PERSPECTIVE MANAGEMENT

TRIMESTER 1

Shreyash Sheth
Table of Contents
1) Management Definition, Functions & Management Skills, Business Environment,
PESTLE.............................................................................................................................. 2
2) Scientific Theory by Frederick W. Taylor ..................................................................... 9
3) Administrative Theory by Henri Fayol....................................................................... 11
4) Bureaucratic Theory by Max Weber ......................................................................... 13
5) Human Relations Theory by Elton Mayo ................................................................... 15
6) X&Y Theory by Douglas McGregor ........................................................................... 19
7) Total Quality Management by Deming .................................................................... 23
8) Abraham Maslow's Hierarchy of Needs .................................................................... 24
9) Management By Objectives & SMART Goals by Peter Drucker .................................. 26
10) Systems Management Theory .............................................................................. 33
11) Mckinsey7 S Framework ....................................................................................... 36
12) Design Thinking by Tim Cook ................................................................................ 39
13) Vijay Govindrajan's-Three Box Solution ................................................................ 41
14) Stephen Covey -7 Habits of Effective People & Time Management Matrix ............. 42
15) Discovery & Delivery Skills .................................................................................... 43
16) Leadership & Managerial Styles: The Blake Mouton Managerial Grid ................... 47
17) Business Ethics ..................................................................................................... 50
18) MBA Oath ............................................................................................................ 56
The MBA Oath........................................................................................................................ 56
19) ESG ...................................................................................................................... 57
20) Circular Economy.................................................................................................. 58

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1) Management Definition, Functions & Management Skills,
Business Environment, PESTLE
Definition
According to Harold Koontz, “Management is an art of getting things done through
and with the people in formally organized groups. It is an art of creating an
environment in which people can perform and individuals and can co-operate
towards attainment of group goals”. According to F.W. Taylor, “Management is an art
of knowing what to do, when to do and see that it is done in the best and cheapest
way”.
Functions

Different experts have classified functions of management. According to George &

Jerry, “There are four fundamental functions of management i.e. planning,
organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to

command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’
where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for
Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are
functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of

management but practically these functions are overlapping in nature i.e. they are
highly inseparable. Each function blends into the other & each affects the
performance of others.

1. Planning

It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals. According to KOONTZ, “Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap from where we are & where
we want to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action to achieve

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desired goals. Thus, planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it is an intellectual
activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, “To organize a business is to provide it with
everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.
To organize a business involves determining & providing human and non-human
resources to the organizational structure. Organizing as a process involves:

• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc. The
main purpose o staffing is to put right man on right job i.e. square pegs in square
holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial
function of staffing involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the roles designed un
the structure”. Staffing involves:

• Manpower Planning (estimating man power in terms of searching,

choose the person and giving the right place).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes. It is considered life-spark
of the enterprise which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the work. Direction is that
inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

• Supervision

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• Motivation
• Leadership
• Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.
According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is
the measurement & correction of performance activities of subordinates in order to
make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

• Establishment of standard performance.

• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out
deviation if any.
• Corrective action.

What are Management Skills?

Management skills can be defined as certain attributes or abilities that an executive

should possess in order to fulfill specific tasks in an organization. They include the
capacity to perform executive duties in an organization while avoiding crisis
situations and promptly solving problems when they occur. Management skills can
be developed through learning and practical experience as a manager. The skills
help the manager to relate with their fellow co-workers and know how to deal well
with their subordinates, which allows for the easy flow of activities in the
organization.

Good management skills are vital for any organization to succeed and achieve its
goals and objectives. A manager who fosters good management skills is able to

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propel the company’s mission and vision or business goals forward with fewer
hurdles and objections from internal and external sources.

Management and leadership skills are often used interchangeably as they both
involve planning, decision-making, problem-solving, communication, delegation,
and time management. Good managers are almost always good leaders as well.

In addition to leading, a critical role of a manager is to also ensure that all parts of
the organization are functioning cohesively. Without such integration, several issues
can arise and failure is bound to happen. Management skills are crucial for various
positions and at different levels of a company, from top leadership to intermediate
supervisors to first-level managers.

