possible to understand a market and
make excellent managerial recommendations.
5 Characteristics of Strategic Thinkers
We have argued frequently that researchers are in the best position to provide strategic
guidance to their organization. As researchers we think about things like how you can get more folks to benefit from
insight by sharing our foundational knowledge and how to embed customer knowledge in a way thatfits executive
decision-making processes. That‘s right…STRATEGIC thinking!
Innovation Excellence recently published a blog on 5 characteristics of the best strategic thinkers, and I think many
of these will be familiar to your daily research lives:
1. Open yourself to perspectives from multiple sources—this isn‘t about having more data points than
others, it‘s about putting them together properly. We‘ve done the analysis, and know that decision makers feel
more confident in their decisions if they used more data points to get to them. But we also found that decision
makers struggle to make the best decisions without help with interpreting the data. Researcher synthesis
skills can give you a real leg-up in the strategic decision-making process.
2. Incorporate BOTH logic and emotion into your thinking—emotional drivers matter, especially when
you‘re trying to get the organization to take action. We have found that the most successful way to re-educate
executives when their assumptions are wrong is by engineering learning moments: using multi-sensory
experiences that make the decision makers feel the emotion that comes with new, convention-breaking insights.
3. Seek options beyond today’s reality—don‘t let the current state of affairs have too much impact on future
decisions. A great Research example of this is the trends trend. Decision makers like to ask for trends to try to
identify ―the next big thing.‖ But we‘ve seen companies have much more success growing their company when
they shift Research‘s focus from megatrends tracking to opportunity identification.

16. 4. Question both the familiar and the to-be-determined—in other words, be curious. As the Science
channel promo goes: Question Everything. We‘ve done the quant on this too, and have confirmed
thatintellectually curious people provide significantly better insights to the organization.
5. Accept open issues—this may be the most difficult for us. As researchers, by nature we are looking for
answers. But the most successful Research departments are the ones that encourage principled risk-taking.
Waiting for all of the facts to come in to make the ―right decision‖ will keep you waiting around forever. Use your
judgment when guiding the organization: it‘s how true insights are made.
How can you tell if you are a strategic thinker? Compare these eight characteristics and their opposite to
determine your strategic thinking style.
Lateral thinking

17. Lateral thinking is solving problems through an indirect and creative approach, using reasoning that is not
immediately obvious and involving ideas that may not be obtainable by using only traditional step-by-step logic.
The term was coined in 1967 by Edward de Bono.
According to de Bono, lateral thinking deliberately distances itself from standard perceptions of creativity as
either "vertical" logic (the classic method for problem solving: working out the solution step-by-step from the
given data) or "horizontal" imagination (having a thousand ideas but being unconcerned with the detailed
implementation of them).
Methods
Critical thinking is primarily concerned with judging the true value of statements and seeking errors. Lateral
thinking is more concerned with the movement value of statements and ideas. A person uses lateral thinking to
move from one known idea to creating new ideas. Edward de Bono defines four types of thinking tools:
 Idea generating tools that are designed to break current thinking patterns—routine patterns, the status
quo
 Focus tools that are designed to broaden where to search for new ideas
 Harvest tools that are designed to ensure more value is received from idea generating output
 Treatment tools that are designed to consider real-world constraints, resources, and support[1]
Random Entry Idea Generating Tool: The thinker chooses an object at random, or a noun from a dictionary,
and associates it with the area they are thinking about. For example, if they are thinking about how to improve
a website, an object chosen at random from the environment around them might be a fax machine. A fax
machine transmits images over the phone to paper. Fax machines are becoming rare. People send faxes
directly to phone numbers. Perhaps this could suggest a new way to embed the website's content
in emails and other sites.
Provocation Idea Generating Tool: The use any of the provocation techniques—wishful
thinking, exaggeration, reversal, escape, distortion, or arising. The thinker creates a list of provocations and
then uses the most outlandish ones to move their thinking forward to new ideas.
Movement Techniques: The thinker develops provocation operations by the following methods: extract a
principle, focus on the difference, moment to moment, positive aspects, special circumstances.
Challenge Idea Generating Tool: A tool which is designed to ask the question "Why?" in a non-threatening
way: why something exists, why it is done the way it is. The result is a very clear understanding of "Why?"
which naturally leads to fresh new ideas. The goal is to be able to challenge anything at all, not just items which
are problems. For example, one could challenge the handles on coffee cups. The reason for the handle seems
to be that the cup is often too hot to hold directly. Perhaps coffee cups could be made with insulated finger
grips, or there could be separate coffee cup holders similar to beer holders.
Concept Fan Idea Generating Tool: Ideas carry out concepts. This tool systematically expands the range and
number of concepts in order to end up with a very broad range of ideas to consider.
Disproving: Based on the idea that the majority is always wrong (as suggested by Henrik Ibsen and John
Kenneth Galbraith), take anything that is obvious and generally accepted as "goes without saying", question it,
take an opposite view, and try to convincingly disprove it. This technique is similar to de Bono's "Black Hat" of
the Six Thinking Hats, which looks at the ways in which something will not work.

18. Lateral thinking and problem solving
Problem Solving: When something creates a problem, the performance or the status quo of the situation
drops. Problem solving deals with finding out what caused the problem and then figuring out ways to fix the
problem. The objective is to get the situation to where it should be.
For example, a production line has an established run rate of 1000 items per hour. Suddenly, the run rate drops
to 800 items per hour. Ideas as to why this happened and solutions to repair the production line must be
thought of, such as giving the worker a pay raise.
Creative Problem Solving: Using creativity, one must solve a problem in an indirect and unconventional
manner.
For example, if a production line produced 1000 books per hour, creative problem solving could find ways to
produce more books per hour, use the production line, or reduce the cost to run the production line.
Creative Problem Identification: Many of the greatest non-technological innovations are identified while
realizing an improved process or design in everyday objects and tasks either by accidental chance or by
studying and documenting real world experience.
Lateral Thinking puzzles: These are puzzles that are supposed to demonstrate what lateral thinking is about.
However any puzzle that has only one solution is "not" lateral. While lateral thinking may help you construct
such puzzles, the lateral thinking tools will seldom help you solve puzzles.
Lateral Problem "Solving": Lateral thinking will often produce solutions whereby the problem appears as
"obvious" in hindsight. That lateral thinking will often lead to problems that you never knew you had, or it will
solve simple problems that have a huge potential.
For example, if a production line produced 1000 books per hour, lateral thinking may suggest that a drop in
output to 800 would lead to higher quality, more motivated workers etc. etc.
Conventional Leadership vs. Lateral Leadership
Is this the sort of leadership that your school or district needs? More from from Paul Sloane‘s list of
Conventional Leaders vs. Lateral Leaders found in his book The Leader‘s Guide To Lateral Thinking
Skills.

19. and

20. Lateral Thinking
"The Lateral Thinking creativity program provides you with a number of proven and concrete ways to learn
the power of creativity and innovation." - Edward de Bono
Who Needs Lateral Thinking?
Not only people who devise strategy or work in R & D, but anyone who wants a disciplined process for
innovation, idea generation, concept development, creative problem solving, or a strategy to challenge the
status quo can benefit from Lateral Thinking.
If you face fast-changing trends, fierce competition, and the need to work miracles, you need Lateral
Thinking.
Lateral Thinking Techniques
1. Alternatives / Concept Extraction: Use concepts to breed new ideas
2. Focus: Sharpen or change your focus to improve your creative efforts
3. Challenge: Break free from the limits of accepted ways of operating
4. Random Entry: Use unconnected input to open new lines of thinking
5. Provocation: Move from a provocative statement to useful ideas
6. Harvesting: Select the best of early ideas and shape them into useable approaches
7. Treatment of Ideas: Develop ideas and shape them to fit an organization or situation
"Great business competitors are great lateral thinkers . . ." - Edward de Bono
How Might You Use Lateral Thinking?
The Lateral Thinking techniques are useful in a variety of applications.
 Constructively challenge the status quo to enable new ideas to surface
 Find and build on the concept behind an idea to create more ideas
 Solve problems in ways that don‘t initially come to mind
 Use alternatives to liberate and harness the creative energy of the organization
 Turn problems into opportunities
 Select the best alternate ideas and implement them
Edward de Bono's Lateral Thinking
Imagine being able to:
- consistently stay one step ahead of the competition
- solve problems as they arise
- innovate as a matter of course.
Edward de Bono's Lateral Thinking can help your team to do all of this. A logical process for
creativity and innovation, it's a must-have in a world where it's essential to stay ahead of the
competition.

21. The benefits of Lateral Thinking
Lateral Thinking is the tool that more and more organisations are using to:
- come up with innovative new products and services
- solve problems
- find new ways of working
- enable a creative, positive culture.
Lateral Thinking Programmes
The most effective way to get your people thinking creatively is to train them in Lateral Thinking.
Our two-day programme will get your people using Lateral Thinking techniques confidently and
effectively.
Tailored to your organisation's needs,an in-company programme will be relevant, good value, and
instantly usable.
Who is Edward de Bono?
Dr Edward de Bono is regarded by many as the world's leading authority in creative thinking and the
direct teaching of thinking as a skill. The originator of the term 'lateral thinking', he has written over
60 books and lectured in more than 50 countries.
Want to know more about Edward de Bono's Lateral Thinking and how it can benefit you? Call us
now on 01670 762083 or email us. We're based in Northumberland but work throughout the UK.
Key Concepts for the Conventional Leader Key Concepts for the Lateral Leader
Action: an activity, deed or operation.
Thinking: the process of forming, conceiving or
resolving in the mind.
Result: an outcome, decision, win or loss.
Creativity: the ability to bring something new into
being through the force of imagination.
Improvement: a change for the better, the
process of making things more efficient or more
valuable.
Innovation: the act of introducing or implementing
something new or revolutionary.
The Conventional Leader.... The Lateral Leader....
Leads from the front. Leads from the side.
Directs. Inspires.
Uses conventional methods and seeks to
improve effectiveness and efficiency.
Develops new methods and seeks to change the
rules, change partners or change the approach to

22. the problem.
Thinks he knows best (and often does). Harnesses the abilities of others.
Has a strong sense of direction and purpose. Has a vision and uses it to inspire others.
Spends more time on improving day-to-day
operational matters than strategic issues.
Spends more time on finding new strategic
initiatives and partners than on solving operational
or day-to-day matters.
Gives directions and orders. Ask questions, solicits suggestions and delegates.
Looks for greater efficiency, more productivity,
faster development, more aggressive sales and
marketing.
Looks for new ways to do things, new approaches
to the customer, new solutions, new partnerships.
Treats staff as subordinates. Treats staff as colleagues.
Is decisive, often without prior consultation. Solicits views and inputs before making decisions.
Builds an effective team of managers who can
execute policy and implement plans.
Builds a team of creative, entrepreneurial
individuals
Focus on actions and results.
Focus on directions and innovation to achieve
results.
Instructs. Empowers.
Hires based on experience, proven track record
and qualifications.
Hires based on experience, creativity and latent
capabilities.
Discourages dissent. Encourages constructive dissent.
Cares about results above all. Cares about ideas, peoples and the "vision".
Promotes himself as the leader and figurehead
with press, customers and outside world.
Shares exposure and prestige with the team.
Encourages action, activity and work. Encourages ideas, innovation and fun.
Rewards performance. Rewards creativity.
Is numbers-oriented and analytical. Is ideas-oriented, analytical and intuitive.
Sees technology as a means to do things
better, faster and cheaper.
Sees technology as a means to do things entirely
differently.
Overrules ideas and initiatives which he sees as
flawed or wrong.
Encourages all initiative and often implements
ideas or suggestions over which he has misgivings.
Communicates through memos and e-mail. Communicates through open discussion.

23. Lateral leadership is about exerting influence without hierarchical authority. Flatter management structures, matrix
organizations, project management, outsourcing, and virtual teams all mean that managers have to get things done
through a greater number of people both inside and outside their organization, where the possibility of using classical
leadership tools are limited. In such situations new competencies are becoming important and this partnership
approach requires managers to achieve their goals by using a variety of tools and methods for influencing others.
This training will help participants learn these instruments and their implementation.
UNIT - II
INTERPERSONAL STRATEGIES
Conflict resolution
Conflict resolution is conceptualized as the methods and processes involved in facilitating the peaceful
ending of conflict. Often, committed group members attempt to resolve group conflicts by actively
communicating information about their conflicting motives or ideologies to the rest of the group (e.g., intentions;
reasons for holding certain beliefs), and by engaging in collectivenegotiation.[1]
Ultimately, a wide range of
methods and procedures for addressing conflict exist, including but not limited
to, negotiation, mediation, diplomacy, and creative peacebuilding.
The term conflict resolution may also be used interchangeably with dispute resolution, where arbitration and
litigation processes are critically involved. Furthermore, the concept of conflict resolution can be thought to
encompass the use of nonviolent resistance measures by conflicted parties in an attempt to promote effective
resolution.[2]
Conflict resolution as an academic field is relatively new. George Mason University in Fairfax,
VA was the first university to offer a PhD program.
Theories and models[edit source]
Dual concern model of conflict resolution[edit source]
The dual concern model of conflict resolution is a conceptual perspective that assumes individuals‘ preferred
method of dealing with conflict is based on two underlying themes or dimensions:[1]
1. A concern for self (i.e. assertiveness), and
2. A concern for others (i.e. empathy).
According to the model, group members balance their concern for satisfying personal needs and interests with
their concern for satisfying the needs and interests of others in different ways. The intersection point between
these two dimensions ultimately lead individuals towards exhibiting different styles of conflict resolution
(Goldfien & Robbennolt, 2007).[3]
The dual model identifies five conflictresolution styles/strategies that
individuals may use depending on their dispositions toward pro-self or pro-social goals.
1. Avoidance conflict style

24. Characterized by inaction and passivity, avoidance conflict style is typically used when an individual
has reduced concern for their own outcomes as well as the outcomes of others. During conflict, these
avoiders adopt a ―wait and see‖ attitude, often allowing conflict to phase out on its own without any
personal involvement (Bayazit & Mannix, 2003).[4]
Unfortunately, by neglecting to address high-conflict
situations, avoiders risk allowing problems to fester out of control.
2. Yielding conflict style
In contrast, yielding or ―accommodating‖ conflict styles are characterized by a high concern for others
while having a low concern for one‘s own self. This passive pro-social approach emerges when
individuals derive personal satisfaction from meeting the needs of others and have a general concern
for maintaining stable, positive social relationships.[1]
When faced with conflict, individuals with a
yielding conflict style tend to give into others‘ demands out of respect for the social relationship
3. Competitive conflict style
Competitive or ―fighting‖ conflict style maximizes individual assertiveness (i.e., concern for self) and
minimizes empathy (i.e., concern for others). Groups consisting of competitive members generally
enjoy seeking domination over others, and typically see conflict as a ―win or lose‖
predicament.[1]
Fighters tend to force others to accept their personal views by employing competitive,
power tactics (e.g., argue; insult; accuse; violence) that foster feelings of intimidation (Morrill, 1995).
4. Cooperation conflict style
Characterized by an active concern for both pro-social and pro-self behavior, cooperation conflict style
is typically used when an individual has elevated interests in their own outcomes as well as in the
outcomes of others. During conflict, cooperators collaborate with others in an effort to find an amicable
solution that satisfies all parties involved in the conflict. Individuals with this type of conflict style tend to
be highly assertive and highly empathetic at the same time.[3]
By seeing conflict as a creative
opportunity, collaborators willingly invest time and resources into finding a ―win-win‖
solution.[1]
According to the literature on conflict resolution, a cooperative conflict resolution style is
recommended above all others (Sternberg & Dobson, 1987; Jarboe & Witteman, 1996)[5][6]
5. Conciliation conflict style
Conciliation or ―compromising‖ conflict style is typical of individuals who possess an intermediate-level
of concern for both personal and others‘ outcomes. Compromisers value fairness and, in doing so,
anticipate mutual give-and-take interactions.[3]
By accepting some demands put forth by others,
compromisers believe this agreeableness will encourage others to meet half-way, thus promoting
conflict resolution (van de Vliert & Euwema, 1994).[7]
This conflict style can be considered an extension
of both ―yielding‖ and ―cooperative‖ strategies.[1]

25. Political Conflict Resolution in Practice[edit source]
Moshe Dayan and Abdullah el Tell reach a cease fire agreement during the 1948 Arab–Israeli War,
Jerusalem. 30 November 1948
Wars occur between warring parties who contest an incompatibility. The nature of an
incompatibility can either be territorial or governmental but a warring party must be a
"government of a state or any opposition organisation or alliance of organisations that
usesarmed force to promote its position in the incompatibility in an intrastate or an
interstate armed conflict."[8]
Wars sometimes conclude with a peace agreement, defined
as a "formal agreement between warring parties, which addresses the disputed
incompatibility, either by settling all or part of it, or by clearly outlining a process for how
the warring parties plan to regulate the incompatibility."[9]
A Ceasefire is another form of
agreement between waring parties but unlike a peace agreement it only "regulates the
conflict behaviour of warring parties... [and] does not address the incompatibility."[10]
Culture-based[edit source]
Conflict resolution as both a professional practice and academic field is highly sensitive
to culture. In Western cultural contexts, such asCanada and the United States,
successful conflict resolution usually involves fostering communication among
disputants, problem solving, and drafting agreements that meet their underlying needs.
In these situations, conflict resolvers often talk about finding the win-win solution, or
mutually satisfying scenario, for everyone involved (see Fisher and Ury (1981), Getting
to Yes). In many non-Western cultural contexts, such as Afghanistan, Vietnam,
and China, it is also important to find "win-win" solutions; however, getting there can be
very different. In these contexts, direct communication between disputants that explicitly
addresses the issues at stake in the conflict can be perceived as very rude, making the
conflict worse and delaying resolution. Rather, it can make sense to involve religious,
tribal or community leaders, communicate difficult truths indirectly through a third party,
and make suggestions through stories (see Vinod Swami (1992), Conflict Mediation
Across Cultures). Intercultural conflicts are often the most difficult to resolve because the
expectations of the disputants can be very different, and there is much occasion for
misunderstanding.[citation needed]

26. In animals[edit source]
Conflict resolution has also been studied in non-humans, like dogs, cats, monkeys,
snakes, elephants, and primates (see Frans de Waal, 2000). Aggression is more
common among relatives and within a group than between groups. Instead of creating a
distance between the individuals, however, the primates were more intimate in the
period after the aggressive incident. These intimacies consisted of groomingand various
forms of body contact. Stress responses, like an increased heart rate, usually decrease
after these reconciliatory signals. Different types of primates, as well as many other
species who are living in groups, show different types of conciliatory behaviour.
Resolving conflicts that threaten the interaction between individuals in a group is
necessary for survival and hence has a strong evolutionaryvalue. These findings
contradicted previous existing theories about the general function of aggression, i.e.
creating space between individuals (first proposed by Konrad Lorenz), which seems to
be more the case in conflicts between groups than it is within groups.
In addition to research in primates, biologists are beginning to explore reconciliation in
other animals. Until recently, the literature dealing with reconciliation in non-primates
have consisted of anecdotal observations and very little quantitative data. Although
peaceful post-conflict behavior had been documented going back to the 1960s, it wasn‘t
until 1993 that Rowell made the first explicit mention of reconciliation inferal sheep.
Reconciliation has since been documented in spotted hyenas,[11][12]
lions,
dolphins,[13]
dwarf mongoose, domestic goats,[14]
and domestic dogs.[15]
Conflict resolution is an expanding field of professional practice, both in the U.S. and
around the world. The escalating costs of conflict have increased use of third parties
who may serve as a conflict specialists to resolve conflicts. In fact relief and
development organizations have added peace-building specialists to their teams. Many
of the major international non-governmental organizations have seen a growing need to
hire practitioners trained in conflict analysis and resolution. Furthermore, this expansion
of the field has resulted in the need for conflict resolution practitioners to work in a
variety of settings such as in businesses, court systems, government agencies nonprofit
organizations, government agencies and educational institutions serving throughout the
world.
Education[edit source]
Universities worldwide offer programs of study pertaining to conflict research, analysis,
and practice. The Cornell University ILR Schoolhouses the Scheinman Institute on
Conflict Resolution, which offers undergraduate, graduate, and professional training on
conflict resolution.[16]
Eastern Mennonite University's Center for Justice and
Peacebuilding offers a BA and MA with a focus on practical applications in conflict-
affected communities and regions. Additional graduate programs are offered at
Georgetown University, and Trinity College Dublin.[17]
George Mason University‘s
Institute of Conflict Analysis and Resolution offers undergraduate, certificate and
masters programs in Conflict Analysis and Resolution and a Ph.D. program in The
Philosophy in Conflict and Conflict Resolution.[18]
Nova Southeastern University offers a

27. Ph.D. in Conflict Analysis & Resolution which trains students in the skills and techniques
of practice, interdisciplinary research, policy and program development, historical
critique, cultural analysis, and theoretical foundations of the field. It is offered in both
online and on-campus formats.[19]
Many students completing a doctoral program enter the field as researchers, theorists,
analysts, policy makers and professors in higher education.
Furthermore, the Pax Ludens Foundation based in the Netherlands is an organization
that puts together conflict resolution simulations set in an International Relations
scenario to help students learn about the intricacies of where conflict emerges in the
world of international politics.
Conflict resolution is a growing area of interest in UK pedagogy, with teachers and
students both encouraged to learn about mechanisms that lead to aggressive action,
and those that lead to peaceful resolution.
Tel Aviv University offers two graduate degree programs in the field of conflict
resolution, including the English-language International Program in Conflict Resolution
and Mediation, affording students to learn in a region which is the subject of much
research on international conflict resolution. The Nelson Mandela Center for Peace &
Conflict Resolution, Jamia Millia Islamia New Delhi is one of the first centers for peace
and conflict resolution to be established at an Indian university. It offers a two-year full-
time MA course in Conflict Analysis and Peace-Building, as well as a PhD in Conflict
and Peace Studies.[20]
Conflict management[edit source]
This section needs additional citations for
verification. Please help improve this article byadding citations
to reliable sources. Unsourced material may
be challenged and removed. (July 2007)
Conflict management refers to the long-term management of intractable conflicts. It is
the label for the variety of ways by which people handle grievances—standing up for
what they consider to be right and against what they consider to be wrong. Those ways
include such diverse phenomena as gossip, ridicule, lynching, terrorism, warfare,
feuding, genocide, law, mediation, and avoidance.[citation needed]
Which forms of conflict
management will be used in any given situation can be somewhat predicted and
explained by the social structure—or social geometry—of the case.
Conflict management is often considered to be distinct from conflict resolution. In order
for actual conflict to occur, there should be an expression of exclusive patterns, and tell
why the conflict was expressed the way it was. Conflict is not just about simple
inaptness, but is often connected to a previous issue. The latter refers to resolving the
dispute to the approval of one or both parties, whereas the former concerns an ongoing

28. process that may never have a resolution. Neither is it considered the same as conflict
transformation, which seeks to reframe the positions of the conflict parties.
Counseling[edit source]
When personal conflict leads to frustration and loss of efficiency, counseling may prove
to be a helpful antidote. Although few organizationscan afford the luxury of having
professional counselors on the staff, given some training, managers may be able to
perform this function. Nondirective counseling, or "listening with understanding", is little
more than being a good listener—something every manager should be.[21]
Sometimes the simple process of being able to vent one's feelings—that is, to express
them to a concerned and understanding listener, is enough to relieve frustration and
make it possible for the frustrated individual to advance to a problem-solving frame of
mind, better able to cope with a personal difficulty that is affecting his work adversely.
The nondirective approach is one effective way for managers to deal with frustrated
subordinates and coworkers.[22]
There are other more direct and more diagnostic ways that might be used in appropriate
circumstances. The great strength of the nondirective approach (nondirective counseling
is based on the client-centered therapy of Carl Rogers), however, lies in its simplicity, its
effectiveness, and the fact that it deliberately avoids the manager-counselor's
diagnosing and interpreting emotional problems, which would call for special
psychological training. Listening to staff with sympathy and understanding is unlikely to
escalate the problem, and is a widely used approach for helping people to cope with
problems that interfere with their effectiveness in their place of work.
Eight Sources of Conflict
Conflict in a workplace setting can be a normal part of doing business. In some cases, conflict that is managed
properly can be beneficial, as when it fosters an environment of healthy competition. However, conflict may also
have a detrimental effect. As a manager or business owner, you need to be aware of potential sources of conflict
within your work environment.
Change
Implementation of new technology can lead to stressful change. Workers who don't adapt well to change can
become overly stressed, which increases the likelihood of conflict in the workplace.
Interpersonal Relationships
When different personalities come together in a workplace, there is always the possibility they won't mesh. Office
gossip and rumors can also serve as a catalyst for deterioration of co-worker relationships.
Suvpervisor vs. Employee
Just as co-worker personalities may not mesh, a supervisor and employee can also experience conflict. A supervisor
who is seen as overbearing or unfair can rub an employee the wrong way, which makes the working relationship
more difficult.

29. External Changes
When the economy slides into a recession or a new competitor swoops in and steals some of a company's market
share, it can create tension within the company. This stress can lead to conflict between employees and even
between upper levels of management.
Poor Communication
Companies or supervisors that don't communicate effectively can create conflict. For example, a supervisor who
gives unclear instructions to employees can cause confusion as to who is supposed to do what, which can lead to
conflict.
Subpar Performance
When a worker in a department is not "pulling his weight," it can lead to conflict within the department, perhaps
even escalating into a confrontational situation. A supervisor who fails to acknowledge or address the situation can
add fuel to the fire.
Harassment
Harassment in the workplace can take many forms, such as sexual or racial harassment or even the hazing of a new
employee. Companies that don't have strong harassment policies in place are in effect encouraging the behavior,
which can result in conflict.
Limited Resources
Companies that are looking to cut costs may scale back on resources such as office equipment, access to a company
vehicle or the spending limit on expense accounts. Employees may feel they are competing against each other for
resources, which can create friction in the workplace.
What is workplace conflict?
Webster‘s dictionary defines conflict as a sharp disagreement or opposition of interests
or ideas. Anytime people work together, conflict is a part of ‗doing business‘. Conflict is
a normal and natural part of any workplace. When it occurs, there is a tendency for
morale to be lowered, an increase in absenteeism and decreased productivity. It has
been estimated that managers spend at least 25 percent of their time resolving
workplace conflicts – causing lowered office performance.
Handling and resolving conflicts that arise in the workplace is one of the biggest
challenges managers and employees face. Typically there are two responses to conflict:
run away (avoidance) or ‗battle it out‘. In either case, we often feel uncomfortable or
dissatisfied with the results because no resolution has been achieved. By learning to
constructively resolve conflict, we can turn a potentially destructive situation into an
opportunity for creativity and enhanced performance.
Sources of Conflict
There are many causes or reasons for conflict in any work setting. Some of the primary
causes are:

30.  Poor Communication: different communication styles can lead to misunderstandings
between employees or between employee and manager. Lack of communication drives
conflict ‗underground‘.
 Different Values: any workplace is made up of individuals who see the world differently.
Conflict occurs when there is a lack of acceptance and understanding of these
differences.
 Differing Interests: conflict occurs when individual workers ‗fight‘ for their personal goals,
ignoring organizational goals and organizational well-being.
 Scarce Resources: too often, employees feel they have to compete for available
resources in order to do their job. In a resource scarce environment, this causes conflicts
– despite awareness of how scarce resources may be.
 Personality Clashes: all work environments are made up of differing personalities.
Unless colleagues understand and accept each other‘s approach to work and problem-
solving, conflict will occur.
 Poor Performance: when one or more individuals within a work unit are not performing -
not working up to potential – and this is not addressed, conflict is inevitable.
8 Steps: Overview
The following process is useful for effectively managing conflict in your workplace, in
relationships, or in other situations where you have an interest in seeking a negotiated
solution. These steps won't guarantee an agreement, but they greatly improve the
likelihood that the problems can be understood, solutions explored, and consideration
of the advantages of a negotiated agreement can occur within a relatively constructive
environment. They provide useful strategies to consider that reduce the impacts of
stress, fears and "surprise" factors involved in dealing with conflict.
1. "Know Thyself" and Take Care of Self
o Understand your "perceptual filters," biases, triggers
o Create a personally affirming environment (eat, sleep, exercise)
2. Clarify Personal Needs Threatened by the Dispute
o Substantive, Procedural, and Psychological Needs
o Look at BATNA, WATNA, and MLATNA
o Identify "Desired Outcomes" from a Negotiated Process
3. Identify a Safe Place for Negotiation
o Appropriate Space for Discussion/ Private and Neutral
o Mutual Consent to Negotiate/ Appropriate Time
o Role of Support People (Facilitators, Mediators, Advocates), as needed

31. o Agreement to Ground rules
4. Take a Listening Stance into the Interaction
o "Seek first to understand, then to be understood" (Covey)
o Use Active Listening skills
5. Assert Your Needs Clearly and Specifically
o Use "I-messages" as tools for clarification
o Build from what you have heard - continue to listen well
6. Approach Problem-Solving with Flexibility
o Identify Issues Clearly and Concisely
o Generate Options (Brainstorm), While Deferring Judgment
o Be open to "tangents" and other problem definitions
o Clarify Criteria for Decision-Making
7. Manage Impasse with Calm, Patience, and Respect
o Clarify Feelings
o Focus on Underlying Needs, Interests, and Concerns
o Take a structured break, as needed
8. Build an Agreement that Works
o Review "Hallmarks" of a Good Agreement
o Implement and Evaluate - Live and Learn
Conflict and Matrix Management
Matrix management evolved to enable organizations to deal with more
complex issues. While it can be effective at improving information
distribution and managing multiple aspects of product distribution, matrix
management can also lead to increased conflicts. Research typically
points to several conflict sources including ambiguous goals, uncertainty
regarding decision making rights, and mixed employee loyalties.
While conflicts may be natural in matrix settings, they do not have to
lead to dysfunction. Some conflicts can be prevented by leaders taking
time to clarify the organization‘s larger goals. This can help prevent
confusion over which goals take precedence, as well as how to deal

32. with confusion that may subsequently arise. A similar approach can
address who owns the right to make which decisions and how
disagreements over decisions can be managed.
While some conflicts can be managed in advance, issues will still arise.
Differences are a part of life and can actually benefit groups when they
are managed effectively. To do this an organization using matrix
management will want to train its managers to see conflict as a natural
part of doing business and as a potential source of creativity and
improved decision making. This will require creating norms for handling
conflicts as they arise and developing constructive communication skills
that managers can use to search for solutions instead of persons to
blame.
The question of mixed loyalties can be harder to resolve. Does an
employee owe more allegiance to a project team or to their functional
department? This issue not only can cause confusion for the employee
but it can also create dissension within a team. Although it would be
nice if the problem didn‘t exist, it often does. One approach for leaders
to take is bringing people from both groups together to stress the
superordinate goals of the organization. This can help create a sense of
unity and loyalty to the bigger organization.
While conflict is inevitable, it can be managed and can lead to better
results when leaders take time to clarify issues and stress unity of
purpose.
Managing Effectively in a Matrix
What if you upgraded your IT network to a new operating system that promised faster, better and leaner
results — only to find that the vast majority of your leaders did not have the necessary competencies to
use that new system?

33. At Hay Group, our research suggests that many companies are now stuck in that metaphorical boat.
Determined to get closer to their customers and become more agile and innovative, global organizations
like IBM and GE are embracing the matrix organizational model. But, the transition to this new model has
not been all smooth sailing. In matrix organizations, leaders suddenly find themselves having to master
the challenges of managing cross-divisional, international teams over whom they have little formal
authority. Not surprisingly, the skills required to effectively navigate the matrix are different than those
needed to succeed in the old, hierarchical organizational model. Leaders who lack these skills often find
these roles frustrating or draining, as they have to continually influence and work through others to get
things done.
To uncover the competencies required to achieve results within the matrix, we conducted interviews with
dozens of leaders from around the world who were accountable for results but did not have formal
authority over the resources needed to achieve those results, which is a fairly common matrix scenario.
We compared scenarios where leaders successfully delivered business results to those where leaders
were less successful. We found that when leaders were successful in matrix roles they consistently used
the following four competencies: empathy, conflict management, influence and self-awareness.
Influence and conflict management capabilities help leaders to build consensus around a common
purpose and deliver the collaborative solutions that the matrix requires. Empathy, on the other hand,
enables leaders to develop a better understanding of their counterparts’ perspectives and their
customers’ mindset. Self-awareness allows leaders to summon the patience to manage the complexities
of the matrix.
However, knowing the skills that are required is not enough. The challenge organizations now face is
finding leaders who have them. According to our Emotional and Social Competency Inventory (ESCI), an
emotional intelligence database based on more than 17,000 individuals worldwide, these capabilities are
in short supply.
Just how scarce are matrix-related leadership skills? An analysis of our ESCI database found that only
9% of employees consistently demonstrated self-awareness — an essential competency for succeeding
in the matrix. Empathy (22%) and influence skills (20%) were also seen as a strength among only a small
percentage of leaders, and conflict management, while more common, was only prevalent among less
than one-third (31%) of the individuals in our database.
How can organizations get a handle on this problem and strengthen their processes for developing
leaders who are well-equipped for the matrix?
1. Ensure that teams are more diverse. Diversity can play an important role in helping people to
develop matrix-related competencies, such as the ability to listen with respect to different viewpoints.

34. 2. Create enterprise-level training programs. Give young leaders a chance to shadow top-level
executives. Even if the trainees only get a chance to carry the CEO’s briefcase, they will still gain an
enterprise-wide perspective while getting invaluable exposure to a selection of business leaders from
throughout the company.
3. Implement rotational assignments. Give high-potential rising stars opportunities to work in different
functional areas of the company. A leader who spends his or her career stuck in a single function or
business unit will have an insular perspective that is a poor fit with the needs and challenges of the
matrix.
4. Facilitate different types of leadership experiences. Give mid-level leaders a chance to take on
advisory roles outside of line management in functions such as strategy, HR or finance. By playing the
role of project manager in a situation where they have little direct authority over their team members, they
can gain valuable experience learning how to get results in a matrix-type environment.
Meanwhile, for leaders accustomed to the old hierarchical order who now find themselves at sea in the
matrix with little guidance on how to survive, here are four quick tips to minimize the likelihood of
capsizing:
• Identify competency gaps and correct them. Empathy, conflict management, influence and self-
awareness are all capabilities that can be improved with coaching, training and lots of practice. If you
suspect you need help in one or more of these areas, take a proactive approach and start looking for
ways to develop and sharpen these skills. And don’t be afraid to ask for feedback on where you may have
gaps.
• Don’t try to use hierarchy or pull rank to resolve an issue. That may work in command-and-control
line organizations, but it’s less effective in a matrix where you have less formal authority over your team
members, some of whom may be peers.
• Resist the urge to escalate problems to senior management. Matrix teams depend on trust and
teamwork. Our research shows that escalating issues to the CEO often backfires and can doom matrix
projects. Instead, look for ways to use empathetic listening and conflict management resolution skills to
show team members how the enterprise-wide goals of the matrix ultimately align with their own interests.
• Deal with emotionally-charged communications face-to-face, never through email. It’s been said
before, but it bears repeating — email and text messaging lack nuance and can often be misinterpreted in
the worst possible way, destroying the trust upon which matrix teams depend. Pick up the phone, walk
down the hall or boot up Skype for a face-to-face dialogue. Trying to express empathy through an
emoticon smiley-face is just asking for trouble.

35. The skills needed for a leader to thrive in a matrix operating environment — empathy, conflict
management, influence and self-awareness — can be identified, developed and honed. The real question
is whether organizations and individual leaders will take the initiative to broaden their traditional notions of
what it takes to succeed as a leader and start taking a closer look at measuring, cultivating and rewarding
these crucial matrix-related leadership capabilities.
functional and dysfunctional outcomes of conflict:
In the workplace, conflict is inevitable, usually occurring when one party perceives that their interests
are being opposed or negatively affected by another party. Conflict can produce either a positive or
negative outcome. By being able to identify potential conflict before it arises and knowing how to
effectively manage it, you will be able to help your staff increase the chances of turning conflict into a
positive outcome. There are two types of conflict, functional and dysfunctional.
Functional conflicts
Functional conflicts are constructive, support your company's goals, and improve performance. It
generally involves people who are genuinely interested in solving a problem and are willing to listen to
one another.
Stimulating functional conflict is a great way to improve your team's performance and generate new
ideas. It involves getting your team to either defend or criticise ideas based on relevant facts rather
than on the basis of personal preference or political interests.
There are two widely accepted techniques for doing this: devil's advocacy and the dialectic method.
Devil's advocacy
This method involves assigning a team member the role of a critic. This person should always question
and critique any ideas that your team may have, usually resulting in critical thinking and reality
testing. However, it is recommended that this role gets rotated amongst your team to avoid any
particular person from developing a strictly negative reputation.
Dialectic method
This approach involves facilitating a structured debate of opposing views prior to making a decision.
By hearing the pros and cons of all the different ideas, your team will have greater success in making
sound decisions. However, it should be noted that a major drawback of
this method is that the emphasis to win a debate often clouds the
issue at hand.
Dysfunctional conflicts
Dysfunctional conflicts on the other hand, consist of disputes and disagreements that hinder your
company's performance. This generally involves people who are unwilling to work together to solve a
problem and is often personal.
When dysfunctional conflicts arise in the workplace, there are various methods for dealing with it,
including: integrating, obliging, dominating, avoiding, and compromising.
Integrating
This method is also known as problem solving and generally involves encouraging opposing parties to
confront an issue and cooperatively identify the problem, generate alternative solutions and select the
most appropriate solution. Misunderstandings and similar disputes can often be resolved using this
method.
Obliging

36. This occurs when a person neglects their own concern in order to satisfy the concern of the opposing
party. A characteristic of this conflict management style includes playing down differences while
emphasising on commonalities.
Dominating
Also referred to as forcing, people that adopt this approach often have an "I win, you lose" mentality.
Dominating relies on formal authority to force compliance and is generally appropriate when unpopular
but necessary solutions are implemented.
Avoiding
This involves either passive withdrawal from the problem or active suppression of the issue. It is
generally appropriate for trivial issues or when the negative effects of confrontation outweigh the
benefits of resolving the conflict.
Compromising
This is a give-and-take approach for resolving dysfunctional conflicts and is particularly useful when
the parties involved possess equal power.
The following are some examples of situations that can produce either functional or dysfunctional
conflict:
 Incompatible personalities
 Overlapping or unclear job boundaries
 Competition for limited resources
 Inadequate communication
 Interdependent tasks
 Unreasonable rules
 Unreasonable deadlines or extreme time pressure
 Collective decision making (the greater the number of people participating in a decision, the
greater the potential for conflict)
 Decision making by consensus
 Unresolved or suppressed conflicts
As a leader or manager, you should be continually aware of staff interactions within the workplace. As
such, you should carefully observe and react appropriately to these early warning signs as they have
the potential to lead to major conflict, reduce morale, motivation and cause business inefficiency.
Negotiation Skills:
10 steps to better negotiation skills
Entrepreneurs and experts reveal the secrets behind striking the best deal
―Almost every aspect of the business landscape is negotiable,‖ says Andrew Simmons, managing partner
of negotiation specialists The Gap Partnership. In recessionary times, this can work in your favour, as the
pressure to get the most out of relationships and realise value from deals is higher than ever.

37. So whether you‘re faced with suppliers looking to hike prices, clients extending their payment terms, fixing
a price for new business or dealing with an employee‘s request for a pay rise, understanding the art of
negotiation will considerably increase your chances of a positive outcome.
There is a lot more to negotiation than open-ended questioning and other sales tricks, and a few key
principles will stand you in good stead no matter what you‘re bartering over. We have distilled the advice
of a number of experts into 10 top tips for perfecting this crucial, and sometimes undervalued art.
Preparation is everything
―You can‘t wing negotiations,‖ says Mark Jacobs, marketing director of sales and business management
training company, The Mdina Partnership. ―You‘ve got to know your audience, what they want and what
questions you need to ask.‖
The first step is to understand what‘s driving the party you‘re negotiating with, and where their priorities
really lie.
Tailor your response
Figure out what type of individuals you are dealing with and talk to them in a language they recognise. In
short, find out how to push their buttons. Kevin Dougall, managing director of AP HR Solutions, uses a
four-colour system to make an initial assessment of a person: a blue person is formal, precise and
analytical, and needs a lot of data before they can make a decision; a red is purposeful, demanding and
competitive, and more intuitive; green people are caring, relaxed and patient, and don‘t like to rush things;
yellows are warm, expressive, sociable and often persuasive.
Once you‘ve determined who you‘re dealing with, adapting your approach will make negotiation easier.
Blues, or thinkers, will want lots of information, reds, or knowing people, just want the bare bones, while
yellows and greens prefer stories or diagrams. However, it‘s important to understand what type of person
you are, too. ―If they‘ve got a strong [red] knowing person, putting your own strong competitor or thinking
person in against them is not going to work,‖ says Dougall. ―Instead, look for your own [green or yellow]
pleaser, or feeling person, to help make the other party feel like they are winning. You need to adjust who
talks to who about what.‖
Listen carefully
―Nature gave us two ears and one mouth, and in life – generally, you‘ve got to use them in that
proportion,‖ says Dougall, adding that this is the best way to understand who you‘re up against. He
recommends asking the other party what they want to get out of the negotiation, and advises an initial
face-to-face meeting to discuss this before getting into the specifics.
Simmons believes knowledge is power. ―The more you say, the more you give away,‖ he says. ―Exercise
control, be quiet. Ask lots of open questions. Let them talk, listen and take notes.‖
Be mentally prepared
We give 55% of what‘s going on in our head away through our body, and face-to-face is usually the
preferred medium for negotiation. So you need to take the right mental approach. If you feel subordinate,

38. it will be hard to cover this up and will set the wrong tone from the outset. Even your most junior staff
should be encouraged to think of negotiation as a business-to-business discussion.
―Whatever‘s going on in your head will come out of your body,‖ says Jacobs. ―If a junior salesperson is
trying to sell something to someone senior, their approach might be subservient. That is a terrible
negotiating position.‖
Instead, those entering into negotiations should think: ―We all need each other.‖ Know the value of what
you‘re offering, and how it helps the other party. Once your head is clear, you will feel in control and can
take the lead through questioning.
Discuss, don’t sell
Negotiation should be a discussion of how to achieve a mutually agreeable outcome, not a selling
exercise. ―The classic sales pitch is ‗look what we can do for you‘,‖ says Jacobs. ―What you should be
saying is: ‗This is what we do and what we can offer. How can it help you?‘ This gives you something to
negotiate with, as they‘re telling you why they want your product or service.‖
Also try to identify trade-offs – things you can offer that are of a low cost to you, but high value to them, or
―coinage‖, according to Jacobs. Let‘s say you‘re selling IT systems, and part of the offering is two days‘
on-site help from your engineer. You could give them three days, because you already pay for that
person, so a day here or there doesn‘t cost you much. But if you usually charge your engineer out at £500
a day, that‘s valuable to them. In other words, how can you help them to help you?
―If it‘s your product or service on the table, the key issue is trying not to move on price,‖ says Jacobs. ―So
what can you agree to give them that means they still buy at the original price?‖
Take some time out
Don‘t be afraid to ask for a break in negotiations to collect your thoughts. ―You need time to go away and
reconsider,‖ says Dougall. ―Unless you‘re up against an absolute fixed deadline, be prepared to ask for
time out, and use this to recalibrate your thought processes.‖
Understand your position…
Before you enter negotiations, form three positions in your head: what you could get away with – which is
usually your opening bid; what you expect to get, based on a knowledge of your market; and your deal
breakers. Or, as Jacobs puts it: your ―mega win‖, your ―expected win‖ and your ―walk away‖. ―In the heat
of the battle, it‘s easy to give more away than you want to. It‘s quite an emotional thing,‖ he says. So it‘s
vital to work out these positions in advance.
Simmons recommends being extreme, but realistic with your opening bid. ―Move from this position to give
them the satisfaction of winning,‖ he says. ―This helps them become more agreeable. You need trust for
collaboration to work. Unrealistic positions damage relationships.‖
…and get to know theirs

39. One of the biggest mistakes negotiators make, according to Jacobs, is failing to uncover their opponent‘s
position. When selling, for example, if a potential customer does not want to pay your asking price, ask
them what they do want to pay.
―I think a lot of people miss that bit out,‖ he says. ―They‘ll say OK, we‘ll give you 10% off, and the client
will say: ‗That‘s not enough,‘ and then the salesman will offer more. We call that ‗ringing the dishcloth‘.
When do you stop doing it? When the drops stop coming out.‖
Once they have told you what they are willing to pay, you have two positions and there is scope for
negotiation.
Everyone’s a winner
If you‘re going to have an ongoing relationship with the other party, negotiation needs to be win-win.
―Negotiation should always be about understanding how we are solving people‘s problems, and what pain
we are taking away,‖ says Jacobs.
Once more, with feeling
Whether it‘s an employee asking for more holiday or you‘re agreeing the price for a product, emotions are
usually involved in negotiations. According to Dougall, talks often fail due to communication problems,
even when an agreement isn‘t far away. So, you can go a stage further than simply finding out about who
you‘re negotiating with – and a step closer to success – by carefully assessing how sensitive the subject
is and the level of emotion involved, and taking this into account.
Objection handling
There is always a reason why someone is saying no. Mark Jacobs, MD of The
Mdina Partnership, says that if you find out what this is, everyone can be a
winner.
―We were recommended to a company by the wife of another client who had attended a Mdina course.
―I explained about our seven-stage sales approach. They subsequently thanked me for the proposal (15
days‘ training) and asked me to leave it with them. When I followed up it was clear that they were not
keen to book the training. We found out that the real objection was that it was too expensive for their
budget.
―What many companies would now do is see if they could meet that pricing. I remained at our normal
price by organising part of the training in one financial year and the rest in the next.
"The course ran consecutively as we straddled the two years. The delegates didn‘t notice because we
separate our development days by three to four weeks to allow them to practice the techniques. Everyone
won, which is the general aim of negotiation.‖

40. What is Negotiation?
See also: Problem Solving.
Negotiation is a method by which people settle differences. It is a
process by which compromise or agreement is reached while
avoiding argument.
In any disagreement, individuals understandably aim to achieve
the best possible outcome for their position (or perhaps an
organisation they represent). However, the principles of fairness,
seeking mutual benefit and maintaining a relationship are the
keys to a successful outcome.
Specific forms of negotiation are used in many situations: international affairs,
the legal system, government, industrial disputes or domestic relationships as
examples. However, general negotiation skills can be learned and applied in a
wide range of activities. Negotiation skills can be of great benefit in resolving any
differences that arise between you and others.
Our negotiation pages:
 Describe the common stages in the process of negotiation.
 Describe the different types of negotiation.
 Outline key points for successful negotiation.
 Explain the difference between interests and positions in the negotiation process.
 Recognise why effective communication is essential to negotiation.
Why Negotiate?
It is inevitable that, from time-to-time, conflict and disagreement will arise as the
differing needs, wants, aims and beliefs of people are brought together. Without
negotiation, such conflicts may lead to argument and resentment resulting in one

41. or all of the parties feeling dissatisfied. The point of negotiation is to try to reach
agreements without causing future barriers to communications.
Stages of Negotiation
In order to achieve a desirable outcome, it may be useful to follow a structured
approach to negotiation. For example, in a work situation a meeting may need to
be arranged in which all parties involved can come together. The process of
negotiation includes the following stages:
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiation towards a WIN-WIN situation
5. Agreement
6. Implementation of a course of action
1. Preparation
Before any negotiation takes place, a decision needs to be taken as to when and where a meeting
will take place to discuss the problem and who will attend. Setting a limited time-scale can also be
helpful to prevent the disagreement continuing.
This stage involves ensuring all the pertinent facts of the situation are known in order to clarify your
own position. In the work example above, this would include knowing the ‘rules’ of your
organisation, to whom help is given, when help is not felt appropriate and the grounds for such
refusals. Your organisation may well have policies to which you can refer in preparation for the
negotiation.
Undertaking preparation before discussing the disagreement will help to avoid further conflict and
unnecessary wasting time during the meeting.
2. Discussion
During this stage, individuals or members of each side put forward the case as they see it, that is
their understanding of the situation. Key skills during this stage
are questioning, listening and clarifying. Sometimes it is helpful to take notes during the

42. discussion stage to record all points put forward in case there is need for further clarification. It is
extremely important to listen, as when disagreement takes place it is easy to make the mistake of
saying too much and listening too little. Each side should have an equal opportunity to present their
case.
3. Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the disagreement need to
be clarified. It is helpful to list these in order of priority. Through this clarification it is often possible
to identify or establish common ground.
4. Negotiate for a WIN-WIN Outcome
This stage focuses on what is termed a WIN-WIN outcome where both sides feel they have gained
something positive through the process of negotiation and both sides feel their point of view has
been taken into consideration. A WIN-WIN outcome is usually the best outcome, however it may not
always be possible but through negotiation it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point.
Compromises are often positive alternatives which can often achieve greater benefit for all
concerned rather than holding to the original positions.
5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and interests have been
considered. It is essential to keep an open mind in order to achieve a solution. Any agreement
needs to be made perfectly clear so that both sides know what has been decided.
6. Implementing a Course of Action
From the agreement, a course of action has to be implemented, to carry through the decision.
Failure to Agree: If the process of negotiation breaks down and agreement cannot be reached,
then re-scheduling a further meeting is called for. This avoids all parties becoming embroiled in

43. heated discussion or argument, which not only wastes valuable time but can also damage future
working relationships.
At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas or
interests should be taken into account and the situation looked at afresh. At this stage it may also
be helpful to look at other alternative solutions and/or bring in another person to mediate.
Informal Negotiation: Apart from situations when it is appropriate to employ this more formal
process of negotiation, you will no doubt encounter one-to-one situations where there is a need to
negotiate informally. At such a time when a difference of opinion arises, it might not be possible or
appropriate to go through the stages set out above in a formal manner. Nevertheless,
remembering the key points in the stages of formal negotiation may be very helpful in a
variety of informal situations.
In any negotiation, the following three elements should always be taken into
account:
1. Attitudes
2. Interpersonal Skills
3. Knowledge
Attitudes
All negotiation is strongly influenced by underlying attitudes to the process itself, for example
attitudes to the issues and personalities involved in the particular case or attitudes linked to personal
needs for recognition.
Always be aware that:
 Negotiation is not an arena for the realisation of individual achievements.
 There can be resentment of the need to negotiate by those in authority.
 Certain features of negotiation may influence a person’s behaviour, for example some
people may become defensive.
Interpersonal Skills
There are many interpersonal skills required in the process of negotiation which are useful in both
formal settings and in less formal one-to-one situations. These skills include:
 Verbal Communication - See our pages: Verbal Communication and Effective Speaking.
 Listening - See our pages: Listening Skills and Active Listening.
 Reflecting, Clarifying and Summarising - See our pages: Reflection and Clarification.