Types of Management Skills

According to American social and organizational psychologist Robert Katz, the three
basic types of management skills include:

1. Technical Skills

Technical skills involve skills that give the managers the ability and the knowledge to
use a variety of techniques to achieve their objectives. These skills not only involve
operating machines and software, production tools, and pieces of equipment but also
the skills needed to boost sales, design different types of products and services, and
market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability for
abstract thinking and formulating ideas. The manager is able to see an entire
concept, analyze and diagnose a problem, and find creative solutions. This helps the
manager to effectively predict hurdles their department or the business as a whole
may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability
to interact, work or relate effectively with people. These skills enable the managers
to make use of human potential in the company and motivate the employees for
better results.

Definition of Business Environment is sum or collection of all internal and external

factors such as employees, customers needs and expectations, supply and demand,
management, clients, suppliers, owners, activities by government, innovation in
technology, social trends, market trends, economic changes, etc. These factors affect
the function of the company and how a company works directly or indirectly. Sum of
these factors influences the companies or business organisations environment and
situation.

What is a PESTEL Analysis?

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PESTEL Analysis is a strategic framework used to evaluate the external environment
of a business by breaking down the opportunities and risks
into Political, Economic, Social, Technological, Environmental, and Legal factors.
PESTEL Analysis can be an effective framework to use in Corporate Strategy
Planning and for identifying the pros and cons of a Business Strategy. The PESTEL
framework is an extension of the PEST strategic framework, one that includes
additional assessment of the Environmental and Legal factors that can impact a
business.

Below we break down the key items of each of the 6 Factors of the PESTEL
framework (Political, Economic, Social, Technological, Environmental, and Legal).
Points derived from PESTEL Analysis can be incorporated into other strategic
frameworks, such as SWOT Analysis and Porter’s 5 Forces, where relevant.

Political Factors

When looking at political factors, you are looking at how government policy and
actions intervene in the economy and other factors that can affect a business. These
include the following:

• Tax Policy
• Trade Restrictions
• Tariffs
• Bureaucracy

One of the reasons that elections tend to be a period of uncertainty for a country is
that different political parties have diverging views and strategies for policy on the
items above.

Political Factor Example: A company decides to move its operations to a different

state after a new government is elected on a campaign to implement policies that
would adversely impact the company’s core operations.

Economic Factors

Economic Factors take into account the various aspects of the economy, and how
the outlook on each area could impact your business. These economic indicators are
usually measured and reported by Central Banks and other Government Agencies.
They include the following:

• Economic Growth Rates

• Interest Rates
• Exchange Rates
• Inflation
• Unemployment Rates

Often these are the focus of external environment analysis. The economic outlook is
of extreme importance for a business, but the importance of the other PESTEL
factors should not be overlooked.

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 Economic Factor Example: A company decides to refinance its debt after an
interest rate decrease is announced.

Social Factors

PESTEL analysis also takes into consideration social factors, which are related to
the cultural and demographic trends of society. Social norms and pressures are key
to determining consumer behavior. Factors to be considered are the following:

• Cultural Aspects & Perceptions

• Health Consciousness
• Populations Growth Rates
• Age Distribution
• Career Attitudes

Social Factors Example: The percentage of the American population that smokes
has decreased since the 1970s, due to changes in society’s perception of health and
wellness.

Technological Factors

Technological factors are linked to innovation in the industry, as well as innovation in

the overall economy. Not being up to date to the latest trends of a particular industry
can be extremely harmful to operations. Technological factors include the following:

• R&D Activity
• Automation
• Technological Incentives
• The Rate of change in technology

Technological Factors Example: A company decides to digitize their physical data

files to allow for quicker access to company information.

Environmental Factors

Environmental factors concern the ecological impacts on business. As weather

extremes become more common, businesses need to plan how to adapt to these
changes. Key environmental factors include the following:

• Weather Conditions
• Temperature
• Climate Change
• Pollution
• Natural disasters (tsunami, tornadoes, etc.)