44.  Problem Solving - See the pages in our Problem Solving section.
 Decision Making - See the pages in our Decision Making section.
 Assertiveness - See the pages in our Assertiveness section.
 Stress Management - See our pages: What is Stress? and Avoiding Stress.
 Dealing with Aggression- See our pages Dealing with Aggression and What is Anger?
Knowledge
The more knowledge you possess of the issues in question, the greater your participation in the
process of negotiation. In other words, good preparation is essential.
The way issues are negotiated must be understood as negotiating will require different methods in
different situations.
How to Negotiate
Throughout the negotiation, remember to be open and honest. Negotiations should
leave both parties feeling satisfied with the outcome. Here are a few additional
points to consider:
1. Ask questions. If you ask permission to ask a question, you will lay a foundation for agreement
and likely receive a complete answer. Plan for questions you can ask.
o
o Ask open-ended questions to gain information and build a relationship. Open-
ended questions typically begin with ―who,‖ ―what,‖ ―when,‖ ―where,‖ and ―why.‖
o Use closed-ended questions (questions that encourage short answers, such as
―yes‖ or ―no‖) when you want to gain a concession or confirm a deal point.
2. Be an excellent listener. The more information you get, the better able you‘ll be to uncover
others‘ needs. It will then be easier for you to show how you are able to meet those needs.
3. Paraphrase to ensure understanding. Restate in your own words what the other person has
said to make sure you understand correctly. Be sure to use different words so that it doesn‘t sound like
you are mimicking.
4. Get it in writing. Take notes during negotiations. Notes will help all parties recall what has
already been discussed or decided. Be sure to get all offers in writing.
5. Save issues for later discussion. Focus on one issue before you move on to the next.
6. Emphasize your value. If the organization thinks your monetary expectations are too high,
indicate what you think your contribution will be to the organization. Use ―Power Statements‖
7. Be flexible in your negotiations. Take the attitude of ―I‘m just working out the details.‖ Be willing
to give up things that don‘t really matter to you in order to create a feeling of goodwill.
8. Use silence for consideration. In response to an offer, restate the offer, sit quietly, and silently
count to 10. Allow everyone time to consider. This technique may also prompt the employer to justify the
offer, which could continue the negotiation process, or it could lead to a better offer.
9. Take time to consider offers. When a final offer is extended, if it is not enough, thank the
employer, provide a Power Statement, and ask for time to consider the offer.
10. Express gratitude. When you reach an agreement, express gratitude and appreciation. Show
how anxious you are to join the organization to make a contribution.

45. The negotiation process
Print this page
In this guide:
1. Negotiating successfully
2. Negotiation skills
3. Strategies for negotiating
4. The negotiation process
5. When negotiations fail
Print entire guide
Every time you negotiate, you have to make choices that affect whether you achieve a successful
outcome for your business. To get the best outcomes, you need to understand the steps involved in
the negotiation process.
While many negotiations are straightforward, some will be among the hardest challenges you face.
Your success will depend on planning and preparation. Always approach negotiations with a clear
set of strategies, messages and tactics that can guide you from planning to closing.
Planning your negotiation
No amount of preparation is too much in approaching complex or high-stakes negotiations. Plan
both your approach to the subject under negotiation, and your tone and communication style.
In approaching the subject of your negotiations:
 set your objectives clearly in your own mind (including your minimum acceptable outcome,
your anticipated outcome and your ideal outcome)
 determine what you'll do if the negotiation, or a particular outcome, fails
 determine your needs, the needs of the other party and the reasons behind them
 list, rank and value your issues (and then consider concessions you might make)
 analyse the other party (including their objectives and the information they need)
 research the market and consult with colleagues and partners
 rehearse the negotiation
 write an agenda - discussion topics, participants, location and schedule.
In deciding your communication style, familiarise yourself with successful negotiating strategies. Arm
yourself with a calm, confident tone and a set of considered responses and strategies to the tactics
you anticipate.
Engaging with the other party during the negotiation
 Introduce yourself and articulate the agenda. Demonstrate calm confidence.
 Propose - make your first offer. The other party will also make proposals. You should rarely
accept their first offer. Evidence suggests that people who take the first proposal are less
satisfied and regret their haste.

46.  Check your understanding of the other party´s proposal.
 Remember your objectives.
 Discuss concepts and ideas.
 Consider concessions, then make and seek concessions.
 Suggest alternative proposals and listen to offered suggestions.
 Paraphrase others' suggestions to clarify and acknowledge proposals.
 Give and take.
Closing the negotiation
Take a moment to revisit your objectives for the negotiation. Once you feel you are approaching an
outcome that is acceptable to you:
 look for closing signals; for example
o fading counter-arguments
o tired body language from the other party
o negotiating positions converging
 articulate agreements and concessions already made
 make 'closing' statements; for example
o 'That suggestion might work.'
o 'Right. Where do I sign?'
 get agreements in writing as soon as you can
 follow up promptly on any commitments you have made.
Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve
point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action,
to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two
people/parties involved in negotiation process. Negotiation is a process where each party involved in
negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim
at compromise.
Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among
nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the
subject is called negotiation theory. Professional negotiators are often specialized, such as union
negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other
titles, such as diplomats, legislators or brokers.

47. Negotiation strategies[edit source]
Negotiation can take a wide variety of forms, from a trained negotiator acting on behalf of a particular
organization or position in a formal setting, to an informal negotiation between friends. Negotiation can be
contrasted with mediation, where a neutral third party listens to each side's arguments and attempts to help
craft an agreement between the parties. It can also be compared with arbitration, which resembles a legal
proceeding. In arbitration, both sides make an argument as to the merits of their case and the arbitrator decides
the outcome. This negotiation is also sometimes called positional or hard-bargaining negotiation.
Negotiation theorists generally distinguish between two types of negotiation. Different theorists use different
labels for the two general types and distinguish them in different ways.
Distributive negotiation[edit source]
Distributive negotiation is also sometimes called positional or hard-bargaining negotiation. It tends to approach
negotiation on the model of haggling in a market. In a distributive negotiation, each side often adopts an
extreme position, knowing that it will not be accepted, and then employs a combination of guile, bluffing, and
brinksmanship in order to cede as little as possible before reaching a deal. Distributive bargainers conceive of
negotiation as a process of distributing a fixed amount of value.[1]
The term distributive implies that there is a finite amount of the thing being distributed or divided among the
people involved. Sometimes this type of negotiation is referred to as the distribution of a ―fixed pie.‖ There is
only so much to go around, but the proportion to be distributed is variable. Distributive negotiation is also
sometimes called win-lose because of the assumption that one person's gain results in another person's loss. A
distributive negotiation often involves people who have never had a previous interactive relationship, nor are
they likely to do so again in the near future. Simple everyday examples would be buying a car or a house.
Integrative negotiation[edit source]
Integrative negotiation is also sometimes called interest-based or principled negotiation. It is a set of techniques
that attempts to improve the quality and likelihood of negotiated agreement by providing an alternative to
traditional distributive negotiation techniques. While distributive negotiation assumes there is a fixed amount of
value (a ―fixed pie‖) to be divided between the parties, integrative negotiation often attempts to create value in
the course of the negotiation (―expand the pie‖). It focuses on the underlying interests of the parties rather than
their arbitrary starting positions, approaches negotiation as a shared problem rather than a personalized battle,
and insists upon adherence to objective, principled criteria as the basis for agreement.[1]
The word integrative implies some cooperation. Integrative negotiation often involves a higher degree of trust
and the forming of a relationship. It can also involve creative problem-solving that aims to achieve mutual
gains. It is also sometimes called win-win negotiation. (See Win-win game.)
A number of different approaches to integrative negotiation are taught in a variety of different books and
programs. See, for example,Getting to YES, Mutual Gains Approach, Program on Negotiation, Gould
Negotiation and Mediation Teaching Program. Scholars who have contributed to the field of negotiation
include Roger Fisher and William Ury; Holly Schroth and Timothy Dayonot at UC Berkeley; Gerard E.
Watzke at Tulane University; Sara Cobb at George Mason University; Len Riskin at the University of
Missouri; Howard Raiffa at Harvard,Robert McKersie and Lawrence Susskind at MIT; Adil Najam and Jeswald
Salacuse at The Fletcher School of Law and Diplomacy;[citation needed]
and John D. Males.

48. Negotiation tactics[edit source]
There are many different ways to categorize the essential elements of negotiation.
One view of negotiation involves three basic elements: process, behavior and substance. The process refers to
how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the
parties, and the sequence and stages in which all of these play out. Behavior refers to the relationships among
these parties, the communication between them and the styles they adopt. The substance refers to what the
parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the
agreement(s) reached at the end.[citation needed]
Another view of negotiation comprises four elements: strategy, process, tools, and tactics. Strategy comprises
the top level goals - typically including relationship and the final outcome. Processes and tools include the
steps that will be followed and the roles taken in both preparing for and negotiating with the other parties.
Tactics include more detailed statements and actions and responses to others' statements and actions. Some
add to this persuasion and influence, asserting that these have become integral to modern day negotiation
success, and so should not be omitted.[citation needed]
Adversary or partner?[edit source]
The two basically different approaches to negotiating will require different tactics. In the distributive approach
each negotiator is battling for the largest possible piece of the pie, so it may be quite appropriate - within certain
limits - to regard the other side more as an adversary than a partner and to take a somewhat harder line. This
would however be less appropriate if the idea were to hammer out an arrangement that is in the best interest of
both sides. A good agreement is not one with maximum gain, but optimum gain. This does not by any means
suggest that we should give up our own advantage for nothing. But a cooperative attitude will regularly pay
dividends. What is gained is not at the expense of the other, but with him.[2]
Employing an advocate[edit source]
A skilled negotiator may serve as an advocate for one party to the negotiation. The advocate attempts to obtain
the most favorable outcomes possible for that party. In this process the negotiator attempts to determine the
minimum outcome(s) the other party is (or parties are) willing to accept, then adjusts their demands
accordingly. A "successful" negotiation in the advocacy approach is when the negotiator is able to obtain all or
most of the outcomes their party desires, but without driving the other party to permanently break off
negotiations, unless the best alternative to a negotiated agreement (BATNA) is acceptable.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis,[citation needed]
to a
straightforward presentation of demands or setting of preconditions, to more deceptive approaches such
as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of
negotiations.[citation needed]
Another negotiation tactic is bad guy/good guy. Bad guy/good guy is when one negotiator acts as a bad guy by
using anger and threats. The other negotiator acts as a good guy by being considerate and understanding. The
good guy blames the bad guy for all the difficulties while trying to get concessions and agreement from the
opponent.[3]
Another negotiation is leaning back and whispering. This establishes a dominant physical position thus
intimidating your counterpart.

49. Negotiation styles[edit source]
R.G. Shell identified five styles/responses to negotiation.[4]
Individuals can often have strong dispositions
towards numerous styles; the style used during a negotiation depends on the context and the interests of the
other party, among other factors. In addition, styles can change over time.
1. Accommodating: Individuals who enjoy solving the other party‘s problems and preserving personal
relationships. Accommodators are sensitive to the emotional states, body language, and verbal
signals of the other parties. They can, however, feel taken advantage of in situations when the other
party places little emphasis on the relationship.
2. Avoiding: Individuals who do not like to negotiate and don‘t do it unless warranted. When negotiating,
avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be
perceived as tactful and diplomatic.
3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative
ways. Collaborators are good at using negotiations to understand the concerns and interests of the
other parties. They can, however, create problems by transforming simple situations into more
complex ones.
4. Competing: Individuals who enjoy negotiations because they present an opportunity to win something.
Competitive negotiators have strong instincts for all aspects of negotiating and are often strategic.
Because their style can dominate the bargaining process, competitive negotiators often neglect the
importance of relationships.
5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all
parties involved in the negotiation. Compromisers can be useful when there is limited time to complete
the deal; however, compromisers often unnecessarily rush the negotiation process and make
concessions too quickly.
Types of Negotiators[edit source]
Three basic kinds of negotiators have been identified by researchers involved in The Harvard Negotiation
Project. These types of negotiators are: Soft bargainers, hard bargainers, and principled bargainers.
 Soft. These people see negotiation as too close to competition, so they choose a gentle style of
bargaining. The offers they make are not in their best interests, they yield to others‘ demands, avoid
confrontation, and they maintain good relations with fellow negotiators. Their perception of others is one of
friendship, and their goal is agreement. They do not separate the people from the problem, but are soft on
both. They avoid contests of wills and will insist on agreement, offering solutions and easily trusting others
and changing their opinions.
 Hard. These people use contentious strategies to influence, utilizing phrases such as ―this is my final
offer‖ and ―take it or leave it.‖ They make threats, are distrustful of others, insist on their position, and apply
pressure to negotiate. They see others as adversaries and their ultimate goal is victory. Additionally, they
will search for one single answer, and insist you agree on it. They do not separate the people from the
problem (as with soft bargainers), but they are hard on both the people involved and the problem.
 Principled. Individuals who bargain this way seek integrative solutions, and do so by sidestepping
commitment to specific positions. They focus on the problem rather than the intentions, motives, and

50. needs of the people involved. They separate the people from the problem, explore interests, avoid bottom
lines, and reach results based on standards (which are independent of personal will). They base their
choices on objective criteria rather than power, pressure, self-interest, or an arbitrary decisional procedure.
These criteria may be drawn from moral standards, principles of fairness, professional standards, tradition,
and so on.
Researchers from The Harvard Negotiation Project recommend that negotiators explore a number of
alternatives to the problems they are facing in order to come to the best overall conclusion/solution, but this is
often not the case (as when you may be dealing with an individual utilizing soft or hard bargaining tactics)
(Forsyth, 2010).
Bad faith negotiation[edit source]
When a party pretends to negotiate, but secretly has no intention of compromising, the party is considered to
be negotiating in bad faith. Bad faith is a concept in negotiation theory whereby parties pretend to reason to
reach settlement, but have no intention to do so, for example, one political party may pretend to negotiate, with
no intention to compromise, for political effect.[5][6]
Inherent bad faith model in international relations and political psychology[edit source]
Bad faith in political science and political psychology refers to negotiating strategies in which there is no real
intention to reach compromise, or a model of information processing.[7]
The "inherent bad faith model" of
information processing is a theory in political psychology that was first put forth by Ole Holsti to explain the
relationship between John Foster Dulles‘ beliefs and his model of information processing.[8]
It is the most widely
studied model of one's opponent.[9]
A state is presumed to be implacably hostile, and contra-indicators of this
are ignored. They are dismissed as propaganda ploys or signs of weakness. Examples are John Foster Dulles‘
position regarding the Soviet Union, or Hamas's position on the state of Israel.[10][neutrality is disputed]
Emotion in negotiation[edit source]
Emotions play an important part in the negotiation process, although it is only in recent years that their effect is
being studied. Emotions have the potential to play either a positive or negative role in negotiation. During
negotiations, the decision as to whether or not to settle rests in part on emotional factors. Negative emotions
can cause intense and even irrational behavior, and can cause conflicts to escalate and negotiations to break
down, but may be instrumental in attaining concessions. On the other hand, positive emotions often facilitate
reaching an agreement and help to maximize joint gains, but can also be instrumental in attaining concessions.
Positive and negative discrete emotions can be strategically displayed to influence task and relational
outcomes[11]
and may play out differently across cultural boundaries.[12]
Affect effect[edit source]
Dispositional affects affect the various stages of the negotiation process: which strategies are planned to be
used, which strategies are actually chosen,[13]
the way the other party and his or her intentions are
perceived,[14]
their willingness to reach an agreement and the final negotiated outcomes.[15]
Positive affectivity
(PA) and negative affectivity (NA) of one or more of the negotiating sides can lead to very different outcomes.
Positive affect in negotiation[edit source]
Even before the negotiation process starts, people in a positive mood have more confidence,[16]
and higher
tendencies to plan to use a cooperative strategy.[13]
During the negotiation, negotiators who are in a positive
mood tend to enjoy the interaction more, show less contentious behavior, use less aggressive tactics[17]
and

51. more cooperative strategies.[13]
This in turn increases the likelihood that parties will reach their instrumental
goals, and enhance the ability to find integrative gains.[18]
Indeed, compared with negotiators with negative or
natural affectivity, negotiators with positive affectivity reached more agreements and tended to honor those
agreements more.[13]
Those favorable outcomes are due to better decision making processes, such as flexible
thinking, creative problem solving, respect for others' perspectives, willingness to take risks and higher
confidence.[19]
Post negotiation positive affect has beneficial consequences as well. It increases satisfaction
with achieved outcome and influences one's desire for future interactions.[19]
The PA aroused by reaching an
agreement facilitates the dyadic relationship, which result in affective commitment that sets the stage for
subsequent interactions.[19]
PA also has its drawbacks: it distorts perception of self performance, such that performance is judged to be
relatively better than it actually is.[16]
Thus, studies involving self reports on achieved outcomes might be
biased.
Negative affect in negotiation[edit source]
Negative affect has detrimental effects on various stages in the negotiation process. Although various negative
emotions affect negotiation outcomes, by far the most researched is anger. Angry negotiators plan to use more
competitive strategies and to cooperate less, even before the negotiation starts.[13]
These competitive strategies
are related to reduced joint outcomes. During negotiations, anger disrupts the process by reducing the level of
trust, clouding parties' judgment, narrowing parties' focus of attention and changing their central goal from
reaching agreement to retaliating against the other side.[17]
Angry negotiators pay less attention to opponent‘s
interests and are less accurate in judging their interests, thus achieve lower joint gains.[20]
Moreover, because
anger makes negotiators more self-centered in their preferences, it increases the likelihood that they will reject
profitable offers.[17]
Opponents who really get angry (or cry, or otherwise lose control) are more likely to make
errors: make sure they are in your favor.[3]
Anger does not help in achieving negotiation goals either: it reduces
joint gains[13]
and does not help to boost personal gains, as angry negotiators do not succeed in claiming more
for themselves.[20]
Moreover, negative emotions lead to acceptance of settlements that are not in the
positive utility function but rather have a negativeutility.[21]
However, expression of negative emotions during
negotiation can sometimes be beneficial: legitimately expressed anger can be an effective way to show one's
commitment, sincerity, and needs.[17]
Moreover, although NA reduces gains in integrative tasks, it is a better
strategy than PA in distributive tasks (such as zero-sum).[19]
In his work on negative affect arousal and white
noise, Seidner found support for the existence of a negative affect arousal mechanism through observations
regarding the devaluation of speakers from other ethnic origins." Negotiation may be negatively affected, in
turn, by submerged hostility toward an ethnic or gender group.[22]
Conditions for emotion affect in negotiation[edit source]
Research indicates that negotiator‘s emotions do not necessarily affect the negotiation process. Albarracın et
al. (2003) suggested that there are two conditions for emotional affect, both related to the ability (presence of
environmental or cognitive disturbances) and the motivation:
1. Identification of the affect: requires high motivation, high ability or both.
2. Determination that the affect is relevant and important for the judgment: requires that either the
motivation, the ability or both are low.
According to this model, emotions are expected to affect negotiations only when one is high and the other is
low. When both ability and motivation are low the affect will not be identified, and when both are high the affect
will be identify but discounted as irrelevant for judgment.[23]
A possible implication of this model is, for example,

52. that the positive effects PA has on negotiations (as described above) will be seen only when either motivation
or ability are low.
The effect of the partner’s emotions[edit source]
Most studies on emotion in negotiations focus on the effect of the negotiator‘s own emotions on the process.
However, what the other party feels might be just as important, as group emotions are known to affect
processes both at the group and the personal levels. When it comes to negotiations, trust in the other party is a
necessary condition for its emotion to affect,[14]
and visibility enhances the effect.[18]
Emotions contribute to
negotiation processes by signaling what one feels and thinks and can thus prevent the other party from
engaging in destructive behaviors and to indicate what steps should be taken next: PA signals to keep in the
same way, while NA points that mental or behavioral adjustments are needed.[19]
Partner‘s emotions can have two basic effects on negotiator‘s emotions and behavior: mimetic/ reciprocal or
complementary.[15]
For example, disappointment or sadness might lead to compassion and more
cooperation.[19]
In a study by Butt et al. (2005) which simulated real multi-phase negotiation, most people
reacted to the partner‘s emotions in reciprocal, rather than complementary, manner. Specific emotions were
found to have different effects on the opponent‘s feelings and strategies chosen:
 Anger caused the opponents to place lower demands and to concede more in a zero-sum negotiation,
but also to evaluate the negotiation less favorably.[24]
It provoked both dominating and yielding behaviors of
the opponent.[15]
 Pride led to more integrative and compromise strategies by the partner.[15]
 Guilt or regret expressed by the negotiator led to better impression of him by the opponent, however it
also led the opponent to place higher demands.[14]
On the other hand, personal guilt was related to more
satisfaction with what one achieved.[19]
 Worry or disappointment left bad impression on the opponent, but led to relatively lower demands by
the opponent.[14]
Problems with lab negotiation studies[edit source]
Negotiation is a rather complex interaction. Capturing all its complexity is a very difficult task, let alone isolating
and controlling only certain aspects of it. For this reason most negotiation studies are done
under laboratory conditions, and focus only on some aspects. Although lab studies have their advantages, they
do have major drawbacks when studying emotions:
 Emotions in lab studies are usually manipulated and are therefore relatively ‗cold‘ (not intense).
Although those ‗cold‘ emotions might be enough to show effects, they are qualitatively different from the
‗hot‘ emotions often experienced during negotiations.[25]
 In real life there is self-selection to which negotiation one gets into, which affects the emotional
commitment, motivation and interests. However this is not the case in lab studies.[19]
 Lab studies tend to focus on relatively few well defined emotions. Real life scenarios provoke a much
wider scale of emotions.[19]
 Coding the emotions has a double catch: if done by a third side, some emotions might not be detected
as the negotiator sublimates them for strategic reasons. Self-report measures might overcome this, but
they are usually filled only before or after the process, and if filled during the process might interfere with
it.[19]

53. Team negotiations[edit source]
Due to globalization and growing business trends, negotiation in the form of teams is becoming widely adopted.
Teams can effectively collaborate to break down a complex negotiation. There is more knowledge and wisdom
dispersed in a team than in a single mind. Writing, listening, and talking, are specific roles team members must
satisfy. The capacity base of a team reduces the amount of blunder, and increases familiarity in a
negotiation.[26]
Etymology[edit source]
The word "negotiation" originated from the Latin expression, "negotiatus", past participle of negotiare which
means "to carry on business". "Negotium" (from "Nec Otium") means literally "not leisure".
Barriers to negotiations[edit source]
 Die hard bargainers.
 Lack of trust.
 Informational vacuums and negotiator's dilemma.
 Structural impediments.
 Spoilers.
 Cultural and gender differences.
 Communication problems.
 The power of dialogue.[27]
Negotiation tactics[edit source]
Tactics are always an important part of the negotiating process. But tactics don't often jump up and down
shouting "Here I am, look at me." If they did, the other side would see right through them and they would not be
effective. More often than not they are subtle, difficult to identify and used for multiple purposes. Tactics are
more frequently used in distributive negotiations and when the focus in on taking as much value off the table as
possible.[28]
Many negotiation tactics exist. Below are a few commonly used tactics.
Auction: The bidding process is designed to create competition.[29]
When multiple parties want the same thing,
pit them against one another. When people know that they may lose out on something, they will want it even
more. Not only do they want the thing that is being bid on, they also want to win, just to win. Taking advantage
of someone‘s competitive nature can drive up the price.
Brinksmanship: One party aggressively pursues a set of terms to the point at which the other negotiating
party must either agree or walk away. Brinkmanship is a type of ―hard nut‖ approach to bargaining in which one
party pushes the other party to the ―brink‖ or edge of what that party is willing to accommodate. Successful
brinksmanship convinces the other party they have no choice but to accept the offer and there is no acceptable
alternative to the proposed agreement.[30]
Bogey: Negotiators use the bogey tactic to pretend that an issue of little or no importance to him or her is very
important.[31]
Then, later in the negotiation, the issue can be traded for a major concession of actual
importance.

54. Chicken: Negotiators propose extreme measures, often bluffs, to force the other party to chicken out and give
them what they want. This tactic can be dangerous when parties are unwilling to back down and go through
with the extreme measure.
Defence in Depth: Several layers of decision-making authority is used to allow further concessions each time
the agreement goes through a different level of authority.[32]
In other words, each time the offer goes to a
decision maker, that decision maker asks to add another concession in order to close the deal.
Deadlines: Give the other party a deadline forcing them to make a decision. This method uses time to apply
pressure to the other party. Deadlines given can be actual or artificial.
Flinch: Flinching is showing a strong negative physical reaction to a proposal. Common examples of flinching
are gasping for air, or a visible expression of surprise of shock. The flinch can be done consciously or
unconsciously.[33]
The flinch signals to the opposite party that you think the offer or proposal is absurd in hopes
the other party will lower their aspirations.[34]
Seeing a physical reaction is more believable than hearing
someone saying, ―I‘m shocked.‖
Good Guy/Bad Guy: The good guy/bad guy approach is typically used in team negotiations where one
member of the team makes extreme or unreasonable demands, and the other offers a more rational
approach.[35]
This tactic is named after a police interrogation technique often portrayed in the media. The ―good
guy‖ will appear more reasonable and understanding, and therefore, easier to work with. In essence, it is using
the law of relativity to attract cooperation. The good guy will appear more agreeable relative to the ―bad guy.‖
This tactic is easy to spot because of its frequent use.
Highball/Lowball: Depending on whether selling or buying, sellers or buyers use a ridiculously high, or
ridiculously low opening offer that will never be achieved. The theory is that the extreme offer will cause the
other party to reevaluate his or her own opening offer and move close to the resistance point (as far as you are
willing to go to reach an agreement).[35]
Another advantage is that the person giving the extreme demand
appears more flexible he or she makes concessions toward a more reasonable outcome. A danger of this tactic
is that the opposite party may think negotiating is a waste of time.
The Nibble: Nibbling is asking for proportionally small concessions that haven‘t been discussed previously just
before closing the deal.[31]
This method takes advantage of the other party‘s desire to close by adding ―just one
more thing.‖
Snow Job: Negotiators overwhelm the other party with so much information that he or she has difficulty
determining which facts are important, and which facts are diversions.[36]
Negotiators may also use technical
language or jargon to mask a simple answer to a question asked by a non-expert.
Nonverbal communication in negotiation[edit source]
Communication is a key element of negotiation. Effective negotiation requires that participants effectively
convey and interpret information. Participants in a negotiation will communicate information not only verbally
but non-verbally through body language and gestures. By understanding how nonverbal communication works,
a negotiator is better equipped to interpret the information other participants are leaking non-verbally while
keeping secret those things that would inhibit his/her ability to negotiate.[37]

55. Examples of non-verbal communication in negotiation[edit source]
Non-verbal "anchoring" In a negotiation, a person can gain the advantage by verbally expressing his/or her
position first. By ―anchoring‖ your position, you establish the position from which the negotiation will proceed. In
a like manner, one can ―anchor‖ and gain advantage with non verbal (body language) ques.
 Personal Space: The person at the head of the table is the apparent symbol of power. Negotiators can
repel this strategic advantage by positioning allies in the room to surround that individual.
 First Impression: Begin the negotiation with positive gestures and enthusiasm. Look the person in the
eye with sincerity. If you cannot maintain eye contact, the other person might think you are hiding
something or that you are insincere. Give a solid handshake.[38]
Reading non-verbal communication Being able to read the non-verbal communication of another person can
significantly aid in the communication process. By being aware of inconsistencies between a person‘s verbal
and non-verbal communication and reconciling them, negotiators will be able to come to better resolutions.
Examples of incongruity in body language include:
 Nervous Laugh: A laugh not matching the situation. This could be a sign of nervousness or discomfort.
When this happens, it may be good to probe with questions to discover the person‘s true feelings.
 Positive words but negative body language: If someone asks their negotiation partner if they are
annoyed and the person pounds their fist and responds sharply, ―what makes you think anything is
bothering me?‖[39]
 Hands raised in a clenched position: The person raising his/her hands in this position reveals
frustration even when he/she is smiling. This is a signal that the person doing it may be holding back a
negative attitude.[40]
 If possible, it may be helpful for negotiation partners to spend time together in a comfortable setting
outside of the negotiation room. Knowing how each partner non-verbally communicates outside of the
negotiation setting will help negotiation partners to sense incongruity between verbal and non-verbal
communication within the negotiation setting.
Conveying receptivity They way negotiation partners position their bodies relative to each other may
influence how receptive each is to the other person's message and ideas.
 Face and eyes: Receptive negotiators smile, make plenty of eye contact. This conveys the idea that
there is more interest in the person than in what is being said. On the other hand, non-receptive
negotiators make little to no eye contact. Their eyes may be squinted, jaw muscles clenched and head
turned slightly away from the speaker
 Arms and hands: To show receptivity, negotiators should spread arms and open hands on table or
relaxed on their lap. Negotiators show poor receptivity when their hands are clenched, crossed, positioned
in front of their mouth, or rubbing the back of their neck.
 Legs and Feet: Receptive negotiators sit with legs together or one leg slightly in front of the other.
When standing, they distribute weight evenly and place hands on their hips with their body tilted toward the
speaker. Non-receptive negotiators stand with legs crossed, pointing away from the speaker.
 Torso: Receptive negotiators sit on the edge of their chair, unbutton their suit coat with their body tilted
toward the speaker. Non-receptive negotiators may lean back in their chair and keep their suit coat
buttoned.

56. Receptive negotiators tend to appear relaxed with their hands open and palms visibly displayed.
Identify your negotiating style
Have you ever wondered if your negotiating style is too tough or too accommodating? Too
cooperative or too selfish? You might strive for an ideal balance, but, chances are, your innate and
learned tendencies will have a strong impact on how you negotiate. Wise negotiators seek to identify
these tendencies and enhance them according to the situation.
Individual differences in ―social motives,‖ or our preferences for certain kinds of outcomes when we
interact with other people, strongly affect how we approach negotiation, according to Carnegie
Mellon University professor Laurie R. Weingart. Drawing on the social motives that drive our
behavior, Weingart and other psychologists have pinpointed four basic negotiating personalities:
Individualists concentrate primarily on maximizing their own outcomes and show little concern for
others‘ outcomes. According to studies of businesspeople and students, about half of U.S.
negotiators have an individualist style. Individualists tend to claim value rather than create it, argue
their positions forcefully, and, at times, make threats.
Cooperators focus on maximizing their own and their counterparts‘ results. Composing about 25%
to 35% of the U.S. population studied, cooperators are motivated to ensure that each party in a
negotiation receives her fair share. Cooperators are more open to value-creating strategies—such
as exchanging information and making multi-issue offers—than individualists are. (Note that
although individualists outnumber cooperators in the United States, in other cultures, cooperators
can be more prevalent than individualists.)
Competitives are motivated to maximize the difference between their own and others‘ outcomes.
Because of their strong desire to ―win big,‖ competitives—about 5% to 10% of U.S. study
participants—tend to engage in behavior that‘s self-serving and that blocks collaborative solutions.
Altruists, a rare breed in studies of American negotiators, strive to maximize their counterparts‘
outcomes rather than their own. Though few of us are pure altruists, virtually all negotiators behave
altruistically under certain conditions, as when dealing with loved ones or those less fortunate than
we are.
Is one negotiating style ―better‖ than another? Most research suggests that negotiators with a
primarily cooperative style are more successful than hard bargainers at reaching novel solutions that
improve everyone‘s outcomes. Negotiators who lean toward cooperation also tend to be more
satisfied with the process and their results, according to Weingart.

57. At the same time, claiming value and lobbying tenaciously for your position can be equally important
negotiation strategies. So, strive for balance: focus on building a cooperative relationship and
creating value, then work to claim as much as you can of that value for yourself.
What is your negotiating style?
August 23, 2010adminNo comments
Each negotiator‘s personality, skills, beliefs and role combine to form a negotiating style. There are
various negotiating styles but there are three main types:
• Collaborative: Negotiating to achieve a win-win solution
• Competitive: Negotiating to achieve a win-lose solution
• Balanced: Negotiating somewhere in between collaborative and competitive
The type of negotiations a negotiator engages in also determines negotiating style. For instance, a
diplomat generally has to be very careful while an industrial relations negotiator may be more
confrontational.
(There‘s a list of negotiating styles
here:http://changingminds.org/disciplines/negotiation/styles/styles.ht _
Your negotiating style can affect the outcome of your negotiation. If you are in a client/customer
centric business, you may need to modify your negotiation style to better match your clients.
According to Stuart Sanders, writing in his blog New Directions for Agency Growth:
―Many times, great clients are lost due to blunders in negotiating. But there are negotiating tools and
techniques that can help you land prize clients. Or keep key clients longer.‖
5 Basic Principles for Better Negotiating Skills
by Roger Dawson
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The way you conduct yourself in negotiations can dramatically effect the outcome. I've been teaching
business leaders throughout North America how to negotiate since 1982, and I've distilled this down
to five essential principles of negotiating. These principles are always at work for you and will help you
smoothly get what you want:
1. Get the other side to commit first
Power Negotiators know that you're usually better off if you can get the other side to commit to a position
first. Several reasons are obvious...
 Their first offer may be much better than you expected.
 It gives you information about them before you have to tell them anything.
 It enables you to bracket their proposal. If they state a price first, you can bracket them, so if you
end up splitting the difference, you'll get what you want. If they can get you to commit first, they
can then bracket your proposal. Then if you end up splitting the difference, they get what they
wanted.
The less you know about the other side or the proposition you're negotiating, the more important the
principle of not going first becomes. If the Beatles' manager Brian Epstein had understood this principle
he could have made the Fab Four millions more on their first movie.
United Artists wanted to cash in on the popularity of the singing group but was reluctant to go out on a
limb because United Artists didn't know how long the Beatles would stay popular. They could have been a
fleeting success that fizzled out long before their movie hit the screens. So they planned it as an
inexpensively-made exploitation movie and budgeted only $300,000 to make it.
This was clearly not enough to pay the Beatles a high salary. So United Artists planned to offer the
Beatles as much as 25% of the profits. The Beatles were such a worldwide sensation in 1963 that the
producer was very reluctant to ask them to name their price first, but he had the courage to stay with the
rule.
He offered Epstein $25,000 up front and asked him what percentage of the profits he thought would be
fair.
Brian Epstein didn't know the movie business and should have been smart enough to play Reluctant
Buyer and use Good Guy/Bad Guy. He should have said, "I don't think they'd be interested in taking the
time to make a movie, but if you'll give me your very best offer, I'll take it to them and see what I can do

59. for you with them."
Instead, his ego wouldn't let him play dumb, so he assertively stated that they would have to get 7.5
percent of the profits or they wouldn't do it. This slight tactical error cost the group millions when the
director Richard Lester, to every one's surprise, created a brilliantly humorous portrait of a day in the
group's life that became a worldwide success.
If both sides have learned that they shouldn't go first, you can't sit there forever with both sides refusing to
put a number on the table, but as a rule you should always find out what the other side wants to do first.
2. Act dumb, not smart
To Power Negotiators, smart is dumb and dumb is smart. When you are negotiating, you're better off
acting as if you know less than everybody else does, not more. The dumber you act, the better off you are
unless your apparent I.Q. sinks to a point where you lack any credibility.
There is a good reason for this. With a few rare exceptions, human beings tend to help people they see
as less intelligent or informed, rather than taking advantage of them.
Of course there are a few ruthless people out there who will try to take advantage of weak people, but
most people want to compete with people they see as brighter and help people they see as less bright.
So the reason for acting dumb is that it diffuses the competitive spirit of the other side.
How can you fight with someone who is asking you to help them negotiate with you? How can you carry
on any type of competitive banter with a person who says, "I don't know, what do you think?" Most
people, when faced with this situation, feel sorry for the other person and go out of their way to help him
or her.
Do you remember the TV show Columbo? Peter Falk played a detective who walked around in an old
raincoat and a mental fog, chewing on an old cigar butt. He constantly wore an expression that suggested
he had just misplaced something and couldn't remember what it was, let alone where he had left it.
In fact, his success was directly attributable to how smart he was--by acting dumb. His demeanor was so
disarming that the murderers came close to wanting him to solve his cases because he appeared to be
so helpless.
The negotiators who let their egos take control of them and come across as a sharp, sophisticated
negotiator commit to several things that work against them in a negotiation. These include being the
following:
 A fast decision-maker who doesn't need time to think things over.
 Someone who would not have to check with anyone else before going ahead.
 Someone who doesn't have to consult with experts before committing.
 Someone who would never stoop to pleading for a concession.
 Someone who would never be overridden by a supervisor.
 Someone who doesn't have to keep extensive notes about the progress of the negotiation and

60. refer to them frequently.
The Power Negotiator who understands the importance of acting dumb retains these options:
 Requesting time to think it over so that he or she can thoroughly think through the dangers of
accepting or the opportunities that making additional demands might bring.
 Deferring a decision while he or she checks with a committee or board of directors.
 Asking for time to let legal or technical experts review the proposal.
 Pleading for additional concessions.
 Using Good Guy/Bad Guy to put pressure on the other side without confrontation.
 Taking time to think under the guise of reviewing notes about the negotiation.
I act dumb by asking for the definitions of words. If the other side says to me, "Roger, there are some
ambiguities in this contract," I respond with, "Ambiguities... ambiguities... hmmm, you know I've heard that
word before, but I'm not quite sure what it means. Would you mind explaining it to me?"
Or I might say, "Do you mind going over those figures one more time? I know you've done it a couple of
times already, but for some reason, I'm not getting it. Do you mind?"
This makes them think: What a klutz I've got on my hands this time. In this way, I lay to rest the
competitive spirit that could have made a compromise very difficult for me to accomplish. Now the other
side stops fighting me and starts trying to help me.
Be careful that you're not acting dumb in your area of expertise. If you're a heart surgeon, don't say, "I'm
not sure if you need a triple by-pass or if a double by-pass will do." If you're an architect, don't say, "I don't
know if this building will stand up or not."
Win-win negotiating depends on the willingness of each side to be truly empathetic to the other side's
position. That's not going to happen if both sides continue to compete with each other. Power Negotiators
know that acting dumb diffuses that competitive spirit and opens the door to win-win solutions.
3. Think in real money terms but talk funny money
There are all kinds of ways of describing the price of something. If you went to the Boeing Aircraft
Company and asked them what it costs to fly a 747 coast to coast, they wouldn't tell you "Fifty-two
thousand dollars." They would tell you eleven cents per passenger mile.
Salespeople call that breaking it down to the ridiculous. Haven't we all had a real estate salesperson say
to us at one time or another, "Do you realize you're talking 35 cents a day here? You're not going to let 35
cents a day stand between you and your dream home are you?" It probably didn't occur to you that 35
cents a day over the 30-year life of a real estate mortgage is more than $7,000.
Power Negotiators think in real money terms.
When that supplier tells you about a 5 cent increase on an item, it may not seem important enough to
spend much time on. Until you start thinking of how many of those items you buy during a year. Then you
find that there's enough money sitting on the table to make it well worth your while to do some Power

61. Negotiating.
I once dated a woman who had very expensive taste. One day she took me to a linen store in Newport
Beach because she wanted us to buy a new set of sheets. They were beautiful sheets, but when I found
out that they were $1,400, I was astonished and told the sales clerk that it was the kind of opulence that
caused the peasants to storm the palace gates.
She calmly looked at me and said, "Sir, I don't think you understand. A fine set of sheets like this will last
you at least 5 years, so you're really talking about only $280 a year." Then she whipped out a pocket
calculator and frantically started punching in numbers. "That's only $5.38 a week. That's not much for
what is probably the finest set of sheets in the world."
I said, "That's ridiculous." Without cracking a smile, she said, "I'm not through. With a fine set of sheets
like this, you obviously would never sleep alone, so we're really talking only 38 cents per day, per
person." Now that's really breaking it down to the ridiculous.
Here are some other examples of funny money:
 Interest rates expressed as a percentage rather than a dollar amount.
 The amount of the monthly payments being emphasized rather than the true cost of the item.
 Cost per brick, tile, or square foot rather than the total cost of materials.
 An hourly increase in pay per person rather than the annual cost of the increase to the company.
 Insurance premiums as a monthly amount rather than an annual cost.
 The price of land expressed as the monthly payment.
Businesses know that if you're not having to pull real money out of your purse or pocket, you're inclined to
spend more. It's why casinos the world over have you convert your real money to gaming chips. It's why
restaurants are happy to let you use a credit card although they have to pay a percentage to the credit
card company.
When I worked for a department store chain, we were constantly pushing our clerks to sign up customers
for one of our credit cards because we knew that credit card customers will spend more and they will also
buy better quality merchandise than a cash customer.
Our motivation wasn't entirely financial in pushing credit cards. We also knew that because credit card
customers would buy better quality merchandise, it would satisfy them more, and they would be more
pleased with their purchases.
So when you're negotiating, break the investment down to the ridiculous because it does sound like less
money, but learn to think in real money terms. Don't let people use the Funny Money gambit on you.
4. Concentrate on the issues
Power Negotiators know that they should always concentrate on the issues and not be distracted by the
actions of the other negotiators. Have you ever watched tennis on television and seen a highly emotional
star like John McEnroe jumping up and down at the other end of the court.

62. You wonder to yourself, "How on Earth can anybody play tennis against somebody like that? It's such a
game of concentration; it doesn't seem fair."
The answer is that good tennis players understand that only one thing affects the outcome of the game of
tennis. That's the movement of the ball across the net. What the other player is doing doesn't affect the
outcome of the game at all, as long as you know what the ball is doing. So in that way, tennis players
learn to concentrate on the ball, not on the other person.
When you're negotiating, the ball is the movement of the goal concessions across the negotiating table.
It's the only thing that affects the outcome of the game; but it's so easy to be thrown off by what the other
people are doing, isn't it?
I remember once wanting to buy a large real estate project in Signal Hill, California that comprised
eighteen four-unit buildings. I knew that I had to get the price far below the $1.8 million that the sellers
were asking for the property, which was owned free and clear by a large group of real estate investors.
A real estate agent had brought it to my attention, so I felt obligated to let him present the first offer,
reserving the right to go back and negotiate directly with the sellers if he wasn't able to get my $1.2 million
offer accepted.
The last thing in the world the agent wanted to do was present an offer at $1.2 million--$600,000 below
the asking price--but finally I convinced him to try it and off he went to present the offer.
By doing that, he made a tactical error. He shouldn't have gone to them; he should have had them come
to him. You always have more control when you're negotiating in your power base than if you go to their
power base.
He came back a few hours later, and I asked him, "How did it go?" "It was awful, just awful. I'm so
embarrassed."
He told me. "I got into this large conference room, and all of the principals had come in for the reading of
the offer. They brought with them their attorney, their CPA, and their real estate broker. I was planning to
do the silent close on them." (Which is to read the offer and then be quiet. The next person who talks
loses in the negotiations.)
"The problem was, there wasn't any silence. I got down to the $1.2 million, and they said, "Wait a minute.
You're coming in $600,000 low? We're insulted." Then they all got up and stormed out of the room.
I said, "Nothing else happened?" He said, "Well, a couple of the principals stopped in the doorway on
their way out, and they said: "We're not gonna come down to a penny less than $1.5 million." It was just
awful. Please don't ever ask me to present an offer that low again."
I said, "Wait a minute. You mean to tell me that, in five minutes, you got them to come down $300,000,
and you feel bad about the way the negotiations went?"
See how easy it is to be thrown off by what the other people are doing, rather than concentrating on the
issues in a negotiation? It's inconceivable that a full-time professional negotiator, say an international
negotiator, would walk out of negotiations because he doesn't think the other people are fair. He may
walk out, but it's a specific negotiating tactic, not because he's upset.
Can you imagine a top arms negotiator showing up in the White House, and the President saying, "What
are you doing here? I thought you were in Geneva negotiating with the Russians." "Well, yes, I was, Mr.
President, but those guys are so unfair. You can't trust them, and they never keep their commitments. I

63. got so upset, I just walked out."
Power Negotiators don't do that. They concentrate on the issues, not on the personalities. You should
always be thinking, "Where are we now, compared to where we were an hour ago or yesterday or last
week?"
Secretary of State Warren Christopher said, "It's okay to get upset when you're negotiating, as long as
you're in control, and you're doing it as a specific negotiating tactic." It's when you're upset and out of
control that you always lose.
That's why salespeople will have this happen to them. They lose an account. They take it into their sales
manager, and they say, "Well, we lost this one. Don't waste any time trying to save it. I did everything I
could. If anybody could have saved it, I would have saved it."
So, the sales manager says, "Well, just as a public relations gesture, let me give the other side a call
anyway." The sales manager can hold it together, not necessarily because he's any brighter or sharper
than the salesperson, but because he hasn't become emotionally involved with the people the way the
salesperson has.
Don't do that. Learn to concentrate on the issues.
5. Always congratulate the other side
When you're through negotiating, you should always congratulate the other side. However poorly you
think the other person may have done in the negotiations, congratulate them.
Say, "Wow, did you do a fantastic job negotiating that. I realize that I didn't get as good a deal as I could
have done, but frankly, it was worth it because I learned so much about negotiating. You were brilliant."
You want the other person to feel that he or she won in the negotiations.
One of my clients is a large magazine publishing company that has me teach Power Negotiating to its
sales force. When I was telling the salespeople how they should never gloat in a negotiation, the founder
of the company jumped to his feet and said, "I want to tell you a story about that."
Very agitated, he went on to tell the group, "My first magazine was about sailing, and I sold it to a huge
New York magazine publisher. I flew up there to sign the final contract, and the moment I signed it and
thanked them, they said to me, "If you'd have been a better negotiator, we would have paid you a lot
more."
That was 25 years ago and it still burns me up when I think about it today. I told them that if they had
been better negotiators, I would have taken less."
Let me ask you something. If that magazine publisher wanted to buy another one of his magazines, would
he start by raising the price on them? Of course he would. However harmless it may seem, be sensitive to
how you're reacting to the deal. Never gloat and always congratulate.
When I published my first book on negotiating a newspaper reviewed it and took exception to my saying
that you should always congratulate, saying that it was manipulative to congratulate the other side when
you didn't really think that they had won.
I disagree. I look upon it as the ultimate in courtesy for the conqueror to congratulate the vanquished.
When the British army and navy went down the Atlantic to recapture the Falkland Islands from the
Argentinians, it was quite a rout. Within a few days, the Argentine navy lost most of its ships and the

64. victory for the English was absolute.
The evening after the Argentinean admiral surrendered, the English admiral invited him on board to dine
with his officers and congratulated him on a splendid campaign.
Power Negotiators always want the other parties thinking that they won in the negotiations. It starts by
asking for more than you expect to get. It continues through all of the other gambits that are designed to
service the perception that they're winning. It ends with congratulating the other side.
If you let these five principles of negotiation guide your conduct when you're negotiating, they'll serve
you well and help you become a Power Negotiator.
Preparing for a successful negotiation
Depending on the scale of the disagreement, some preparation may be appropriate for conducting a successful
negotiation.
For small disagreements, excessive preparation can be counter-productive because it takes time that is better used
elsewhere. It can also be seen as manipulative because, just as it strengthens your position, it can weaken the other
person's.
However, if you need to resolve a major disagreement, then make sure you prepare thoroughly. Using our free
worksheet, think through the following points before you start negotiating:
 Goals: what do you want to get out of the negotiation? What do you think the other person wants?
 Trades: What do you and the other person have that you can trade? What do you each have that the other wants? What
are you each comfortable giving away?
 Alternatives: if you don't reach agreement with the other person, what alternatives do you have? Are these good or
bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future
opportunities? And what alternatives might the other person have?
 Relationships: what is the history of the relationship? Could or should this history impact the negotiation? Will there
be any hidden issues that may influence the negotiation? How will you handle these?
 Expected outcomes: what outcome will people be expecting from this negotiation? What has the outcome been in the
past, and what precedents have been set?
 The consequences: what are the consequences for you of winning or losing this negotiation? What are the
consequences for the other person?
 Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement
isn't reached? What power does the other person have to deliver what you hope for?
 Possible solutions: based on all of the considerations, what possible compromises might there be?
Style is critical
For a negotiation to be 'win-win', both parties should feel positive about the negotiation once it's over. This helps
people keep good working relationships afterwards. This governs the style of the negotiation – histrionics and
displays of emotion are clearly inappropriate because they undermine the rational basis of the negotiation and
because they bring a manipulative aspect to them.
Despite this, emotion can be an important subject of discussion because people's emotional needs must fairly be
met. If emotion is not discussed where it needs to be, then the agreement reached can be unsatisfactory and
temporary. Be as detached as possible when discussing your own emotions – perhaps discuss them as if they belong
to someone else.
Models of Negotiation
Negotiation is defined as a discussion among individuals to reach to a conclusion acceptable to one and all. It is a process where
people rather than fighting among themselves sit together, evaluate the pros and cons and then come out with an alternative which
would be a win win situation for all.

65. Sam wanted to purchase a mobile handset, he tried his level best to buy it at the lowest possible rate and the shopkeeper also
ensured that he could earn his profits as well. Thus the negotiation benefited Sam who didn‘t have to shell out loads of money and
the shopkeeper was also satisfied because even he earned his profits.
Negotiation helps in reducing conflicts and disputes among each other. Negotiation is essential in every walk of life for a peaceful
and stress free living.
Let us go through various models of negotiation:
1. Win Win Model - In this model, each and every individual involved in negotiation wins. No body is at loss in
this model and every one is benefited out of the negotiation. This is the most accepted model of negotiation.
Let us understand it with the help of an example:
Daniel wanted to buy a laptop but it was an expensive model. He went to the outlet and negotiated with the
shopkeeper to lower the price. Initially the shopkeeper was reluctant but after several rounds of discussions
and persuasion, he quoted a price best suited to him as well as Daniel. Daniel was extremely satisfied as he
could now purchase the laptop without burning a hole in his pocket. The negotiation also benefited the store
owner as he could earn his profits and also gained a loyal customer who would come again in future.
2. Win Lose Model - In this model one party wins and the other party loses. In such a model, after several
rounds of discussions and negotiations, one party benefits while the party remains dissatisfied.
Please refer to the above example once again where Daniel wanted to buy a laptop. In this example, both
Daniel and the store owner were benefited out of the deal. Let us suppose Daniel could not even afford the
price quoted by the storeowner and requests him to further lower the price. If the store owner further lowers
the price, he would not be able to earn his profits but Daniel would be very happy. Thus after the negotiation,
Daniel would be satisfied but the shopkeeper wouldn‘t. In a win lose model, both the two parties are not
satisfied, only one of the two walks away with the benefit.
3. Lose Lose Model - As the name suggests, in this model, the outcome of negotiation is zero. No party is
benefited out of this model.
Had Daniel not purchased the laptop after several rounds of negotiation, neither he nor the store owner
would have got anything out of the deal. Daniel would return empty handed and the store owner would
obviously not earn anything.
In this model, generally the two parties are not willing to accept each other‘s views and are reluctant to
compromise. No discussions help.
Let us understand the above three models with an example from the corporate world.
Mike got selected with a multinational firm of repute. He was called to negotiate his salary with Sara- the HR
Head of the organization.
Case 1 - Sara quoted a salary to Mike, but Mike was not too pleased with the figure. He insisted Sara to
raise his salary to the best extent possible. After discussions Sara came out with a figure acceptable to Mike
and she immediately released his offer letter. Mike got his dream job and Sara could manage to offer Mike a
salary well within the company‘s budgets - A Win win Situation (Both the parties gained)
Case 2 - Sara with her excellent negotiation skills managed to convince Mike at a little lower salary than he
quoted. Mike also wanted to grab the opportunity as it was his dream job and he was eyeing it for quite
some time now. He had to accept the offer at a little lower salary than expected. Thus in this negotiation,
Mike was not completely satisfied but Sara was - A win lose negotiation
Case 3 - Mike declined the offer as the salary quoted by Sara did not meet his expectations. Sara tried her
level best to negotiate with Mike, but of no use.-A lose lose model of negotiation. No body neither Mike nor
Sara gained anything out of this negotiation.

66. 4. RADPAC Model of Negotiation
RADPAC Model of Negotiation is a widely used model of negotiation in corporates.
Let us understand it in detail
Every alphabet in this model signifies something:
R - Rapport
A - Analysis
D - Debate
P - Propose
A - Agreement
C - Close
R - Rapport: As the name suggests, it signifies the relation between parties involved in negotiation. The
parties involved in negotiation ideally should be comfortable with each other and share a good rapport with
each other.
A - Analysis: One party must understand the second party well. It is important that the individual
understand each other‘s needs and interest. The shopkeeper must understand the customer‘s needs and
pocket, in the same way the customer mustn‘t ignore the shopkeeper‘s profits as well. People must listen to
each other attentively.
D - Debate: Nothing can be achieved without discussions. This round includes discussing issues among the
parties involved in negotiation. The pros and cons of an idea are evaluated in this round. People debate with
each other and each one tries to convince the other. One must not lose his temper in this round but remain
calm and composed.
P - Propose: Each individual proposes his best idea in this round. Each one tries his level best to come up
with the best possible idea and reach to a conclusion acceptable by all.
A - Agreement: Individuals come to a conclusion at this stage and agree to the best possible alternative.
C - Close: The negotiation is complete and individuals return back satisfied.
Let us again consider Mike and Sara‘s example to understand RADPAC Model
R - Rapport between Mike and Sara. They must be comfortable with each other and should not start the
negotiation right away. They must first break the ice. The discussions must start with a warm smile and
greetings.
A - Both Mike and Sara would try their level best to understand each other‘s needs. Mike‘s need is to grab
the opportunity while Sara wants to hire an employee for the organization.
D - The various rounds of discussions between Mike and Sara. Mike and Sara would debate with each other
trying to get what they want.
P - Mike would propose the best possible salary he can work on while Sara would also discuss the
maximum salary her company can offer.
A - Both Mike and Sara would agree to each other, where both of them would compromise to their best
possible extent.
C - The negotiation is complete and probably the next course of action is decided, like in this case the next
step would be generation of the offer letter and its acceptance.
4 Steps to Being a Better Negotiator

67. By Docstoc Articles, Tuesday, December 04, 2012 | 5519 Views
Strong negotiating skills can be invaluable in the business world and, as an entrepreneur and small
business owner, cultivating and improving your abilities to negotiate will lead to more favorable contracts
and business relationships. Follow these four steps to gain an advantage in your negotiations and
ultimately improve your skills of persuasion.
Step 1 – Research and understand your opponent’s motivations. Separate their wants from their needs.
Differentiate and understand what points of negotiation they cannot live without, and which ones they will
use to bluff you into believing you are winning when they are really pulling one over on you.
Step 2 – Identify your motivations, and be candid and honest with yourself. If you lie to yourself about why
you want something, it will only serve to hinder your chances of getting what you need out of the
negotiation. Identify what items you need to have in the agreement, what items you want to have, what
items you can live without, and what items you are willing to sacrifice if necessary to negotiate better
terms and assure that you get what you need.
Step 3 – Plan your strategy. All of the information you obtained in steps one and two will guide you in
planning your strategy. If you were diligent in your research in step one, and honest in your identifications

68. in step two, your strategy should essentially write itself. Plan out your starting point (your opening offer),
and then consider how you can and how you will respond to your opponent’s offers and counter-offers.
Next, create an exit-strategy by identifying the three crucial closing situations where you will know when it
is time to (1) agree and strike a deal, (2) agree that the negotiation has reached an impasse but may be
revived in the future, or (3) end negotiations altogether and walk away.
Step 4 – Execute your plan. If you execute your plan, and your plan was well prepared, there will be no
need to look back and second guess your decision making process. You will walk away satisfied with the
outcome, no matter which exit-strategy identified above you ultimately engage. If you agree and strike a
deal, you will do so with the knowledge that you have agreed to the best deal you could have negotiated.
If you agree that the negotiation has reached an impasse but may be revived in the future you will have
gathered additional information to use during the next round of negotiations that will assist you in striking
the deal you are looking for. Or, if you end negotiations and walk away, you will know that the deal was
not meant to be, and you made a wise decision by choosing to seek what you need elsewhere instead of
entering into a less than desirable agreement or wasting further time and resources engaged in unfruitful
negotiations.
Characteristics of a good negotiator
As generated by the class Sept 8
 open mind
 charm
 well thought out
 articulate
 experience
 perserverence
 patience
 assertiveness
 staying detached
 flexible
 insight
 understand the other side
 persuasive
 knowing what you want

69. What the experts say
 preparation and planning skill
 knowledge of the subject matter being negotiated
 ability to think clearly and rapidly under pressure and uncertainty
 ability to express thoughts verbally
 listening skill
 judgment and general intelligence
 integrity
 ability to persuade others
 patience
 decisiveness
 considers lots of options
 aware of the process and style of the other person
 is flexible
 thinks and talks about possible areas of agreement
Ten Personality Traits of Top Negotiators
A handful of personal characteristics and social attributes contribute to successful negotiations. Nobody has all the
traits of a world-class negotiator, but these skills are worth developing if you hope to improve your negotiation skills
and your life.

70.  Empathy is the ability to participate in another's feelings or ideas, to put yourself in someone else's shoes.
It's the bedrock of successful communication and a necessary trait for great negotiators. Being empathetic helps
you recognize the differences between you and other people, allowing you to maintain your identity as you
experience the views and emotions of others. You can improve your empathetic responses by acknowledging
the behaviors, values, and goals that others may have.
 Respect closely follows empathy. In order to respect other people and the limits they set, you must first
have respect for yourself and the limits you set. Respect tends to be reciprocal in negotiations: If you give it,
you're much more likely to get it back.
 Integrity includes honesty and trustworthiness — qualities necessary for others to trust you in a negotiation.
You can hone your integrity by following rules, keeping agreements (without reminders), and being steadfastly
honest. Not replying to a certain question or divulging certain information is acceptable; lying is not.
 Fairness is another trait based on empathy. You must believe that the needs and wants of other people are
just as worthwhile as your own. To develop fairness, consider your goals and those of the other party. Identify
areas of agreement and areas that need compromise. Being fair ensures that a deal closes or ends with
satisfaction for all parties.
 Patience is the act of bearing pains or trials without complaint. Tolerating frustration and adversity on the
way to reaching your goals — and not giving up — is a way to demonstrate patience. All successful people
know that being refused, delayed, and blocked is part of life's journeys. Success comes to those who are
steadfast and patient.
 Responsibility is the ability to demonstrate reliability and accept consequences. Being responsible doesn't
mean that you won't make mistakes, but it does mean that you'll correct them to the extent possible. Improve
your skills in this area by taking care of the problems — the little ones and the big ones, too — for which you're
responsible.
 Flexibility is the ability to deal with new situations and unexpected obstacles. If one approach doesn't work,
you try another. Flexibility is at the heart of closing a deal in a way that satisfies each side and works in the real
world.
 Sense of humor is the ability to see, appreciate, or express an amusing aspect of various situations.
Finding humor in adversity helps you get on with finding solutions rather than getting stuck in the blame game. A
prerequisite for a good sense of humor is self-respect and flexibility.
 Self-discipline is the ability to complete tasks and reach goals without someone else needing to direct or
motivate you. Internal forces drive you toward your goals, and your rewards come from within rather than from
other people.
 Stamina is the ability to keep going when others drop by the wayside. Stamina is an attribute of all great
negotiators. After all, you can't win the game if you don't have the stamina to keep playing.

71. UNIT - III
IMPLEMENTATION STRATEGIES:
Facing Changes:
Organizations undergo changes from time to time to enable them adapt and fit into the environment.
These changes are referred to as strategic changes as they affect the whole organization in the scope of
its people and processes involved in their production activities. A strategic change decision is made at the
strategic level and is aimed at transforming the organization from its current situation to a better state
usually perceived to be a better position for the organization which makes it gain a competitive advantage
over their rivals. Usually strategic change decisions are made to push the organization to a higher
profitability front than before, such changes may include cost reduction strategies, production cuts, lay-
offs and in most cases, process changes. However, the managers in the organization have to be capable
to manage the strategic changes being implemented in the organization, as change in an organization is
a process and not an event as may be perceived by many. Moving into the new decade, the KCB bank
embarked on a transformation journey which the Board instituted early 2011, with the aim of improving
KCB bank from a Good to a Great. The Goal of change strategies is to deliver business growth, increase
productivity, drive efficiency, rationalize costs, enhance stakeholder value and launch KCB bank Ltd to
the next level thus transforming the bank from Good to Great. The study has examined the challenges
that KCB Bank Group Ltd has been facing in the implementation of the change strategies, how these
challenges have been managed. The research was conducted on a case study research design focusing
on KCB Bank Group because it is a single unit of analysis. Data was collected using a structured vi
personal interview with the senior management members of staff of the bank. The data collected was
analyzed and compared with other data collected from other scholars, similar studies carried out in the
same field of strategic changes. The data was presented in a conceptual analysis since the data was
highly qualitative, thusenabling the researcher to establish the consistency, credibility, and the usefulness
of the information obtained. The study established that the implementation process faced a number of
challenges which are not unique in the industry; these challenges are both behavioral and systemic.
However, these challenges have been managed and the bank has used various measures in order to
manage these challenges. It can also be noted that the bank is optimistic that she will break through
these challenges and emerge successful in realizing her key transformation goals which are to be a
leaner and more efficient organization with the aim of increasing her profitability and growth both locally
and in the subsidiaries. On analyzing the data collected, it can be concluded that the bank so far is on
track but more emphasis is needed on the behavioral challenge management since human beings in all
organizations are the main players in the organizational production process. The bank has heavily
invested in a strong technology infrastructure which will greatly support in the management of the
systemic challenges. The researcher recommends that more study requires to be carried out in this field
of strategic changes moreso at KCB Bank Group Ltd to establish whether the bank has realized its
dreams.
Change Portfolio Toolkit Menu
Overview
Excerpts
Table of contents
A structured approach for managing the portfolio of change
While organizations are facing more and more change each day, very few have a
clear picture of what changes are going on across the enterprise, how they
interact with one another and the consequences of the entire portfolio of change.

72. Operating without this view might work for a short time, but eventually the
organization will feel the strains of change saturation and collision of these many
initiatives. The time has come for a structured approach and set of tools for
understanding and managing the portfolio of change an organization
faces. Prosci's Change Portfolio Toolkit provides a structured approach and
set of tools for understanding, evaluating and managing your portfolio of
change.
The Change Portfolio Toolkit enables you to:
 Inventory the change efforts underway in the organization
 Segment effected groups throughout the organization
 Map changes to the groups being impacted
 Collect a common set of data on each initiative
 Assess the risk and health of each change effort
 Create Heat Maps to illustrate change saturation
 Produce numerous plots showing the positioning of the portfolio
 Identify change efforts, groups and points in time at risk
The centerpiece of the Change Portfolio Toolkit is a step-by-step process for
making sense of the portfolio of change. The Prosci Change Portfolio
Management Process (pictured below) goes beyond a simple list of the changes
underway in the organization. With the process, you will develop a clearer picture
of the overall portfolio and focus in on risks to projects, groups and the
organization as a whole.
Prosci Change Portfolio Management Process
price: $800

73. Toolkit structure:
 Tab 1 – Overview
 Tab 2 – Making the case
 Tab 3 – Identify
 Tab 4 – Investigate
 Tab 5 – Analyze
 Tab 6 – Act
 Tab 7 – Monitor, Manage and Control
 Tab 8 – Building CM Competency
See full table of contents
Primary tools in the Change Portfolio Toolkit:
 Change Scorecard - You will complete a Change
Scorecard for each change in the portfolio. This simple
one-page document captures the key details and
assessment results for the changes in the portfolio.
 Group Impact Matrix - The Group Impact Matrix is a
spreadsheet tool for evaluating and quantifying change
impact and overall saturation levels for different groups
in the organization.
 Change Heat Maps - Change Heat Maps are graphical
representations of the impact a change has on different
groups in the organization. When combined with the
data from the Group Impact Matrix, an Organizational
Heat Map shows the cumulative impact of change in the
organization and high risk groups facing change
saturation.
 Portfolio Dashboard - The Portfolio Dashboard is a
snap-shot of the health and risks of the entire change
portfolio.
Full set of tools and worksheets in
the Change Portfolio Toolkit
 Change capacity worksheet
 Scope statement
 Change inventory worksheet
 Groups inventory worksheet
 Change Scorecard
 Change characteristics assessment
 Organizational attributes
assessment
 Prosci PCT assessment
 Group Impact Matrix
 Change Heat Maps
 Organizational Heat Map
 Investment vs Strategic importance
plot
 Investment vs Gap plot
 Investment vs Scope plot
 Strategic importance/Gap/Scope
worksheet
 People risk plot
 People risk worksheet
 Schedule collision diagram
 Schedule collision analysis
worksheet
 Investment vs Risk vs Project
Health graph
 Investment vs Risk vs Health
worksheet
 Portfolio Dashboard
 Portfolio Dashboard statistics
analysis
 Changes at risk worksheet
 Groups at risk worksheet
 Point-in-time worksheet
 Change portfolio SWOT analysis
 Tips for effective portfolio
presentation
 Presentation template
 Portfolio action checklist
 New change worksheet
 Change effort ―exit interview‖
worksheet
 Learning from changes leaving the
portfolio
 ECM components worksheet
 ECM assessment

74. Example Heat Map created with the Change Portfolio Toolkit

75. Prosci Change Saturation Model
One of the biggest challenges facing
organizations today is change saturation -
when there is so much change happening
that the individuals, groups, projects and
organization as a whole are negatively
impacted. A foundation of the Change
Portfolio Toolkit is the Prosci Change
Saturation Model shown to the right.
The model describes change saturation as
a function of two variables:Change
capacity (how much change the
organization can handle) andChange
disruption (how much churn is consuming
that capacity). The model further breaks
down capacity and disruption into
contributing factors.
The Change Portfolio Toolkit provides a
structured process for understanding and
managing the change disruption an
organization is experiencing. In addition, the
toolkit's final chapter addresses Change
management competency - a contributing
factor to an organization's capacity for
change. The chapter includes guidelines
and an assessment for evaluating and
building your organization's change
management competency.
Prosci Change Saturation Model
Negative Effects of Resistance to Change to an Organization
by Lynda Moultry Belcher, Demand Media
Change is an inevitable part of business; however, for some it is an easier process to deal with than it is for others. In
fact, some employees put up resistance to the process, which can have some negative effects for the company in
question. These effects can be widespread and may affect the morale of the staff if they are not addressed in a timely
manner. Understanding the negative effects of resistance to change in your organization is the first step.
Lower Morale
When staffers resist a change taking place at work, they may feel less optimistic and hopeful about their professional
future with the company. This is particularly so if there is a lack of communication regarding the change. Among
other negative effects of resistance to change, lowered morale can spread throughout the entire staff, which can in
turn cause issues with both recruiting and retention.
Lessened Efficiency
When employees spend time focusing on resisting the changes taking place in the workplace, they become less
focused on doing the daily tasks associated with their jobs. This leads to a reduced level of efficiency and output
among staff, which can affect the company's bottom line. In fact, a reduced level of efficiency may fly directly in the
face of the reason for the changes in the first place, as changes are often made to become a more effective and
productive company.

76. Disruptive Work Environment
Another negative effect to resistance among staff to changes may be a more disruptive work environment.
Employees resisting changes may cause commotions with outbursts regarding the changes or a combative attitude
with management staff. They may spread that same negativity among other staff members, encouraging them to act
in a similar manner, which can, in turn, end up causing greater unrest among staffers.
Additional Considerations
There are numerous ways that you can mitigate the negative effects of resistance to change among your staff. From
holding all-staff discussions in which everyone can air their grievances regarding the changes to providing extra
training and resources to help staff adapt, taking the steps to make employees feel more comfortable with changes
may go a long way toward creating more beneficial effects from the change than negative ones.
Resistance to Change is a Good Thing
By Dave Berube, Life Cycle Engineering
As appeared in the March 2012 edition of Learning to Change
& published in the February 2012 edition of Maintenance Technology
When embarking on major change transformation within organizations experienced
change managers perform a key activity – coaching senior leaders how to recognize
and manage employee resistance. We preach that resistance is an expected outcome
of change. We discuss the theory related to human behavior, the physiology of change,
and the difficulty encountered when we attempt to take people out of their comfort zone.
We conduct training and countless hours of one-on-one coaching for leaders and
managers to improve their competencies in managing this expected resistance. As
consultants, when working with new clients, we see and hear evidence of previous
change transformations that failed because of employee resistance to change. So how
in the world can I say that resistance to change is a good thing? Let me explain.
Some might wish for a utopian change transformation where no resistance exists. In this
utopia, all change is fully and universally embraced and people freely move out of their
comfort zone into a new way of being simply in response to their leader‘s request. In
this wonderful world, flowers are blooming, birds are singing, and change is a natural
way of life. What could possibly be the downside to this change receptive-utopia?
While great ideas would be smoothly assimilated into the non-resistant organization, so
would bad ideas. Oops! At some time in our careers we have all experienced attempts
to implement bad ideas. Employee resistance to change can actually help prevent bad
ideas from being implemented. This expected resistance causes us to deploy a strategy
to get buy-in in order to get our good ideas implemented.

77. We should greatly appreciate when employees push back against our initiatives
because resistance to change forces us to:
 Justify why change is necessary
 Take time to slow down, prioritize, strategize and create supporting plans
 Involve employees, listen and gather feedback
Justify why change is necessary
Many people resist change because they don‘t know why they are being asked to
change. So we must answer their question ―why is the change necessary?‖ Resistance
to change forces us to justify to the workforce why we are changing. Leaders must
ensure that their ideas creating the change will actually enhance the organization.
Assuming the organization has a vision of where they are going, does this change align
with and help achieve the vision of the organization?
A good reason ―why‖ should be supported by establishing a business case for change.
Otherwise, why should we embark on it? Does the change make financial sense? Does
the change make sense in the short-term or is this a long-term plan? Once this financial
justification is clearly established and understood we must be ready to answer the next
question. How will this benefit the individual employee?
When changes occur, there is fear of the unknown. Employees will immediately wonder
if their needs will still be met. Some of the typical fears include job loss, loss of power or
influence, loss of prestige, reduced overtime, increased hours or more productivity.
When we implement major change the justification must be translated to employees in
the context of what‘s in it for me (WIIFM). We must make this translation because this is
what they will be listening for. But, while leaders think that they can define the pros and
cons at a personal level, they cannot. Only the individual employee can tell you the pros
and cons of how a change will affect them. Resistance forces leaders to find out how
the change will impact people. This can only be accomplished by communicating
directly with employees early and often.
Take time to slow down, prioritize, strategize and create supporting plans
Resistance to change forces us to slow down a bit and take the time needed to create
comprehensive plans. Project mangers know that their project‘s success and failure are
separated by risk. A detailed risk plan must be created to mitigate project risks. This
plan includes items such as resources, funding, timelines, and coordination. Project
risks associated with the people side of change must also be considered. Risks must be
analyzed and change management plans created, including a communication plan,
plans to help our sponsors and managers, and a reinforcement plan.

78. Risk Analysis:
The people side of change can be seen as a risk to our project objectives. When
evaluating the risk to our project we must look at the size and scope of the change as
well as the specific characteristics of the organization related to change. How big is the
change? Does it change one group or everyone? Is everyone affected the same way or
is the change different for each individual group? Is the organization saturated with
many changes all happening at the same time? Are resources even available to make
this change happen? Does the organization have a history of failed changes often
referred to as ―flavor of the month‖ syndrome?
Communication Plans:
Justifying the what, why, and WIIFM is usually accomplished through the
communications plan. The plan should be crafted to address the needs of all affected
groups throughout all aspects of the project. Communication is constantly referred to as
one of the things we can do better. This gap and its associated negative effect are
magnified during events causing major change. When resistance to change forces us to
create plans and communicate with our employees it reinforces the benefits of good
communication. These lessons learned can be carried over and applied to how we
communicate daily with our people.
Coaching plans for sponsors and managers:
One of the worst assumptions that change managers can make is to assume that
sponsors and managers know exactly what is expected of them during a transformation.
Coaching plans should be developed to assist these key roles in executing the activities
necessary to be successful. We ask sponsors to lead from the front, build coalitions of
people to guide the initiative and communicate key messages. We ask managers to
work directly with the people who are changing and provide two-way communication,
manage resistance, lead by example, connect the project to the people, and coach
people through change, as well as make the change themselves.
Reinforcement Plans:
As we encounter resistance and take people out of their comfort zone, how do we keep
them there? We must have a plan in place to reinforce those new behaviors or they will
revert back to the old behaviors. From the Plan-Do-Check-Act model this is a ―check‖
We must check that the new behaviors are in plans and coordinate this ―check‖ function
with incentives and rewards. These can range from a simple pat on the back to
celebratory dinners, to bonuses, to promotions. Creating reinforcement plans for major

79. change often forces organization to evaluate the effectiveness of their current reward
and recognition programs to ensure that the correct behaviors are being reinforced.
Involve employees, listen, and gather feedback
While many leaders may have some great ideas, they may not always be the best
solution. When we get different points of view we come up with a better solution. Getting
employees involved early in the process fosters better solutions. The ideas become
―ours‖ or ―the teams‖, not management‘s. This generates ownership and ownership
minimizes resistance. One of the greatest benefits to involving our employees in
designing solutions is that it further enhances their skills and abilities in continuous
improvement. This makes them more valuable employees.
We all need to listen more. When we attempt to jointly develop solutions, our employees
will tell us what is working and what isn‘t. Listening provides us with feedback on
whether the implemented changes are generating the results and associated return we
expected. Resistance generates communication content. Listening for symptoms of
resistance will allow us to check if we are trying to implement a good idea or a bad idea.
Summary
Resistance to change is a normal human response. Employees will immediately seek to
translate the change to a personal context, which can be greatly magnified by fear of
the unknown. When organizations have to address the WIIFM question with the
workforce it forces leaders to justify the reason for change. Addressing the reasons for
change and involving the workforce in crafting solutions creates the best ideas and
helps prevent bad ideas from being implemented.
So go ahead and prepare for your next change transformation. Anticipate the expected
resistance it will bring. And when you see evidence of employee resistance actually
appear, just smile. Because now you know that resistance to change is good thing. And
it‘s something that should not be feared. It should be embraced.
Frustrated By
Resistance To Change?
"I don't understand why there's such resistance to change when
I've done everything I can to make this department work".
I heard this recently from a senior manager.

80. As it turns out he'd implemented lots of changes without consulting anyone.
He had the best intentions, but found himself up against angry staff with their heels firmly
anchored.
Resistance to change is a normal response. Our attitude towards resistance is the
key to successful change.
Maybe you're a business manager frustrated because staff are resisting change. Or maybe
you're an individual experiencing your own resistance to change.
Overcoming resistance - personal or organisational - depends on understanding
 Why people resist change, and
 How to manage opposition to change.
Understanding Resistance
There's old wisdom that advises that we can only lean against that which
resists.
This suggests that there might just be something good, or at least useful,
about resistance. Discovering what this is and learning to work with it is
key to understanding reluctance to change.
After all, change often occurs as a direct result of resistance. Great men,
such as Nelson Mandela, are testimony to this.
Resistance can be viewed as alternative, negative, or wrong. But we need to balance this
with a healthy view of resistance which points to positive processes rather than placid
acceptance. Benjamin Franklin valued this, telling us that questioning authority is the "first
responsibility of every citizen".
It helps to understand that resistance is a normal response and that trying to
avoid any resistance is futile. Accepting this immediately allows a different response to
resistance in which we anticipate it and work with it.
So why do people resist change?
It can be hard to understand, especially if you're focusing on the benefits.
While there are many reasons people resist change, most of these reasons have a common
source. Fear.
Yes, most of us hold a deep fear of change and our ability to adapt. Many of the reasons for
people's reluctance or refusal to change are related to the fear of change.
These fears can also be related to loss associated with the change. All change involves loss
at some level and this can be difficult to contemplate.

81. Loss associated with change can be very practical such as loss of work, colleagues, or office
environment. Or it can be less obvious, relating to concerns about loss of status, self
esteem, or ability to perform new work.
Fear of change can leave us feeling lost, confused, and torn between the need to take action
and doing nothing.
Recognising resistance to change
There are a number of behaviours that are signs and symptoms of an adverse reaction to
change. These include:
 Aggression and anger
 Unusual flare-ups of emotion
 Employees encouraging and mobilizing resistance
 Staff portraying themselves as innocent victims of
unreasonable expectations
 Insensitive and disagreeable behaviour
 Not meeting key performance areas (missing meetings
and not responding to emails, for example)
 Increased absenteeism, late arrival
 Not responding, not listening, seems disinterested
 Active attempts to disrupt or undermine work /
projects
Of course, each of these do not necessarily mean that people
are opposing change. They might be indicators, but could just as easily be indicators of
other issues in the person's life.
Real resistance usually occurs after people's uncertainties and questions regarding change
have not been adequately answered.

82. It's also worth remembering that staff can 'test' leaders in the organisation to assess
boundaries and to check that leaders fulfill promises and act in accordance with their
proclaimed values.
Managing resistance to change
The best laid plans and systems fail if the people side of change management is ignored.
Resistance to change is a normal response, so plan for it, expect it and accept it. Resistance
does not mean that the change is bad, or that the management of change has failed. Nor
does it mean that those resisting change are 'bad seeds' that need to be weeded out!
Rather anticipate resistance and direct your energy to facilitating whatKurt Lewin would
refer to as the Unfreezing and Change/Transition stages.
Kurt Lewin's Force Field Analysis is a powerful strategic tool to help you analyse aspects of
the change that may lead to resistance.
Assessing resistance to change is an important part of a change impact assessment that
should be conducted very early in the process.
Even if you're introducing small changes don't assume that that these will be easier for
people to accept - especially if they already feel threatened or have low trust in the process.
If you're aware of any indicators of resistance to change then you'll need to take some time
out to listen to people's concerns. Yup, listen. Don't talk, just listen (or get someone else
they trust to listen).
The clue to overcoming resistance is understanding that you cannot avoid resistance, but
you can manage it.
Remember that people experience change in personal ways. Addressing people's values
when you encounter resistance to change can reduce any negative impact of resistance.
Read more about managing and overcoming resistance.
If the manager I introduced earlier had spent some time considering the impact of change
and why staff might resist change his strategy could have been very different. Instead he
found himself dealing with anger and resentment which is difficult to get rid of once it's
entrenched.

83. Changing your attitude towards resistance is what's needed to ensure successful change.
Anticipating resistance to change is part of a successful change management strategy and
will help to keep staff motivated and positive about change.
How to Reduce Resistance to Change
Resistance to change is a natural reaction when employees are asked, well, to change. Change is uncomfortable and requires new
ways of thinking and doing. People have trouble developing a vision of what life will look like on the other side of a change. So,
they tend to cling to the known rather than embrace the unknown.
Change produces anxiety and uncertainty. Employees may lose their sense of security. They may prefer the status quo. The range
of reactions, when change is introduced, is immense and unpredictable. No employee is left unaffected in most changes. As a
result, resistance to change often occurs when change is introduced.
Resistance to change is best viewed as a normal reaction. Even the most cooperative, supportive employees may experience
resistance. So, don't introduce change believing that you will experience nothing but resistance or that resistance will be severe.
Instead, introduce change believing that your employees want to cooperate, make the best of each work situation, and that they
will fully and enthusiastically support the changes as time goes by.
By your thinking and your approach, you can affect the degree to which resistance to change bogs the change down. You can
reduce natural resistance to change by the actions you take and how you involve the employees who will be asked to change.
In a best case scenario, every employee has the opportunity to talk about, provide input to, and impact the change. Rationally, this
depends on how big the change is and how many people the change will affect. In a company-wide change effort, for example,
the employee input will likely be about how to implement the change at a departmental level, not about whether to make the
change in the first place.
These recommendations are made for the millions of managers, supervisors, team leaders, and employees who are asked to
change something - or everything - periodically at work. You may or may not have had input into the direction chosen by your
executives or your organization. But, as the core doers at work, you are expected to make the changes and deal with any
resistance to change that you may experience along the way. You can reduce employee resistance to change by taking these
recommended actions.
Manage Resistance to Change
These tips will help you minimize, reduce, and make less painful, the resistance to change that you create as you introduce
changes. This is not the definitive guide to managing resistance to change - but implementing these suggestions, will give you a
head start.
 Own the changes. No matter where the change originated - and change can show up at any point in your organization,
even originating with you - you must own the change yourself. It's your responsibility to implement the change. You can only
do that effectively, if you step back, take a deep breath, and plan how you will implement the change with the people you
influence in your organization.

84.  Get over it. Okay, you've had the opportunity to tell senior managers what you think. You spoke loudly in the focus
group. You presented your recommended direction with data and examples to the team. The powers that be or the team leader
have chosen a different direction than the one you supported. It's time for the change to move on. Once the decision is made,
your agitating time is over. Whether you disagree or not, once the organization, the group, or the team decides to move on -
you need to do everything in your power to make the selected direction succeed.
 No biased and fractional support allowed. Even if you don't support the direction, once the direction is the direction,
you owe it 100% support. Wishy-washy or partial support is undermining the change effort. If you can't buy into the fact that
the chosen direction is where you are going, you can, at least, buy into the fact that it is critical that you support it. Once the
direction is chosen, it is your job to make it work. Anything less is disrespectful, undermining, and destructive of the team
decision.
 Recognize that resistance to change is minimized if you have created a trusting, employee-oriented, supportive
work environment prior to the change. If you are considered to be honest, and your employees trust you and feel loyal to
you, employees are much more likely te get onboard for the change quickly. So, the efforts you have expended in building
this type of relationship will serve you well during change. (They will serve you well at work, in general, but especially
during times of stress and change.)
 Communicate the change. You undoubtedly have reporting staff, departmental colleagues, and employees to whom
you must communicate the change. How you communicate the change to the people you influence has the single most
important impact on how much resistance to change will occur. If you wholeheartedly communicate the change, you will win
the hearts and minds of the employees.
One of the key factors in reducing resistance to change is to implement change in an environment in which there is wide-
spread belief that a change is needed. So, one of your first tasks in effective communication is to build the case for why the
change was needed. (If the rationale was not communicated to you, and if you are not clear about it yourself, you will have
difficulty convincing others, so consult with your manager, first.)
Specifically inform the employees about what your group can and cannot affect. Spend time discussing how to implement the
change and make it work. Answer questions; honestly share your earlier reservations, but state that you are onboard and
going to make the change work. Ask the employees to join you in that endeavor because only the team can make the change
happen. Stress that you have knowledge, skills, and strengths that will help move the team forward, and so does each of the
team members. All are critical.
 Help the employees identify what's in it for them to make the change. A good portion of the normal resistance to
change disappears when employees are clear about the benefits the change brings to them as individuals. Benefits to the
group, the department, and the organization should be stressed, too. But, nothing is more important to an individual employee
than to know the positive impact on their own career or job.

85. Additionally, employees must feel that the time, energy, commitment, and focus necessary to implement the change are
compensated equally by the benefits they will attain from making the change. Happier customers, increased sales, a pay raise,
saved time and steps, positive notoriety, recognition from the boss, more effective, productive employees, and an exciting
new role or project are examples of ways in which you can help employees feel compensated for the time, energy, focus,
change, and challenge that any change requires.
 Listen deeply and empathetically to the employees. You can expect that the employees will experience the same
range of emotions, thoughts, agreement, and disagreement that you experienced when the change was introduced to you or
when you participated in creating the change. Never minimize an employee's response to even the most simple change. You
can't know or experience the impact from an individual employee's point of view. Maybe the change seems insignificant to
many employees, but the change will seriously impact another employee's favorite task. Hearing the employees out and
letting them express their point of view in a non-judgmental environment will reduce resistance to change.
 Empower employees to contribute. Control of their own jobs is one of the five key factorsin what employees want
from work. So, too, this control aspect follows when you seek to minimize resistance to change. Give the employees control
over any aspect of the change that they can manage. If you have communicated transparently, you have provided the
direction, the rationale, the goals, and the parameters that have been set by your organization. Within that framework, your
job is to empower the employees to make the change work. Practice effective delegation and set the critical path points at
which you need feedback for the change effort - and get out of the way.
 Create an organization-wide feedback and improvement loop. Do these steps mean that the change that was made
is the right or optimal change? Not necessarily. You must maintain an open line of communication throughout your
organization to make sure that feedback reaches the ears of th employees leading the charge. Changing course or details,
continuous improvement, and tweaking is a natural, and expected, part of any organizational change. Most changes are not
poured in concrete but there must be a willingness to examine the improvement (plan - do - study - act).
If you implement your change in an organizational environment that is employee-oriented, with transparent communication and a
high level of trust, you have a huge advantage. But, even in the most supportive environment, you must understand and respond
to the range of human emotions and responses that are elicited during times of intense change.
Read change 3: Resistance to
change
Resistance has many faces: open resistance, passive resistance, resistance in
disguise. Resistance will bother the change agent, especially as the type of

86. change (change of values or norms which need to be rooted in the behaviour of
people) requires participation, active cooperation or even enthusiasm.
Resistance may show up in all phases of the change process. Resistance can be
present at the start, when the necessity to change is investigated, if people do
not enough accept or experience the necessity. Resistance will be painfully
perceptible in the phase of implementation, when the objectives of change
have to be translated to actual actions. And again: the more active
participation plays a role, the more it will be difficult to deal with resistance.
Changes, in which training and coaching of workers are crucial elements, can
be fairly well obstructed by resistance. In other words: resistance can lead to a
lack of support of those people who are at stake.
Expressions of such a lack of support go from passively waiting and negating
the changes, via delay and misunderstandings, via impalpable sabotage to
finally open opposition.
An obvious way to break resistance is to launch the intended changes more
forcefully. But such a counter pressure leads often to intensified resistance.
Something different has to be done.
The change agent has to begin to understand, decode and re-code the
resistance.
A positive scheme of thinking about people implies that people want to
change. If people in an organisation do not join the changes, then their natural
willingness is blocked by something. Such a blockage can be a consequence of
a lack of a feeling of urgence, a lack of wanting the change or a lack of capacity
to change.
 The feeling of urgence.
Someone will be willing to change if he or she really experiences the
urge to change and if the people in the workplace have a positive
attitude towards the change. Thus if the boss and the colleagues agree
with the change or when they show some enthusiasm because of the
change. The sense of urgency can be influenced by information on the
actual performance of the organisation and the (future) demands.
 The will to change.
Someone will be willing to change if (s)he is convinced of the positive
results of the change and believes in the positive effects on the work and
on the organisation. The will to change can be influenced by motivating.