Additionally, there is increasing importance for businesses to be environmentally

friendly with their operations, as evidenced by the rise of Corporate Sustainability
Responsibility (CSR) initiatives. Examples of CSR initiatives include carbon footprint
reduction efforts and transitions into renewable material and energy sources.

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Environmental Factors Example: An agricultural company has to adjust its
harvest forecasts due to unexpectedly dry seasonal conditions that will prevent crop
growth.

Legal Factors

There is often uncertainty regarding the difference between political and legal factors
in the context of a PESTEL analysis. Legal factors pertain to any legal forces that
define what a business can or cannot do. Political factors involve the relationship
between business and the government. Political and legal factors can intersect when
governmental bodies introduce legislature and policies that affect how businesses
operate.

Legal factors include the following:

• Industry Regulation
• Licenses & Permits
• Labor Laws
• Intellectual Property

Legal Factors Example: A restaurant is forced to shut down after not meeting food
safety standards set out in state law.

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2) Scientific Theory by Frederick W. Taylor
redrick Winslow Taylor ( March 20, 1856 - March 21, 1915) commonly known
as ’Father of Scientific Management’ started his career as an operator and rose to
the position of chief engineer. He conducted various experiments during this process
which forms the basis of scientific management. It implies application of scientific
principles for studying & identifying management problems.
According to Taylor, “Scientific Management is an art of knowing exactly what you
want your men to do and seeing that they do it in the best and cheapest way”. In
Taylors view, if a work is analysed scientifically it will be possible to find one best
way to do it.
Hence scientific management is a thoughtful, organized, dual approach towards the
job of management against hit or miss or Rule of Thumb.
According to Drucker, “The cost of scientific management is the organized study of
work, the analysis of work into simplest element & systematic management of
worker’s performance of each element”.
Development of Science for each part of men’s job (replacement of rule of
thumb)
This principle suggests that work assigned to any employee should be observed,
analyzed with respect to each and every element and part and time involved in it.
This means replacement of odd rule of thumb by the use of method of enquiry,
investigation, data collection, analysis and framing of rules.
Under scientific management, decisions are made on the basis of facts and by the
application of scientific decisions.
Scientific Selection, Training & Development of Workers
There should be scientifically designed procedure for the selection of workers.
Physical, mental & other requirement should be specified for each and every job.
Workers should be selected & trained to make them fit for the job.
The management has to provide opportunities for development of workers having
better capabilities.
According to Taylor efforts should be made to develop each employee to his greatest
level and efficiency & prosperity.
Co-operation between Management & workers or Harmony not discord
Taylor believed in co-operation and not individualism.
It is only through co-operation that the goals of the enterprise can be achieved
efficiently.
There should be no conflict between managers & workers.

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Taylor believed that interest of employer & employees should be fully harmonized so
as to secure mutually understanding relations between them.
Division of Responsibility
This principle determines the concrete nature of roles to be played by different level
of managers & workers.
The management should assume the responsibility of planning the work whereas
workers should be concerned with execution of task.
Thus planning is to be separated from execution.
Mental Revolution
The workers and managers should have a complete change of outlook towards their
mutual relation and work effort.
It requires that management should create suitable working condition and solve all
problems scientifically.
Similarly workers should attend their jobs with utmost attention, devotion and
carefulness. They should not waste the resources of enterprise.
Handsome remuneration should be provided to workers to boost up their moral.
It will create a sense of belongingness among worker.
They will be disciplined, loyal and sincere in fulfilling the task assigned to them.
There will be more production and economical growth at a faster rate.
Maximum Prosperity for Employer & Employees
The aim of scientific management is to see maximum prosperity for employer and
employees.
It is important only when there is opportunity for each worker to attain his highest
efficiency.
Maximum output & optimum utilization of resources will bring higher profits for the
employer & better wages for the workers.
There should be maximum output in place of restricted output.
Both managers & workers should be paid handsomely.