87.  The capacity to change.
Someone will be willing to change if (s)he is running the process of
change her/him-self, as much as possible. Thus if someone can agree
with the way the process is directed, if money and time are supplied, if
the involvement is as big as possible and if the complexity of the change
can be overlooked. Good experiences with previous changes can be
helpful.
The capacity to change can be influenced by a high degree of
participation.
The change agent will be able, with he help of this decoding key, to investigate
the willingness to change and to predict the presence of resistance.
Questions:
 which consequences for the work do the workers expect of the intended
change?
 what kind of emotions are evoked by the intended change?
 are the workers convinced of the positive effects of the change?
 are they involved in the process of change?
 what is the attitude of others (management, colleagues) towards the
change?
 what is the experience of the workers with previous changes?
 have the workers enough time and other means to their disposal, in
order to realise the change successfully?
 is the process of change well-directed guided?
 do the workers consider the change complex?
 is the process of change at the right moment?
Wanting to (motivation), having to (urge) and being able to (capacity) are
three necessary ingredients for a successful implementation.
A combination of presence and absence of those three ingredients can lead to
specific problems:
 motivation OK, but no capacity: frustration. Solution: training.
 motivation OK, but no urge: delay. Solution: anticipatory experiments.
 urge OK, but no motivation: reactive attitude of personnel. Solution:
motivation.
 urge OK, but no capacity: paralysis. Solution: capacity building
 capacity OK, but no motivation: nothing happens. Solution: create take-
off energy

88.  capacity OK, but no urge: everything waits till the market forces a
change. Solution: look for other urge.
The urge (to have to change) is the crucial element at the start and the
decision making of the change process. Action: mobilise.
The motivation (wanting to change) is important in the phase of acceptation.
Action: negotiate, coach and convince.
The capacity (being able to change) is crucial in the phase of implementation.
Action: support, plan and simplify.
Resuming:
 do ask yourself if the resistance can be understood as deficits in the
willingness to change
 check in which phase the process of change is
 think if actions are possible that will cover fully the (decoded) diagnosis
of the resistance.
12 reasons why people resist change
 May 23, 2011
 /
 By:
Torben Rick
 /
 14 Comments
 /
 Change Management, Organisational Development
Expecting resistance to change and planning for it from the start of your change management
progamme will allow you to effectively manage objections. Understanding the most common
reasons people object to change gives you the opportunity to plan your change strategy to
address these factors.
It‘s not possible to be aware of all sources of resistance to change. Expecting that there will
be resistance to change and being prepared to manage it is a proactive step. Recognizing
behaviors that indicate possible resistance will raise awareness of the need to address the
concerns.
Classic psychological reactions to change:

89. At the end of the day all sources of resistance to change need to be acknowledged and
people‘s emotions validated.
It‘s far better to anticipate objections than to spend your time putting out fires, and knowing
how to overcome resistance to change is a vital part of any change management plan.
12 typical reasons for resistance to change:
1. Misunderstanding about the need for change/when the reason for the change is
unclear — If staff do not understand the need for change you can expect resistance.
Especially from those who strongly believe the current way of doing things works well…and
has done for twenty years!
2. Fear of the unknown — One of the most common reasons for resistance is fear of
the unknown. People will only take active steps toward the unknown if they genuinely
believe – and perhaps more importantly, feel – that the risks of standing still are greater than
those of moving forward in a new direction
3. Lack of competence — This is a fear people will seldom admit. But sometimes,
change in organizations necessitates changes in skills, and some people will feel that they
won‘t be able to make the transition very well
4. Connected to the old way — If you ask people in an organization to do things in a new
way, as rational as that new way may seem to you, you will be setting yourself up against all
that hard wiring, all those emotional connections to those who taught your audience the old
way – and that‘s not trivial

90. 5. Low trust — When people don‘t believe that they, or the company, can competently
manage the change there is likely to be resistance
6. Temporary fad — When people belief that the change initiative is a temporary fad
7. Not being consulted — If people are allowed to be part of the change there is less
resistance. People like to know what‘s going on, especially if their jobs may be
affected. Informed employees tend to have higher levels of job satisfaction than uninformed
employees
8. Poor communication — It‘s self evident isn‘t it? When it comes to change
management there‘s no such thing as too much communication
9. Changes to routines — When we talk about comfort zones we‘re really referring to
routines. We love them. They make us secure. So there‘s bound to be resistance whenever
change requires us to do things differently
10. Exhaustion/Saturation — Don‘t mistake compliance for acceptance. People who are
overwhelmed by continuous change resign themselves to it and go along with the flow. You
have them in body, but you do not have their hearts. Motivation is low
11. Change in the status quo — Resistance can also stem from perceptions of the
change that people hold. For example, people who feel they‘ll be worse off at the end of the
change are unlikely to give it their full support. Similarly, if people believe the change
favours another group/department/person there may be (unspoken) anger and resentment
12. Benefits and rewards — When the benefits and rewards for making the change are
not seen as adequate for the trouble involved
Manage Resistance To Change Proactively
Expecting resistance to change and planning for it from the start of your change
management progamme will allow you to effectively manage objections.
The key is to start planning as early as possible.
Understanding the most common reasons people object to change gives you the opportunity
to plan your change strategy to address these factors.
I've been in potentially difficult situations in large organisations where I've wished this kind
of thought had been given to people's reactions to the change, and the way change is
implemented.
Spending an hour with employees who suddenly have a vehicle to express their extreme

91. anger can be dangerous and unpleasant. It doesn't take long to realise that you're dealing
with a whole new situation and that all your resources will have to be directed to managing
resistance. The shame is that the change momentum is lost, and can only be rebuilt once
the resistance is managed.
Yet this extreme can be avoided by planning for change resistance. And carefully
considering the common reasons for resistance to change listed on this page can give you
insight regarding the likely objections you may face.
Using a tool such as the Force Field Analysis in conjunction with the reasons for resistance
to change that you feel are applicable is highly recommended.
It's also useful to determine if what you are experiencing is, in fact, resistance to change.
We all experience a number of very normal reactions to change, as outlined by Elizabeth
Kubler-Ross. These need to be planned for and managed, but are not necessarily resistance
to change.
Typical reasons for resistance to change
Fear of change: One of the most common reasons for resistance is fear of change. This
includes fears of not being good enough and fears of the unknown. It's a bit like the sailors
of old who feared the uncharted oceans (Here Be Dragons). The solution? Put it on the map
- provide people with role models.
Not being consulted: If people are allowed to be part of the change there is less
resistance. They feel heard. Yet, time and again, I encounter resistance due to a lack of
involvement. The solution? Involve people in the change as early as possible.
Poor communication: It's self evident isn't it? I'm sure I
don't need to explain this one. WRONG! When it comes to
change management there's no such thing as too much
communication. The solution? Say it strategically, but don't
remain silent.
Changes to routines: When we talk about comfort zones
we're really referring to routines. We love them. They make us
secure. So there's bound to be resistance whenever change
requires us to do things differently.
Whether it's new procedures, new parking places, new
reporting lines, or new corporate culture, changes to routines
can be uncomfortable. The solution? Show people how it will
work and demonstrate the need for change.
Low trust: When people don't believe that they, or the
company, can competently manage the change there is likely
to be resistance. This may be related to their experience of change in the past. The
solution? Communication. Lots of it. And evidence that top management support the change
process.

92. Misunderstanding about the need for change: If staff do not understand the need for
change you can expect resistance. Especially from those who strongly believe the current
way of doing things works well...and has done for twenty years! The solution? Involve
people in the change as early as possible. And find lots of ways to demonstrate why the
change is necessary.
Exhaustion/Saturation: Don't mistake compliance for acceptance. People who are
overwhelmed by continuous change resign themselves to it and go along with the flow. You
have them in body, but you do not have their hearts. Motivation is low. The solution?
Answer the all important 'What's In It For Me?' question. Show them how they can benefit
fom the change - and maybe provide some incentives along the way.
Change in the status quo: Resistance can also stem from perceptions of the change that
people hold. For example, people who feel they'll be worse off at the end of the change are
unlikely to give it their full support. Similarly, if people believe the change favours another
group/department/person there may be (unspoken) anger and resentment. The solution?
Lots of focus groups. Listen carefully for emotions and provide support. This may be in the
form of counselling or coaching.
It's not possible to be aware of all sources of resistance to change. Expecting that there will
be resistance to change and being prepared to manage it is a proactive step. Recognising
behaviours that indicate possible resistance will raise awareness of the need to address the
concerns.
At the end of the day all sources of resistance to change need to be acknowledged and
people's emotions validated. It's far better to anticipate objections than to spend your time
putting out fires, and knowing how to overcome resistance to change is a vital part of any
change management plan.
RESISTANCE TO CHANGE
Objectives
1. To examine fundamental reasons why people and organizations resist change.
2. To gain an appreciation that the adoption of innovation is a complex process
involving a variety of people and factors.
Outline
The nature of change
Resistance to Change
Factors affecting the adoption of change.
 Characteristics of Innovations that Foster Adoption
 Characteristics of Organizations that Foster Adoption

93. Worksheet on Resistance to Change
THE NATURE OF CHANGE
Adoption of Change
The adoption of new ideas and techniques does not occur naturally but results from
hard work, trial and error. It is important to recognize this fact and to make an effort
to develop information that is concise, readable and to the point and to make sure
the information reaches people who can use it. A broad spectrum of skills is needed
to lead to effective management of innovation and change. There is no magic
formula for success--no such formulas exist.
Multiple channels of communication should be used to promote the adoption of an
innovation. Never expect one report, one presentation, one telephone call or one
conference to accomplish everything. Successful programs need to be carefully
conceived and carried out. Human contacts are critical ingredients, and need to be
used along with good written and visual materials. These materials are useless
without an understanding of the needs, limitations and problems of the user.
Change agents can bring innovation for the user by examining their preconceived
notions about the way things should be done. Personnel have to be receptive to
change themselves, they have to be able to evaluate new ideas objectively and see
their users --not as they have been --but as they might be.
Resistance to Change
The adoption of innovations involves altering human behavior, and the acceptance
of change. There is a natural resistance to change for several reasons.
People resist change:
 When the reason for the change is unclear. Ambiguity--whether it is about
costs, equipment, jobs--can trigger negative reactions among users.
 When the proposed users have not been consulted about the change, and it is
offered to them as an accomplished fact. People like to know what's going on,
especially if their jobs may be affected. Informed workers tend to have higher
levels of job satisfaction than uninformed workers.
 When the change threatens to modify established patterns of working
relationships between people.

94.  When communication about the change--timetables, personnel, monies, etc.--
has not been sufficient.
 When the benefits and rewards for making the change are not seen as
adequate for the trouble involved.
 When the change threatens jobs, power or status in an organization.
(An unwilling user can always make an idea fail, no matter how good it is.)
Decision makers will be more responsive to change:
 If the information presented coincides with their current values, beliefs, and
attitudes:
 If they perceive that the change will benefit them more than it will cost them:
 If the innovation requires marginal rather than major changes in their views or
lives:
 If they have a demonstrated need for the innovation: and
 If the innovation is introduced gradually so that people can adjust to the
resulting change.
FACTORS WHICH AFFECT THE ADOPTION OF INNOVATION
CHARACTERISTICS OF THE INNOVATION
Relative Advantage:
Generally, innovations must be seen as producing a SIGNIFICANT IMPROVEMENT
over current procedures and techniques in order to be adopted. The benefits must
be perceived as so great as to be well worth the inevitable problems and costs
associated with any change.
Simplicity:
The innovation, or at least the way it is presented, should be EASY TO UNDERSTAND.
Even when users agree that the proposed change would be "good," they may not be
enthusiastic if they think it's too complicated to understand or implement.
Easy to Try:
The new method or item must be easy to introduce, as well as easy to abandon if it
doesn't seem to be working out. If an agency must make drastic changes in
operating procedures in order to try something out, it will resist change, whatever its

95. perceived merits. It helps if a technology can be tried in stages before the final
decision to adopt is made.
Easy to Measure:
Once the new procedure or item is in place, it must be easy to measure the benefits,
whether in money, time, efficiency or some other evaluation measure meaningful to
the adopter.
Inexpensive:
The up-front cost of a new technology is often an obstacle, especially in rural areas
and small agencies. If there is a large immediate increase in costs, it will be difficult
to get the technology adopted, even if long-term savings are guaranteed.
Characteristics of the Organization
Risk Taking Climate:
Are the managers of the organization willing to take risks? Both the size and age of
an organization can affect this willingness. Younger firms are usually more willing to
take risks and, for risk taking, small is better. The complicated structure of larger
firms works against risk taking. The exception to this are large organizations whose
success has been based on innovation.
Attitude towards Failure:
New ideas, procedures and technology involve risk and it is not be possible to always
succeed. Good decisions can have bad outcomes. How an organization reacts to a
failed attempt to implement a change is critical. If people are punished, belittled, or
put down for trying something new that doesn't work, the will be seldom willing to
do it again. If, on the other hand, efforts are made to learn from the failure and to
make it work a more open process of change will occur.
Compatible Procedures/Technology:
The more a new idea is compatible with past procedures, techniques and values of
an organization, the more likely the organization is to adopt it.

96. Extent of Regulation:
The extent to which outside organizations, particularly government, can control the
behavior of an organization affects innovation. Such outside regulation can have
either a positive or negative effect, depending on the regulation and/or its
enforcement.
Labor Reaction:
The likely reaction of employee groups will also affect whether or not a new idea is
tried. Any change likely to cause a loss of rights or job security will need to have
significant benefits for an organization to be willing to risk trying it out.
CHANGE WORKSHEET
A way to understand resistance to change is to use the following worksheet. This
should be filled out separately by people in an organization, then discussed. What
are the consensus reasons why people in your organization resist change???
The following factors affect how an individual or an organization reacts to change.
Pick the five you think are most important. When you have chosen the top five, then
rank these on a scale of 1 (most important) to 5. Think of examples to back up your
opinions.
Personal Factors:
______ Age
______ Sex
______ Education
______ Marital status
______ Experience
______ Time in the same job
______ Occupation
______ Other (Explain)
______________________________________________________
___________________________________________________________________
Job Related Factors:
______ Number of Subordinates
______ Breadth of Activity
______ Degree of Autonomy
______ Amount of Job Security
______ Availability of Slack Time

97. ______ Prestige of Position
______ Variety of Work
______ Other (Explain)
______________________________________________________
___________________________________________________________________
Organizational Factors:
______ Size
______ Structure (Degree of Centralization)
______ Autonomy from Outside Political Pressure
______ Funding/Budget
______ Recognition
______ Reward System
______ Age of the Organization
______ Prestige
______ Other (Explain)
______________________________________________________
___________________________________________________________________
1. ____________________________________ (Most Important)
2. ___________________________________
3. ___________________________________
4. ___________________________________
5. ___________________________________
1. Small Business >
2. Human Resources >
3. Change in Organizations
What Causes Resistance to Change in an Organization?
by Miranda Brookins, Demand Media

98. Informed organization members are less likely to resist change.
Related Articles
 How to Overcome Resistance to Change in an Organization
 Resistance to Change in an Organization's Structure & Culture
 How Can an Organization Overcome Employee Resistance to Change?
 Negative Effects of Resistance to Change to an Organization
 What Causes Structural Change Within an Organization?
 Progressive Steps for Change Within an Organization
It is difficult for organizations to avoid change, as new ideas promote growth for them and their members. Change
occurs for many reasons such as new staff roles; increases or decreases in funding; acquisition of new technology;
new missions, vision or goals; and to reach new members or clients. Changes can create new opportunities, but are
often met with criticism from resistant individuals within the group.
Poor Communication
Changes within an organization start with key decision makers. It is up to them to pass along the details to team
members and ensure all questions and complaints are handled before changes go into effect. Unfortunately, as news
of a change spreads through the hierarchy, details are sometimes skewed and members end up receiving inaccurate,
second-hand information. Poor communication can therefore cause resistance to change.

99. Self-Interest
Ego often interferes with the ability to adapt to change. Some want to maintain the status quo to better advance their
own personal agendas; others have different motivations. In the end, employees acting in their own self-interest,
instead of the organization's greater good, will resist change.
Feeling Excluded
Organizations often solicit advance input to ensure that everyone has an opportunity to voice their ideas and
opinions. If, however, employees hear of a sudden change, and they had no input, they will feel excluded from the
decision making process and perhaps offended.
Lack of Trust
Trust plays a big role in running a successful organization. When organization members feel they cannot trust each
other or key decision makers, it becomes difficult for them to accept organizational changes. They may ascribe the
changes to some negative underlying reason or even assume they will eventually lose their jobs.
Skills/Training Dearth
When change requires mastering new skills, resistance is likely, particularly when it comes to new technology.
Organizations can prevent this through offering education and training.
change management principles
1. At all times involve and agree support from people within system
(system = environment, processes, culture, relationships, behaviours,
etc., whether personal or organisational).
2. Understand where you/the organisation is at the moment.
3. Understand where you want to be, when, why, and what the measures
will be for having got there.
4. Plan development towards above No.3 in appropriate achievable
measurable stages.
5. Communicate, involve, enable and facilitate involvement from people,
as early and openly and as fully as is possible.
How to Introduce Changes in Workplace
Procedures
Edited by Mibuwolf47, Boubouboubou, BR
0

100. Article
EditDiscuss
Changes in workplace procedures generally produce positive results. These changes may
save the company time, money or promote other workplace savings. Change is exciting
to those who adapt to it easily. But, some employees do not like change. They find it
difficult to accept the unknown, causing distress. As a leader in the workplace, it's your
job to make sure that any transition runs as smoothly as possible.
EditSteps
1. 1
Plan for procedure changes. You will want to introduce the changes in the workplace
slowly in order to make the transition easy for everyone.
o Determine when the change will become effective. Whenever possible,
give your employees adequate notice before making procedure changes.

101. 2. 2
Build awareness.
o Make an announcement to let your employees know that there will be a
change in procedure. Post an announcement of the new or changed procedure on your
company intranet, inform employees via email or hold a meeting.
o Include the date when the procedure will become effective.
o Recruit employee help. This is a good time to get your employee's involved
in some of the tasks. You may need help scheduling committee meetings, recording
meeting minutes or documenting policies.
o Provide your employees with as much relevant information about the
change as possible. Offer to talk to any employee with concerns or questions.
o Your employees will want to know how the changed policy affects them
and what impact it will have on the company.
o Remain calm and patient. Explain why the procedure changes are
necessary or important.
3. 3

102. Provide documentation for the new or changed procedures to assist your employees
with the transition.
o When possible, write out step-by-step instructions.
4. 4
Offer training and practice to help staff learn the changed procedures.

103. 5. 5
Implement policy changes slowly.

104. o Change one procedure at a time. Once your employees have become
familiar with the new procedure, then you can move on to the next one.
6. 6
Ask for feedback. Suggestions, ideas, concerns or comments may be helpful to you. It is
also a way of getting your employees on board and involved with the changes.

105. 7. 7
Listen to your employees. If you include your employees in these procedure changes,
be sure to listen. You should implement good employee ideas and give credit to the
employee for the suggestion.

106. o Make yourself available. Answer questions or concerns promptly.
8. 8
Celebrate achievements and successes. Many companies show appreciation or success
with pizza parties or barbecues. These team-building activities help to bring employees
together.

107. EditTips
 Get your employees on board and involved with changes in procedures as early
as possible. You may want to seek help from employees with the planning or
implementation portion of this process.
 Encourage flexibility in the workplace. Change requires flexibility. The better your
employees adapt to change, the easier this process will be for everyone.
EditWarnings
 Never answer a question unless you are sure you have an accurate answer. It is best to
admit that you are unsure and promise to get back soon with the correct answer.
Introducing Change
Change is an ongoing process. For organisations to
manage change effectively, they need to define and
communicate the business reasons for implementing
the change. To do this, most organisations use a
process or model to assist them with planning and
implementing the change.

108. Kurt Lewin formulated a change model that has
been used by many organisations. He identified five
steps in the change process:
1. Recognise the need for change
Identify what needs to be changed.
2. Prepare for change
Gain agreement for what is to be changed
and why, and who is to be involved.
3. Unfreeze the organisation
Managers should develop strategies for
winning employee support and identify
sources of resistance.
4. Make the changes
Implement the changes, possibly using a
'change agent'. This person is often an
external consultant so that political agendas
and biases from within the company can be
avoided.
5. Refreeze the organisation
Refreezing or stabilising the organisation
means that changes have been made and are
becoming part of the culture and company
values.
Strategies for
your
Organisation:
New organisational strategies (or structures and
policies), may assist with the change process. These
include:
 Redesigning reward systems to reward
behaviours and performance that support the
change process.
 Addressing culture within an organisation as
part of the change process. Autocratic and
directive management can negatively impact
change.
 Tight deadlines can affect the success of the
change, but may not be avoidable. Using
staff discussions to gain involvement is the
preferred way of dealing with tight deadlines.
However, coercion is often used when time is
critically short.
 Management commitment is essential for

109. successful change. Showing support and
concern for employee welfare and providing
resources for the change is a way to
demonstrate this.
For successful change to occur, there needs to be a
climate of trust between the managers and the
employees. This means that an effective track
record needs to have been established in the past.
In an organisation where there is faith in the
management, employees will expect:
 Effective and sensible planning
 Effective decision making
 Regular and complete communication
Healthy organisations, where such trust and
communication exist, are better able to deal with
change than those organisations where employees
distrust their managers and have little faith in them.
Strategic planning is crucial to profitable business growth, but companies typically realise only about 63%
of their business strategy's potential financial value because of defects and breakdowns in strategic
planning and implementation. Put another way, the opportunity value of getting your strategic plan
execution right is huge!
Problems of strategic plan implementation
A survey of our client base found that before we started working with them, only 15% of our clients made
it a regular practice to go back and compare their business results with the performance forecast for each
of their business units in its three-to-five-year strategic plan. Furthermore, when they did make the
comparison, they found that performance rarely matched the previous year's projections.
Implementation is the most difficult part of the strategic planning process. It involves achieving the
objectives set out in the strategic plan while remaining alert and flexible to new opportunities as they
unfold.
For successful implementation, the strategic plan has to be robust in the first place. In other words, it must
be realistic and solidly grounded in the underlying economics of the organisation's markets. For guidance
on drawing up a high quality strategic plan, see the TCii White Paper "Strategic planning".
What is effective strategic plan implementation?
Implementation effectiveness can be measured by how well the business meets the financial projections
set out in the strategic plan.
To achieve effective implementation, a business must ensure that any changes initiated by the strategic
plan are reflected in areas such as budgeting, reward schemes and information systems. The overall goal
is to integrate the results of strategic planning with daily, weekly and monthly routines.

110. The goals articulated in the strategic plan should drive marketing and sales efforts, human resources
practices and research and development. These goals become a central part of the business by guiding
daily operational activities.
Four fundamentals of strategic plan implementation
Once you have a robust strategic plan in place, the following actions are crucial to successful
implementation.
1. Avoid common implementation mistakes.
2. Reach out to stakeholders.
3. Measure progress in the strategic plan.
4. Monitor the strategic plan.
1. Avoid common strategic plan implementation mistakes
Strategic planning entails risks. The strategic planning process may expose underlying conflicts within the
organisation. It may disrupt the flow of information and the ways decisions are made. The point is not to
allow current operating problems to dictate or deter long-range strategic planning.
Some of the commonest strategic plan implementation mistakes are outlined below.
 Just saying no. Management ends up discarding the strategic plan, choosing instead to make
intuitive decisions that clash with accepted strategic objectives. The result is confusion throughout
the ranks of employees.
 Lack of communication. The strategic plan is not communicated to front-line employees, who
are therefore working in the dark.
 Losing sight. Managers are so tied up in day-to-day operating problems that they lose sight of
the long-term strategic goals.
 "Bolt-on" syndrome. The strategic plan is treated as something separate and removed from the
daily management of the business.
 Business as usual. Once the strategic plan has been drawn up, managers simply carry on as
before.
 Wimping out. Management recoils from making the tough choices that the strategic plan may
call for.
 The wrong scoreboard. Managers measure what's easy, not what's important.
 No yardstick. The business neglects to benchmark itself against its competitors, so it can't
measure its progress against them.
 The be-all and end-all. Management sees the strategic planning document as an end in itself.
 Confusing terminology and language. People don't understand what you want because it isn't
expressed clearly in the strategic plan.

111. 2. Reach out to stakeholders
Channels of communication
Above all else, the business must communicate strategy clearly and regularly to employees.
When the CEO and top management demonstrate the link between business strategy and specific
business decisions, front-line staff are encouraged to think strategically too.
We suggest an informal chat between strategic planning team members and employees. Take the written
strategic plan document back to the people you influence and discuss it with them in a conversational
manner. Set up a feedback mechanism – suggestion box, one-on-one meeting, monthly updates – so that
they have a chance to respond as well.
Communicating the strategic plan facilitates employee "buy-in" and a broader understanding of the
organisation's strategic goals and objectives.
The underlying process of strategic change
Strategic change is like an iceberg: around two thirds of it is beneath the surface. In an organisation,
everyone focuses on the content of the strategic change. But the problem isn't just to identify what needs
to be done differently. You also need to think about how the strategic change will be managed.
The question is whether you make this process work for you or against you.
If your people don't buy into the underlying process of change management, it will fail.
Opening other communication channels
Don't just reach out to your employees: share the strategic plan with other stakeholders, such as
investors, customers and alliance partners. An "open book" approach will likely generate more helpful
ideas and suggestions about the future of your business.
3. Measure progress in the strategic plan
You can measure how well strategic plan implementation is progressing through key indicators such as
revenue, gross sales and the number of new customers. The strategic planning team must decide what
measurements are most applicable to long-term strategic objectives.
If you can't measure it, you can't manage it. So what things should you be measuring? Here are a few
ideas:
 number of new customers
 total new product sales
 percentage margin
 return on assets
 return on equity
 return on investment
 market share
 employee morale

112.  customer satisfaction.
4. Monitor the strategic plan
Finally, to keep your strategic plan alive, you must monitor it. Here are some guidelines.
 Regular updates. Review progress on a monthly or quarterly basis, depending on the level of
activity and time frame of the strategic plan. This applies to corporate, regional and departmental
strategies. Specific tasks should be part of relevant strategic management meetings.
 Challenge underlying assumptions. While monitoring the strategic plan's progress, continue to
examine its underlying assumptions, the continued validity of its strategic objectives and the
influence of unanticipated events.
 Create a champion for every strategy and action. The strategy champion has to be someone
other than the CEO, because the latter isn't accountable to anyone. The strategy champion
doesn't necessarily have to complete the actions, but must see that they get done.
 Stay committed. Every strategy-related action must have a due date. As CEO you can let the
due date slip, but don't let it go away. This tells the strategy champion that you aren't giving up on
the strategy. If you keep following up, the strategy champion will see that you're serious about the
strategy and putting it into effect.
 Conduct short-term strategy reviews. We suggest scheduling team "huddles" every 90 days to
keep the strategic plan reviewed, reloaded and re-energised. These huddles also allow you to
distinguish those individuals who are getting things done and those who aren't (the "empty suits").
Alternatively, you can schedule 60-day strategy reviews by senior management. These are an
opportunity to take another look at the original plan, determine whether strategic objectives are
being met, and agree new action steps as necessary.
 Expand skills. In the weeks and months following the strategic planning process, expand
employee skills through training, recruitment or acquisition to include new competencies required
by the strategic plan.
 Target sales. Sales and marketing tools form the link between business strategy and sales
strategy. Designed correctly, these sales tools communicate an organisation's value and
message to the marketplace, and generate positive feedback from customers and clients.
 Set strategic plan milestones. Go beyond monitoring: build into the strategic plan milestones
that must be achieved within a specific time frame. Many companies do this on a monthly or
weekly basis.
 Reward success. Find creative ways to motivate people and reward them for focusing on the
strategy and vision. We call it the "pucker factor". Establish some positive/negative consequences
for achieving/not achieving the organisation's stated strategy. These consequences may be great
or small, so long as they serve to make the strategy a priority in people's minds.
The strategic change process: an 11-point checklist
1. Finalise a strategic plan or major change with a roll-out plan.
2. Align the budget to annual priorities and fund the strategic change.

113. 3. Build all department, division and unit annual plans around the organisation-wide annual priorities
and goals.
4. Set up a bimonthly or quarterly strategic change leadership steering committee to manage the
strategic change process.
5. Establish key success measures and a tracking system.
6. Revise the performance management and rewards systems.
7. Examine your organisational structure and staff/succession planning to ensure that they support
the vision projected in the strategic plan.
8. Initiate staff development to build your own internal cadre of expertise with skills to achieve your
vision and core values.
9. Draw up a game plan to ensure a critical mass for strategic change.
10. Set sponsorship teams in place for each core strategy.
11. Set a date for an annual strategic and business planning review.
What next for your strategic plan?
After considerable work and effort, a strategic plan is in place. Is the job done? The answer is a firm NO!
Be prepared to switch strategies
Over the life of a strategic plan, a company's vision may stay the same but its strategies will probably
need to be revised. Some businesses can maintain a strategic plan for a year or longer, while others have
to respond to market changes in less time. Usually, this means refining specific strategies and goals to
meet changing circumstances each year.
A strategic plan should be "proactively reactive". Move ahead with the strategic plan as designed, but be
prepared to let go and switch strategies as necessary. In other words: "If the horse is dead, you have to
get off."
Choose your strategic approach
No one strategic planning model is right for all organisations or circumstances. Strategic planning teams
can choose from a variety of models with an even wider range of approaches. But we believe a business
that develops and executes a strategic plan well gains significantly from the experience.
Make your strategic plan a living document
In today's business environment, everyone is short on time and money. But being "too busy" may actually
result from an unwillingness to confront certain long-term issues, such as accessibility of resources,
acquisition of new technology, co-ordination of personnel efforts, even questions about the company's
overall direction. Until such issues are finally addressed, precious time is lost for other urgent needs.
Similarly, many organisations feel inhibited from strategic planning during periods of limited financial
resources. But by setting future business goals and objectives in place, the strategic planning process
helps to set new priorities for funds and personnel. A good strategic plan allows a business to deal
imaginatively with restricted time and budgets.
The strategic plan has to be a living document. The lifespan of a strategic plan can be anywhere from
three months to three years, but the important thing is that the strategic plan represents a shared vision of
where the business is headed and what's needed to get there in the time to come.

114. Strategic planning implementation: best practice examples
Here are three examples of how good implementation of strategy can deliver extraordinary results.
1. Strategic planning to track performance
Dow Chemical's performance was in free fall. TCii developed a performance improvement strategy to
address the issue.
We devised clear performance metrics for each of Dow's 79 business units. Performance on these units
was tracked against strategic plans on a weekly basis, and the Dow leadership team discussed any
serious discrepancies first thing every Monday morning. These weekly sessions forced everyone to live
the details of strategy execution, and let the entire organisation know how they were performing.
This simple strategy implementation step played an important role in the dramatic revival of Dow's
business.
2. Strategic planning to improve turnaround times
The performance of the Carphone Warehouse logistics centre in the UK West Midlands was poor, with
unacceptably long service and delivery times to its 610 UK stores and to individual online purchasers.
We devised a logistics centre development strategy in close co-operation with both the company's HQ in
London and the local management of the logistics centre.
The key steps of the strategy were broken down into smaller steps and allocated to local task force
teams, who reported weekly on progress, difficulties and planned next steps.
The logistics centre general manager and the head office team reviewed progress of the strategy every
week, and agreed changes and/or corrective action. These requirements were fed back the same day to
the local teams, who then met briefly to agree individual actions for the team members.
This process was so successful in improving turnaround times and removing bottlenecks that it became a
permanent feature of the logistics centre. Head office has now rolled out the practice to all operations.
As a result, Carphone Warehouse now has a culture of overperformance, which has been reflected in an
improvement in the company's reputation among potential recruits and an increase in its share value. In
short, the strategy's successful implementation has created a virtuous circle of improvement for the
company.
3. Strategic planning to increase market penetration
Henkel's adhesives business in the Russian Federation had grown rapidly over a four-year period. The
company asked TCii to help develop and implement a business strategy to drive the next phase of
business expansion.
First we analysed the existing business and identified gaps and strategic opportunities. Our research
showed that the majority of goods distributed in Russia flowed via the 12 cities with a population of 1
million or more. But within these cities, Henkel's products had an average market penetration of only
20%.

115. We helped the Henkel team draw up a strategic plan to gain a significant part of that missing 80%. After
making a detailed "market map" showing the key sales channels in each of the 12 cities and their
surrounding areas, we overlaid it with a map of the channels in which Henkel already had a presence.
We analysed the gaps in detail: store types, numbers, locations, relative importance, and so on. We then
drew up a prioritised target list of the potential distribution points, and a dedicated business development
team was directed to secure these.
Finally, we arranged for progress to be analysed on a weekly basis, and for experience and learning
points to be shared in the team – for example, via an online progress database and in Monday morning
review meetings.
During the next two years Henkel's market penetration increased from an average of 20% to an average
of 60%, and sales doubled. We continue to use the system today, to grow distribution still further.
UNIT - IV
ACTION BASED STRATEGIES:
Risk
Risk is the potential of loss (an undesirable outcome, however not necessarily so) resulting from a given
action, activity and/or inaction. The notion implies that a choice having an influence on the outcome sometimes
exists (or existed). Potential losses themselves may also be called "risks". Any human endeavor carries some
risk, but some are much riskier than others.
risk (r sk)
n.
1. The possibility of suffering harm or loss; danger.
2. A factor, thing, element, or course involving uncertain danger; a hazard:"the usual risks of the desert:
rattlesnakes, the heat, and lack of water"(Frank Clancy).
3.
a. The danger or probability of loss to an insurer.
b. The amount that an insurance company stands to lose.
4.
a. The variability of returns from an investment.
b. The chance of nonpayment of a debt.
5. One considered with respect to the possibility of loss: a poor risk.
5 Ways to Be Better at Risk-Taking

116. You may never tame lions or swim with the sharks, but you still have plenty of opportunities
to act courageously every day. Learn the secrets to becoming bolder and braver from five
experts (including a poker champion and a stunt coordinator) who smile in the face of fear.
1. Be a Quitter
Before any kind of endeavor, whether it‘s a new job or a financial investment, come up with some
golden rules. Tell yourself what you are unwilling to tolerate or what will cause you to stop the
activity. Adhering to strict safety standards has kept me alive in some very dangerous situations.
Whatever the issue—maybe I‘ve gotten an iffy feeling or just felt that a member of the crew was
rubbing me the wrong way—I don‘t hesitate to stop. Knowing that I can back out is what gets me in
the water in the first place. Only an expert risk taker can swim toward a particular goal and arrive
within a hairsbreadth of the treasure, then turn around and go home.
Jill Heinerth is a cave diver and an underwater photographer and filmmaker. She is the author of The
Essentials of Cave Diving ($50, amazon.com) and cowrote, produced, and appeared in the PBS
documentary series Water’s Journey. She lives in High Springs, Florida.
2. Have a Mental Rehearsal
Before I take a risk—which in my line of work often involves jumping off a building or setting a car on
fire—I picture the entire scenario in fine detail, from start to finish, at least 20 times. This can take
anywhere from 15 minutes to hours on end, depending on the stunt‘s complexity. Each time, I
imagine it going perfectly. If negative thoughts creep in, I push them out of my head and start over
again. By the time the actual situation rolls around, I‘ve imagined it so many times that it feels old
hat.
Darrin Prescott has coordinated and performed stunts for dozens of commercials and movies,
including 2011‘s Moneyball and Drive and the upcoming Gone, scheduled to be in theaters on
February 24. He lives in Los Angeles.
3. Don’t Put Everything on the Line
I set aside money for playing poker, and I risk only a small amount of it on each game. You can‘t take
advantage of big financial opportunities (a passion, a new job, a potential investment) if you‘re too
stretched. That means you need to maintain a lifestyle that‘s more modest than what you can actually
afford. Even then, you should never put all your time or cash into one venture. The odds of ruin are
just too high.
Annie Duke is a Los Angeles–based professional poker player. She won the World Series of Poker
Tournament of Champions in 2004 and the National Heads-Up Poker Championship in 2010.
4. Think for Yourself
Everywhere, people use alarmist language, encouraging us to be risk-averse: A salesman will advise
you to buy an insurance policy for whichever product he‘s selling—from a toaster to a new mattress.
Speak to a contractor and he‘ll tell you how you need better waterproofing in your basement—just in
case. Try to tune all this out. Use your common sense to reach a conclusion, then move forward. For
example, if your basement has never flooded in 30 years, trust that it won‘t start flooding now.
Benjamin Carson, M.D., is the director of pediatric neurosurgery at Johns Hopkins Children‘s Center,
in Baltimore, and the author of Take the Risk: Learning to Identify, Choose and Live With Acceptable
Risk ($20,amazon.com).

117. 5. Take One Risk at a Time
A good rule of thumb for fashion and life: You should go big but not overboard. In other words, never
wear all the trends at the same time. Don‘t wear a dress covered in sequins with sky-high heels,
numerous pieces of jewelry, and bold makeup. Instead, choose one statement: a short hem, a bright
color, a standout accessory, and keep the rest simple. By doing so, you‘ll increase your likelihood of
success.
Jennifer Rade is a celebrity stylist and a costume designer based in Los Angeles and a frequent
panelist on TV Guide‘s Fashion Wrap.
Risk-Taking
Definition:
Risk-taking refers to the tendency to engage in behaviors that have the potential to be harmful or
dangerous, yet at the same time provide the opportunity for some kind of outcome that can be
perceived as positive. Driving fast or engaging in substance use would be examples of risk-taking
behavior. They may bring about positive feelings in-the-moment. However, they can also put you at
risk for serious harm, such as an accident.
Risk management
Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the
effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical
application of resources to minimize, monitor, and control the probability and/or impact of unfortunate
events[1]
or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets,
threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal
liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or
events of uncertain or unpredictable root-cause. Several risk management standards have been developed
including the Project Management Institute, the National Institute of Standards and Technology, actuarial
societies, and ISO standards.[2][3]
Methods, definitions and goals vary widely according to whether the risk
management method is in the context of project management, security,engineering, industrial processes,
financial portfolios, actuarial assessments, or public health and safety.
The strategies to manage threats (uncertainties with negative consequences) typically include transferring the
threat to another party, avoiding the threat, reducing the negative effect or probability of the threat, or even
accepting some or all of the potential or actual consequences of a particular threat, and the opposites for
opportunities (uncertain future states with benefits).
Certain aspects of many of the risk management standards have come under criticism for having no
measurable improvement on risk, whether the confidence in estimates and decisions seem to increase.
Method[edit]
For the most part, these methods consist of the following elements, performed, more or less, in the following
order.

118. 1. identify, characterize threats
2. assess the vulnerability of critical assets to specific threats
3. determine the risk (i.e. the expected likelihood and consequences of specific types of attacks on
specific assets)
4. identify ways to reduce those risks
5. prioritize risk reduction measures based on a strategy
Principles of risk management[edit]
The International Organization for Standardization (ISO) identifies the following principles of risk
management:[4]
Risk management should:
 create value – resources expended to mitigate risk should be less than the consequence of inaction, or
(as in value engineering), the gain should exceed the pain
 be an integral part of organizational processes
 be part of decision making process
 explicitly address uncertainty and assumptions
 be systematic and structured
 be based on the best available information
 be tailorable
 take human factors into account
 be transparent and inclusive
 be dynamic, iterative and responsive to change
 be capable of continual improvement and enhancement
 be continually or periodically re-assessed
Process[edit]
According to the standard ISO 31000 "Risk management – Principles and guidelines on implementation,"[3]
the
process of risk management consists of several steps as follows:
Establishing the context[edit]
This involves:
1. identification of risk in a selected domain of interest
2. planning the remainder of the process
3. mapping out the following:
 the social scope of risk management
 the identity and objectives of stakeholders
 the basis upon which risks will be evaluated, constraints.
4. defining a framework for the activity and an agenda for identification
5. developing an analysis of risks involved in the process
6. mitigation or solution of risks using available technological, human and organizational resources.

119. Identification[edit]
After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks
are about events that, when triggered, cause problems or benefits. Hence, risk identification can start with the
source of our problems and those of our competitors (benefit), or with the problem itself.
 Source analysis[citation needed]
- Risk sources may be internal or external to the system that is the target of
risk management (use mitigation instead of management since by its own definition risk deals with factors
of decision-making that cannot be managed).
Examples of risk sources are: stakeholders of a project, employees of a company or the weather over an
airport.
 Problem analysis[citation needed]
- Risks are related to identified threats. For example: the threat of losing
money, the threat of abuse of confidential information or the threat of human errors, accidents and
casualties. The threats may exist with various entities, most important with shareholders, customers and
legislative bodies such as the government.
When either source or problem is known, the events that a source may trigger or the events that can lead to a
problem can be investigated. For example: stakeholders withdrawing during a project may endanger funding of
the project; confidential information may be stolen by employees even within a closed network; lightning striking
an aircraft during takeoff may make all people on board immediate casualties.
The chosen method of identifying risks may depend on culture, industry practice and compliance. The
identification methods are formed by templates or the development of templates for identifying source, problem
or event. Common risk identification methods are:
 Objectives-based risk identification[citation needed]
- Organizations and project teams have objectives. Any
event that may endanger achieving an objective partly or completely is identified as risk.
 Scenario-based risk identification - In scenario analysis different scenarios are created. The scenarios
may be the alternative ways to achieve an objective, or an analysis of the interaction of forces in, for
example, a market or battle. Any event that triggers an undesired scenario alternative is identified as risk –
see Futures Studies for methodology used by Futurists.
 Taxonomy-based risk identification - The taxonomy in taxonomy-based risk identification is a
breakdown of possible risk sources. Based on the taxonomy and knowledge of best practices, a
questionnaire is compiled. The answers to the questions reveal risks.[5]
 Common-risk checking[citation needed]
- In several industries, lists with known risks are available. Each risk
in the list can be checked for application to a particular situation.[6]
 Risk charting [7]
- This method combines the above approaches by listing resources at risk, threats to
those resources, modifying factors which may increase or decrease the risk and consequences it is wished
to avoid. Creating a matrix under these headings enables a variety of approaches. One can begin with
resources and consider the threats they are exposed to and the consequences of each. Alternatively one
can start with the threats and examine which resources they would affect, or one can begin with the
consequences and determine which combination of threats and resources would be involved to bring them
about.

120. Assessment[edit]
Main article: risk assessment
Once risks have been identified, they must then be assessed as to their potential severity of impact (generally a
negative impact, such as damage or loss) and to the probability of occurrence. These quantities can be either
simple to measure, in the case of the value of a lost building, or impossible to know for sure in the case of the
probability of an unlikely event occurring. Therefore, in the assessment process it is critical to make the best
educated decisions in order to properly prioritize the implementation of the risk management plan.
Even a short-term positive improvement can have long-term negative impacts. Take the "turnpike" example. A
highway is widened to allow more traffic. More traffic capacity leads to greater development in the areas
surrounding the improved traffic capacity. Over time, traffic thereby increases to fill available capacity.
Turnpikes thereby need to be expanded in a seemingly endless cycles. There are many other engineering
examples where expanded capacity (to do any function) is soon filled by increased demand. Since expansion
comes at a cost, the resulting growth could become unsustainable without forecasting and management.
The fundamental difficulty in risk assessment is determining the rate of occurrence since statistical information
is not available on all kinds of past incidents. Furthermore, evaluating the severity of the consequences
(impact) is often quite difficult for intangible assets. Asset valuation is another question that needs to be
addressed. Thus, best educated opinions and available statistics are the primary sources of information.
Nevertheless, risk assessment should produce such information for the management of the organization that
the primary risks are easy to understand and that the risk management decisions may be prioritized. Thus,
there have been several theories and attempts to quantify risks. Numerous different risk formulae exist, but
perhaps the most widely accepted formula for risk quantification is:
Rate (or probability) of occurrence multiplied by the impact of the event equals risk magnitude
Composite Risk Index[edit]
The above formula can also be re-written in terms of a Composite Risk Index, as follows:
Composite Risk Index = Impact of Risk event x Probability of Occurrence
The impact of the risk event is commonly assessed on a scale of 1 to 5, where 1 and 5 represent the
minimum and maximum possible impact of an occurrence of a risk (usually in terms of financial losses).
However, the 1 to 5 scale can be arbitrary and need not be on a linear scale.
The probability of occurrence is likewise commonly assessed on a scale from 1 to 5, where 1 represents a
very low probability of the risk event actually occurring while 5 represents a very high probability of
occurrence. This axis may be expressed in either mathematical terms (event occurs once a year, once in
ten years, once in 100 years etc.) or may be expressed in "plain english" (event has occurred here very
often; event has been known to occur here; event has been known to occur in the industry etc.). Again, the
1 to 5 scale can be arbitrary or non-linear depending on decisions by subject-matter experts.
The Composite Index thus can take values ranging (typically) from 1 through 25, and this range is usually
arbitrarily divided into three sub-ranges. The overall risk assessment is then Low, Medium or High,
depending on the sub-range containing the calculated value of the Composite Index. For instance, the
three sub-ranges could be defined as 1 to 8, 9 to 16 and 17 to 25.

121. Note that the probability of risk occurrence is difficult to estimate, since the past data on frequencies are
not readily available, as mentioned above. After all, probability does not imply certainty.
Likewise, the impact of the risk is not easy to estimate since it is often difficult to estimate the potential loss
in the event of risk occurrence.
Further, both the above factors can change in magnitude depending on the adequacy of risk avoidance
and prevention measures taken and due to changes in the external business environment. Hence it is
absolutely necessary to periodically re-assess risks and intensify/relax mitigation measures, or as
necessary. Changes in procedures, technology, schedules, budgets, market conditions, political
environment, or other factors typically require re-assessment of risks.
Risk Options[edit]
Risk mitigation measures are usually formulated according to one or more of the following major risk
options, which are:
1. Design a new business process with adequate built-in risk control and containment measures
from the start.
2. Periodically re-assess risks that are accepted in ongoing processes as a normal feature of
business operations and modify mitigation measures.
3. Transfer risks to an external agency (e.g. an insurance company)
4. Avoid risks altogether (e.g. by closing down a particular high-risk business area)
Later research[citation needed]
has shown that the financial benefits of risk management are less dependent on
the formula used but are more dependent on the frequency and how risk assessment is performed.
In business it is imperative to be able to present the findings of risk assessments in financial, market, or
schedule terms. Robert Courtney Jr. (IBM, 1970) proposed a formula for presenting risks in financial
terms. The Courtney formula was accepted as the official risk analysis method for the US governmental
agencies. The formula proposes calculation of ALE (annualised loss expectancy) and compares the
expected loss value to the security control implementation costs (cost-benefit analysis).
Potential risk treatments[edit]
Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of
these four major categories:[8]
 Avoidance (eliminate, withdraw from or not become involved)
 Reduction (optimize – mitigate)
 Sharing (transfer – outsource or insure)
 Retention (accept and budget)
Ideal use of these strategies may not be possible. Some of them may involve trade-offs that are not
acceptable to the organization or person making the risk management decisions. Another source, from the
US Department of Defense (see link), Defense Acquisition University, calls these categories ACAT, for
Avoid, Control, Accept, or Transfer. This use of the ACAT acronym is reminiscent of another ACAT (for
Acquisition Category) used in US Defense industry procurements, in which Risk Management figures
prominently in decision making and planning.

122. Risk avoidance[edit]
This includes not performing an activity that could carry risk. An example would be not buying a property or
business in order to not take on the legal liability that comes with it. Another would be not flying in order
not to take the risk that the airplane were to be hijacked. Avoidance may seem the answer to all risks, but
avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have
allowed. Not entering a business to avoid the risk of loss also avoids the possibility of earning profits.
Increasing risk regulation in hospitals has led to avoidance of treating higher risk conditions, in favour of
patients presenting with lower risk.[9]
Hazard prevention[edit]
Main article: Hazard prevention
Hazard prevention refers to the prevention of risks in an emergency. The first and most effective stage of
hazard prevention is the elimination of hazards. If this takes too long, is too costly, or is otherwise
impractical, the second stage is mitigation.
Risk reduction[edit]
Risk reduction or "optimization" involves reducing the severity of the loss or the likelihood of the loss from
occurring. For example,sprinklers are designed to put out a fire to reduce the risk of loss by fire. This
method may cause a greater loss by water damage and therefore may not be suitable. Halon fire
suppression systems may mitigate that risk, but the cost may be prohibitive as a strategy.
Acknowledging that risks can be positive or negative, optimizing risks means finding a balance between
negative risk and the benefit of the operation or activity; and between risk reduction and effort applied. By
an offshore drilling contractor effectively applying HSE Management in its organization, it can optimize risk
to achieve levels of residual risk that are tolerable.[10]
Modern software development methodologies reduce risk by developing and delivering software
incrementally. Early methodologies suffered from the fact that they only delivered software in the final
phase of development; any problems encountered in earlier phases meant costly rework and often
jeopardized the whole project. By developing in iterations, software projects can limit effort wasted to a
single iteration.
Outsourcing could be an example of risk reduction if the outsourcer can demonstrate higher capability at
managing or reducing risks.[11]
For example, a company may outsource only its software development, the
manufacturing of hard goods, or customer support needs to another company, while handling the business
management itself. This way, the company can concentrate more on business development without having
to worry as much about the manufacturing process, managing the development team, or finding a physical
location for a call center.
Risk sharing[edit]
Briefly defined as "sharing with another party the burden of loss or the benefit of gain, from a risk, and the
measures to reduce a risk."
The term of 'risk transfer' is often used in place of risk sharing in the mistaken belief that you can transfer a
risk to a third party through insurance or outsourcing. In practice if the insurance company or contractor go
bankrupt or end up in court, the original risk is likely to still revert to the first party. As such in the

123. terminology of practitioners and scholars alike, the purchase of an insurance contract is often described as
a "transfer of risk." However, technically speaking, the buyer of the contract generally retains legal
responsibility for the losses "transferred", meaning that insurance may be described more accurately as a
post-event compensatory mechanism. For example, a personal injuries insurance policy does not transfer
the risk of a car accident to the insurance company. The risk still lies with the policy holder namely the
person who has been in the accident. The insurance policy simply provides that if an accident (the event)
occurs involving the policy holder then some compensation may be payable to the policy holder that is
commensurate to the suffering/damage.
Some ways of managing risk fall into multiple categories. Risk retention pools are technically retaining the
risk for the group, but spreading it over the whole group involves transfer among individual members of the
group. This is different from traditional insurance, in that no premium is exchanged between members of
the group up front, but instead losses are assessed to all members of the group.
Risk retention[edit]
Involves accepting the loss, or benefit of gain, from a risk when it occurs. True self insurance falls in this
category. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would
be greater over time than the total losses sustained. All risks that are not avoided or transferred are
retained by default. This includes risks that are so large or catastrophic that they either cannot be insured
against or the premiums would be infeasible. War is an example since most property and risks are not
insured against war, so the loss attributed by war is retained by the insured. Also any amounts of potential
loss (risk) over the amount insured is retained risk. This may also be acceptable if the chance of a very
large loss is small or if the cost to insure for greater coverage amounts is so great it would hinder the goals
of the organization too much.
Create a risk management plan[edit]
Main article: Risk management plan
Select appropriate controls or countermeasures to measure each risk. Risk mitigation needs to be
approved by the appropriate level of management. For instance, a risk concerning the image of the
organization should have top management decision behind it whereas IT management would have the
authority to decide on computer virus risks.
The risk management plan should propose applicable and effective security controls for managing the
risks. For example, an observed high risk of computer viruses could be mitigated by acquiring and
implementing antivirus software. A good risk management plan should contain a schedule for control
implementation and responsible persons for those actions.
According to ISO/IEC 27001, the stage immediately after completion of the risk assessment phase
consists of preparing a Risk Treatment Plan, which should document the decisions about how each of the
identified risks should be handled. Mitigation of risks often means selection of security controls, which
should be documented in a Statement of Applicability, which identifies which particular control objectives
and controls from the standard have been selected, and why.

124. Implementation[edit]
Implementation follows all of the planned methods for mitigating the effect of the risks. Purchase insurance
policies for the risks that have been decided to be transferred to an insurer, avoid all risks that can be
avoided without sacrificing the entity's goals, reduce others, and retain the rest.
Review and evaluation of the plan[edit]
Initial risk management plans will never be perfect. Practice, experience, and actual loss results will
necessitate changes in the plan and contribute information to allow possible different decisions to be made
in dealing with the risks being faced.
Risk analysis results and management plans should be updated periodically. There are two primary
reasons for this:
1. to evaluate whether the previously selected security controls are still applicable and effective
2. to evaluate the possible risk level changes in the business environment. For example, information
risks are a good example of rapidly changing business environment.
Limitations[edit]
Prioritizing the risk management processes too highly could keep an organization from ever completing a
project or even getting started. This is especially true if other work is suspended until the risk management
process is considered complete.
It is also important to keep in mind the distinction between risk and uncertainty. Risk can be measured by
impacts x probability.
If risks are improperly assessed and prioritized, time can be wasted in dealing with risk of losses that are
not likely to occur. Spending too much time assessing and managing unlikely risks can divert resources
that could be used more profitably. Unlikely events do occur but if the risk is unlikely enough to occur it
may be better to simply retain the risk and deal with the result if the loss does in fact occur. Qualitative risk
assessment is subjective and lacks consistency. The primary justification for a formal risk assessment
process is legal and bureaucratic.
Areas of risk management[edit]
As applied to corporate finance, risk management is the technique for measuring, monitoring and
controlling the financial or operational riskon a firm's balance sheet. See value at risk.
The Basel II framework breaks risks into market risk (price risk), credit risk and operational risk and also
specifies methods for calculatingcapital requirements for each of these components.
Enterprise risk management[edit]
Main article: Enterprise Risk Management
In enterprise risk management, a risk is defined as a possible event or circumstance that can have
negative influences on the enterprise in question. Its impact can be on the very existence, the resources
(human and capital), the products and services, or the customers of the enterprise, as well as external
impacts on society, markets, or the environment. In a financial institution, enterprise risk management is

125. normally thought of as the combination of credit risk, interest rate risk or asset liability management,
liquidity risk, market risk, and operational risk.
In the more general case, every probable risk can have a pre-formulated plan to deal with its possible
consequences (to ensure contingencyif the risk becomes a liability).
From the information above and the average cost per employee over time, or cost accrual ratio, a project
manager can estimate:
 the cost associated with the risk if it arises, estimated by multiplying employee costs per unit time by
the estimated time lost (cost impact, C where C = cost accrual ratio * S).
 the probable increase in time associated with a risk (schedule variance due to risk, Rs where Rs = P *
S):
 Sorting on this value puts the highest risks to the schedule first. This is intended to cause the
greatest risks to the project to be attempted first so that risk is minimized as quickly as possible.
 This is slightly misleading as schedule variances with a large P and small S and vice versa
are not equivalent. (The risk of the RMSTitanic sinking vs. the passengers' meals being served at
slightly the wrong time).
 the probable increase in cost associated with a risk (cost variance due to risk, Rc where Rc = P*C =
P*CAR*S = P*S*CAR)
 sorting on this value puts the highest risks to the budget first.
 see concerns about schedule variance as this is a function of it, as illustrated in the equation
above.
Risk in a project or process can be due either to Special Cause Variation or Common Cause Variation and
requires appropriate treatment. That is to re-iterate the concern about extremal cases not being equivalent
in the list immediately above.
Risk management activities as applied to project management[edit]
In project management, risk management includes the following activities:
 Planning how risk will be managed in the particular project. Plans should include risk management
tasks, responsibilities, activities and budget.
 Assigning a risk officer – a team member other than a project manager who is responsible for
foreseeing potential project problems. Typical characteristic of risk officer is a healthy skepticism.
 Maintaining live project risk database. Each risk should have the following attributes: opening date,
title, short description, probability and importance. Optionally a risk may have an assigned person
responsible for its resolution and a date by which the risk must be resolved.
 Creating anonymous risk reporting channel. Each team member should have the possibility to report
risks that he/she foresees in the project.
 Preparing mitigation plans for risks that are chosen to be mitigated. The purpose of the mitigation plan
is to describe how this particular risk will be handled – what, when, by whom and how will it be done to
avoid it or minimize consequences if it becomes a liability.

126.  Summarizing planned and faced risks, effectiveness of mitigation activities, and effort spent for the risk
management.
Risk management for megaprojects[edit]
Megaprojects (sometimes also called "major programs") are extremely large-scale investment projects,
typically costing more than US$1 billion per project. Megaprojects include bridges, tunnels, highways,
railways, airports, seaports, power plants, dams, wastewater projects, coastal flood protection schemes, oil
and natural gas extraction projects, public buildings, information technology systems, aerospace projects,
and defence systems. Megaprojects have been shown to be particularly risky in terms of finance, safety,
and social and environmental impacts. Risk management is therefore particularly pertinent for
megaprojects and special methods and special education have been developed for such risk
management.[12]
Risk management regarding natural disasters[edit]
It is important to assess risk in regard to natural disasters like floods, earthquakes, and so on. Outcomes
of natural disaster risk assessment are valuable when considering future repair costs, business
interruption losses and other downtime, effects on the environment, insurance costs, and the proposed
costs of reducing the risk.[13]
There are regular conferences in Davos to deal with integral risk
management.
Risk management of information technology[edit]
Main article: IT risk management
Information technology is increasingly pervasive in modern life in every sector.[14][15][16]
IT risk is a risk related to information technology. This is a relatively new term due to an increasing
awareness that information security is simply one facet of a multitude of risks that are relevant to IT and
the real world processes it supports.
A number of methodologies have been developed to deal with this kind of risk.
ISACA's Risk IT framework ties IT risk to enterprise risk management.
Risk management techniques in petroleum and natural gas[edit]
For the offshore oil and gas industry, operational risk management is regulated by the safety case regime
in many countries. Hazard identification and risk assessment tools and techniques are described in the
international standard ISO 17776:2000, and organisations such as the IADC (International Association of
Drilling Contractors) publish guidelines for HSE Case development which are based on the ISO standard.
Further, diagrammatic representations of hazardous events are often expected by governmental regulators
as part of risk management in safety case submissions; these are known as bow-tie diagrams. The
technique is also used by organisations and regulators in mining, aviation, health, defence, industrial and
finance.[17]
Risk management as applied to the pharmaceutical sector[edit]
The principles and tools for quality risk management are increasingly being applied to different aspects of
pharmaceutical quality systems. These aspects include development, manufacturing, distribution,
inspection, and submission/review processes throughout the lifecycle of drug substances, drug products,
biological and biotechnological products (including the use of raw materials, solvents, excipients,

127. packaging and labeling materials in drug products, biological and biotechnological products). Risk
management is also applied to the assessment of microbiological contamination in relation to
pharmaceutical products and cleanroom manufacturing environments.[18]
Positive Risk Management[edit]
Positive Risk Management is an approach that recognizes the importance of the human factor and of
individual differences in propensity for risk taking. It draws from the work of a number of academics and
professionals who have expressed concerns about scientific rigor of the wider risk management
debate,[19]
or who have made a contribution emphasizing the human dimension of risk.[20][21]
Firstly, it recognizes that any object or situation can be rendered hazardous by the involvement of
someone with an inappropriate disposition towards risk; whether too risk taking or too risk averse.
Secondly, it recognizes that risk is an inevitable and ever present element throughout life: from conception
through to the point at the end of life when we finally lose our personal battle with life threatening risk.
Thirdly, it recognizes that every individual has a particular orientation towards risk; while at one extreme
people may by nature be timid, anxious and fearful, others will be adventurous, impulsive and almost
oblivious to danger. These differences are evident in the way we drive our cars, in our diets, in our
relationships, in our careers.
Finally, Positive Risk Management recognizes that risk taking is essential to all enterprise, creativity,
heroism, education, scientific advance – in fact to any activity and all the initiatives that have contributed to
our evolutionary success and civilization. It is worth noting how many enjoyable activities involve fear and
willingly embrace risk taking.
Within the entire Risk Management literature (and this section of Wikipedia) you will find little or no
reference to the human part of the risk equation other than what might be implied by the term 'compliant'.
This illustrates the narrow focus that is a hall mark of much current risk management practice. This
situation arises from the basic premises of traditional risk management and the practices associated with
health and safety within the working environment. There is a basic logic to the idea that any accident must
reflect some kind of oversight or situational predisposition that, if identified, can be rectified. But, largely
due to an almost institutionalised neglect of the human factor, this situationally focused paradigm has
grown tendrils that reach into every corner of modern life and into situations where the unintended
negative consequences threaten to outweigh the benefits.
Positive Risk Management views both risk taking and risk aversion as complementary and of equal value
and importance within the appropriate context. As such, it is seen as complementary to the traditional risk
management paradigm. It introduces a much needed balance to risk management practices and puts
greater onus on management skills and decision making. It is the dynamic approach of the football
manager who appreciates the offensive and defensive talents within the available pool of players. Every
organisation has roles better suited to risk takers and roles better suited to the risk averse. The task of
management is to ensure that the right people are placed in each job.
Positive Risk Management relies on the ability to identify individual differences in propensity for risk taking.
The science in this area has been developing rapidly over the past decade within the domain of personality
assessment. Once an area of almost tribal allegiance to different schools of thought, today there is wide
spread consensus about the structure of personality assessment and its status within the framework of the

128. cross disciplinary progress being made in our understanding of Human Nature. The Five Factor Model
(FFM)[22]
of personality has been shown to have relevance across many different cultures, to remain
consistent over adult working life and to be significantly heritable. Within this framework there are many
strands which have a clear relationship to risk tolerance and risk taking. For example, Eysenck (1973)
reports that personality influences whether we focus on what might go wrong or on potential
benefits;[23]
Nicholson et al. (2005) report that higher extroversion is related to greater risk
tolerance;[24]
McCrae and Costa (1997) link personality to tolerance of uncertainty, innovation and
willingness to think outside the box;[25]
Kowert, 1997) links personality to adventurousness, imagination,
the search for new experiences and actively seeking out risk.[26]
Building from these foundations of well
validated assessment practices, more specialized assessments have been developed, including
assessment of Risk Type.[27]
Criticisms[edit]
However, researchers at the University of Oxford and King's College London found that the notion of
complementarity may be a concept that does not work in practice. In a four-year organizational study of
risk management in a leading healthcare organization, Fischer & Ferlie ( 2013) found major contradictions
between rules-based risk management required by managers, and ethics-based self-regulation favoured
by staff and clients. This produced tensions that led neither to complementarity nor to hybrid forms, but
produced instead a heated and intractable conflict which escalated, resulting in crisis and organizational
collapse.[28]
The graveyard of former greats is littered with examples where the balance of risk went seriously awry; the
ENRON and RBS stories have become iconic references in the pantheon of corporate governance and
corporate mortality. Eastman Kodak might be a nominee for the opposite pole – the corporately risk
averse.
Risk management and business continuity[edit]
Risk management is simply a practice of systematically selecting cost-effective approaches for minimising
the effect of threat realization to the organization. All risks can never be fully avoided or mitigated simply
because of financial and practical limitations. Therefore all organizations have to accept some level of
residual risks.
Whereas risk management tends to be preemptive, business continuity planning (BCP) was invented to
deal with the consequences of realised residual risks. The necessity to have BCP in place arises because
even very unlikely events will occur if given enough time. Risk management and BCP are often mistakenly
seen as rivals or overlapping practices. In fact these processes are so tightly tied together that such
separation seems artificial. For example, the risk management process creates important inputs for the
BCP (assets, impact assessments, cost estimates etc.). Risk management also proposes applicable
controls for the observed risks. Therefore, risk management covers several areas that are vital for the BCP
process. However, the BCP process goes beyond risk management's preemptive approach and assumes
that the disaster will happen at some point.
Risk communication[edit]
Risk communication is a complex cross-disciplinary academic field. Problems for risk communicators
involve how to reach the intended audience, to make the risk comprehensible and relatable to other risks,

129. how to pay appropriate respect to the audience's values related to the risk, how to predict the audience's
response to the communication, etc. A main goal of risk communication is to improve collective and
individual decision making. Risk communication is somewhat related to crisis communication.
Seven cardinal rules for the practice of risk communication[edit]
(as expressed by the U.S. Environmental Protection Agency and several of the field's founders[29]
)
 Accept and involve the public/other consumers as legitimate partners (e.g. stakeholders).
 Plan carefully and evaluate your efforts with a focus on your strengths, weaknesses, opportunities, and
threats (SWOT).
 Listen to the stakeholders specific concerns.
 Be honest, frank, and open.
 Coordinate and collaborate with other credible sources.
 Meet the needs of the media.
 Speak clearly and with compassion.
Six Steps to Risk Management
Five steps to risk assessment
This is not the only way to do a risk assessment, there are other methods that work well, particularly for more
complex risks and circumstances. However, we believe this method is the most straightforward for most
organisations.
How to assess the risks in your workplace
Follow the five steps in our leaflet: Five steps to risk assessment .
1. Identify the hazards
2. Decide who might be harmed and how
3. Evaluate the risks and decide on precaution
4. Record your findings and implement them
5. Review your assessment and update if necessary
Don‘t overcomplicate the process. In many organisations, the risks are well known and the necessary control
measures are easy to apply. You probably already know whether, for example, you have employees who move
heavy loads and so could harm their backs, or where people are most likely to slip or trip. If so, check that you have
taken reasonable precautions to avoid injury.
If you run a small organisation and you are confident you understand what‘s involved, you can do the assessment
yourself. You don‘t have to be a health and safety expert.
Download the Risk Assessment and Policy Template . This template brings together your risk assessment, health and
safety policy, and record of health and safety arrangements into one document to help you get started and save time.
If you already have a health and safety policy, you may choose to simply complete the risk assessment part of the

130. template. We also have a number of example risk assessments to show you what a risk assessment might look like.
Choose the example closest to your own business and use it as a guide for completing the template, adapting it to
meet the needs of your own business.
If you work in a larger organisation, you could ask a health and safety adviser to help you. If you are not confident,
get help from someone who is competent. In all cases, you should make sure that you involve your staff or their
representatives in the process. They will have useful information about how the work is done that will make your
assessment of the risk more thorough and effective. But remember, you are responsible for seeing that the
assessment is carried out properly.
When thinking about your risk assessment, remember:
 a hazard is anything that may cause harm, such as chemicals, electricity, working from ladders, an open drawer, etc;
and
 the risk is the chance, high or low, that somebody could be harmed by these and other hazards, together with an
indication of how serious the harm could be.
Step 1: Identify the hazards
Step 1: Identify the hazards
First you need to work out how people could be harmed. When you work in a place everyday it is easy to overlook
some hazards, so here are some tips to help you identify the ones that matter:
 Walk around your workplace and look at what could reasonably be expected to cause harm.
 Ask your employees or their representatives what they think. They may have noticed things that are not immediately
obvious to you. For information on how you can do this please visit our worker involvement pages.
 Visit the HSE website. HSE publishes practical guidance on where hazards occur and how to control them. There is
much information on the hazards that might affect your business.
 If you are a member of a trade association, contact them. Many produce very helpful guidance.
 Check manufacturers’ instructions or data sheets for chemicals and equipment as they can be very helpful in spelling
out the hazards and putting them in their true perspective.
 Have a look back at your accident and ill-health records – these often help to identify the less obvious hazards.
 Remember to think about long-term hazards to health (eg high levels of noise or exposure to harmful substances)
as well as safety hazards.
Step 2: Decide who might be harmed
and how
For each hazard you need to be clear about who might be harmed; it will help you identify the best way of managing
the risk. That doesn‘t mean listing everyone by name, but rather identifying groups of people (eg ‗people working in
the storeroom‘ or ‗passers-by‘).
Remember:

131.  some workers have particular requirements, eg new and young workers ,migrant workers , new or expectant
mothers and people with disabilities may be at particular risk. Extra thought will be needed for some hazards;
 cleaners, visitors, contractors, maintenance workers etc, who may not be in the workplace all the time;
 members of the public, if they could be hurt by your activities;
 if you share your workplace, you will need to think about how your work affects others present, as well as how their
work affects your staff – talk to them; and
 ask your staff if they can think of anyone you may have missed.
In each case, identify how they might be harmed, i.e. what type of injury or ill health might occur. For example, ‗shelf
stackers may suffer back injury from repeated lifting of boxes‘.
Step 3: Evaluate the risks and decide on
precautions
Having spotted the hazards, you then have to decide what to do about them. The law requires you to do everything
‗reasonably practicable‘ to protect people from harm. You can work this out for yourself, but the easiest way is to
compare what you are doing with good practice.
First, look at what you‘re already doing, think about what controls you have in place and how the work is organised.
Then compare this with the good practice and see if there‘s more you should be doing to bring yourself up to
standard. In asking yourself this, consider:
 Can I get rid of the hazard altogether?
 If not, how can I control the risks so that harm is unlikely?
When controlling risks, apply the principles below, if possible in the following order:
 try a less risky option (eg switch to using a less hazardous chemical);
 prevent access to the hazard (eg by guarding);
 organise work to reduce exposure to the hazard (eg put barriers between pedestrians and traffic);
 issue personal protective equipment (eg clothing, footwear, goggles etc); and
 provide welfare facilities (eg first aid and washing facilities for removal of contamination).
Improving health and safety need not cost a lot. For instance, placing a mirror on a dangerous blind corner to help
prevent vehicle accidents is a low-cost precaution considering the risks. Failure to take simple precautions can cost
you a lot more if an accident does happen.
Involve staff, so that you can be sure that what you propose to do will work in practice and won‘t introduce any new
hazards.
Step 4: Record your findings and
implement them

132. Putting the results of your risk assessment into practice will make a difference when looking after people and your
business.
Writing down the results of your risk assessment, and sharing them with your staff, encourages you to do this. If you
have fewer than five employees you do not have to write anything down.
When writing down your results, keep it simple, for example ‗Tripping over rubbish: bins provided, staff instructed,
weekly housekeeping checks‘, or ‗Fume from welding: local exhaust ventilation used and regularly checked‘.
We do not expect a risk assessment to be perfect, but it must be suitable and sufficient. As illustrated by our example
risk assessments, you need to be able to show that:
 a proper check was made;
 you asked who might be affected;
 you dealt with all the obvious significant hazards, taking into account the number of people who could be involved;
 the precautions are reasonable, and the remaining risk is low; and
 you involved your staff or their representatives in the process.
Download the Risk Assessment and Policy Template . This template brings together your risk assessment, health and
safety policy and record of health and safety arrangements into one document to help get you started and save you
time. If you already have a health and safety policy, you may choose to simply complete the risk assessment part of
the template. Use the example risk assessments as a guide for completing the template, adapting it for your own
workplace.
If, like many businesses, you find that there are quite a lot of improvements that you could make, big and small, don‘t
try to do everything at once. Make a plan of action to deal with the most important things first. Health and safety
inspectors acknowledge the efforts of businesses that are clearly trying to make improvements.
A good plan of action often includes a mixture of different things such as:
 a few cheap or easy improvements that can be done quickly, perhaps as a temporary solution until more reliable
controls are in place;
 long-term solutions to those risks most likely to cause accidents or ill health;
 long-term solutions to those risks with the worst potential consequences;
 arrangements for training employees on the main risks that remain and how they are to be controlled;
 regular checks to make sure that the control measures stay in place; and
 clear responsibilities – who will lead on what action and by when.
Remember, prioritise and tackle the most important things first. As you complete each action, tick it off your plan.
Step 5: Review your risk assessment
and update if necessary
Few workplaces stay the same. Sooner or later, you will bring in new equipment, substances and procedures that
could lead to new hazards. It makes sense therefore, to review what you are doing on an ongoing basis.

133. Look at your risk assessment and think about whether there have been any changes? Are there improvements you
still need to make? Have your workers spotted a problem? Have you learnt anything from accidents or near misses?
Make sure your risk assessment stays up to date.
When you are running a business it‘s all too easy to forget about reviewing your risk assessment – until something
has gone wrong and it‘s too late. During the year, if there is a significant change, don‘t wait: check your risk
assessment and where necessary, amend it. If possible, it is best to think about the risk assessment when you‘re
planning your change – that way you leave yourself more flexibility.
In summary, the five steps in the risk management process are:
1. Identify Potential Risks:
What can possibly go wrong?
2. Measure Frequency and Severity:
What is the likelihood of the risk occurring and if so what is the impact?
3. Examine Alternative Solutions:
What are the potential ways to treat the risk and of these, which strikes the best balance between
being affordable and effective?
4. Decide Which Solution to Use and Implement it:
Find the needed resources, get the necessary buy-in and pull the trigger.
5. Monitor Results:
Is your plan working? Are changes or updates required?
5 Elements of an Effective Decision Making Process

134. Photo by steakpinball
“Stay committed to your decisions, but stay flexible in your approach.” – Tony Robbins
You can make more effective decisions when you know what the key elements are. When you make
important decisions, there are a few key factors to keep in mind.
For example, you should rationalize and understand the problem itself. You need to know the problem
you‘re solving. You should also set boundary conditions for the solution. Success is often a spectrum so
you should set boundaries so that you don‘t limit yourself to something that‘s impractical or something
that‘s impossible.
Your decisions should be action-oriented. If you can‘t act on your decisions, then it‘s a waste of time.
You should also be able to respond to feedback once you implement your decision. What looks good on
paper or sounds good, may not work when you actually test it.
In The Essential Drucker: The Best of Sixty Years of Peter Drucker‘s Essential Writings on Management
(Collins Business Essentials) , Peter Drucker outlines 5 elements of an effective decision making process.
5 Elements of an Effective Decision Making Process
According to Drucker these are the 5 elements of an effective decision making process:
 Element 1. Problem rationalization.
 Element 2. Boundary conditions.
 Element 3. The right thing to do.
 Element 4. Action.
 Element 5. Feedback.
Here‘s a quick explanation of the 5 elements of effective decision making:
 Element 1. Problem rationalization. The clear rationalization that the problem was generic and
could only be solved through a decision that establishes a rule or a principle. Know the problem your
solving. See Opinions Over Facts for Effective Decision Making, 4 Types of Problems, and What is
Relevant Decision Making Criteria.
 Element 2. Boundary conditions. The definition of the specifications that the answer to the
problem has to satisfy, that is, of the ―boundary conditions.‖ Know your range of options that will still
count as success. See Boundary Conditions for Effective Decisions and

135.  Element 3. The Right Thing to Do. Before you decide what‘s feasible, first figure out what the
right thing to do is. See First Figure Out What the Right Thing to Do Is.
 Element 4. Action. Turn decisions into action. See Action Commitments.
 Eelement 5. Feedback. Get feedback on what‘s working and what‘s not. See Test Your
Decisions Against Reality.
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Decision-making is one of the most important business skills, but few people have the
training they need to make good decisions consistently.
How do you decide what needs to be done? Your ability to make an effective decisions in a
timely manner can be critical to your success. The process below will help you make the
best possible decision at any given time, by providing a checklist that you can use to
structure your decision making process.
This checklist does not address group decision making. If you need to make complex or
critical decisions with large groups or there are diverse opinions and challenging dynamics
bring in a professional facilitator to manage the process and support the leadership role.

136. 1. Define the situation that needs to be addressed. Take the time to identify the
situation clearly and then organize the issues that need to be addressed. Is this a surface
issue or are there deeper issues that need to be considered? Can you break down the
decision into smaller parts? Do not let yourself get so absorbed in the urgency of making a
decision that you don't take the time to see the forest through the trees.
2. Take a fresh perspective. Take a step back and look with new eyes. Make your
decisions based on looking to the future and let the past inform you, not rule you. A good
leader learns from their past experiences, both positive and negative. Involving others will
provide new data points and perspectives. But if you do decide to involve others, be clear
about their role and level of involvement in the decision making process.
3. Consider your options. Generate/brainstorm all the possible alternatives. Think of at
least 5 different ways that could solve this problem. Be creative and think out of the box for
alternative choices. Do not eliminate options because they sound absurd, an idea that
sounds off the wall may be the best solution.
4. Analyze each option. For each choice consider the following
 What are the positives?
 What are the negatives?
 Who/what does it impact?
 Is it achievable?
 How does it fit in with your long term goals?
5. Get unstuck. Some people get stuck because nothing seems perfect or acceptable. From
this evaluation what is the best choice you can make today. Realize that everything is a
compromise. No decision is ever going to be without its down side.
6. Make the decision. Based on the analysis that you have just completed choose the best
possible option that is available to you today.
7. Define an action plan. Your action plan needs to include the steps you need to take,
the resources and people needed to implement the decision, a timeframe for each action,
and an ongoing schedule for evaluation. Decide now how you will know that you have been
successful. What outcome do you want, be specific and set measurable goals. Determine
when you need to review your decision and if necessary make mid course corrections.
8. Communicate your decision. Communicate your decision and your expected outcomes
to everyone that is impacted by the decision. Set clear expectations for yourself and others.
Your decision needs to be clearly articulated, convincing and succinct.
9. Implementation. Focus on implementing your decision. Once you begin to implement,
be aware that anxiety due to change is often part of the process. This does not mean that
you have made the wrong decision, it is just that change is hard.

137. 10. Evaluation. Learn from everything you do. Build awareness of what's working and what
isn't and share your learning. If new information is discovered that alters your plan go back
to step no 3 armed with the new knowledge and revise your plan.
Approaches:
Rational analysis or “muddling through”?
Early studies of policy making highlighted two extreme approaches to
decisions: a rational, analytical approach which leads inexorably to the
―right‖ solution, and a less organised approach, often called ―muddling
through‖, in which objectives are never specified, remedial action is taken
when it becomes essential, and more important decisions are dependent on
the power struggles between interest groups. While this second model can
be seen at work in many of today‘s cities, it is unlikely to be effective in
tackling the challenges of unsustainability which we face. Equally an
extreme reliance on analysis is inappropriate in a situation in which priorities
and preferences differ and outcomes are uncertain. We have therefore
looked for practical approaches between these extremes.
Which approaches have been used?
Cities differ in the ways in which they make decisions, but their approaches
have often developed over time, rather than being formally prescribed. In
our surveys we suggested three broad approaches: vision-led; plan-led; and
consensus-led, and asked our cities to indicate which one or two of these
best characterised their approach.
Vision-led approaches usually involve an individual (typically the mayor or
committee leader) having a clear view of the future form of city they want,
and the policy instruments needed to achieve that vision. The focus then is
on implementing them as effectively as possible. Relatively few cities have a
visionary leader in this sense, but there is evidence that in the past those
which do have made the most progress.
Plan-led approaches involve specifying objectives and problems, sometimes
in the context of a vision statement, and adopting an ordered procedure
identifying possible solutions to those problems, and selecting those which
perform best. In the true Objectives-led Approach the city first specifies its
broad objectives (Section 7). Problems are highlighted as failure of current
or predicted future conditions to meet the objectives. This list of problems
can then be discussed with stakeholders to see whether they have different
perceptions of the problems. If they do, objectives are redefined
accordingly. The main drawback with this approach is that many politicians
and members of the public are less familiar with the abstract concept of
objectives (such as improving accessibility) than they are with concrete
problems (such as the nearest job centre being 50 minutes away). Two
variants are the Target-based Approach (Section 8) and the Problem-
oriented Approach (Section 8).
Consensus-led approaches involve discussions between the stakeholders to
try to reach agreement on each of the stages in the plan-led approach
outlined in Section 6 . Ideally agreement is needed on the objectives to be
pursued and their relative importance; the problems to be tackled and their
The „muddling through‟ model
 Objectives implicit, not explicit
 Remedial action incremental
 Frequent policy decisions
 Several centres of power and
influence
 Attempts to obtain consensus
 Satisficing rather than seeking
the best solutions
Source: Mackie and Nellthorp (2003)

138. seriousness; the policy instruments to be considered and their
appropriateness; the selection of policy instruments which best meet the
objective; and the way in which they should be combined into an overall
strategy, and implemented. In practice much consensus-building focuses on
the choice of policy instruments, but it can be considerably enhanced by
considering objectives and problems as well. Section 5 discusses
participation for consensus building more fully.
Which approaches do cities adopt?
Few of the cities in the PROSPECTS survey considered that they adopted any
one of these approaches alone. The most common approach is a mix of
plan-led and consensus-led decision-making. The least common were those
which focus primarily on visions or plans.
Which approach is best?
There is no simple answer to this question. There are some useful
references on decision-making which consider the alternatives, but no clear
agreement between them. However, there are some obvious pitfalls. A
vision-led approach is critically dependent on the individual with the vision.
If he or she leaves office, it may prove very difficult to avoid completely
abandoning the strategy. A plan-led approach can become unduly
dependent on professional planners, who may lose sight of the needs of
politicians and stakeholders. A consensus-led approach may, unless
agreement can be quickly reached and sustained, lead to delay and inaction.
Not surprisingly, therefore, most cities adopt a mixed approach. The
diagram shows an example from UK practice of a cyclical approach, in which
vision, objectives and problem specification are determined through
consultations, used to develop the strategy, and reviewed in the light of
experience with implementation.
It is best therefore to choose the combination of approaches which best
suits a city‘s circumstances but, having done so, maintain it, and hence the
future development of the strategy.
Source: DETR (2000)
Decision making

139. Decision making can be regarded as the cognitive process resulting in the selection of a course of action
among several alternative scenarios. Every decision making process produces a final choice.
[1]
The output can
be an action or an opinion of choice.
Overview[edit]
Human performance in decision terms has been the subject of active research from several perspectives.
 From a psychological perspective, it is necessary to examine individual decisions in the context of a
set of needs, preferences an individual has and values they seek.
 From a cognitive perspective, the decision making process must be regarded as a continuous process
integrated in the interaction with the environment.
 From a normative perspective, the analysis of individual decisions is concerned with the logic of
decision making and rationality and the invariant choice it leads to.[2]
Yet, at another level, it might be regarded as a problem solving activity which is terminated when a satisfactory
solution is reached. Therefore, decision making is a reasoning or emotional process which can
be rational or irrational, can be based on explicit assumptions ortacit assumptions. Decisions are likely to be
involuntary and following the decision, we spend time analyzing the cost and benefits of that decision.[3]
This is
known as "Rational Choice Theory," which encompasses the notion that we maximize benefits and minimize
the costs.[4]
One must keep in mind that most decisions are made unconsciously. Jim Nightingale, Author of Think Smart-
Act Smart, states that "we simply decide without thinking much about the decision process." In a controlled
environment, such as a classroom, instructors encourage students to weigh pros and cons before making a
decision. However in the real world, most of our decisions are made unconsciously in our mind because
frankly, it would take too much time to sit down and list the pros and cons of each decision we must make on a
daily basis.[citation needed]
Logical decision making is an important part of all science-based professions, where specialists apply
their knowledge in a given area to making informed decisions. For example, medical decision making often
involves making a diagnosis and selecting an appropriate treatment. Some[which?]
research using naturalistic
methods shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities,
experts use intuitive decision making rather than structured approaches, following a recognition primed
decision approach to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory
course of action without weighing alternatives. Recent robust decision efforts have formally
integrated uncertainty into the decision making process. However, decision analysis, recognized and included
uncertainties with a structured and rationally justifiable method of decision making since its conception in 1964.
A major part of decision making involves the analysis of a finite set of alternatives described in terms of
evaluative criteria. ―Information Overload‖ is when there is a substantial gap between the capacity of
information and the ways we adapt. The overload of information can be related to problems processing and
tasking, which impacts decision making.[5]
These criteria may be benefit or cost in nature. Then the problem
might be to rank these alternatives in terms of how attractive they are to the decision maker(s) when all the
criteria are considered simultaneously. Another goal might be to just find the best alternative or to determine
the relative total priority of each alternative (for instance, if alternatives represent projects competing for funds)
when all the criteria are considered simultaneously. Solving such problems is the focus of multi-criteria decision

140. analysis (MCDA) also known as multi-criteria decision making (MCDM). This area of decision making, although
it is very old and has attracted the interest of many researchers and practitioners, is still highly debated as there
are many MCDA / MCDM methods which may yield very different results when they are applied on exactly the
same data.[6]
This leads to the formulation of a decision making paradox.
Rational and irrational decision making[edit]
In economics, it is thought that if humans are rational and free to make their own decisions, then they would
behave according to therational choice theory.[7]
This theory states that people make decisions by determining
the likelihood of a potential outcome, the value of the outcome and then multiplying the two. For example, with
a 50% chance of winning $20 or a 10% chance of winning $10, people more likely to choose the first option.[7]
However, in reality, there are some factors that affect decision making abilities and cause people to make
irrational decisions, one of them being availability bias. Availability bias is the tendency for some items that are
more readily available in memory to be judged as more frequently occurring.[7]
For example, someone who
watches a lot of movies about terrorist attacks may think the frequency of terrorism to be higher than it actually
is.
Information overload[edit]
This section does not cite any references or sources. Please help improve this
section byadding citations to reliable sources. Unsourced material may be
challenged and removed. (April 2013)
Information overload is "a gap between the volume of information and the tools we need to assimilate it."[8]
It is
proven in some studies[which?]
that the more information overload, the worse the quality of decisions made.
There are 5 factors concerning information overload:
 Personal Information Factors: personal qualifications, experiences, attitudes etc.
 Information Characteristics: information quality, quantity and frequency
 Tasks and Process: standardized procedures or methods
 Organizational Design: organizations' cooperation, processing capacity and organization relationship
 Information Technology: IT management, and general technology
Hall, Ariss & Todorov with an assistant Rashar phinyor (2007) described an illusion of knowledge, meaning that
as individuals encounter too much knowledge it actually interferes with their ability to make rational decisions.[9]
Problem analysis vs decision making[edit]
It is important to differentiate between problem analysis and decision making. The concepts are completely
separate from one another. Traditionally it is argued that problem analysis must be done first, so that the
information gathered in that process may be used towards decision making.[10]
Problem analysis
 Analyze performance, what should the results be against what they actually are
 Problems are merely deviations from performance standards

141.  Problem must be precisely identified and described
 Problems are caused by a change from a distinctive feature
 Something can always be used to distinguish between what has and hasn't been affected by a cause
 Causes to problems can be deducted from relevant changes found in analyzing the problem
 Most likely cause to a problem is the one that exactly explains all the facts
Decision making
 Objectives must first be established
 Objectives must be classified and placed in order of importance
 Alternative actions must be developed
 The alternative must be evaluated against all the objectives
 The alternative that is able to achieve all the objectives is the tentative decision
 The tentative decision is evaluated for more possible consequences
 The decisive actions are taken, and additional actions are taken to prevent any adverse consequences
from becoming problems and starting both systems (problem analysis and decision making) all over again
 There are steps that are generally followed that result in a decision model that can be used to
determine an optimal production plan.[11]
 In a situation featuring conflict, role-playing is helpful for predicting decisions to be made by involved
parties.[12]
Decision planning
Making a decision without planning is fairly common, but does not often end well. Planning allows for decisions
to be made comfortably and in a smart way. Planning makes decision making a lot more simple than it is.
Decision will get four benefits out of planning: 1. Planning give chance to the establishment of independent
goals. It is a conscious and directed series of choices. 2. Planning provides a standard of measurement. It is a
measurement of whether you are going towards or further away from your goal. 3. Planning converts values to
action. You think twice about the plan and decide what will help advance your plan best. 4. Planning allows for
limited resources to be committed in an orderly way. Always govern the use of what is limited to you. (e.g.
money, time, etc.)[13]
Analysis paralysis
Analysis paralysis is the state of over-analyzing (or over-thinking) a situation, or citing sources, so that a
decision or action is never taken, in effect paralyzing the outcome.
Everyday techniques[edit]
Decision making techniques can be separated into two broad categories: Group decision making techniques
and individual decision making techniques:
 Group decision making techniques
 Consensus decision-making tries to avoid "winners" and "losers". Consensus requires that a
majority approve a given course of action, but that the minority agree to go along with the course of
action. In other words, if the minority opposes the course of action, consensus requires that the
course of action be modified to remove objectionable features.

142.  Voting-based methods
 Range voting lets each member score one or more of the available options. The
option with the highest average is chosen. This method has experimentally been shown to
produce the lowest Bayesian regret among common voting methods, even when voters are
strategic.[citation needed]
 Majority requires support from more than 50% of the members of the group. Thus,
the bar for action is lower than with unanimity and a group of "losers" is implicit to this rule.[citation
needed]
 Plurality, where the largest block in a group decides, even if it falls short of a majority.
 Delphi method is structured communication technique for groups, originally developed for
collaborative forecasting but has also been used for policy making
 Dotmocracy is a facilitation method that relies on the use of special forms called Dotmocracy
Sheets to allow large groups to collectively brainstorm and recognize agreement on an unlimited
number of ideas they have authored.
 Individual decision making techniques
 Pros and cons: listing the advantages and disadvantages of each option, popularized
by Plato and Benjamin Franklin.[14][15]
Contrast the costs and benefits of all alternatives. Also called
Rational decision making.
 Simple prioritization: choosing the alternative with the highest probability-weighted utility for
each alternative (see Decision analysis)
 Satisficing: examining alternatives only until an acceptable one is found.
 Elimination by Aspects: choosing between alternatives using Mathematical
psychology[16]
Technique was introduced by Amos Tversky in 1972. It is a covert elimination process
that involves comparing all available alternatives by aspects. The decision-maker chooses an aspect;
any alternatives without that aspect are eliminated. The decision-maker repeats this process with as
many aspects as needed until there remains only one alternative[17]
 Preference Trees: In 1979 Amos Tversky and Shmuel Sattach updated the elimination by
aspects technique by presenting a more ordered and structured way of comparing the available
alternatives. This technique compared the alternatives by presenting the aspects in a decided and
sequential order. It became a more hierarchical system in which the aspects are ordered from general
to specific [18]
 Acquiesce to a person in authority or an "expert", just following orders
 Flipism: flipping a coin, cutting a deck of playing cards, and other random or coincidence
methods[19]
 Prayer, tarot cards, astrology, augurs, revelation, or other forms of divination

143.  Taking the most opposite action compared to the advice of mistrusted authorities (parents,
police officers, partners ...)
 Opportunity cost: calculating the opportunity cost of each options and decide the decision
 Bureaucratic: set up criteria for automated decisions
 Political: negotiate choices among interest groups
 Participative decision-making (PDM): a methodology in which a single decision maker opens
up the decision making process to a group for a collaborative effort in order to take advantage of
additional input.
 Use of a structured decision making method [20]
Individual decision making techniques can often be applied by a group as part of a group decision making
technique.
A need to use software for the decision making process is emerging for individuals and businesses. This is due
to increasing decision complexity, and increased requirements to consider additional stakeholders, categories,
elements, or factors that impact important decisions.
Decision making stages[edit]
Developed by B. Aubrey Fisher, there are four stages that should be involved in all group decision making.
These stages, or sometimes called phases, are important for the decision making process to begin
Orientation stage – This phase is where members meet for the first time and start to get to know each other.
Conflict stage – Once group members become familiar with each other, disputes, little fights and arguments
occur. Group members eventually work it out.
Emergence stage – The group begins to clear up vague opinions by talking about them.
Reinforcement stage – Members finally make a decision, while justifying themselves that it was the right
decision.
It is said that critical norms in a group improves the quality of decisions, while the majority of opinions (called
consensus norms) do not. This is due to collaboration between one another, and when group members get
used to, and familiar with, each other, they will tend to argue and create more of a dispute to agree upon one
decision. This does not mean that all group members fully agree — they may not want argue further just to be
liked by other group members or to "fit in".[21]
Decision making steps[edit]
Each step in the decision making process may include social, cognitive and cultural obstacles to successfully
negotiating dilemmas. It has been suggested that becoming more aware of these obstacles allows one to better
anticipate and overcome them.[22]
The Arkansas Program presents eight stages of moral decision making
based on the work of James Rest:

144. 1. Establishing community: creating and nurturing the relationships, norms, and procedures that will
influence how problems are understood and communicated. This stage takes place prior to and during
a moral dilemma
2. Perception: recognizing that a problem exists
3. Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind
those interpretations
4. Judgment: sifting through various possible actions or responses and determining which is more
justifiable
5. Motivation: examining the competing commitments which may distract from a more moral course of
action and then prioritizing and committing to moral values over other personal, institutional or social
values
6. Action: following through with action that supports the more justified decision. Integrity is supported by
the ability to overcome distractions and obstacles, developing implementing skills, and ego strength
7. Reflection in action
8. Reflection on action
Other decision making processes have also been proposed. One such process, proposed by Dr. Pam Brown
of Singleton Hospital inSwansea, Wales, breaks decision making down into seven steps:[23]
1. Outline your goal and outcome.
2. Gather data.
3. Develop alternatives (i.e., brainstorming)
4. List pros and cons of each alternative.
5. Make the decision.
6. Immediately take action to implement it.
7. Learn from and reflect on the decision.
Cognitive and personal biases[edit]
Biases can creep into our decision making processes. Many different people have made a decision about the
same question (e.g. "Should I have a doctor look at this troubling breast cancer symptom I've discovered?"
"Why did I ignore the evidence that the project was going over budget?") and then craft potential cognitive
interventions aimed at improving decision making outcomes.
Here is a list of commonly debated biases in judgment and decision making.
 Selective search for evidence (a.k.a. Confirmation bias in psychology) (Scott Plous, 1993) – People
tend to be willing to gather facts that support certain conclusions but disregard other facts that support
different conclusions. Individuals who are highly defensive in this manner show significantly greater left
prefrontal cortex activity as measured by EEG than do less defensive individuals.[24]
 Premature termination of search for evidence – People tend to accept the first alternative that looks
like it might work.
 Cognitive inertia – Unwillingness to change existing thought patterns in the face of new circumstances.
 Selective perception – We actively screen-out information that we do not think is important.
(See prejudice.) In one demonstration of this effect, discounting of arguments with which one disagrees
(by judging them as untrue or irrelevant) was decreased by selective activation of right prefrontal cortex.[25]

145.  Wishful thinking – a tendency to want to see things in a positive light, which can distort perception and
thinking.[26]
 Choice-supportive bias occurs when people distort their memories of chosen and rejected options to
make the chosen options seem more attractive.
 Recency – People tend to place more attention on more recent information and either ignore or forget
more distant information (seesemantic priming). The opposite effect in the first set of data or other
information is termed primacy effect.[27]
 Repetition bias – A willingness to believe what one has been told most often and by the greatest
number of different sources.
 Anchoring and adjustment – Decisions are unduly influenced by initial information that shapes our view
of subsequent information.
 Group think – peer pressure to conform to the opinions held by the group.
 Source credibility bias – A tendency to reject a person's statement on the basis of a bias against the
person, organization, or group to which the person belongs. People preferentially accept statement by
others that they like (see prejudice).
 Incremental decision making and escalating commitment – We look at a decision as a small step in a
process and this tends to perpetuate a series of similar decisions. This can be contrasted with zero-based
decision making (see slippery slope).
 Attribution asymmetry – People tend to attribute their own success to internal factors, including abilities
and talents, but explain their failures in terms of external factors such as bad luck. The reverse bias is
shown when people explain others' success or failure.
 Role fulfillment – A tendency to conform to others' decision-making expectations.
 Underestimating uncertainty and the illusion of control – People tend to underestimate future
uncertainty because of a tendency to believe they have more control over events than they really do.
 Framing bias is best avoided by using numeracy with absolute measures of efficacy.[28]
 Sunk-cost fallacy— is a specific type of framing effect that affects decision making. It involves an
individual making a decision about a current situation based on what they have previously invested in the
situation.[29]
A possible example to this would be an individual that is refraining from dropping a class that
that they are most likely to fail, due to the fact that they feel as though they have done so much work in the
course thus far.
 Prospect theory—involves the idea that when faced with a decision making event, an individual is
more likely to take on a risk when evaluating potential losses, and are more likely to avoid risks when
evaluating potential gains. This can influence one's decision making depending if the situation entails a
threat, or opportunity.[30]
Reference class forecasting was developed to eliminate or reduce cognitive biases in decision making.
Post-decision analysis[edit]
Evaluation and analysis of past decisions is complementary to decision making; see also mental
accounting and Postmortem documentation.

146. Cognitive styles[edit]
Influence of Myers-Briggs type[edit]
According to behavioralist Isabel Briggs Myers, a person's decision making process depends to a significant
degree on their cognitive style.[31]
Myers developed a set of four bi-polar dimensions, called the Myers-Briggs
Type Indicator (MBTI). The terminal points on these dimensions
are: thinking and feeling; extroversion and introversion; judgment and perception; and sensing and intuition.
She claimed that a person's decision making style correlates well with how they score on these four
dimensions. For example, someone who scored near the thinking, extroversion, sensing, and judgment ends of
the dimensions would tend to have a logical, analytical, objective, critical, and empirical decision making style.
However, some[who?]
psychologists say that the MBTI lacks reliability and validity and is poorly constructed.
Other studies suggest that these national or cross-cultural differences exist across entire societies. For
example, Maris Martinsons has found that American, Japanese and Chinese business leaders each exhibit a
distinctive national style of decision making.[32]
Optimizing vs. satisficing[edit]
Herbert A. Simon coined the phrase "bounded rationality" to express the idea that human decision making is
limited by available information, available time, and the information-processing ability of the mind. Simon also
defined two cognitive styles: maximizers try to make anoptimal decision, whereas satisficers simply try to find a
solution that is "good enough". Maximizers tend to take longer making decisions due to the need to maximize
performance across all variables and make tradeoffs carefully; they also tend to more often regret their
decisions (perhaps because they are more able than satisficers to recognise that a decision turned out to be
sub-optimal).[33]
Combinatorial vs. positional[edit]
Styles and methods of decision making were elaborated by the founder of Predispositioning Theory, Aron
Katsenelinboigen. In his analysis on styles and methods Katsenelinboigen referred to the game of chess,
saying that ―chess does disclose various methods of operation, notably the creation of predisposition—methods
which may be applicable to other, more complex systems.‖[34]
In his book Katsenelinboigen states that apart from the methods (reactive and selective) and sub-methods
(randomization, predispositioning, programming), there are two major styles – positional and combinational.
Both styles are utilized in the game of chess. According to Katsenelinboigen, the two styles reflect two basic
approaches to the uncertainty: deterministic (combinational style) and indeterministic (positional style).
Katsenelinboigen‘s definition of the two styles are the following.
This article contains embedded lists that may be poorly
defined, unverified orindiscriminate. Please help to clean it up to meet
Wikipedia's quality standards. Where appropriate, incorporate items into the main
body of the article. (February 2008)
The combinational style is characterized by
 a very narrow, clearly defined, primarily material goal, and
 a program that links the initial position with the final outcome.

147. In defining the combinational style in chess, Katsenelinboigen writes:
The combinational style features a clearly formulated limited objective, namely the capture of material (the main
constituent element of a chess position). The objective is implemented via a well-defined, and in some cases,
unique sequence of moves aimed at reaching the set goal. As a rule, this sequence leaves no options for the
opponent. Finding a combinational objective allows the player to focus all his energies on efficient execution,
that is, the player‘s analysis may be limited to the pieces directly partaking in the combination. This approach is
the crux of the combination and the combinational style of play.[34]
The positional style is distinguished by
 a positional goal and
 a formation of semi-complete linkages between the initial step and final outcome.
―Unlike the combinational player, the positional player is occupied, first and foremost, with the elaboration of the
position that will allow him to develop in the unknown future. In playing the positional style, the player must
evaluate relational and material parameters as independent variables. ... The positional style gives the player
the opportunity to develop a position until it becomes pregnant with a combination. However, the combination is
not the final goal of the positional player—it helps him to achieve the desirable, keeping in mind a
predisposition for the future development. The Pyrrhic victory is the best example of one‘s inability to think
positionally."[35]
The positional style serves to
 create a predisposition to the future development of the position;
 induce the environment in a certain way;
 absorb an unexpected outcome in one‘s favor;
 avoid the negative aspects of unexpected outcomes.
Katsenelinboigen writes:
"As the game progressed and defense became more sophisticated the combinational style of play declined. ...
The positional style of chess does not eliminate the combinational one with its attempt to see the entire
program of action in advance. The positional style merely prepares the transformation to a combination when
the latter becomes feasible.‖[36]
Neuroscience perspective[edit]
The anterior cingulate cortex (ACC), orbitofrontal cortex (and the overlapping ventromedial prefrontal cortex)
are brain regions involved in decision making processes. A recent neuroimaging study[37]
found distinctive
patterns of neural activation in these regions depending on whether decisions were made on the basis of
personal volition or following directions from someone else. Patients with damage to theventromedial prefrontal
cortex have difficulty making advantageous decisions.[38]
A recent study[39]
of a Two-alternative forced choice task involving Rhesus monkeys found that neurons in the
parietal cortex not only represent the formation of a decision but also signal the degree of certainty (or
"confidence") associated with the decision. Another recent study[40]
found that lesions to the ACC in
the macaque resulted in impaired decision making in the long run of reinforcement guided tasks suggesting
that the ACC may be involved in evaluating past reinforcement information and guiding future action.

148. Emotion appears to aid the decision making process: Decision making often occurs in the face
of uncertainty about whether one's choices will lead to benefit or harm (see also Risk). The somatic-marker
hypothesis is a neurobiological theory of how decisions are made in the face of uncertain outcome. This theory
holds that such decisions are aided by emotions, in the form of bodily states, that are elicited during the
deliberation of future consequences and that mark different options for behavior as being advantageous or
disadvantageous. This process involves an interplay between neural systems that elicit emotional/bodily states
and neural systems that map these emotional/bodily states.[41]
Although it is unclear whether the studies generalize to all processing, subconscious processes have been
implicated in the initiation of conscious volitional movements. See the Neuroscience of free will.
Levels of Decision Making in the Workplace
By Jane Weddle
Every day at work we are faced with decisions to be made. Leaders are faced with many issues when
making decisions and employee perception plays a big role in the outcome of those decisions.
How are your decisions made in your workplace? Workplace experts say that taking time to gather employee
input can be worth the effort. Evidence has shown that productivity increases with decisions that are made
with employee input. It has been my experience over the years that one key issue with decision making is
that others are often not aware of the level of decision making the leader chose to use or that the leader
isnt aware of what level of decision making they are gravitating towards when needing to make a decision. I
have been approached by workers at all levels with statements like:
"My manager asked me what I thought and then went a totally different direction"
"They just decided with out involving us"
"Leadership asked us to make the decision and instead of going with our recommendation they chose a
different alternative"
"They ask for our input and then they don't use it"
"The criteria that needed to be met in order for our decision to be accepted was not clear-so they moved
forward with their choice vs. redefining the criteria"
"My team always seems to show little or not buy in to my decisions"
"I empowered them to make the decision and then couldn't do it - so I decided"
I am sure you have heard similar statements in your workplace. It has been my experience in working with
teams that many times the leader has not clearly defined what level of decision making they are using or
have taken the time to share what level they are about to use for a particular decision and communicate it
to the team. It has also been my experience that leaders often dont take time to evaluate decisions to get
an idea what % of decisions are being made and at what level. Another key factor is making sure you and
your team have the skills and knowledge to contribute to effective decision making efforts.
The Five Levels of Decision Making
You will see that with each level the amount of time and the level of involvement increases.
Level One: Leader makes the decision alone & announces.

149. This level takes little time and no involvement. This is used especially in emergency situations where
immediate action is critical. Input is not helpful, quick action and immediate compliance is what counts.
Unfortunately, some leaders use this level when there isnt an emergency and more time could be taken to
involve others and to use another Decision Making Level.
Level Two: Leader gathers input from individuals and decides.
The leader seeks input, usually to cover blind spots and enhance their depth of understanding around the
issue to be decided. Key individuals hold important information and not consulting them would be foolish.
Level Three: Leader gathers input from team and decides.
Leader holds a team meeting and solicits input from the teamlistens to the team's ideas and then takes that
information and decides.
Level Four: Consensus building.
At this level the leader is part of the team and he/she is just one vote/voice among many. The group
processes all the decisions involved, compromises positions until everyone is in agreement. Consensus is
reached when everyone feels at least 7% comfortable with the decision, feels like their thoughts and
opinions have been heard and everyone agrees to stand behind the decision 1%.
Level Five: Consensus and delegates with criteria/constraints.
Leader fully delegates the decision to the team and is not a part of the decision making discussions. This
level requires the leader to be very clear with the team as to what are the criteria/constraints that must be
met for their decision to be able to move forward! Failure to meet that criteria could result in the team being
sent back to the drawing board or the leader choosing a fall back option" and utilize another level for moving
the decision forward.
What is fall back option": Within the levels of decision making the "fall back option" is used by
the leader when the team can't reach consensus and they need to get involved for certain
reasons. I recommend to leaders that they make the team aware of the "fall back option" prior
the process. Leaders also need to make sure they don't use it too quickly!
When I share the Five Levels of Decision Making" with leaders and their teams the following occurs: 1) they
start to see and understand one of the many components of effective decision making and the part it plays
in their team. 2) leaders start to see the value of clearly communicating whenever possible with the team
what level of decision making they are choosing prior to the decision being made so the team doesn't have
inaccurate expectations. 3) team members start to see the reasons leaders have to choose one level over
the other in certain situation and 4) leaders begin to evaluate if they are relying to much on one level over
the other and are they using the best level for a particular decision.
Action Idea: On a flip chart post the levels of decision makingeducate your team on them and then using
"post-it notes" have the team write down decisions that have been made over the course of a set period of
time-the time period is determined by you. Then have them put the "post-it note" with the decision on the
level they perceived to have been used for that particular decision. One team I recall doing this exercise
with found that the majority of the decisions were at Level 1 and 2. This was an awakening to the leader of
the team - because they perceived they had a pretty good balance among the levels. The leader worked on
utilizing more of the levels and the team's productivity increased!
UNIT - V

150. BEHAVIOURAL STRATEGIES:
3 Tips for Staying Motivated at Work
The most efficient, progressive companies are full of
innovative, driven employees. Many times, you will find yourself part of that solution.
However, at certain points in one's job, you will feel drained. You stop enjoying
Mondays. Your mood changes. You find yourself less optimistic. You can stare at the
computer for hours with nearly zero productivity. You become your harshest critic. The
most simple tasks seem to be impossible. Depression kicks in.
At this point in time, you have hit a crossroad. You can either step up to the plate or risk
future success.
A Career is About Ups and Downs
Every career has ups and it has downs. The trick is to enjoy the ups and get creative as
well as remain resilient and disciplined during the downs. The ups are easy to enjoy.
Motivation seems to come easily.
Though, how does one endure the downs in a career? There are a few ways. While no
avenues prove an easy journey, all are essential. Here are 3 ways to stay motived in
your job and career:
1. Forget about the statement, "It can't be done." - Regardless of hurdles, there are
always ways in which you can do better. The more creative you become in your job, the
further you can go. At times, it will seem as if you've hit a brick wall. Sometimes, that
wall will appear much more challenging than others.
Focus on possible solutions. Look at the problem differently. Whatever you do, don't let
the hurdle render you ineffective.
2. Keep moving forward. Henry Ford said, "You have got to keeping doing and going."
In business, change is inevitable. Therefore, change in oneself becomes just as
essential. There are some core ideologies which are permanent. Among others, these
include great customer service. Though, how one arrives at superior customer service
may drastically change throughout a career.

151. Despite environmental changes in your job, always be in motion. When work seems
hopeless is the same point at which many professionals waste time.
There are few instances in your career in which learning and creativity can't cure the
most arduous problems.
3. Try not to take the downs personally. Stay level-headed. The most effective
business professionals make decisions based on logic and not emotion.
Everyone goes through difficult times at work. Whether it be having to deal with a
difficult manager or changes in the industry--not many professions are immune to it. As
a matter of fact, the more creative a job is, the more difficulty one can encounter. It's
part of the game.
If you learn to convince yourself that you enjoy the journey, the better you'll do at your
job.
Know You're Not Alone
Our staffing agency has worked with employees who have gone through highly
turbulent times in their career. Some come out of their slump with renewed energy and
vigor. Others personalize their problems and don't quite make it.
If you look at some of the most effective business tycoons in U.S. history, you will see
one thing in common. All share some sort of highly complex hurdle they had to
overcome. Steve Jobs, Bill Gates and Andrew Carnegie all saw sufficient career
fluctuations. Though, their resiliency is what proved to be the determining factor
between success and failure. They stayed motived...even during times of crisis. They
forced themselves to keep moving forward. You can and must do the same to stay
motivated in your own career.
Seven Ways to Stay Motivated at
Work

152. Even the most motivated of employees
occasionally experience a slump and need a boost
to regain their normal motivation levels. This article
presents seven methods to stay motivated at work
and enhance performance when you are going
through a period of low motivation.
It is well known that motivated employees are happier, more energetic, more
enthusiastic, more productive, more driven and better performing than their unmotivated
peers. Employers are always on the lookout for motivated employees and realize that
motivation is often contagious and has positive spillover effects on the whole team.
Even the most motivated of employees however, experience an occasional slump and
need a boost to regain their normal motivation levels. Below, from the career experts at
the Middle East's #1 job site Bayt.com, are 7 methods to stay motivated at work and
enhance performance when you are going through a period of low motivation.
1. Clarify your goals
Nothing is more demotivating than working haphazardly without having a clear vision,
mission and set of objectives for your work. Without a clear vision and knowledge of
how your work impacts the big picture you may well end up spending a lot of time on
urgent unimportant matters rater than tasks that positively impact the big picture. Clarify
in no uncertain terms your vision, mission and objectives and focus on them beginning
always with the end in mind. It is remarkable what you will achieve once you have
honed in on your precise goals and can focus on them and visualize yourself achieving
them.
2. Establish a clear game-plan for achieving your goals
Once you have clarified your vision and goals, formulate a detailed strategy for getting
there and chart your progress on a regular and ongoing basis. Break down large
complex projects into a series of manageable tasks that are interesting and achievable.
Having a blueprint for success that is composed of clear, sensible milestones and

153. achievable interesting tasks will greatly simplify and lend meaning to your daily routine
and will also give you a feeling of control over your work and deadlines which largely
boosts motivation. The more organized you are and can focus and adhere to
accomplishing your goals according to your detailed blueprint for success, the more
motivated you will be and the less likely you are to fall into a fit of panic or insecurity and
lose confidence and motivation.
3. Ride the Wave of your Successes
Success is very stimulating. Work hard enough to achieve successful results and see
how motivated you are to achieve further successes as you excel in your performance.
Work hard, aim to overachieve your goals and ride the momentum of each success to
achieve further successes. Remind yourself that once your vision is clear and you have
a set of well-defined, reasonable objectives and milestones to reach, the secret of
success is hard work, creativity and perseverance. Aim to ride the wave of each
success to further the next success and channel the positive energy to achieving similar
superlative performance in your next task or project. It is not always that you can ride
the wave of euphoria that arises from a sound success story so make sure you leverage
and take advantage of these bursts of energy and motivation to the extent possible.
4. Reward yourself
Reward yourself as you achieve your objectives and/or reach specific important
milestones. Plan ahead what forms this reward will take and what tasks/projects/results
will be rewarded. This will give you something to look forward to, extra drive to get there
and a surge of excitement and enthusiasm when you do attain your desired goals.
5. Keep Things in Perspective
It is important to keep things in perspective and always remind yourself of why you
work. Beside the pay, it is often about realizing your potential, feeling alive and useful,
feeling connected, making a difference in the world, expressing creativity, expanding
your skills and abilities, helping others and contributing to the community. List the
reasons you entered the field you are in and when times are tough remind yourself of
why you do the work you do. Also remind yourself that work is work and that you have a
life outside of work to look forward to, enjoy and make a difference in.

154. 6. Maintain a healthy work/life balance
It is very easy to lose yourself at work and forget what awaits you outside of the work
arena. Maintaining a healthy work/life balance is essential both for your general
motivation level and your overall wellbeing. Make sure you take the time to do the things
you like to do outside of work whether it be connecting with friends and family,
exercising, reading, taking courses, shopping or other hobbies and activities that
channel your creativity and energy. Having something to look forward to after work will
see you through moments of drudgery at work when your motivation and energy levels
are not as high as they could be and will also make you more productive at work.
7. Think positive
Negativity is a contagious affliction that drains you of energy, slows you down, saps
your enthusiasm and blinds you to the reasons you work. Avoid negative feelings at all
costs and concentrate on the positive. To do this, listen to motivational tapes, to music
that particularly inspires you, read motivational books, talk to inspired or inspiring
people, surround yourself with positive stimuli and concentrate on the reasons you
work. Find things to laugh at as long as you are not laughing at your peers and count
your blessings at every opportunity. Focus on positives regardless of how small or
inconsequential they are whether it be a positive remark from a boss or peer,
accomplishing your day's goals earlier than usual, overachieving on a small deliverable,
working well with people, a looming vacation, completing a difficult task or any other
positive stimulus.
How to stay motivated in a negative work environment
Motivation in life, whether it is for your job, your home, or your dreams,
always starts with the individual person. It is of course easier to be
motivated if you have people surrounding you that are of equal mindsets.
However, with a lot of jobs in today's environment this atmosphere simply
does not exist. So, is there a formula that can make you motivated, even if
your very surroundings seem to speak otherwise? Yes, there is!
1. Motivate Your Mind:

155. The first step is to make the decision to get motivated. Don't think of the
obstacles, focus on yourself for the moment and know that it is possible to
always make a bad situation better.
2. Visually Enhance Your Workspace:
Whether you have a workstation, a cubicle, or an office, add visual aids that
will motivate you. It is no coincidence that most people keep pictures of
their families at their desks. However, don't stop there. You could put also
photos of your home there. If you don't like your present home, add
pictures of a home you would like to have. Are you way overdue for a
vacation? Add pictures of places you would like to go. Do you have pets?
Make space for them too, nothing can make you smile more than the
sweet, innocent expressions of our four-legged friends.
Depending on how large your space is, bring in some of the out doors.
Keep fresh flowers or plants around you, if the situation permits.
What if you don't have a place of your own? Do you maybe have a locker
that is your own? Decorate it in the same manner. Yes, this sounds very
much like high school but who is to say that is a bad thing?
If you have a job that does not even have a locker and you share spaces or
workstations with other people, get together with them and see if all of you
can contribute to personalizing your lunchroom perhaps.
3. Keep a Record of Your Accomplishments:
Even the most menial, repetitive tasks (for example if you work in a factory)
can be documented. Everyone makes progress. When you started in your
job, perhaps you ran 20 pieces per hour. Now you run 100. Document this
fact and write it down. This could be as simple as keeping a handwritten
journal, or as elaborate as keeping automated spreadsheets.
Don't stop with daily tasks. In addition, this strategy can also be used for
non-production jobs. Have you filled in for a sick colleague and performed
extra duties? Write them down. Have you taken on extra responsibility
without being asked? Document what it is that you did. Have you calmed
down a difficult client and kept them
 1

156.  2
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How to stay Motivated in a Negative Work
Environment

157. We all have been there - learn how to make it easier to work in a negative environment
 Motivation Starts with the Individual
 Motivate your Mind
 Visually Enhance your Work Space
 Keep a Record of your Accomplishments
 Infect your Environment
 Conclusion
Motivation Starts with the Individual
photo from photo8.com
Motivation in life, whether it is for your job, your home, or your dreams, always starts with the
individual person. It is of course easier to be motivated if you have people surrounding you that are
of equal mindsets. However, with a lot of jobs in today's environment this atmosphere simply does
not exist. So, is there a formula that can make you motivated, even if your very surroundings seem
to speak otherwise? Yes, there is!
Motivate your Mind
The first step is to make the decision to get motivated. Don't think of the obstacles, focus on yourself
for the moment and know that it is possible to always make a bad situation better.
Visually Enhance your Work Space
Whether you have a workstation, a cubicle, or an office, add visual aids that will motivate you. It is no
coincidence that most people keep pictures of their families at their desks. However, don't stop
there. You could put also photos of your home there. If you don't like your present home, add

158. pictures of a home you would like to have. Are you way overdue for a vacation? Add pictures of
places you would like to go. Do you have pets? Make space for them too, nothing can make you
smile more than the sweet, innocent expressions of our four-legged friends.
Depending on how large your space is, bring in some of the out doors. Keep fresh flowers or plants
around you, if the situation permits.
What if you don't have a place of your own? Do you maybe have a locker that is your own? Decorate
it in the same manner. Yes, this sounds very much like high school but who is to say that is a bad
thing?
If you have a job that does not even have a locker and you share spaces or workstations with other
people, get together with them and see if all of you can contribute to personalizing your lunchroom
perhaps.
Keep a Record of your Accomplishments
Even the most menial, repetitive tasks (for example if you work in a factory) can be documented.
Everyone makes progress. When you started in your job, perhaps you ran 20 pieces per hour. Now
you run 100. Document this fact and write it down. This could be as simple as keeping a handwritten
journal, or as elaborate as keeping automated spreadsheets.
Don't stop with daily tasks. In addition, this strategy can also be used for non-production jobs. Have
you filled in for a sick colleague and performed extra duties? Write them down. Have you taken on
extra responsibility without being asked? Document what it is that you did. Have you calmed down a
difficult client and kept them from taking their business elsewhere? Make a note of it!
A lot of complaints of people in the work force are that they lack motivation because they don't get
appreciated for all the daily things they do. In a perfect world other people (especially your superiors)
would just be observant and compliment and reward you. However, those other individuals around
you possibly lack motivation as well. So, if you document what you do not only can you see yourself

159. as more important, when the time comes for your evaluation you will have a visual record to share of
how much of an asset you are to the company. This is called self-motivation and most any boss can
appreciate that.
Even if all else fails and you still don't get the recognition or end up losing your job, if you take these
experiences and achievements to your next job you will already be ahead in the game.
Infect your Environment
Now that you have implemented this simple three-step program, share it with others. Start with the
person that you feel closest to at work. Begin by observing them and when they do something nice,
compliment them. You don't have to be anyone's superior to do this. A positive remark will make
anyone's day. You are now becoming a motivator for others. Again, in a perfect world your co-
workers would motivate themselves, but for a lot of people they need an outside influence to get
them going.
Conclusion
In conclusion, usually an unmotivated environment is created by a group of people that feed off each
other. All it takes is one person to come to the realization that everyone is probably waiting for
someone else to take the initiative to turn a place around. You can be that someone and be the
working class hero.
How to Stay Motivated During a Crisis at Work
By Harriet Meyerson
Susan works at a large firm that is in turmoil, and she is frightened. Rumours of a buy out
have spread like wildfire. Strange people from another company are walking around.
Management hasn't said anything because they're not sure the sale will go through.
Nevertheless, Susan doesn't know how the takeover will affect her job - or whether she will
even have a job when the dust settles. She is a single mom with two children who depend
on her income for food and shelter.

160. Mary lives in a town of 15,000 and works for a company that employs most of the
townspeople. The company is downsizing its staff. The downsize list comes out on a
designated date every sixty days.
Mary's husband also works for the company. Together they have bought a house and made
a nice life for themselves and their four children. Mary knows that the downsize-list date is
right around the corner, and she is deeply worried that her husband may be on the list.
Since the company is the only major employer in the town, he may not be able to find
another job there. They would have to sell their house and move to another city leaving
behind both family and lifelong friends.
Karen works for a corporation that downsized two months ago. Karen feels fortunate to
have held onto a job, but with fewer employees in the office, she has to work twenty hours
extra each week. The heavy workload is wearing her down. She doesn't have enough time
to take care of her family, and she is tired and irritable all the time.
When a crisis appears on the horizon, most of the traditional methods a boss can use to
motivate employees fly out the window. Bonuses, extra vacation days, contests, and awards
… almost no incentive can pry loose the grip of an atmosphere of uncertainty.
What employees lose when there is a crisis in their company is a sense of security. They
may panic for the good reason that their very livelihood is at stake. Their career is, for a
time, out of control. Their stress levels skyrocket, and they have trouble concentrating on
their work. If these fears aren't addressed many employees may jump ship to a more
secure job.
So what can companies do to keep employees motivated at work during a crisis? Here are
four important courses of action. (If you are not in management, but are an employee
whose company is going through a crisis, show this article to your supervisor.)
1. Communicate.
What's going on? Don't keep employees in the dark. Because employees are frightened by
states of uncertainty, they need to know as much as they can about the nature of the crisis.
If they are told less than the whole truth, they will likely imagine the crisis to be much
deeper than it actually is. Hold meetings. Send letters. Tell them as much as you know.
Even if they don't like the truth, they will trust you more for telling it.
2. Reassure.
Tell your employees what steps are being taken to make their jobs secure or to help them
find another position if their job is likely to be eliminated. Hold "Change" workshops to steer
them through the transition.
3. Listen.
Bring in an outside facilitator to help employees vent their fears. Many employees who have
been through a company crisis have said that this is one of the most helpful tools their
company used to keep employee motivation high. The employees often didn't realize that
other employees felt as fearful as they did, and talking about their fears in a group made
them not feel so alone.

161. 4. Celebrate.
After you have done steps 1, 2, and 3, and have addressed the seriousness of the crisis with
your employees, hold a "Weathering the Storm" party. A few hours of fun in the midst of
chaos can relieve tension and convey the feeling that management cares about the morale
within the office. Although a party will not alleviate, say, the company's financial problems,
and the results of the company's restructuring will remain, it will add a dimension of
humour to the tense atmosphere, and a feeling that, no matter what happens, the team will
survive this because they‘re in it together.
So go ahead and plan that party, because laughing at the dark days can strengthen the
cohesiveness of the team.
By taking these four steps, you are doing the best you can during a difficult situation for
both your employees and your company. You are helping your employees handle the
traumatic stress of the crisis, and you are demonstrating in concrete action them that you
care about the financial security and physical well being of each of them.
But there's one more thing that is very important, you are building a relationship of trust,
and your employees will know that they can depend on you to be there for them down the
road.
How to Stay Motivated During a Recession
Some people say the recession means the end of business as usual. I disagree.
Of course, if your idea of business as usual was like Lou‗s – a steady job, predictable
market and rewards for hard work, keeping your head down and your nose clean – then
it probably feels like the world has been turned upside down by recent events.
But as we said right at the start of Lateral Action, the rise of the creative
economy is a long-term trend, and we‘ve been living in a world where creativity is
economic priority number one for some time.
And you know what? Creativity is unpredictable and risky. Sometimes it‘s downright
scary. Effects don‘t always follow neatly from causes; hard work won‘t necessarily be
rewarded. On the contrary, it could just turn out to be foolish productivity. Rewards
come from being curious, agile, aware of the market and willing to experiment to see
what works.
So for me, the recession hasn‘t brought anything radically new, just accelerated the
rate of change and instability. It‘s stripped away a lot of the fluff and complacency, and
clarified what‘s needed to survive and thrive in a world governed by the capricious laws
of creativity.
Why Motivation Is Critical to Your Success
Motivation is vital for success in the creative economy. Not just because you need to
be stubborn to succeed in any business venture. And not just because the economic
storms we‘re flying through are frightening enough to test anyone‘s nerves. But also

162. because, as I said in my e-book How to Motivate Creative People (Including
Yourself), motivation has a huge influence on creative performance.
Human beings are driven by four basic types of motivation – some of which are
particularly important when it comes to creative work:
1. Intrinsic motivation - the love of the work itself. Intrinsic motivations include:
interest; challenge; learning; meaning; purpose; creative flow. Research has shown
that high levels of intrinsic motivation are strongly linked to outstanding creative
performance.
2. Extrinsic motivation - rewards for good work or punishments for poor work.
Extrinsic motivations include: money; fame; awards; praise; status; opportunities;
deadlines; commitments; bribes; threats. Research shows that too much focus on
extrinsic motivation can block creativity.
3. Personal motivation - individual values, linked to personality. Examples
include: power; harmony; achievement; generosity; public recognition;
authenticity; knowledge; security; pleasure. Each of us prioritizes some values over
others; understanding your own values and those of people around you is key to
motivating yourself and influencing others.
4. Interpersonal motivation - influences from other people. Much of our
behaviour is a response to people around us, such as: copying; rebellion;
competition; collaboration; commitment; encouragement.
Put the four together, and you get a matrix containing four basic drivers. For a project
or enterprise to be sustainable and successful, you need to tick all four boxes. Neglect
any one of them, and it could be like the dodgy leg on a table that brings the whole
thing crashing to the ground.

163. Four Motivators That Will Get You through the Recession
There are many different motivators in each of the four squares. In the diagram below,
I‘ve listed four that become critically important during a recession.
Photo by JeffBelmonte
 Challenge – depending on how you look at it, the economic crisis could be an
overwhelming problem, an unmitigated disaster, or an inspiring challenge. Maybe

164. even an opportunity. Take a moment to look at it through each of these lenses in
turn – How do you feel? Which one is most motivating?
 Friends and Enemies – When things get tough, you find out who your real
friends are. Stick together. As Seth Godin points out in Tribes, there are few
things more powerful than mutual loyalty, support and encouragement. Who are
your enemies? It could be the competition – or even the recession itself. Are you
going to let it beat you? A common enemy will give you and your friends a
common cause to fight for.
 Rewards – This is probably the weakest of the four drivers during a crisis, as
the payoff for all the hard work can seem far off in the future, or even non-existent.
So it‘s essential to look at the big picture and remind yourself where you‘re headed
and what the rewards will be. You can also make use of non-monetary rewards. For
example, I recently came across a company where people are being promoted
without pay rises – the money will come later, but for now they are happy to take
the status and other privileges of the position.
 Heroes – The recession is your chance to be a hero, to save your part of the
world. Heroes don‘t sit behind a desk shuffling paper (or e-mail). They get out
there, roll up their sleeves, slay the dragons and rescue the princesses. What are
you waiting for?
You‘ve probably realised by now that you don‘t need a recession to pay attention to
these four factors. They are crucial to succeeding in any circumstances.
But faced with an economic crisis, it‘s tempting to play it safe or go for shortcuts. To
stop investing time, effort and energy in building for the long-term, adding real value
and strengthening relationships with your partners, collaborators and customers.
Obviously you need to keep rewards on your radar and do everything you can to
maximise them. But if you just focus on short-term rewards, it can feel like you‘re
making slow progress day-to-day. The big rewards are off in the future, and it
sometimes feels like you‘ll never get there.
This is where the other three squares can help you. Unlike rewards, these motivators
are all available right now:
You can look at the difficulties you face and see them as a challenge – right now.
You can look around you and reach out to support and encourage your friends - right
now.
You can confront your enemy - whether in the external forces ranked against you, or
inside you, in the voice of your inner saboteur counselling a timid retreat – right now.
You can be a hero, working to fix things and build them up again – right now.
You can pick up the gauntlet – right now.
How Do You Meet a Challenge?
Has the recession changed the way you approach your work? If so, how?
How do you motivate yourself when things get tough?
Which of the motivators I describe works best for you? What others would you add?

165. 10 STEPS TO KEEPING EMPLOYEES ENGAGED
AND MOTIVATED
When it comes to job satisfaction, financial rewards may be lower on the list than most
people think. Being happy with your job seems to depend more on the intangibles:
feeling part of a team and being valued and appreciated consistently outrank money when
employees are polled about job satisfaction.
Bill’s Story
Take Bill, for example: a very competent project manager at a software development
company. He was recruited a few months ago to his current company, and he is already
thinking of looking elsewhere. ―I get no feedback whatsoever from my manager,‖ he
said. With no sense of how he fits into the company’s overall goals or how he’s
performing, his motivation is down. ―The hours are much better at this company,‖ he
concedes, ―But I’m not as engaged in the work – I just don’t care as much.‖
Bill’s story is not unique, as many managers know. So here are some tips and strategies
for retaining valuable employees.
TEN STEPS TO SUCCESS
Many of the following recommendations may sound like common sense, but you’d be
surprised how many managers neglect to follow them. They can allow you to achieve the
Holy Grail of the work place: the ability to motivate your employees to move mountains!
(And they’ll be happy with their jobs while they do it.)
Step 1: Clearly define your vision. Make sure that your vision is provided as a roadmap for
your employees, and that they know each twist and turn.
Step 2: Give employees what they want and need. Don’t just assume that each and every one of
your employees has all the tools, training, and support from supervisors they need –check
in with them personally and find out.
Step 3: Communicate well and often. Training sessions, memos, newsletters, FAQs, and
regular meetings can all be used to present your vision to your employees. Make sure to
ask questions, and if they are confused, redesign the way the information reaches them.
Perhaps the most important part of a good manager’s job is communicating effectively.
Creating a culture of communication in which managers and employees share common
goals and work together to meet them can boost a company up and even save it from the
gutter.
Goodman and Truss, in the Journal of Change Management (2004), stressed the
importance of communication, especially in difficult times or during times of change.

166. Timing is critical in letting employees know about upcoming changes, in order to reduce
uncertainty. You also need to be very clear about your purpose when you meet with
them. Goodman and Truss recommend the following objectives:
 Obtain individual buy-in
 Obtain commitment to the change
 Minimize resistance
 Reduce personal anxiety
 Ensure clarity of objectives
 Share information/vision
 Challenge the status quo
 Obtain clarity
 Minimize uncertainty
(Goodman, J., & Truss, C., (2004). The medium and the message: communicating effectively during a major
change initiative. Journal of Change Management, 4, 217-228.)
Step 4: Get everyone engaged. Figure out a way to get all of your employees engaged in
planning and decision-making. That way the project becomes their baby: something
they’re willing to fight for.
To do this, whenever possible, ask for input and use their ideas. This way, they have a
vested interest in seeing the project succeed. This can not only empower and motivate
employees, it can also lead to new and more productive ways of working that normally
would be overlooked during more stable times.
Step 5: Coach for success, and practice random acts of kindness. Feedback is another great
motivator. Don’t wait for the periodic reviews; instead, offer feedback as often as

167. possible. Positive feedback should be given right away, to encourage more of the same
performance. Negative feedback should also be given a.s.a.p., so that workers have the
opportunity to self-correct. If you can, schedule weekly meetings with individual
employees, to provide an opportunity to discuss ongoing projects and issues. These
meetings don’t have to take a lot of time, and they can build strong working relationships.
And don’t forget to say ―Thank you!‖ for a job well done. It’s a powerful motivator, and
should be done often–in person if possible. Publicly acknowledging your employees’
contributions is even better. In a survey by McKinsey Quarterly in 2009, praise from
immediate supervisors and attention from company leaders were found to be just as
important or more important than financial rewards.
Step 6: Act fairly, respect, and create trust (don’t be a jerk). Use your judgment, wisdom, and
experience to create a supportive environment. When problems arise, examine the
circumstances, understand the context, and only then pass judgment. Respect and trust
your team and you will get the same in return. If you make a mistake, apologize and
admit you were wrong. This will allow your employees to relate to you better, and they
will appreciate your honesty.
Step 7: Trust and verify, but also try to make work fun. Good bosses pay attention to the big
picture and the details, and care about both the product and the employees. A good way
to show that is be involved in the creation process, and to pay attention to what is going
on. And remember to do this with a smile on your face. Lighten up! Making work fun
really pays off, since people often get a lot more done when they enjoy themselves.
Step 8: Give special attention to high-potential employees. ―Even in a tough economy, high-
potential employees have other opportunities,‖ according to Douglas Klein, president of
Sirota Survey Intelligence. A study they conducted showed that during an economic
crisis, employees who are anxious about their future can negatively affect a company.
The reason is simple and obvious: they are less engaged in their jobs, and they may be
making plans to leave.
To keep them engaged, consider putting more resources into career development and
training. Or perhaps you can give them new projects that will help the company adapt to
the changing market, grow, and develop.
Step 9: Be creative to avoid downsizing. ―An employer that treats its employees as true partners
makes every effort to avoid layoffs,‖ according to Klein. The key is for employees to
trust that management is doing everything possible to retain them. Voluntary steps to
reduce costs, which Klein calls ―rings of defense‖ can be employed to avert disaster.
This step may look like a shot in the dark, but you’d be surprised how reasonable people
can be about pay cuts and/or working overtime, as part of a crisis strategy, built with their
own accord as a safety net during challenging times. The magic of this approach relies on
those few words: built with their own accord.
(Sirota Survey Intelligence survey summarized in “The Enthusiastic Employee: How Companies Profit by
Giving Workers What They Want”, 2005)

168. Step 10: Implement incentive programs.
No matter of what kind of business you are in, you should look into incentive programs.
They have been shown to be highly beneficial in motivating employees, and a major
benefit is that the cost can be based on actual performance and paid out only after an
employee has reached the desired goal. ―Do good and you’ll get rewarded‖ makes a
positive impact on the company as a whole, with employees working harder to meet the
target.
The following results were found in a study by the International Society of Performance
Improvement, on the benefits of incentive programs:
They can improve performance significantly. The study found that performance could be
increased by 22 percent in individuals, and 44% in teams.
They can improve employee engagement. Performances improved by 15% when rewards
were offered, and if employees were rewarded again to continue performing well, the
improvement reached 27%.
They can attract high potential employees. And these high quality employees are also
more likely to stay when incentive programs are in place.
(Incentives, Motivation and Workplace Performance: Research & Best Practices, the
International Society of Performance Improvement 2002
JOB RETENTION STRATEGIES
Job retention is a big problem for many companies, big and small. The Incentive
Research Foundation (formerly known as the SITE Foundation), conducted a study on
worker turnover in 2004, and another in the following year.

169. This study found some important results:
When work is held in high value by the employees, turnover is not a big issue.
Recognition, praise, and special incentives are tools that can raise the value of work to
employees.
Whenever a company supports its employees, turnover rates drop significantly.
If employees feel better about their jobs, they are less likely to leave. Even more
importantly: they will try to be better at what they do.
By raising motivation levels, worker turnover can be reduced up to 53 percent.
How To Stay Motivated Amidst Crisis?
Posted by WeMention on February 17th, 2013
There is none in this world who is as lucky as not to have faced any crisis in their life. How much denial we
may be at it, there is no existence without crisis. We think that it is crisis that can really saps the energy of
moving on with life at large, but as rightly said by the Russian writer, Anton Chekhov, ―Any idiot can face a
crisis – it’s day to day living that wears you out.‖ That is the attitude that has been established long back and
that is how crisis should be dealt with; with spontaneity and lots of self motivation. Thus when you find crisis
try to find ways for motivation.
Tips On Staying Motivated In Times Of Crisis
 Accessing the situation and trying to solve the problem is an endeavour that helps you get
motivated in times of crisis. This is specially important for those who hold responsible and dependable
positions whether be at the family or at office. Crisis actually helps to give instant stress which can
stop the way towards a solution. Hence having a clear head in times of crisis is sincerely motivating
for you and other who look up to you.
 Try to think about the last time you handled crisis well. What are the tactics you applied? Who
came to your help? Ask these questions to yourself. This I indeed true that crisis and problems always
comes in different garbs, but the tactics applied to handle it may be the same. Hence remember those
times.
 Stay close to those for whom you care. During times of problem, the biggest motivation comes
from your close loved ones.
 One of the biggest ways to handle crisis is to take it as a challenge. The word challenge has a huge
amount of motivation attached to it and also helps you gain perseverance.
 Take up authority and delegate work to those who can handle situations without panic. If you can
work in a team, the crisis can be solved with ease.
 Never ask the question WHY. Crisis are always uncalled situations and hence never go into a self
blame game where you try to locate faults in yourself or connect the crisis to one of your earlier
misdoings. This makes the crisis grow more difficult to handle or solve.
There is no crisis from which one cannot recover. It is a positive outlook that can actually work like a cure for
any crisis situation.

170. Work–life balance
Work–life balance is a concept including proper prioritizing between "work" (career and ambition) and
"lifestyle" (health, pleasure, leisure,family and spiritual development/meditation). Related, though broader,
terms include "lifestyle calm balance" and "lifestyle choices".
Stress and work-life balance[edit]
The number of stress-related disability claims by American employees has doubled[when?]
according to the
Employee Assistance Professionals Association in Arlington, Virginia. Seventy-five to ninety percent of
physician visits are related to stress and, according to the American Institute of Stress, the cost to industry has
been estimated at $200 billion-$300 billion a year.[15]
Steven L. Sauter, chief of the Applied Psychology and Ergonomics Branch of the National Institute for
Occupational Safety and Health in Cincinnati, Ohio, states that recent studies show that "the workplace has
become the single greatest source of stress".[11]
Michael Feuerstein, professor of clinical psychology at the
Uniformed Services University of the Health Sciences at Bethesda Naval Hospital states, "We're seeing a
greater increase in work-related neuroskeletal disorders from a combination of stress and ergonomic
stressors".[15]
It is clear that problems caused by stress have become a major concern to both employers and employees.
Symptoms of stress are manifested both physiologically and psychologically. Persistent stress can result
in cardiovascular disease, sexual health problems, a weakerimmune system and frequent headaches, stiff
muscles, or backache. It can also result in poor coping skills, irritability, jumpiness, insecurity, exhaustion, and
difficulty concentrating. Stress may also perpetuate or lead to binge eating, smoking, and alcohol consumption.
According to James Campbell Quick, a professor of organizational behavior at the University of Texas-
Arlington, "The average tenure of presidents at land-grant universities in the past ten years has dropped from
approximately seven to three-and-a-half years".[15]
The feeling that simply working hard is not enough anymore is acknowledged by many other American
workers. "To get ahead, a seventy-hour work week is the new standard. What little time is left is often divvied
up among relationships, kids, and sleep." [3] This increase in work hours over the past two decades means that
less time will be spent with family, friends, and community as well as pursuing activities that one enjoys and
taking the time to grow personally and spiritually.[citation needed]
Texas Quick, an expert witness at trials of companies who were accused of overworking their employees,
states that "when people get worked beyond their capacity, companies pay the price." [11]
Although some
employers believe that workers should reduce their own stress by simplifying their lives and making a better
effort to care for their health, most experts feel that the chief responsibility for reducing stress should be
management.
According to Esther M. Orioli, president of Essi Systems, a stress management consulting firm, "Traditional
stress-management programs placed the responsibility of reducing stress on the individual rather than on the
organization-where it belongs. No matter how healthy individual employees are when they start out, if they work
in a dysfunctional system, they‘ll burn out." [11]

171. Formation of the "ideal worker" and gender differences[edit]
Work-life conflict is not gender-specific. According to the Center for American Progress, 90 percent of working
mothers and 95 percent of working fathers report work-family conflict.[16]
However, because of the social norms
surrounding each gender role, and how the organization views its ideal worker, men and women handle the
work-life balance differently. Organizations play a large part in how their employees deal with work-life balance.
Some companies have taken proactive measures in providing programs and initiatives to help their employees
cope with work-life balance (see: Responsibility of the employer).
Yet, the root of the work-life conflict may come from the organizational norms and ideologies. As a macro
structure, the organization maintains the locus of power. Organizations, through its structure, practices,
symbols and discourse, create and reproduce a dominant ideology. The dominant ideology is what drives
organizational power and creates organizational norms.
At the top of the organizational hierarchy, the majority of individuals are males, and assumptions can be made
regarding their lack of personal experience with the direct and indirect effects of work-family conflict.[16]
For one,
they may be unmarried and have no thought as to what "normal" family responsibilities entail. On the other
hand, the high-level manager may be married, but his wife, due to the demands of the husband‘s position, has
remained at home, tending solely to the house and children. Ironically, these are the individuals creating and
reforming workplace policies.[17]
Workplace policies, especially regarding the balance between family/life and work, create an organizational
norm in which employees must fall into. This type of organizational behavior, according to Dennis Mumby,
"contribut[es] in some ways to the structuring of organizational reality, and hence organizational power." [18]
In other words, the reality of what employees experience, specifically in regards to work-life balance, is a direct
result of power operating covertly through ideological controls. This is seen in the ideological norm of the "ideal
worker." Many organizations view the ideal worker as one who is "committed to their work above all
else".[19]
"Ideal workers" are those that demonstrate extra-role behaviors, which are seen as positive attributes.
Alternatively, those who are perceived as having to divide their time (and their commitments) are seen not as
dedicated to the organization. As research has shown, a manager‘s perception of a subordinate‘s commitment
to the organization is positively associated with the individual‘s promotability. Hoobler et al.‘s (2009) findings
mirrored the perceived commitment-to-promotabilty likelihood.[20]
Often, these perceptions are placed on the female worker. Managers who perceived their female employees of
maintaining high work-family conflict were presumed as not as committed to the organization, therefore not
worthy of advancement. This negatively impacts working mothers as they may be "inaccurately perceived to
have less commitment to their organizations than their counterparts, their advancement in organizations may
be unfairly obstructed".[19]
Working mothers often have to challenge perceptions and stereotypes that evolve as a working woman
becomes a working mother. Working mothers are perceived as less competent and less worthy of training than
childless women.[21]
Another study, focusing on professional jobs, found that mothers were 79 percent less
likely to be hired and are typically held to a higher standard of punctuality and performance than childless
women.[16]
The moment when she becomes a mother, a working woman is held at a completely different norm
than her childless colleagues. In the same Cuddy et al. (2004) study, men who became fathers were not
perceived as any less competent, and in fact, their perceived warmth increased.[21]

172. The ways in which corporations have modeled the "ideal worker" does not compliment the family lifestyle, nor
does it accommodate it. Long hours and near complete devotion to the profession makes it difficult for working
mothers to participate in getting ahead in the workplace.[17]
A Fortune article found that among the most
powerful women in business (female CEOs, presidents and managing directors of major corporations), 29
percent were childless compared to 90 percent of men who were parents (;[17][22]
).
Should a woman seek a position of power within an organization, she must consider the toll on other facets of
her life, including hobbies, personal relationships and families. As Jeffrey Pfeffer states: "Time spent on the
quest for power and status is time you cannot spend on other things, such as … family…The price seems to be
particularly severe for women".[23]
Many executive jobs require a substantial amount of overtime, which as a
mother, many cannot devote because of family obligations.[17]
Consequently, it is nearly impossible for a
working mother in a top management position to be the primary caretaker of her child.[17]
Perceptions of work-life balance and gender differences[edit]
This circumstance only increases the work-life balance stress experienced by many women employees.
Research conducted by the Kenexa Research Institute (KRI), a division of Kenexa, evaluated how male and
female workers perceive work-life balance and found that women are more positive than men in how they
perceive their company‘s efforts to help them balance work and life responsibilities. The report is based on the
analysis of data drawn from a representative sample of 10,000 U.S. workers who were surveyed through
WorkTrends, KRI‘s annual survey of worker opinions.
The results indicated a shift in women‘s perceptions about work-life balance. In the past, women often found it
more difficult to maintain balance due to the competing pressures at work and demands at home. [24]
―The past two decades have witnessed a sharp decline in men‘s provider role, caused in part by growing
female labor participation and in part by the weakening of men‘s absolute power due to increased rates of
unemployment and underemployment‖ states sociologist Jiping Zuo. She continues on to state that ―Women‘s
growing earning power and commitment to the paid workforce together with the stagnation of men‘s social
mobility make some families more financially dependent on women. As a result, the foundations of the male
dominance structure have been eroded.‖ [25]
Work-life balance concerns of men and women alike[edit]
Similar discrimination is experienced by men who take time off or reduce working hours for taking care of the
family.
For many employees today—both male and female—their lives are becoming more consumed with a host of
family and other personal responsibilities and interests. Therefore, in an effort to retain employees, it is
increasingly important for organizations to recognize this balance. [24]
Young generation views on work-life balance[edit]
According to Kathleen Gerson, Sociologist, young people "are searching for new ways to define care that do
not force them to choose between spending time with their children and earning an income" and " are looking
for definition of personal identity that do not pit their own development against creating committed ties to
others"[26][27]
readily. Young adults believe that parents should get involved and support the children both
economically and emotionally, as well as share labor equally. Young people do not believe work-life balance is
possible and think it is dangerous to build a life dependent on another when relationships are unpredictable.
They are looking for partners to share the house work and family work together.[27][28]
Men and women believe

173. that women should have jobs before considering marriage, for better life and to be happy in marriage. Young
people do not think their mother‘s generations were unhappy. They also do not think they were powerless
because they were economically dependent.
Identity through work[edit]
By working in an organization, employees identify, to some extent, with the organization, as part of a collective
group.[29]
Organizational values, norms and interests become incorporated in the self-concept as employees
increase their identify with the organization. However, employees also identify with their outside roles, or their
"true self".[30]
Examples of these might be parental/caretaker roles, identifications with certain groups, religious
affiliations, align with certain values and morals, mass media etc.
Employee interactions with the organization, through other employees, management, customers, or others,
reinforces (or resists) the employee identification with the organization.[30]
Simultaneously, the employee must
manage their "true self" identification. In other words, identity is "fragmented and constructed" through a
number of interactions within and out of the organization; employees don‘t have just one self.
Most employees identify with not only the organization, but also other facets of their life (family, children,
religion, etc.). Sometimes these identities align and sometimes they do not. When identities are in conflict, the
sense of a healthy work-life balance may be affected. Organization members must perform identity work so that
they align themselves with the area in which they are performing to avoid conflict and any stress as a result.
Women[edit]
Today there are many young women who do not want to just stay at home and do house work, but want to
have careers. About 64% of mothers whose youngest child was under age six, and 77% of mothers with a
youngest child age 6-17 were employed in 2010, indicating that the majority of women with dependent care
responsibilities cannot or do not wish to give up careers. While women are increasingly represented in the work
force, they still face challenges balancing work and home life. Both domestic and market labor compete for time
and energy. ―For women, the results show that that only time spent in female housework chores has a
significant negative effect on wages‖.[citation needed]
Maternity Leave[edit]
Maternity leave is a leave of absence for an expectant or new mother for the birth and care of the baby. This is
a very important factor in creating a work-life balance for families, yet in the United States most states do not
offer any paid time off, for this important time in ones life. Many mothers are forced to return to work only weeks
after having given birth to their children; missing out on important bonding time with their child. At this age,
newborn babies and their mother are forming an important bond and the child is learning to trust and count on
their parents. Yet, they are often sent to daycare and are now being cared for by a non-family member.
According to the US Census, Almost two-thirds of American women (62 percent) with a birth in the last year
were in the labor force in 2008 http://www.census.gov/
Some new mothers (and fathers) will take unpaid time off, allowed by the Family and Medical Leave Act. The
FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family
and medical reasons with continuation of group health insurance coverage under the same terms and
conditions as if the employee had not taken leave. Eligible employees are entitled to twelve workweeks of leave
in a 12-month period for:
 the birth of a child and to care for the newborn child within one year of birth;

174.  the placement with the employee of a child for adoption or
foster care and to care for the newly placed child within one year of
placement; http://www.dol.gov/whd/fmla/ Some states will allow paid time off for maternity leave under the
states Temporary Disability Insurance (TDI).
State TDI Benefit
California
55% - 60% of highest quarterly earnings during a
12-month base period up to $959 (2009)
Hawaii 58% of average weekly wages up to $510 (2009)
New Jersey 66% of average weekly wages up to $524 (2008)
New York 50% of weekly wages up to $170 (2008)
Rhode
Island
4.62% of employees highest calendar quarter
wages in the base year, up to $671, plus dependent allowance of $10 or 7% of weekly benefit for
up to 5 dependents (2008)
http://www.paidfamilyleave.org/pdf/PaidLeaveinStates.pdf
At the state level, California was the first state to offer paid family leave benefits for its workers. While the
benefits only last for 6 weeks[31]
this is the first major step for maternity leave in the United States.New
Jersey lawmakers are pushing legislation that would make their state the second state to add this worker
benefit. Under one New Jersey proposal, workers who take leave would be paid through the state‘s temporary
disability insurance fund, "augmented by a 0.1 percent charge on workers‘ weekly wages."[32]
Traditionally,
many conservatives have opposed paid family leave, but there is a sign that this mindset is beginning to
change. Reverend Paul Schenck, a prominent member of the National Pro-Life Action Center recently stated
that he would support paid maternity leave on the assumption that it might encourage women to follow through
with their pregnancies instead of having abortions. According to Heyman, "Across the political spectrum,
people are realizing these policies have an enormous impact on working families. If you look at the most
competitive economies in the world, all the others except the U.S. have these policies in place." [32]
The United States is not as workplace family-oriented as many other wealthy countries. According to a study
released by Harvard and McGill University researchers in February 2007, workplace policies for families in the
U.S. are weaker than those of all high-income countries and even many middle-and low-income countries.
For example, the study notes that the United States is one of only five countries out of 173 that does not
guarantee some form of paid maternity leave. (The other countries are Lesotho, Liberia, Swaziland, and Papua
New Guinea).[32]
Other differences include the fact that fathers are granted paid paternity leave or paid parental
leave in sixty-five countries; thirty one of these countries offer at least fourteen weeks of paid leave. The U.S.

175. does not guarantee this to fathers.(survey) Sweden, Denmark and Norway have the highest level of maternity
benefits—Sweden provides 68 weeks paid maternity leave, Norway provides 56 weeks paid maternity leave
and Denmark provides 52.[33]
Men[edit]
Men know that work alone may not provide their lives with meaning. Young men can lose their meaning of life;
they want a balance between paid work and personal attachments without being victimized at work.[27] [28]
More
men are realizing that work is not their only primary source of fulfillment from life. A new study on fatherhood
(2010) shows that more men are looking for alternatives to their 40-hour workweek in order to spend more time
with their family. Though working less means a smaller paycheck and higher stress levels, men are looking for
flexibility just as much as women. However, with an ever-changing society, flexibility is becoming much more
apparent. ―It seems that some traditional stereotypes are starting to lessen just a bit in terms of who‘s
responsible for care of the children‖ says human resource specialist Steve Moore. Traditionalism is becoming
less frequent due to what‘s actually practical for each individual family.[34]
Men often face unequal opportunity to family life as they are often expected to be the financial supporter of the
family unit, ―The masculine ideal of a worker unencumbered by caregiving obligations is built into workplace
structures and patterns of reward‖ (Thorne 2011).[35]
Consequences of an Imbalance[edit]
Mental health is a balancing act that may be affected by four factors: the influence of unfavourable genes, by
wounding trauma, by private pressures and most recently by the stress of working.[36]
Many people expose
themselves unsolicited to the so-called job stress, because the "hard worker" enjoys a very high social
recognition. These aspects can be the cause of an imbalance in the areas of life. But there are also other
reasons which can lead to such an imbalance.
Remarkable is, for example, the increase in non-occupational activities with obligation character, which include
mainly house and garden work, maintenance and support of family members or volunteer activities. All this can
contribute to the perception of a chronic lack of time.[37]
This time pressure is, amongst others, influenced by
their own age, the age and number of children in the household, marital status, the profession and level of
employment as well as the income level.[38]
The psychological strain, which in turn affects the health, increases
due to the strong pressure of time, but also by the complexity of work, growing responsibilities, concern for
long-term existential protection and more.[39]
The mentioned stresses and strains could lead in the long term to
irreversible, physical signs of wear as well as to negative effects on the human cardiovascular and immune
systems.[40]
Prominent cultural beliefs that parenthood is the best avenue for a happy fulfilling life may not be justified. In,
The Joys of Parenthood Reconsidered, what was found is the opposite, that parents actually suffer worse
mental and physical health than childless adults. This is associated with the high costs of parenthood described
in the article. Simon states that, ―In America we lack institutional supports that would help ease the social and
economic burdens associated with parenthood.‖ [41]
Psychoanalysts diagnose uncertainty as the dominant attitude to life in the postmodern society.[42]
This
uncertainty can be caused by the pressure which is executed from the society to the humans. It is the
uncertainty to fail, but also the fear of their own limits, not to achieve something what the society expects, and
especially the desire for recognition in all areas of life.[42]
In today's society we are in a permanent competition.
Appearance, occupation, education of the children - everything is compared to a media staged ideal.

176. Everything should be perfect, because this deep-rooted aversion to all average, the pathological pursuit to
excellence - these are old traditions.[42]
Who ever wants more - on the job, from the partner, from the children,
from themselves - will one day be burned out and empty inside. He is then faced with the realization that
perfection does not exist.[43]
Who is nowadays empty inside and burned out, is in the common language a
Burnout. But due to the definitional problems Burnout is till this date not a recognized illness.[36]
An attempt to
define this concept more closely, can be: a condition that gets only the passionate, that is certainly not a mental
illness but only a grave exhaustion (but can lead to numerous sick days).[36]
It can benefit the term that it is a
disease model which is socially acceptable and also, to some extent, the individual self-esteem stabilizing. This
finding in turn facilitates many undetected depressed people, the way to a qualified treatment.[36]
According to
experts in the field are, in addition to the ultra hard-working and the idealists mainly the perfectionist, the loner,
the grim and the thin-skinned, especially endangered of a burnout. All together they usually have a lack of a
healthy distance to work.[36]
Another factor is also, that for example decision-makers in government offices and upper echelons are not
allowed to show weaknesses or signs of disease etc., because this would immediately lead to doubts of the
ability for further responsibility. Only 20% of managers (e.g. inGermany) do sports regularly and als only 2%
keep regularly preventive medical check-up.[44]
In such a position other priorities seem to be set and the time is
lacking for regular sports. Frightening is that the job has such a high priority, that people waive screening as a
sign of weakness. In contrast to that, the burnout syndrome seems to be gaining popularity. There seems
nothing to be ashamed to show weaknesses, but quite the opposite: The burnout is part of a successful career
like a home for the role model family.[45]
Besides that the statement which describes the burnout as a "socially
recognized precious version of the depression and despair that lets also at the moment of failure the self-image
intact" fits and therefore concludes "Only losers become depressed, burnout against it is a diagnosis for
winners, more precisely, for former winners.".[46]
However, it is fact that four out of five Germans complain about too much stress. One in six under 60 swallows
at least once a week, a pill for the soul, whether it is against insomnia, depression or just for a bit more drive in
the stressful everyday life.[42]
The phases of burnout can be described, among other things, first by great
ambition, then follows the suppression of failure, isolation and finally, the cynical attitude towards the employer
or supervisor. Concerned persons have very often also anxiety disorders and depressions, which are serious
mental diseases. Depressions are the predominant causes of the nearly 10,000 suicides that occur alone each
year in Germany.[36]
The implications of such imbalances can be further measured in figures: In 1993,
early retirement due to mental illness still made 15.4 percent of all cases. In 2008, there were already 35.6
percent. Even in the days of illness, the proportion of failures due to mental disorders increased. Statisticians
calculated that 41 million absent days in 2008 went to the account of these crises, which led to 3.9 billion euros
in lost production costs.[36]
Responsibility of the employer[edit]
Companies have begun to realize how important the work-life balance is to the productivity and creativity of
their employees.[citation needed]
Research by Kenexa Research Institute in 2007 shows that those employees who
were more favourable toward their organization‘s efforts to support work-life balance also indicated a much
lower intent to leave the organization, greater pride in their organization, a willingness to recommend it as a
place to work and higher overall job satisfaction.[citation needed]
Employers can offer a range of different programs and initiatives, such as flexible working arrangements in the
form of part-time, casual and telecommuting work. More proactive employers can provide compulsory leave,

177. strict maximum hours and foster an environment that encourages employees not to continue working after
hours.
It is generally only highly skilled workers that can enjoy such benefits as written in their contracts, although
many professional fields would not go so far as to discourage workaholic behaviour.[citation needed]
Unskilled
workers will almost always have to rely on bare minimum legal requirements.[citation needed]
The legal requirements
are low in many countries, in particular, the United States. In contrast, the European Union has gone quite far
in assuring a legal work-life balance framework, for example pertaining to parental leave and the non-
discrimination of part-time workers.[citation needed]
According to Stewart Friedman—professor of Management and founding director of the Wharton School‘s
Leadership Program and of its Work/Life Integration Project—a "one size fits all" mentality in human resources
management often perpetuates frustration among employees. "[It‘s not an] uncommon problem in many HR
areas where, for the sake of equality, there's a standard policy that is implemented in a way that's universally
applicable -- [even though] everyone's life is different and everyone needs different things in terms of how to
integrate the different pieces. It's got to be customized." [47]
Friedman‘s research indicates that the solution lies in approaching the components of work, home, community,
and self as a comprehensive system. Instead of taking a zero-sum approach, Friedman‘s Total Leadership
program teaches professionals how to successfully pursue "four-way wins"—improved performance across all
parts of life.
Although employers are offering many opportunities to help their employees balance work and life, these
opportunities may be a catch twenty-two for some female employees. Even if the organization offers part-time
options, many women will not take advantage of it as this type of arrangement is often seen as "occupational
dead end".[17]
Even with the more flexible schedule, working mothers opt not to work part-time because these positions
typically receive less interesting and challenging assignments; taking these assignments and working part-time
may hinder advancement and growth. Even when the option to work part-time is available, some may not take
advantage of it because they do not want to be marginalized.[17]
This feeling of marginalization could be a result
of not fitting into the "ideal worker" framework (see: Formation of the "ideal worker" and gender differences).
Additionally, some mothers, after returning to work, experience what is called the maternal wall. The maternal
wall is experienced in the less desirable assignments given to the returning mothers. It is also a sense that
because these women are mothers, they cannot perform as "ideal workers".[17]
If an organization is providing
means for working mothers and fathers to better balance their work-life commitments, the general
organizational norm needs to shift so the "ideal worker" includes those who must manage a home, children,
elderly parents, etc.
Global comparisons[edit]
United States[edit]
According to a new study by Harvard and McGill University researchers, the United States lags far behind
nearly all wealthy countries when it comes to family-oriented workplace policies such as maternity leave, paid
sick days and support for breast feeding. Jody Heyman, founder of the Harvard-based Project on Global
Working Families and director of McGill‘s Institute for Health and Social Policy, states that, "More countries are
providing the workplace protections that millions of Americans can only dream of. The U.S. has been a proud

178. leader in adopting laws that provide for equal opportunity in the workplace, but our work/family protections are
among the worst." [48]
This observation is being shared by many Americans today and is considered by many experts to be indicative
of the current climate. However, the U.S. Labor Department is examining regulations that give workers unpaid
leave to deal with family or medical emergencies (a review that supporters of the FMLA worry might be a
prelude to scaling back these protections, as requested by some business groups). At the same time,
Senator Chris Dodd from Connecticut is proposing new legislation that would enable workers to take six weeks
of paid leave. Congress is also expected to reconsider the Healthy Families Act which is a bill that would
require employers with at least fifteen employees to provide seven paid sick days per year.[48]
At least 107 countries protect working women‘s right to breast-feed and, in at least seventy-three of them,
women are paid. The U.S. does not have any federal legislation guaranteeing mothers the right to breast-feed
their infants at work, but 24 states, the District of Columbia and Puerto Rico have laws related to breastfeeding
in the workplace.[49]
There is not a federal law requiring paid sick days in the United States. When it comes to sick days, 145
countries provide sick days to their employees; 127 provide a week or more per year.
At least 134 countries have laws setting the maximum length of the work week; the U.S. does not have a
maximum work week length and does not place any limits on the amount of overtime that an employee is
required to work each week. (survey) Sweden, Denmark andNorway have the highest level of maternity
benefits—Sweden provides 68 weeks paid maternity leave, Norway provides 56 weeks paid maternity leave
and Denmark provides 52.[33]
Even when vacation time is offered in some U.S. companies, some choose not to take advantage of it. A 2003
survey by Management Recruiter International stated that fifty percent of executives surveyed didn‘t have plans
to take a vacation. They decided to stay at work and use their vacation time to get caught up on their increased
workloads.[50]
American workers average approximately ten paid holidays per year while British workers average twenty-five
holidays and German employees thirty. Americans are at "work" twelve weeks more a year in total hours than
Europeans though they are no more productive than the average European.[citation needed]
European Union[edit]
In Europe, the Working Time Directive has implemented a maximum 48-hour working week.[51]
Many countries
have opted for fewer hours. France attempted to introduce a thirty-five hour workweek,
and Finland experimented with a thirty-hour week in 1996.[citation needed]
Contradictory to the Scandinavian
countries, there is no evidence of state policies that absolutely encourage men to take on a larger share of
domestic work in France, Portugal, or Britain.[52]
In a 2007, the European Quality of Life Survey found that
countries in south-eastern Europe had the most common problems with work-life balance. In Croatia and
Greece, a little over 70% of working citizens say that they are too tired to do household jobs at least several
times a month because of work.[53]
In Britain, legislation has been passed allowing parents of children under six to request a more flexible
work schedule. Companies must approve this request as long as it does not damage the business. A 2003
Survey of graduates in the UK revealed that graduates value flexibility even more than wages.[54]

179. In all twenty-five European Union countries, voters "punish" politicians who try to shrink vacations. "Even the
twenty-two days Estonians, Lithuanians, Poles and Slovenians count as their own is much more generous than
the leave allotted to U.S. workers." [50]
According to a report by the Families and Work Institute, the average
vacation time that Americans took each year averaged 14.6 days.
According to Jeremy Reynolds, unions can lobby for benefits, pay, training, safety measures, and additional
factors that impact the costs and benefits of work hours. ―Unions can also have a more direct impact on hour
mismatches through their efforts to change the length of the workday, work week, and work year, and to
increase vacation and leave time.‖ This is why workers in countries where there are strong unions usually work
fewer hours and have more generous leave policies than workers who are in countries where there are weaker
unions.[55]
It is critical to mention that cultural factors influence why and how much we work. As stated by Jeremy
Reynolds, ―cultural norms may encourage work as an end in itself or as a means to acquiring other things,
including consumer products.‖ This might be why Americans are bound to work more than people in other
countries. In general, Americans always want more and more, so Americans need to work more in order to
have the money to spend on these consumer products.[55]
See also[edit]
Sociology portal
 Absenteeism
 Mompreneur
 Money-rich, time-poor
 On-Ramping
 Personal life
 Presenteeism
 Time bind
 Workaholic
 Work-Family Balance in the United States
 Working time
 Work–life balance in Germany
 Work-life interface
Stress related:
 Burnout (psychology)
 Clinical psychology
 Health Psychology
 Industrial and Organizational Psychology
 Occupational health psychology
 Psychoneuroimmunology
 Stress (biological)

180.  Workplace stress
Labour:
 Labour law
 Labour market flexibility
Other:
 Death from overwork (Japan)
 Medical resident work hours
 Superwoman (sociology)
How to Balance Work and Life
From the beginning , life on this earth follows the natural laws, but human being always try to learn
by experiments even though divine knowledge spotlight everything. The entire creature on this earth
aligned with natural ways of living by instinct. So, person face problem to manage their work and life
balance which is an integral element for healthy living and always struggle to improve it. If we try to
set it on artificial criteria, as personal experiences developed, we state it accordingly but on other
hand we define this balance under natural ways, we have to find it from divine knowledge; where
there is no change occurs with the passage of time.
We have to organize our work along our life, as life assumed about family activities, mystical
developments, pleasure and leisureliness, while work is supposed for a person‘s aspiration and
professional responsibilities. When we need to split our time in these two important and vital
elements of our living, we have to build a balance between them. We need to set priorities according
to our age, family status, profession, living standard and ambition which make a balance in life and
work in comfortable manner. In fact a lifestyle of job oriented person is different from a businessman
and we can‘t make a same chat of time management.
EditSteps
1. 1
Personal Experiences :All the personal experiences with the passage of time lead us to improve
one‘s living standard where we need to setup every time our work / life balance, while nature already
set it up even from the beginning of life on this earth.
2. 2
What Nature tells us? As sun rises, the entire living creature on this earth open‘s the eyes, take a
deep breath and get ready for the survival. At the evening time, sun try to cover its face behind the
mountain is set‘s a notion for the entire living creature, go back to your home, that day ends. In the

181. night time birds, animals, even plants and stones (vibrating energy exits as life in them, according to
quantum physics) takes rest and go for restore their energies, health by taking deep pause of
conscious realm.
3. 3
Human Living Style: A human (a social animal) on other hand, wonders day and night for his/her
ambition and enjoyment but not care about the natural ways of living. Here persons need a work/life
balance which builds a system of prioritization for to parallel their life pattern with nature.
4. 4
Organized Time-Frame: When we organize work time-frame, we need to take care about sort of
work and capacity to do it, whereas for life time-chart we have to care about all the aspects in our
personal lives. It will be different for singles, whereas it will be different for the couples, similarly it will
be further divided on age parameters. If we will not manage a balanced time frame, it‘s a possibility
to avoid spouse to talk at reaching at home, to ignore children and sometimes couldn‘t control over
attitude in business/work meetings.
5. 5
Importance of Work-Life Balance: To enjoy excellent health, a stress free wealth and pleasant
living all along our lives, we must care about the importance of our work-life balance. If you‘re single
your time schedule will be different then a married one, so, you may spend much time with your work
but under the limits of your working capacity. In the young age people have much energy then old
age to do a task, and people are supposed to do a lot due to less family responsibilities. Sometimes,
due to overwork one can adopt an aggressive attitude which needs to be neutralized by personal
and leisure activities.
6. 6
Time-management for Newlywed as well as couples: In similar manner, the couples and
newlywed people can‘t follow the time-schedule defined for the singles; they have to organize their
time according to their living. A spouse mean equal partner of your personal life and definitely you
have to give a proper time to your mate, so the time management should be accordingly. For the
families with children work-life time balance will different then single or newlywed peoples.
7. 7
[Seven vital Work-Suggestions:-]

182. 1. We have to define some integral elements about work and life for to set an
appropriate time-frame. In normal fashion, work is defined for eight hour a day, while one must care
about
2. In all sort of work we have to deal with meetings and assignments which need to be
accomplish with in suitable time to avoid next day burden.
3. In taking care about assigned work, follow-ups and dealing with people, there needs
a well-organized attitude in friendly manner.
4. One must set a priority list of daily work and also need to get a pause along it to get
ready for the next.
5. There is another important issue during work as to deal with rush a calm and soft
attitude supposed to excellent in finding best results.
6. All the coworker also needs your attention during your duty hours and there needs an
excellent attitude is important while always keep friendly way of dealings required.
7. Sometimes we don‘t need anything or want to leave it, so during work we have to
take care about the issues who can affect on up-coming events, so its batter take pause along the
work.
8. 8
[Seven vital Life-Suggestions:-]
1. People need to give proper time to their interest because this necessary to refresh
and overcome the mental as well as physical stress.
2. Morning walk or a long walk in the afternoon is tonic for the people who stay all the
day with sitting-work/ office-work. They also needs to go for exercise or any play ground game which
keeps their health best and energize them well.
3. The people whose wok nature is a bit different and not stay in office needs to adopt
hobby of reading or indoor games which will be a refreshing tonic for mind and body.
4. Always give time to spouse, children, parents, relatives and friends even your home-
workers according to your available time and it‘s also necessary to adopt any community for your
interest to acquaint with vicinity changes.
5. A home even a family activities place but there needs to be setup some cheerful
activities like birthday celebration, get-together parties, family friend‘s gatherings etc., which is
necessary to be an active part of society.A pause in work and proper deep-sleep in the night
according to age and nature of work is an essential element of work-life balance.
6. Your soul will be thirsty in all this work-life management if you don‘t care about that.
Health, wealth, joy even any big achievement sometimes felt nothing only due to the ignoring the
spiritual activities. Yourself, your inner will be in worry if you‘ll not give time to your soul, that‘s a pray
, a religious activity , a meditation which returns a bliss in your life, a calm state of mind , a physical
healing , a boost to your immune system.
7. All our work-life happenings centered to only one nucleus, God/Allah/ Creator
whatever name you like to call him, always empower us even most of the time we don‘t bother that.
We need to stay in front of our creator as prays at once , twice or more times a days to find
everlasting bliss, rejoice the inner, to calm down the mind , to dissolve negative thoughts , to get
inspired for all the work-life activities.
8 ways to perfect your work-life
balance

183. Sometimes, busy workdays can feel like a marathon with the finish line still miles away.
You enter the office early to find a mountain of work waiting for you, a full inbox, and a
calendar blocked out with meetings. It’s no wonder so many employees have grown
accustomed to staying late and taking work home.
In a recent study by Accenture, work-life balance — ahead of money, recognition, and
autonomy — was the key determinant for more than half of men and women in regards to
whether or not they have a successful career. And if you’re regularly working late or
pulling a night-shift from your home office, your work-life balance is at stake.
I firmly believe in breaking the time clock to do away with the traditional ―9-to-5,‖ but
spending every evening knocking out work can be hazardous. Completing your work
during designated business hours isn’t just possible, it’s also necessary for staying on top
of your career.
Here’s how to leave work at work:
Critique yourself
If your 40-hour week has transformed into something a bit closer to a 60-hour week, you
owe it to yourself to review the issue. Get to the bottom of where the majority of your
time is being spent during your work day to allow for increased time management and
productivity. If you find yourself wasting the majority of your time managing your inbox
or in meetings, it may be time for some restructuring.
Knockout big tasks first
Rearrange your schedule to ensure you hit the ground running every day by tackling
bigger projects as soon as you get to the office. You’re actually at peak performance
earlier in the day, so taking on big tasks earlier in the day means you’ll be likely to
achieve more. Move your less important tasks to be taken care of after lunch.
Create a schedule
Don’t just put together a half-hearted to-do list, go a step further and establish a schedule
for your workday. For example, if you’re planning on working for eight hours, allot an

184. estimated time for each project or task — even the big projects — you’ve got on your to-
do list.
Avoid falling into the time-wasting trap of replying to emails and returning phone calls.
Instead, allot 30 minutes a day to take care of all of your follow-ups instead of regularly
staring at your phone and inbox.
Avoid interruptions
Become militant about creating a distraction-free workspace. Close out all unnecessary
tabs on your browser, silence your phone, and put your headphones in if it’ll help you
work.
Turn off autopilot
Sometimes when you’re racing to finish your to-do list, it’s easy to go into autopilot
mode until you complete your work. Taking a few breaks will actually help you work
more efficiently and effectively. Once you’ve completed a big task, get up from your
desk to stretch, grab something to drink, and just refresh your brain before moving onto
the next thing.
Learn the power of saying “no”
You have a busy day ahead of you, and yet you still accepted that conference-call
invitation. Sometimes we forget how important it is to say ―no‖ when we’re busy. While
it isn’t always possible to turn down every meeting invitation, try your best to make a
case when you’re especially busy. For example, you can ask to leave early or have
someone share meeting notes with you.
Perspective
Don’t sweat the small stuff and end up turning your to-do list into far more than it really
is. Simply focus on meeting the deadlines. If you find yourself anxious about your
schedule for the next day or week ahead of you — which may be a reason why you work
late — lay out your schedule to take a better look at what needs to be accomplished so
you can establish a timeframe.

185. Know when you’re done
Stop spending your evenings in the office reworking things until they’re perfect.
Establish a clear definition of the end result — when you’ve reached it, check out for the
day.
Eliminating working late and leaving work at the office often comes down to better time
management.
Do you have any tricks for managing your time at work? Share them in the comments
below!
5 Tips for Better Work-Life Balance
Beat burnout by making more time for the activities and people that matter most to you.
If you're finding it more challenging than ever to juggle the demands of your job and the rest of your life, you're not
alone.
Many people are putting in extra hours, or using their smartphones to be on call when they're not physically at work.
"A lot of people are having a more difficult time finding balance in their lives because there have been cutbacks or
layoffs where they work. They're afraid it may happen to them, so they're putting in more hours," says psychologist
Robert Brooks, PhD, co-author of The Power of Resilience: Achieving Balance, Confidence, and Personal Strength in
Your Life.
"But even if you don't have much control over the hours you have to work, you can ask yourself: In what other ways
am I bringing greater enjoyment into my life?" Brooks says. "Focus your time and attention on things you can control."
Here are five ways to bring a little more balance to your daily routine:
1. Build downtime into your schedule.
When you plan your week, make it a point to schedule time with your family and friends, and activities that help you
recharge.
If a date night with your spouse or a softball game with friends is on your calendar, you'll have something to look
forward to and an extra incentive to manage your time well so you don't have to cancel.
"It helps to be proactive about scheduling," says Laura Stack, a productivity expert in Denver and author
ofSuperCompetent: The Six Keys to Perform at Your Productive Best. "When I go out with my girlfriends, we all whip
out our cell phones and put another girls' night out on the calendar for 1 month later."

186. Stack also plans an activity with her family, like going to a movie or the park, every Sunday afternoon. "We do this
because if there's nothing on the schedule, time tends to get frittered away and the weekend may end without us
spending quality time together," she says.
Michael Neithardt, an actor and television commercial producer in New York City, wakes up 3 hours before he has to
leave for work so he can go for a run and spend some time with his wife and baby.
"A lot of my friends tend to wake up, shower, and go straight to work. And they often complain about having no time
to do anything," he says. "I find that if I can get those 3 hours in the morning, I have a more productive and peaceful
workday. I can sure tell the difference when I don't."
2. Drop activities that sap your time or energy.
"Many people waste their time on activities or people that add no value -- for example, spending too much time at
work with a colleague who is constantly venting and gossiping," says Marilyn Puder-York, PhD, a psychologist and
executive coach in New York and Connecticut.
Her advice: Take stock of activities that don't enhance your career or personal life, and minimize the time you spend
on them.
You may even be able to leave work earlier if you make a conscious effort to limit the time you spend on the web and
social media sites, making personal calls, or checking your bank balance. "We often get sucked into these habits that
are making us much less efficient without realizing it," Stack says.
3. Rethink your errands.
Consider whether you can outsource any of your time-consuming household chores or errands.
Could you order your groceries online and have them delivered? Hire a kid down the street to mow your lawn? Have
your dry cleaning picked up and dropped off at your home or office? Order your stamps online so you don't have to
go to the post office? Even if you're on a tight budget, you may discover that the time you'll save will make it worth it.
Stack also suggests trading services with friends. Offer to do tasks that you enjoy or that you were planning to do
anyway.
"You could exchange gardening services for babysitting services," Stack says. "If you like to cook, you could prepare
and freeze a couple of meals and give them to a friend in exchange for wrapping your holiday gifts."
4. Get moving.
It's hard to make time for exercise when you have a jam-packed schedule, but it may ultimately help you get more
done by boosting your energy level and ability to concentrate.
"Research shows exercise can help you to be more alert," Brooks says. "And I've noticed that when I don't exercise
because I'm trying to squeeze in another half hour of writing, I don't feel as alert."

187. Samantha Harris, a lawyer who works for a nonprofit organization in Philadelphia, goes to her gym 2 or 3 mornings a
week before her family wakes up. "It's been a real boost in terms of the way I feel for the rest of the day," she says. "I
feel like my head is clearer and I've had a little time to myself."
5. Remember that a little relaxation goes a long way.
Don't assume that you need to make big changes to bring more balance to your life. Brooks recommends setting
realistic goals, like leaving the office earlier 1 night per week.
"Slowly build more activities into your schedule that are important to you," he says. "Maybe you can start by spending
an hour a week on your hobby of carpentry, or planning a weekend getaway with your spouse once a year."
Even during a hectic day, you can take 10 or 15 minutes to do something that will recharge your batteries. "Take a
bath, read a trashy novel, go for a walk, or listen to music," Stack says. "You have to make a little time for the things
that ignite your joy."
Job/Work satisfaction
Job satisfaction is how content an individual is with his or her job. Scholars and human resource professionals
generally make a distinction between affective job satisfaction
[1]
and cognitive job satisfaction.
[2]
Affective
job satisfaction is the extent of pleasurable emotional feelings individuals have about their jobs overall, and is
different to cognitive job satisfaction which is the extent of individuals‘ satisfaction with particular facets of their
jobs, such as pay, pension arrangements, working hours, and numerous other aspects of their jobs.
Models of job satisfaction[edit source]
Affect theory[edit source]
Edwin A. Locke‘s Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main
premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and
what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the
degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations
are/aren‘t met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both
positively (when expectations are met) and negatively (when expectations are not met), compared to one who
doesn‘t value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is
indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of
autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This theory also
states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker
values that facet.
Dispositional theory[edit source]
Another well-known job satisfaction theory is the Dispositional Theory. It is a very general theory that suggests
that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction,
regardless of one‘s job. This approach became a notable explanation of job satisfaction in light of evidence that
job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical
twins have similar levels of job satisfaction.

188. A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model,
proposed by Timothy A. Judge, Edwin A. Locke, and Cathy C. Durham in 1997.[6]
Judge et al. argued that there
are four Core Self-evaluations that determine one‘s disposition towards job satisfaction: self-esteem,
general self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the
value one places on his/her self) and general self-efficacy (the belief in one‘s own competence) lead to higher
work satisfaction. Having an internal locus of control (believing one has control over herhis own life, as
opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism
lead to higher job satisfaction.[6]
===Opponent process theory=== event in question. Events that seem negative in manner will give rise to the
feelings of stress or anxiety. Events that are positive give rise to the feeling of content or relaxation. The other
process is the opponent process, which induces feelings that contradict the feelings in the primary processes.
Events that are negative give rise to feelings of relaxation while events that are positive give rise to feelings of
anxiety. A variety of explanations have been suggested to explain the uniformity of mood or satisfaction. This
theory shows that if you try to enhance the mood of individual it will more likely fail in doing so. The opponent
process theory was formulated to explain these patterns of observations.[7][8]
Equity theory[edit source]
Equity Theory shows how a person views fairness in regard to social relationships. During a social exchange, a
person identifies the amount of input gained from a relationship compared to the output, as well as how much
effort another persons puts forth.[9]
Equity Theory suggests that if an individual thinks there is an inequality
between two social groups or individuals, the person is likely to be distressed because the ratio between the
input and the output are not equal.[10]
For example, consider two employees who work the same job and receive the same benefits. If one individual
gets a pay raise for doing the same or less work than the other, then the less benefited individual will become
distressed in his workplace. If, on the other hand, one individual gets a pay raise and new responsibilities, then
the feeling of inequality is reduced.[10]
Other psychologists have extended the equity theory, suggesting three behavioral response patterns to
situations of perceived equity or inequity (Huseman, Hatfield, & Mile, 1987; O'Neil & Mone 1998). These three
types are benevolent, equity sensitive, and entitled. The level by each type affects motivation, job satisfaction,
and job performance.
1. Benevolent-Satisfied when they are under-rewarded compared with co-workers
2. Equity sensitive-Believe everyone should be fairly rewarded
3. Entitled-People believe that everything they receive is their just due[11]
Discrepancy theory[edit source]
The concept of discrepancy theory explains the ultimate source of anxiety and dejection.[12]
An individual, who
has not fulfilled his responsibility feels the sense of anxiety and regret for not performing well, they will also feel
dejection due to not being able to achieve their hopes and aspirations. According to this theory, all individuals
will learn what their obligations and responsibilities for a particular function, over a time period, and if they fail to
fulfill those obligations then they are punished. Over time, these duties and obligations consolidate to form an
abstracted set of principles, designated as a self-guide.[13]
Agitation and anxiety are the main responses when
an individual fails to achieve the obligation or responsibility.[14]
This theory also explains that if achievement of
the obligations is obtained then the reward can be praise, approval, or love. These achievements and

189. aspirations also form an abstracted set of principles, referred to as the ideal self guide.[13]
When the individual
fails to obtain these rewards, they begin to have feelings of dejection, disappointment, or even depression.[14]
Two-factor theory (motivator-hygiene theory)[edit source]
Frederick Herzberg‘s Two-factor theory (also known as Motivator Hygiene Theory) attempts to explain
satisfaction and motivation in the workplace.[15]
This theory states that satisfaction and dissatisfaction are driven
by different factors – motivation and hygiene factors, respectively. An employee‘s motivation to work is
continually related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives
individuals to attain personal and organizational goals (Hoskinson, Porter, & Wrench, p. 133). Motivating
factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for
example achievement in work, recognition, promotion opportunities.[16]
These motivating factors are considered
to be intrinsic to the job, or the work carried out.[15]
Hygiene factors include aspects of the working environment
such as pay, company policies, supervisory practices, and other working conditions.[15]
While Herzberg's model has stimulated much research, researchers have been unable to reliably empirically
prove the model, with Hackman & Oldham suggesting that Herzberg's original formulation of the model may
have been a methodological artifact.[15]
Furthermore, the theory does not consider individual differences,
conversely predicting all employees will react in an identical manner to changes in motivating/hygiene
factors.[15]
Finally, the model has been criticised in that it does not specify how motivating/hygiene factors are to
be measured.[15]
Job characteristics model[edit source]
Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study
how particular job characteristics impact on job outcomes, including job satisfaction. The model states that
there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback)
which impact three critical psychological states (experienced meaningfulness, experienced responsibility for
outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction,
absenteeism, work motivation, etc.).[17]
The five core job characteristics can be combined to form a motivating
potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employee's
attitudes and behaviors. A meta-analysis of studies that assess the framework of the model provides some
support for the validity of the JCM.[18]
Motivating Potential Score[edit source]
The motivating potential score (MPS) can be calculated, using the core dimensions discussed above, as
follows;
Jobs that are high in motivating potential must be also high on at least one of the three factors that lead to
experienced meaningfulness, and also must be high on both Autonomy and Feedback.[19]
If a job has a
high MPS, the job characteristics model predicts that motivation, performance and job satisfaction will be
positively affected and the likelihood of negative outcomes, such as absenteeism and turnover, will be
reduced.[19]

190. Factors that influence job satisfaction[edit source]
Environmental factors[edit source]
Communication overload and communication underload[edit source]
One of the most important aspects of an individual‘s work in a modern organization concerns the
management of communication demands that he or she encounters on the job.[20]
Demands can be
characterized as a communication load, which refers to ―the rate and complexity of communication inputs
an individual must process in a particular time frame.‖[21]
Individuals in an organization can experience
communication over-load and communication under- load which can affect their level of job satisfaction.
Communication overload can occur when ―an individual receives too many messages in a short period of
time which can result in unprocessed information or when an individual faces more complex messages
that are more difficult to process.[21]
‖ Due to this process, ―given an individual‘s style of work and motivation
to complete a task, when more inputs exist than outputs, the individual perceives a condition of
overload[20]
which can be positively or negatively related to job satisfaction. In comparison, communication
under load can occur when messages or inputs are sent below the individual‘s ability to process
them.‖[21]
According to the ideas of communication over-load and under-load, if an individual does not
receive enough input on the job or is unsuccessful in processing these inputs, the individual is more likely
to become dissatisfied, aggravated, and unhappy with their work which leads to a low level of job
satisfaction.
Superior-subordinate communication[edit source]
Superior-subordinate communication is an important influence on job satisfaction in the workplace. The
way in which subordinates perceive a supervisor's behavior can positively or negatively influence job
satisfaction. Communication behavior such as facial expression, eye contact, vocal expression, and body
movement is crucial to the superior-subordinate relationship (Teven, p. 156). Nonverbal messages play a
central role in interpersonal interactions with respect to impression formation, deception, attraction, social
influence, and emotional.[22]
Nonverbal immediacy from the supervisor helps to increase interpersonal
involvement with their subordinates impacting job satisfaction. The manner in which supervisors
communicate with their subordinates non-verbally may be more important than the verbal content (Teven,
p. 156). Individuals who dislike and think negatively about their supervisor are less willing to communicate
or have motivation to work whereas individuals who like and think positively of their supervisor are more
likely to communicate and are satisfied with their job and work environment. A supervisor who uses
nonverbal immediacy, friendliness, and open communication lines is more likely to receive positive
feedback and high job satisfaction from a subordinate. Conversely, a supervisor who is antisocial,
unfriendly, and unwilling to communicate will naturally receive negative feedback and create low job
satisfaction in their subordinates in the workplace.
Strategic Employee Recognition[edit source]
[23]
A Watson Wyatt Worldwide study identified a positive outcome between a collegical and flexible work
environment and an increase in shareholder value. Suggesting that employee satisfaction is directly
related to financial gain. Over 40 percent of the companies listed in the top 100 of Fortune magazine‘s,
―America‘s Best Companies to Work For‖ also appear on the Fortune 500. It is possible that successful
workers enjoy working at successful companies, however, the Watson Wyatt Worldwide Human Capital

191. Index study claims that effective human resources practices, such as employee recognition programs, lead
to positive financial outcomes more often than positive financial outcomes lead to good practices.
Employee recognition is not only about gifts and points. It's about changing the corporate culture in order
to meet goals and initiatives and most importantly to connect employees to the company's core values and
beliefs. Strategic employee recognition is seen as the most important program not only to improve
employee retention and motivation but also to positively influence the financial situation.[24]
The difference
between the traditional approach (gifts and points) and strategic recognition is the ability to serve as a
serious business influencer that can advance a company‘s strategic objectives in a measurable way. "The
vast majority of companies want to be innovative, coming up with new products, business models and
better ways of doing things. However, innovation is not so easy to achieve. A CEO cannot just order it, and
so it will be. You have to carefully manage an organization so that, over time, innovations will emerge."[25]
Individual factors[edit source]
Emotion[edit source]
Mood and emotions form the affective element of job satisfaction. Moods tend to be longer lasting but
often weaker states of uncertain origin, while emotions are often more intense, short-lived and have a clear
object or cause.[26]
Some research suggests moods are related to overall job satisfaction.[27][28]
Positive and negative emotions
were also found to be significantly related to overall job satisfaction.[29]
Frequency of experiencing net positive emotion will be a better predictor of overall job satisfaction than will
intensity of positive emotion when it is experienced.[29]
Emotion work (or emotion management) refers to various types of efforts to manage emotional states and
displays. Emotion management includes all of the conscious and unconscious efforts to increase,
maintain, or decrease one or more components of an emotion. Although early studies of the
consequences of emotional work emphasized its harmful effects on workers, studies of workers in a
variety of occupations suggest that the consequences of emotional work are not uniformly negative.[30]
It was found that suppression of unpleasant emotions decreases job satisfaction and the amplification of
pleasant emotions increases job satisfaction.[31]
The understanding of how emotion regulation relates to job satisfaction concerns two models:
1. Emotional dissonance. Emotional dissonance is a state of discrepancy between public displays
of emotions and internal experiences of emotions,[32][33]
that often follows the process of emotion
regulation. Emotional dissonance is associated with high emotional exhaustion, low
organizational commitment, and low job satisfaction.[34][35]
2. Social interaction model. Taking the social interaction perspective, workers‘ emotion regulation
might beget responses from others during interpersonal encounters that subsequently impact
their own job satisfaction. For example: The accumulation of favorable responses to displays of
pleasant emotions might positively affect job satisfaction.[31]
Genetics[edit source]
It has been well documented that genetics influence a variety of individual differences.[36]
Some research
suggests genetics also play a role in the intrinsic, direct experiences of job satisfaction like challenge or

192. achievement (as opposed to extrinsic, environmental factors like working conditions). One experiment
used sets of monozygotic twins, reared apart, to test for the existence of genetic influence on job
satisfaction. While the results indicate the majority of the variance in job satisfaction was due to
environmental factors (70%), genetic influence is still a minor factor. Genetic heritability was also
suggested for several of the job characteristics measured in the experiment, such as complexity level,
motor skill requirements, and physical demands.[37]
Personality[edit source]
Some research suggests an association between personality and job satisfaction. Specifically, this
research describes the role of negative affectivity and positive affectivity. Negative affectivity is related
strongly to the personality trait of neuroticism. Individuals high in negative affectivity are more prone to
experience less job satisfaction. Positive affectivity is related strongly to the personality trait
of extraversion. Those high in positive affectivity are more prone to be satisfied in most dimensions of their
life, including their job. Differences in affectivity likely impact how individuals will perceive objective job
circumstances like pay and working conditions, thus affecting their satisfaction in that job.[38]
There are two personality factors related to job satisfaction, alienation and locus of control. Employees
who have an internal locus of control and feel less alienated are more likely to experience job satisfaction,
job involvement and organizational commitment. A meta-analysis of 135 studies of job satisfaction
concluded that there is a positive relationship between internal locus of control and job satisfaction. The
study also showed characteristics like high self-esteem, self-efficacy and low neuroticism are also related
to job satisfaction.[39]
Psychological factors[edit source]
Psychological well-being (PWB) is defined as ―the overall effectiveness of an individual‘s psychological
functioning‖ as related to primary facets of one‘s life: work, family, community, etc.[40]
There are three
defining characteristics of PWB. First, it is a phenomenologicalevent, meaning that people are happy when
they subjectively believe themselves to be so. Second, well-being involves some emotional conditions.
Particularly, psychologically well people are more prone to experience positive emotions and less prone to
experience negative emotions. Third, well-being refers to one's life as a whole. It is a global
evaluation.[40]
PWB is primarily measured using the eight-item Index of Psychological Well-Being
developed by Berkman (IPWB). IPWB asks respondents to reply to a series a questions on how often they
felt ―pleased about accomplishing something,‖ ―bored,‖ ―depressed or unhappy,‖ etc.[40]
PWB in the workplace plays an important role in determining job satisfaction and has attracted much
research attention in recent years.[41]
These studies have focused on the effects of PWB on job satisfaction
as well as job performance.[42]
One study noted that because job satisfaction is specific to one‘s job, the
research that examined job satisfaction had not taken into account aspects of one‘s life external to the
job.[43]
Prior studies had focused only on the work environment as the main determinant of job satisfaction.
Ultimately, to better understand job satisfaction (and its close relative, job performance), it is important to
take into account an individual‘s PWB. Research published in 2000 showed a significant correlation
between PWB and job satisfaction (r = .35, p < .01).[40]
A follow-up study by the same authors in 2007
revealed similar results (r = .30, p < .01).[43]
In addition, these studies show that PWB is a better predictor
of job performance than job satisfaction alone.

193. Measuring job satisfaction[edit source]
How job satisfaction is measured depends on whether affective or cognitive job satisfaction is of interest.
The majority of job satisfaction measures are self-reports and based on multi-item scales. Several
measures have been developed over the years, although they vary in terms of how carefully and
distinctively they are conceptualized with respect to affective or cognitive job satisfaction. They also vary in
terms of the extent and rigour of their psychometric validation.
The Brief Index of Affective Job Satisfaction (BIAJS) is a 4-item, overtly affective as opposed to
cognitive, measure of overall affective job satisfaction. The BIAJS differs from other job satisfaction
measures in being comprehensively validated not just for internal consistency reliability, temporal stability,
convergent and criterion-related validities, but also for cross-population invariance by nationality, job level,
and job type. Reported internal consistency reliabilities range between .81 and .87.[1]
The Job Descriptive Index (JDI),[44]
is a specifically cognitive job satisfaction measure. It measures one‘s
satisfaction in five facets: pay, promotions and promotion opportunities, coworkers, supervision, and the
work itself. The scale is simple, participants answer either yes, no, or can‘t decide (indicated by ‗?‘) in
response to whether given statements accurately describe one‘s job.
Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ), the Job
Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20 facets and has
a long form with 100 questions (five items from each facet) and a short form with 20 questions (one item
from each facet). The JSS is a 36 item questionnaire that measures nine facets of job satisfaction. Finally,
the Faces Scale of job satisfaction, one of the first scales used widely, measured overall job satisfaction
with just one item which participants respond to by choosing a face.
Relationships and practical implications[edit source]
Job Satisfaction can be indicative of work behaviors such as organizational citizenship,[45]
and withdrawal
behaviors such asabsenteeism,[46]
and turnover.[47]
Further, job satisfaction can partially mediate the
relationship of personality variables and deviant work behaviors.[48]
One common research finding is that job satisfaction is correlated with life satisfaction.[49]
This correlation
is reciprocal, meaning people who are satisfied with life tend to be satisfied with their job and people who
are satisfied with their job tend to be satisfied with life. However, some research has found that job
satisfaction is not significantly related to life satisfaction when other variables such as nonwork satisfaction
and core self-evaluations are taken into account.[50]
An important finding for organizations to note is that job satisfaction has a rather tenuous correlation to
productivity on the job. This is a vital piece of information to researchers and businesses, as the idea that
satisfaction and job performance are directly related to one another is often cited in the media and in some
non-academic management literature. A recent meta-analysis found surprisingly low correlations between
job satisfaction and performance.[51]
Further, the meta-analysis found that the relationship between
satisfaction and performance can be moderated by job complexity, such that for high-complexity jobs the
correlation between satisfaction and performance is higher than for jobs of low to moderate complexity.
Additionally, one longitudinal study indicated that among work attitudes, job satisfaction is a strong
predictor of absenteeism, suggesting that increasing job satisfaction and organizational commitment are
potentially good strategies for reducing absenteeism and turnover intentions.[52]
Recent research has also

194. shown that intention to quit alone can have negative effects on performance, organizational deviance, and
organizational citizenship behaviours.[53]
In short, the relationship of satisfaction to productivity is not as
straightforward as often assumed and can be influenced by a number of different work-related constructs,
and the notion that "a happy worker is a productive worker" should not be the foundation of organizational
decision-making. For example, employee personalitymay even be more important than job satisfaction in
regards to performance.[54]
Job satisfaction and Absenteeism[edit source]
File:Absenteeism can lead to this - NARA - 534674.jpg
[55]
Numerous research was done to discover the correlation of job satisfaction and absenteeism. 244
employees of a Hospital having different positions, professional and blue collar participated in a following
study. Goldberg and Waldman looked at absenteeism in two dimensions as time lost or number of missed
days and the frequency it has happened with, to me more precise. Self-reported data and records-based
data were collected and compared. Following absenteeism measures were evaluated according to
absenteeism predictors.
1. Self-report time lost
2. self-reported frequency
3. records-based time lost
Only three categories of predictors had a significant relationship ratio and were taken in account further:
 Health
 Wages

195.  Position level
This research results revealed that absenteeism cannot be predicted by job satisfaction, although many
researches are proving opposite hiding details. Authors bring an example of study that compares the
intentions of absence with job satisfaction, and not the actual absence.
Job Satisfaction - Race[edit source]
In general, more White than non White employees report satisfaction with their job. However, before a
person can be concerned with job satisfaction, he or she must have a job. Although there is a large thriving
middle class among Black and ethnic minority employees, large numbers of people who want to work are
unemployed, are employed irregularly, or are too discouraged to seek employment. Many who have full-
time work are confined to low-level jobs that offer marginal pay and little opportunity for advancement or
fulfillment. Thus, the primary concern for many workers is not satisfaction but finding a job that pays a
decent wage.
Gender Differences in Employment:
This chapter looks beyond gender differences in labour market participation to gender differences in productivity and
earnings across different sectors and jobs. It shows that, despite significant progress in female labour force
participation over the past 25 years, pervasive and ongoing gender differences remain in productivity and earnings. It
argues that the interaction of employment segregation by gender with gender differences in time use and access to
inputs, and with market and institutional failures, traps women in low-paying jobs and low-productivity businesses.
Breaking out of this productivity trap requires interventions that lift women's time constraints, increase their access to
productive inputs, and correct market and institutional failures.
Men's and women's jobs differ greatly, across sectors, industries, occupations, types of jobs and types of firms. While
these differences evolve with economic development, the resulting changes in the structure of employment are not
enough to eliminate employment segregation by gender. All over the world, women are concentrated in low-
productivity, low-paying jobs. They work in small farms and run small firms, they are over-represented among unpaid
workers and in the informal sector, and they rarely rise to positions of power.
While differences in worker characteristics (especially in human capital) and returns matter, it is primarily differences
in jobs that account for the gender gaps in productivity and earnings. Three main factors lead to gender segregation
in access to economic opportunities among farmers, entrepreneurs, and wage workers: gender differences in time
use (primarily resulting from differences in care responsibilities), gender differences in access to productive inputs
(particularly land and credit), and gender differences stemming from market and institutional failures:
 Women bear a disproportionate share of house and care responsibilities and consequently face important
fixed costs associated with market work: fixed schedules and minimum hour requirements, and the difficulty in
adjusting responsibilities at home.
 Social norms around the role of women also influence these trade-offs. Women are more likely to supply
fewer hours of market work than men, putting them at risk of being channelled into lower-quality jobs.
 Female farmers and entrepreneurs have less access to land and credit than men. This is due to barriers to
market access, including discrimination and differential pricing in land and credit markets, and institutional
constraints, including land rights and financial rules and regulations.

196.  Discrimination within households favours men in the allocation of productive resources, which translates into
gender differences in scale of production, productivity, and investment and growth capacity.
 Women's limited presence in certain markets may create barriers to knowledge and learning about women's
performance, which reinforces women's lack of access to these markets.
 The design and functioning of institutions may be (intentionally or unintentionally) biased against women in
ways that perpetuate existing inequalities.
Global aging implies that fewer workers will be supporting a growing population of the elderly in the decades to come,
unless labour force participation increases significantly among groups with low rates today—basically, women.
Successful interventions will depend on adequately identifying and targeting the most binding constraint in each
context, while acknowledging the problem of multiple constraints, perhaps by sequencing policies.
Gender Differences Within the Workplace
 Suggested Approach to Gender Discrimination at Workplace
 Workplace Evaluation on Gender Issues
 Are There Motivational Differences in Genders in the Workplace?
Gender differences in the workplace typically stem from social factors, which influence the behaviors of men and
women. Some organizations welcome gender diversity and encourage the inclusion of both sexes when making
company decisions and offering promotional opportunities. Other organizations discourage gender inclusion and
promote bias in the workplace. With most companies, gender differences add value and varying perspectives to an
organization.
Description
Gender differences involve both physical and emotional factors. They are essentially the characteristics that
influence male and female behavior in the workplace. These influences may stem from psychological factors, such
as upbringing, or physical factors, such as an employee's capability to perform job duties.
Differences may also stem from gender stereotypes related to men and women. For instance, a stereotypical
assessment is that women belong in the home while men work and provide support. Stereotypes often lead to sex
discrimination in the workplace.
Gender Perception
Men and women experience differences in perception in the workplace. According to the book, "Managing in the
Age of Change: Essential Skills to Manage Today's Workforce," by Sophie Hahn and Anne Litwin, an employee's
gender can illustrate differences in perception related to organizational structure, problem-solving style and view of
work-related conflict. Also, differences in individual working style is notable.
According to the book, women perceive that individual work styles should be collaborative, where everyone works
as part of a whole. Men, on the other hand, perceive that work should be completed independently without the
assistance of others. Women also tend to be more supportive managers, whereas men are more direct.
Legal Issues
Many legal issues stem from men and women being treated differently or unfairly in the workplace. Several
employment and labor laws govern sex discrimination and prohibit workplace practices that treat a particular sex

197. unfavorably because of gender. For example, the Civil Rights Act prohibits employment discrimination, such as
hiring, firing or refusing to promote an employee because of sex or gender.
Employers must also provide special accommodations for gender-related issues, such as pregnancy and nursing.
Other laws such as the Equal Pay Act ensures men and women receive the equal pay for performing the same job in
the same company.
Solutions
Misunderstandings between genders often cause conflict within the workplace. Men and women perceive
information differently, which could lead to feelings of exclusion or allegations of harassment or sex discrimination.
Managers can combat this problem through training and development initiatives that focus on increased awareness
of gender-related issues. Managers can also encourage change in employee behavior to strengthen the working
relationship between men and women, and lead by example.
Employer and employee responsibilities
Employer responsibilities
Employers are required to ensure that their plant and substances are in a safe condition and that their systems of work and
the working environment are safe. They must:
 Obtain up-to-date Materials Safety Data Sheets (MSDS) from their suppliers of hazardous substances and ensure
that this information is available to workers.
 Keep a register of all hazardous substances.
 Ensure that all chemical storage containers are suitable for the substance they contain and are correctly stored
and labelled.
 Provide information, instruction and training to employees or contractors who could be exposed to hazardous
substances.
 Monitor exposure levels and provide health surveillance where necessary.
 Assess and control all risks to employees or other persons who could be exposed to hazardous substances.
 Maintain records of all risk assessment reports, instruction and training associated with hazardous substances.
 Advise the local emergency service organisation about storage, location and quantities of any hazardous or
dangerous substances kept on-site.
 You'll find more information on staff training and risk control in The answer section.
Employee responsibilities
Employees must cooperate with their employers in the action taken to comply with the Act or Regulations. In particular, they
should use or apply control measures as required and should cooperate with assessments, training programs and other
action taken to protect health and safety.
Employees who become aware of any situation or incident that could be a source of danger to themselves or any other
person must act immediately to protect their health and safety, and report the matter to the employer or relevant health and
safety representative.
Manufacturer and importer responsibilities
A manufacturer or importer of a substance to be used at a workplace must determine whether the substance is hazardous to
health. Some hazardous substances have been listed by the National Occupational Health and Safety Commission
(NOHSC).

198. On this website you can find:
 List of Designated Hazardous Substances
 Approved Criteria for Classifying Hazardous Substances
 National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for new chemicals manufactured in
or imported into Australia. The assessment reports on this site contain useful health and safety information about the
chemicals.
If a substance is determined to be hazardous to health, the manufacturer or importer must:
 label each container of the hazardous substance - the Approved Code of Practice for the Labelling of Workplace
Substances describes how this should be done
 produce a Material Safety Data Sheet (MSDS) and keep it up-to-date - the Approved Code of Practice for the
Preparation of a Material Safety Data Sheet describes how this should be done
 provide the MSDS to a purchaser on the occasion of the first sale
 provide the MSDS on request, to people who purchase the substance from retail outlets
 provide, on request, a copy of the relevant NICNAS summary report.
The South Australian Approved Codes of Practice for the Labelling of Workplace Substances and the Preparation of a
Material Safety Data Sheet are available on the WorkCover website. Their national equivalents are available on the National
Occupational Health and Safety Commission website.
Wholesaler and distributor responsibilities
If a substance is hazardous to health, wholesalers or distributors of that substance must:
 ensure that the container of the hazardous substance is appropriately labelled (this should normally have been
done by the manufacturer/importer but if relabelling is needed the Approved Code of Practice for the Labelling of
Workplace Substances describes how this should be done-also available on the NOHSC website
 provide a current MSDS (from the manufacturer or importer) to the purchaser on the first occasion that they supply
to that person
 provide on request a current MSDS, a copy of any relevant NICNAS summary report and any other information
that will assist in the safe use of the substance.
Retailers do not have duties as suppliers to provide information under the Hazardous Substances Regulations. However,
they do have a general duty of care under the Occupational Health, Safety and Welfare (OHSW) Act 1986 (SA).
Rights and responsibilities of employers and employees
Employers and employees have responsibilities to each other, they should also expect their
rights to be upheld. These rights and responsibilities relate to areas such as Health and Safety,
the provision of Terms and Conditions of Employment, Equal Opportunities and the right to be
paid a Minimum Wage. The Health and Safety at Work Acts set out responsibilities and rights
for both employees and employers. Employees are expected to carry out their work in a way
that has regard to the safety of others. Employers are expected to abide by a range of
requirements governing such aspects as providing safe machinery and equipment, carrying out
regular health and safety checks, ensuring the training of employees in health and safety
issues, and carrying out a risk assessment to assess the dangers of particular work activities.
There are also specific regulations about the way in which potentially harmful substances

199. should be used and stored. There are a number of requirements about the minimum
temperature at work, and other aspects of working conditions.
Employees are expected to receive the terms and conditions of their work setting out when their
work commences, what their main duties are, who they are accountable to, rates of pay, and
other entitlements.
Equal Opportunities legislation sets out that all employees should receive the same pay and
conditions for carrying out the same or broadly similar work. There are also laws against sexual,
racial and disability discrimination.
The Minimum Wage Act sets out the Minimum Wage that workers can expect to receive which
today is more than £5 an hour. The Minimum Wage is regularly reviewed and will increase over
time. There are also European Union requirements governing the maximum number of hours
that workers will be expected to work in a typical week which is currently set at 48 hours.
Employers and employees are expected to meet minimum legal requirements for such areas as
Health and Safety at Work, and minimum standards and conditions related to hours, and the
treatment of people in the workplace. Along with rights for employees there are corresponding
responsibilities such as the expectation to work in a safe way and to have regard for the safety
of work colleagues.
Employers and Employees - Responsibility for Workplace Health
and Safety
Legal responsibility for identifying and correcting health and safety hazards rests on the shoulders of all workplace
parties (employers, contractors, owners, workers, supervisors, self-employers persons and suppliers).
The Occupational Health and Safety Act and Regulations require everyone in the workplace to work together to
identify and control health and safety hazards.
Employers and Employees - Resolving OHS Concerns
Employers
Since employers have the most control over the conditions of work and how it is done, they have the greatest degree
of responsibility for the health and safety of workers. They must:
 Provide a safe and healthy workplace;
 Establish Occupational Health Committees or representatives and consult and cooperate with them in
resolving health and safety concerns;
 Ensure workers are not exposed to harassment;
 Comply with the Occupational Health and Safety Act and Regulations;
 Provide required safe work procedures;
 Ensure equipment is provided and maintained;
 Ensure workers are trained; and
 Ensure supervisors are competent.

200. Employers are also required to have a copy of the Occupational Health and Safety Act, 1993 and the Occupational
Health and Safety Regulations, 1996 readily available to both workers and management.
Supervisors
Supervisors are critical to safe workplaces because they are closest to the actual work being done and can address
and resolve worker concerns. They must:
 Understand the Act and Regulations
 Understand their company's safety program
 Understand the need for and safe use of personal protective equipment
 Understand emergency procedures required under the legislation
 Comply with the Act and Regulations
 Ensure workers they supervise understand and comply with the Act and Regulations
 Support and cooperate with the Occupational Health Committee or Representative
Workers
Workers also have an important role in making the workplace safe. They must:
 Take reasonable care to protect their health and safety and the health and safety of other workers
 Not harass other workers
 Comply with the Act and Regulations
 Use the orientation and training provided to them
 Follow safe work practices
 Use protective equipment provided to them.
 Support and cooperate with the Occupational Health Committee or Representative
Work-life balance: Tips to reclaim control
When your work life and personal life are out of balance, your stress level is likely
to soar. Use these practical strategies to restore harmony.
By Mayo Clinic staff
There was a time when the boundaries between work and home were fairly clear. Today, however, work
is likely to invade your personal life — and maintaining work-life balance is no simple task. This might be
especially true if you're concerned about losing your job due to restructuring, layoffs or other factors.
Still, work-life balance isn't out of reach.
Start by evaluating your relationship to work. Then apply specific strategies to help you strike a healthier
balance.
Married to your work? Consider the cost
It can be tempting to rack up hours at work, especially if you're trying to earn a promotion or manage an
ever-increasing workload — or simply keep your head above water. Sometimes overtime might even be
required. If you're spending most of your time working, though, your home life will take a hit.

201. Consider the consequences of poor work-life balance:
 Fatigue. When you're tired, your ability to work productively and think clearly might suffer —
which could take a toll on your professional reputation or lead to dangerous or costly mistakes.
 Lost time with friends and loved ones. If you're working too much, you might miss important
family events or milestones. This can leave you feeling left out and might harm relationships with your
loved ones. It's also difficult to nurture friendships if you're always working.
 Increased expectations. If you regularly work extra hours, you might be given more
responsibility — which could lead to additional concerns and challenges.
Five ways to balance work and life
ith more work comes less time to exercise too. The Australian Bureau of Statistics reported that
women who work from 16-34 hours per week were more likely to adopt a sedentary lifestyle than
those who worked less hours.
Here are a few ways to maintain balance for your own health and happiness.
1
Make an exercise plan
Making time to exercise is crucial to balance a busy mind, says Kate James, a work-life balance
expert and director of The Change Project. "If we want to be good mums, good partners and good
workers, then that begins with taking care of our own wellbeing," she notes. To stay on track, James
advises following an exercise plan that is "realistic". "It is better to choose an activity that you
naturally enjoy," she says. "For a lot of people, a walk is a good starting point. Take your walking
shoes to work and walk for 30 minutes at lunch time".
Or try to leave the office during your lunch break for a walk around the block, a run or or take a yoga
class.
2
Plan meals ahead
Planning weekly family meals ahead of time and cooking at the beginning of the week can be useful
when time permits. Another tip is to prepare a weekly plan of recipes that you can turn around
quickly on a week night, says Jodie Benveniste, psychologist and director of Parent Wellbeing. "[Try
to] find really quick and easy meals you can make in under half an hour," she notes.

202. And don't feel guilty if you occasionally dial up for dinner during the week. As long as children are
eating mostly healthy meals through the week, "it's ok to serve baked beans on toast or takeaway
once in a while," Benveniste says.
3
Remember your passions
Whether you have your own business or are climbing the corporate ladder, as a working mum it's
important to keep your goals in sight. Or as James puts it: "Something that creates meaning and
purpose in your life." She explains women who sacrifice their passions when they become mums
can be in for a shock when their little ones grow up. "It can become difficult when kids gain their
independence and move away," she says.
And remember why you love what you do – it's the ultimate confidence booster. "It's important for
working mums to recognise the value that they get out of working and what that contributes to
themselves and their lives," Benveniste says.
4
Time for the family
When you arrive home, instead of rushing to get dinner ready, take some time to check in with your
family. James urges working mums to be mindful of having this time together, away from distractions
and listen in to what's happening in their world. "Talk about what was good about their day without
the distractions of television," James says.
This is also a good time to teach children responsibility and get them involved in domestic duties
such as setting the table for the family meal.
5
Make time for you
It is difficult to be a good support to your family if you're not scheduling in your own downtime "You
can't look after other people very well unless you are looking after yourself," says Benveniste.
This might be as simple as asking your partner to take the kids out for an afternoon, while you read a
book, or go out and watch a movie with a friend. "A few great friends who are supportive and fun to
be with can offer a reprieve from work and family life," Benveniste says.
Managing Difficult And Demanding Customers:

203. Who is it for?
Anyone who has to maintain professional customer service when dealing with difficult
customers, either face-to-face or on the phone.
What is it about?
This course gives front-line personnel the skills to react calmly and positively with difficult
customers. It offers an understanding of the causes of difficult behaviours and effective
techniques to diffuse them. Delegates will learn how to distance themselves from any personal
remarks and respond professionally without entering into arguments. (The course covers verbal
not physical aggression or violence.)
What will I get out of it?
 A greater understanding of what causes customers to be demanding or difficult
 The personal skills to stop taking things personally or becoming emotional
 Recognition of the best way to manage your responses, engaging ―the professional
brain‖
 Strategies for handling different types of difficult situations
 An ability to stand your ground when unable to say ―yes‖
 Confidence and guidelines for dealing with unacceptable behavior
Personal Demands and Pressures
Personal stress develops from situations that affect your
relationship with yourself. A strong and positive sense of self is a
powerful asset in coping with life stress. Events or experiences
that shake your self-image impact how well you overcome
external challenges in your life. Discomfort with how you see
yourself is also a major source of stress point in and of itself.
Personal stress can come from success and achievement as well as
personal setbacks and failures. Trauma such as an injury or
illness, being assaulted or robbed, or minor violations of the law,
such as a speeding ticket, test your endurance and well-being,
creating personal doubts, self-examination, anxiety, depression,
and illness. Worries about attractiveness, weight, aging, or
physical changes as a result of personal injury, illness, or time
destroy peace of mind and affect your relationships with yourself
and other people.
Personal stress is difficult to address with self-help measures. You're so close to the concerns causing your
stress, they're hard to see. Often, you're unaware that stress influences how you see yourself and how you
feel about what you see. And even when you become aware of personal stress, you're often so enmeshed in
its causes, you feel powerless to do anything.
The most pervasive aspect of personal stress is trying to meet obligations to yourself. Some people feel
guilty about being "selfish" while simultaneously feeling resentful about getting "shortchanged" by life. This
conflict is created by being over-involved with career, family, fame, fortune, the needs of others, or
maintaining your lifestyle. You are never alone with yourself, or get personal things done, or pursue your
personal goals and aspirations. It comes from feelings of failing to live up to what you really are, giving up
on your dreams, "selling out," or "settling." Shakespeare expresses this universal truth in Hamlet, "To thy
own self be true."
Loss of self-esteem and self-respect or regaining it is a persistent theme in art. Edward Hopper's Boulevard

204. of Broken Dreams, Willie Loman and his eldest son, Biff, in Death of a Salesman are examples of how loss of
self-esteem and self-respect makes life empty and meaningless. The movie Rocky, on the other hand,
portrays the joy and deep satisfaction that comes from following your dreams and living up to your
potential.
Limitations on personal freedom - going where we want, when we want, and how we want - and autonomy
are the second most common type of personal stress affecting our clients. Personal freedom is central to
most of us. Biological limits on personal autonomy are particularly troublesome for women. An unwanted
pregnancy, for some women, is like nine months in jail. Sexual difficulties or starting menopause can be
equally stressful.
Jail or prison terms, by definition, limit our personal autonomy and freedom. Changes in recreation or
religious activities often reflect a loss of freedom of choice. Limitations on our personal autonomy are so
stressful for of us that we will fight to the death rather than tolerate them. The New Hampshire state motto,
for instance, is "Live Free or Die."
Change always creates stress and life always involves change. Change is an inevitable part of normal
development and growth. As we grow and mature from childhood to adolescence to adulthood to maturity
and senescence, we go through changes in residence, in our living conditions, personal habits, interpersonal
relationships, and recreational activities. Each change involves leaving something familiar behind and
moving on to something new and unsettling in its uncertainty.
Often, the demands and pressures of life changes create further personal stress by diverting our energies
and resources. Sometimes we have difficulty meeting our obligations to ourselves. Drug and alcohol
problems develop as we seek relief from the stress.
In our culture, we over-emphasize appearances. If you compare yourself to the airbrushed, slick magazine
versions of masculine or feminine "perfection," you're bound to be disappointed. Nobody looks like that.
Many people try and end up feeling miserable when they fail.
The narcissism of failed perfectionism is a particularly difficult area of personal stress, because it leads us to
feel ugly, undesirable, fat, or old and worn out.
Almost everyone has their own ideas and convictions about how the world works and their place in the
universe. There may be an explicit set of rules or a code of conduct, or the rules may be vague and
unspecified. Some of us are rigid and unyielding about our particular views and myth systems, others are
flexible and frequently change views.
Philosophical or religious preoccupations, questions about our basic beliefs and conceptions, concerns about
right and wrong, and personal morality, make up an element of personal stress. Our views relating to these
basic issues are part and parcel of who and what we are. When they are challenged by circumstances,
ourselves, or others, the threat is to something basic and vital about ourselves.
The key to handling personal stress is to build your self-esteem. Write a list of ten things you like about
yourself. Pay yourself compliments: "I really did a good job on that," "I may not be the best, but I'm awfully
close." If you have difficulty accepting compliments, keep practicing until you can. Look at yourself in the
mirror and say the things to yourself that would make you feel good if someone else said them to you.
Another way of altering your personal stress is to try looking at your situation from a less immediate
perspective. Take a long-term view of life, particularly your own. Nothing in your life is wasted, every
experience prepares you to cope with situations later on.
Look at your parents' lives or their friends' lives. Draw on older people's experiences for examples of how
changing your perspective can reduce the stress of your current situation.
Be assertive about your personal privacy, freedom, and autonomy. Examine your goals and directions, make
sure you're doing what you want to do, going where you want to go. Are your goals your own or someone
else's?
Decide what you want to be doing and where you want to be in five years, then figure out what will get you
there. This can be tough on personal relationships and you may have to decide which is more important,
your relationship or your freedom.

205. If you're feeling bad about not meeting obligations to yourself or berating yourself for being a failure and not
having lived up to your potential, take time out for a reality check. Who are you competing with? Who are
you comparing yourself to? Young people often compare themselves to people ten or twenty years older
than they. Whose aspirations are you reaching for, yours or someone else's? Your parents'? Your spouse's?
Your teachers'? How much of your feelings of failure have to do with disappointing others? Quit competing,
quit comparing, and follow your own dreams. Make a list of your achievements, successes, and
accomplishments. Chances are you'll be pleasantly surprised at how much you've done.
How much of your personal stress has to do with impossibly high standards others have set for you or
you've set for yourself? How much comes from overestimating your own talents, abilities, and capacities? Do
you tend to overestimate, underestimate, or accurately estimate what you can and cannot do? Get in touch
with reality. Ask someone you trust and respect for an honest appraisal of your abilities. Get checked out by
a career counselor or headhunter. If you've got it, go for it. If you don't, back off on your standards and give
yourself a break.
If too much success is the problem, just slow down. You don't have to live up to an image of success. You
don't have to exhaust yourself to live up to your past success. Take it easy and don't assume more success
than you can handle. You don't have to live up to someone else's ideas of how much is enough or what you
should do with success when you get it. You might want to take a look at whether your success is worth the
hassles it brings.
Develop a multi-faceted personal identity. Learn to look at yourself in many different ways. Don't limit
yourself to being just one thing. Search for balance among work, family, friends, recreation, and hobbies.
Altering personal stress can be a daunting task and everyone needs a little help with it from time to time.
Tap your friends or family. If you need more support, get in touch with a good counselor or therapist.
Click on other areas of demand and pressure that are problematic for you to learn more about what you can
do to get them under control as well.
 Job
 Family
 Social
 Environmental
 Financial
Professional demands of employees in knowledge-intensive
occupations
The Federal Institute for Vocational Education and Training has published a study of employees
in so-called knowledge-intensive jobs. Such workers represent an increasing proportion of the
workforce. Employees in these jobs are faced with higher requirements in relation to their
professional skills and qualifications. Moreover, their daily tasks have widened considerably and
are subject to frequent change.
Survey aims and methodology
The Federal Institute for Vocational Education and Training (Bundesinstitut für
Berufsbildung, BIBB) and the Federal Institute for Occupational Safety and Health (Bundesanstalt
für Arbeitsschutz und Arbeitsmedizin, BAuA) organise an employee survey on behalf of the
Federal Ministry of Education and Research (Bundesministerium für Bildung und
Forschung, BMBF). The survey is conducted by the research institute TNS Infratest
Sozialforschung Munich, which carried out telephone interviews from October 2005 to March
2006; the survey covers 20,000 employees who answered on a voluntary basis.

206. The research aims to provide information on employees and their workplaces. Those surveyed
were asked about developments at their workplaces as well as in relation to their working
conditions or their job and skills requirements. The survey also examined the link between
employees‘ educational background and their employment. Questions pertained to changes
within the previous two years – between 2004 and 2006. Participants were at least 15 years old
and worked for a minimum of 10 hours a week; trainees were excluded from the survey.
Originally, the survey was designed to cover gaps in the official dataset of the Microcensus
provided by the Federal Statistical Office (Statistisches Bundesamt Deutschland, Destatis). Each
year, the Microcensus samples 1% of the population, amounting to about 390,000 households
comprising 830,000 persons. The BIBB survey uses the data from the Microcensus 1996, 2000
and 2004 for cross reference.
The Microcensus data make it possible to take long-term developments into account; for
example, the study shows that the number of knowledge-intensive jobs has increased from 1996
to 2004. The interview data, however, complete the picture with detailed information on
developments at the workplaces, such as changing job portfolios and different task and skills
requirements.
More employees working in knowledge-intensive occupations
In identifying knowledge-intensive occupations, the BIBB study firstly considers professions that
require an academic degree, such as engineering. It also takes into account occupations – such
as those of senior executives or managers, technicians or master craftspersons – which do not
necessarily require an academic degree, but that can be attained by means of a different path,
such as vocational education.
As the table shows, the number of employees working in knowledge-intensive occupations
increased from 8,052,400 in 1996 to 9,047,000 in 2004. This represents an increase of 12.4%
or, in absolute terms, 994,600 persons. Within this period, the following occupations registered
the highest increase in the number of employees: information technology (IT) professionals (a
49.7% increase), journalists and creative professionals (29.4%), and managers and consultants
(20.8%).
Employees in knowledge-intensive occupations, 1996–2004
The number of IT professionals as well as journalists or employees in creative
professions rose steadily.
1996 2000 2004
Total
change
%
Knowledge-intensive
occupations (total)
8,052,400 8,652,400 9,047,000 994,600 12.4
Research-intensive
occupations, such as:
4,165,100 4,619,900 4,817,200 652,100 15.7
- Engineers 931,400 948,600 935,700 4,300 0.5

207. - Technicians 850,800 894,000 859,000 8,200 1.0
- IT professionals 383,400 532,700 574,100 190,700 49.7
- Researchers 350,300 381,400 418,700 68,400 19.5
- Managers, consultants 1,209,500 1,363,000 1,460,700 251,200 20.8
- Journalists, creative
occupations
439,700 500,200 569,000 129,300 29.4
Other knowledge-intensive
occupations
3,887,200 4,032,500 4,229,800 342,600 8.8
Other occupations 24,831,300 24,437,600 22,902,200 -1,929,100 -7.8
All occupations 32,883,600 33,090,000 31,949,200 -934,400 -2.8
Source: BIBB, Activities and vocational requirements in knowledge-intensive occupations, 2007
The growing number of employees working in knowledge-intensive occupations reflects the
structural change towards a knowledge-based society. However, the study indicates that changes
have also been generated at the workplaces in knowledge-intensive occupations, as outlined in
the following section.
Change in job requirements
The BIBB study shows that 53.5% of all employees surveyed emphasised that they had to
accomplish new tasks more often. This development is especially true for employees in research-
intensive jobs. The majority of them, corresponding to 60.7%, stated that the variety of
professional tasks that they were required to carry out had broadened since 2004. Task
diversification affected, in particular, managers and consultants (63.2%), IT professionals
(65.5%), technicians (66.8%) and engineers (57.6%).
Computer software
When asked what kind of changes had led to the transformation of their daily tasks, the
respondents pointed most often to the introduction of new computer software as well as internal
restructuring processes in their establishments or companies. The BIBB study, furthermore,
highlights the fact that task diversification often leads to higher demands in relation to
employees‘ skills.
Foreign languages
In this regard, job profiles for knowledge-intensive occupations tend to place greater emphasis
on multi-disciplinary skills. Employers are looking for employees who, on the one hand, are
experts in their occupational fields and who, on the other, have a good command of foreign

208. languages or have other analytical skills. Foreign languages were indicated as a core competency
by 40.6% of all employees surveyed who were in a research-intensive profession. Among the
professions, IT professionals (59.9%), researchers (51.8%) and engineers (45.8%) were the
ones who most often indicated that they needed to master a foreign language, particularly
English.
Problem solving
The required analytical skills relate to profound knowledge and capabilities that facilitate
solutions to often difficult tasks and problems, for instance, trouble-shooting, decision making,
logical reasoning and abstract thinking. These abilities are of particular interest for employees in
research-intensive occupations: 67.1% of employees in such occupations underlined that they
often had to cope with unexpected problems. Another 72.4% of researchers and 71.5% of
managers and consultants indicated that they often had to explain difficult facts and issues that
were not readily intelligible to everyone as part of their job.
In short, compared with employees in other professions, those working in knowledge-intensive
occupations are frequently faced with rising demands concerning their professional skills. The
likelihood of increased professional requirements was five times higher for employees who were
faced with task diversification than for other employees. Moreover, skills in their original field of
expertise have to be complemented by skills outside their subject area.
Importance of education for young people
Finally, the study underlines the growing importance of a sound vocational or academic
education for young people. Since knowledge-intensive jobs account for an ever greater share of
all occupations in the labour market, a higher ratio of well-educated young people seems
advisable.
Coping With "Unreasonable Demands"
Job Stress Management from Mind Tools
Introduction:
Demands that seem unreasonable can be a tremendous source of stress.
These often arise when innocent situations come together and reinforce one another to create stressful,
extreme, and unfeasible demands on you. For example, if you are in a customer service role, several
customers can be clamoring for completion of large jobs at the same time. This becomes intensely
stressful when you only have the resource to service a few of them.
Similarly, enthusiastic middle managers can amplify the importance of simple, low priority requests from
senior managers, creating unwarranted pressure on implementation teams. In other situations,
requirements can be misunderstood when transmitted from person-to-person, the importance of
deadlines can be overstated, and requests can be made in ignorance of key pieces of information.
Obviously, real emergencies can also occur. Resolving these can often require extreme and unpleasant
levels of activity from all involved.

209. In all of these cases, and in many others, reasonable people can make unreasonable demands with or
without knowing it. If you add into this the concept of ―stretch goals‖, the fact that people making requests
may not have correctly appreciated the situation, and the fact that that people may be playing normal
commercial games, you can see how problems arise.
This tool helps you to work through apparently unreasonable demands to understand what lies behind
them, and develop appropriate solutions to them. It helps you to work effectively with the person making
the demand to find a satisfactory solution, rather than just assuming that the other person is ―difficult and
unreasonable‖. This helps you to reduce the stress that these situations can cause.
Using the Tool:
The Diagram below shows you a process for working through apparently unreasonable demands.

210. By using this process, you can ensure that:
 The situation has not arisen as a result of a misunderstanding;
 You have fairly tried to understand the other person‘s position;
 You have explored all reasonable ways to meet the demands; and
 You have tried to negotiate a fair compromise.

211. Each step in the diagram is explained below:
1. Check Your Information and Assumptions:
The first stage of this process is simply to make sure of your information. Check that you have not made
any incorrect assumptions. Then check that you fully understand what you are being asked to do. Finally,
confirm when it needs to be delivered. If you are set a deadline, understand why that deadline has been
set, and what happens if it is not met. You may find that deadlines are actually much more flexible and
arbitrary than they initially appear.
2. Look From the Other Person’s Perspective:
If things still seem unreasonable, try looking at the situation from the other person‘s perspective. Make
sure you are fully aware of all of the facts. For example, if you are working at full capacity and someone
asks you to take on more priority work, they might not know how much work you have on. Explain the
situation to them, and try to negotiate an appropriate solution.
Tip:
―Negotiate" is an overloaded word. It conjures up images of sophisticated ploys and subtle
gamesmanship. While this can be true in very important negotiations with a great deal at stake, what
―negotiate‖ normally means is "find a mutually acceptable solution". This is often easy, and is something
we do all the time.
It is also quite possible that what seems unreasonable to you, might seem fine to someone else. For
example, if you are new to a company, it might have a longer hours culture than you are used to. As
another example, a client needing to place a priority order may expect it to be turned around in a
reasonable time - the fact that your production process is backlogged may not interest them. Come to a
fair view of what is right in the set circumstances with which you have to work, and then manage the
situation appropriately.
3. Explore Your Alternatives and the Cost of the Alternatives:
If the demand still seems unreasonable, think through all the ways in which you might try to meet it. A
little lateral thinking may help you to find a solution. Evaluate the impact of any possible solution.
4. Explain Your Perception Assertively:
Using the techniques we described in our assertiveness article, arrange a meeting and explain the situation
as you see it in an assertive manner.
5. Agree or Disagree, and Manage the Consequences
By this stage, you will have done everything that you can reasonably be expected to do to meet the
unreasonable demand.
It is still quite possible that you may not have agreed on a fair way forward. The other person may be
trying to squeeze you to get a better deal than is normal. This is quite often the case in tough commercial
negotiations (particularly where the other person does not expect to have to do business with you again).
Alternatively (this is unpleasant) they may have political ―hidden agendas‖ and may want you to fail or be
disadvantaged.
This is where you need to know your ―BATNA‖ – your Best Alternative To a Negotiated Agreement. This
is the course of action or outcome that is open to you if you do not agree to meet the unreasonable
demand. You also need to have an idea of what the future value of the relationship might be, as making a
sacrifice now may bring strong benefit in the future.

212. If your BATNA is good, then the other person may have little power to impose the demand on you. Either
use your BATNA to negotiate good compensation for coping with the unreasonable demand, or reject it.
If your BATNA is poor, then you may have to agree to the demand. Even if this is the case, try to
negotiate some form of fair compensation for any pain you have to accept.
If you choose to turn down the demand, make sure that you manage this with all of the stakeholders who
will be affected - this gives them the opportunity to support you and help to manage the consequences.
Summary:
It is far too easy to immediately jump to the conclusion that someone is a ―bad person‖ when they make
an unreasonable demand of you. In reality, people can make unreasonable demands for a whole range of
good and bad reasons.
This tool gives you a process for working through seemingly unreasonable demands. This involves the
following stages:
 Checking your information and assumptions;
 Looking from the other person‘s perspective;
 Exploring the alternatives;
 Explaining your perceptions assertively; and
 Agreeing or disagreeing, and managing the consequences.
If you choose to turn down the demand, make sure that you explain the reasons for this to all appropriate
stakeholders.
How to Organize Your Desk
Wouldn't you like your desk to look like this? A cluttered desk gives the impression of disorder - an
untidy desk = an untidy brain? A neat desk is always easy to work on, and find things easily. What's
the trick? Spend 10 minutes at the end of each day sorting out what is needed, what can be stored
off the desk and what can be thrown away. Read the next steps to make your desk organized. Now
is the time to edit!
EditSteps
1. 1
Start with a clean slate. Move everything off of the desk and place it on the floor or table next to
you. Throw out, or put into storage the items that are not needed, such as old papers, torn scraps of
paper, or even an outdated picture. Do not move things that are large and important-for example, a
printer, or a desktop screen.

213. 2. 2
Prioritize! Decide what are your most important and most-used items. Items such as pencils, pens,
scissors, important documents, or even hand lotion. Place these items in a drawer that is within an
easy reach (or, in the case of pens and pencils, in a cup).

214. 3. 3
Clean the top of your desk. Your desk top should not have much on it. If you have too much stuff
on your desk, it will look cluttered. You should keep on your desk a in/out tray, clock, lamp and a
calendar. You should not have your computer on your desk (unless it is a desktop computer). If you
have more than those items on your desk, it can look cluttered.

215. 4. 4
Put frequently used items in easy to reach areas. This may include a shelf or a drawer. However,
make sure you do not just throw the items on a shelf or a drawer. Give everything a specific place so
that you always know where it is. Some frequently used items include:

216. o Pens/pencils. Store these in a small storage container
o Sharpener
o Stapler
o An A4 book
o 2 highlighters
o Pocket tissues[optional]
o Sticky notes
o Paper-clips and/or blu tack
5. 5
Store items that are not used frequently in less accessible areas. Items that are not used
frequently do not need to be in an easy to reach area. Therefore, by putting them elsewhere, you
make room for those things that you do use often.

217. 6. 6
Papers. Place loose papers in a desk box. If you are still working on them, mark them by using a
tiny dot on the top so you'll remember to go back to them. So you know which ones are finished.
Papers that are not being worked on can be put in a binder or a folder. Put it in an easy to reach
area if you use the items frequently. If you do not use the items frequently you do not need to put it
in an easy to reach area.

219. EditVideo
EditTips
 Develop a filing system so you know where to put things like receipts, and so you can find
things easily without disturbing everything else.
 The fewer adornments placed on top of the desk, the neater and cleaner the desk top.
 Things needed more often, can be placed in a drawer instead of being left on top.
 Try to organize as you go, or else there will be a bigger mess in the end.
 Don't make it messy in the first place.
 Keep files for different papers such as a file for different subjects to make things easier to
find and manage.
 It also helps if you have a stationery box to put things like erasers, tape, extra staples, etc.,
to help keep you organized.
 A desk should be uncluttered, so it can be used easily and comfortably. Recycle paper and
empty envelopes as soon as you find them. Do not store information in envelopes, as it creates
clutter in your desk and in your mind.
 Take 5 min every day to clean your desk.
 Take a shoe box lid and use it as a paper holder.
Show 3 more tips
EditWarnings
 After moving things around, placing into drawers, you may forget where you put things. Make
a notation on a notepad where things have been moved to or better yet, type it out on Microsoft
Word and save it to your computer or a disc..

220. 5 Ways to Organize Your Office--Stylishly
Whether you work in a home office, an office suite or a store, you want the space to look as
professional as you.
"When people see an office that's messy, there's an assumption that you're not on top of your
work," says Linda Samuels, a certified professional organizer in Westchester, N.Y. "A messy desk
can give a very bad first impression." What to do first? It's simple. Corral your papers, find ways to
contain your clutter, and whatever you do, keep the kids' drawings out of your workspace.
As you get started tidying up, here are five ways to keep your office looking spiffy -- and stylish
products to help get you there:

222. 1. Box up must-keep documents. Mountainous piles of papers cost you valuable time as you
look for specific documents, and they also contribute to a disorderly look. These stackable
boxes ($19.95 each), which come in such cheery colors as mimosa and turquoise, offer a stylish
storage option.
How it helps: "By using each [color] for a different purpose, you've sorted them by category,"
Samuels says. "That pre-thinking allows you to get to something sooner because you've already
determined what's in each container."
TIP: Use one box for invoices and one for contracts, or reserve a single bin for each of your clients.
Related: 5 Tips for Boomer-Friendly Retail Design
2. Banish desktop clutter. As much as you might want to go entirely paperless, there are still
inevitably some important papers you want to have within reach. Still, you don't want them spread
out all over your desk. If this is your office dilemma, consider the bright-white Martha Stewart Home
Office with Avery Stack + Fit Drawer ($23.99). Then, create your own organization system by
stacking a tray or two on top.
How it helps: "Having multiple trays divided by different topics or categories of action organizes the
action," Samuels says. "These trays help you prioritize the things that need immediate attention from
the ones that can wait.
TIP: Also, you can use the drawer to store a small set of office supplies that you use daily.

223. 3. Find time to file. Filing is something every entrepreneur dreads. To stay on top of this must-do
task, you might consider the graceful looking Stratford Desktop Sorter ($12.25). With its four wide
slots, this desktop accessory (available in white or black) has a spot for everything.
How it helps: "This sorter is great for keeping at your fingertips the project/action files you reach for
frequently," Samuels says. "It can sit on your desk or on a surface behind your desk, keeping your
desktop clutter-free. Best of all, priority files are visible and reachable."
TIP: Group projects or types of documents (bills, invoices, receipts) into specific slots. Also, consider
using the front slot to display your business cards or brochures.
Related: Smaller Retailers Tap Into the Power of Digital Displays
4. Seek out space for odds and ends. Your office can easily get messy if you don't have set
places for your phone charger, iPad cord or reading material. These felt storage boxes ($16 to $29,
depending on size) offer a convenient place to store those miscellaneous items. Bonus feature:
They're soft and sturdy and can be monogramed for an additional $7.
How it helps: "These are great for stowing catalogs and magazines and can sit on the floor, a ledge
or on your bookshelf," Samuels says. "They might also work for grouping bulky materials for specific
projects like samples or oversized binders. These keep your important items accessible, but
contained."
TIP: Label these boxes by writing the category on an index card (i.e. To Read or Gadget
Accessories) and then attach the card with a binder clip or clothespin.

224. 5. Create an off-the-desk management system. If you work better by moving around during
the day, a good choice for you might be these white steel double-decker files ($25) that attach to
your office wall.
How it helps: "Wall files can be used to communicate with your staff," Samuels says. "For example,
they're a great way to help route things or get your team motivated in the morning. You can ask them
to head right to these bins in the morning and collect their important work for the day."