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3) Administrative Theory by Henri Fayol
The administrative theory is the important one of administrative theories. Henri Fayol
created it. It is also known as 14 principles of management or fourteen principles of
management.
Henri Fayol was born in 1841 to a French family. He was a prolific writer on technical
and scientific matters, as well as management. His most outstanding writing
was ‘Industrial and General Management.’ He was appointed as an engineer in a
Mining company. By 1888, he had risen to the Managing Director position of the
company. He retired from the position of Managing Director in 1918. He was a
director of the company up to his death (84the age; December 2925). Henri Fayol
was a management practitioner with experience.
Henri Fayol created Administrative Theory or 14 principles of management on
the management. His Administrative Theory or 14 principles of management
following are:
Division of Work: This principle the same as Adam Smith’s ‘division of labor.’
Authority: Manager must be able to give the order. Authority gives this right.
Discipline: Employees must obey and respect the rules and regulations which
govern the organization.
Unity of Command: Every employee should receive order or direction from only one
upward or superior.
Unity of Direction: Each group of the organization should be directed by one
manager using one plan.
Subordination of Individual Interests to the General Interest: The management
must see that its aims are always supreme.
Remuneration of Personnel: The laborers must be paid a reasonable salary for
their work.
Centralization: The process of transforming assigning decision-making authority to
a higher level of an organizational hierarchy; it is the centralization that should follow
this.
Scalar Chain: The line of authority from top management to the lower ranks
represents the hierarchy or scalar chain. This chain should follow.
Order: people and materials should be in the right place at the right time.
Equity: In running a business, a combination of kindness and justice needs.
Stability of Tenure of Personnel: Staff work is well if job safety and career
improvement are guarantees to the team.
Initiative: Allowing all personnel to show their initiative in some way is a source of
stretch for the organization.

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Esprit de Corps: Promoting team spirit will build unity and harmony within the
organization.

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4) Bureaucratic Theory by Max Weber

Max Weber Bureaucracy Theory

Max Weber, a German scientist, defines bureaucracy as a highly structured,
formalized, and also an impersonal organization.

He also instituted the belief that an organization must have a defined hierarchical
structure and clear rules, regulations, and lines of authority which govern it. Max Weber
bureaucracy ideally has the following characteristics:

• Specialization of labor

• A formal set of rules and regulations

• Well-defined hierarchy within the organization

• Impersonality in the application of rules

Bureaucratic organizations evolved from traditional structures due to the
following changes:

• In traditional structures, the leader delegates duties and can change them at
any time. However, over time, this changed and there was a clear specification
of jurisdiction areas along with a distribution of activities as official duties.

• In a bureaucratic organization, the subordinates follow the order of superiors

but can appeal if they feel the need. On the other hand, in traditional structures, the
authority was diffused.

• Rules are exhaustive, stable, and employees can learn them easily. Further,
the organization records them in permanent files.

• Personal property is separate from the office property. Also, the means of
production or administration belong to the office.

• The selection of officials is based on technical qualification and appointment

and not an election. Further, officials receive a salary as compensation for their work.

• The official is taken in for a trial period and then offered a permanent position
with the organization. This protects him from arbitrary dismissal.
Max Weber’s Bureaucratic Form – 6 Major Principles
Max Weber listed six major principles of the bureaucratic form as follows:

1. A formal hierarchical structure – In a bureaucratic organization, each level

controls the level below it. Also, the level above it controls it. A formal hierarchy is the
basis of central planning and centralized decision-making.

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2. Rules-based Management – The organization uses rules to exert control.
Therefore, the lower levels seamlessly execute the decisions made at higher levels.

3. Functional Specialty organization – Specialists do the work. Also, the

organization divides employees into units based on the type of work they do or the
skills they possess.

4. Up-focused or In-focused Mission – If the mission of the organization is to

serve the stockholders, board, or any other agency that empowered it, then it is up-
focused. On the other hand, if the mission is to serve the organization itself and those
within it (like generating profits, etc.), then it is in-focused.

5. Impersonal – Bureaucratic organizations treat all employees equally. They

also treat all customers equally and do not allow individual differences to influence
them.

6. Employment-based on Technical Qualifications – Selection as well as the

promotion of employees is based on technical qualifications and skills.
While these rules have received criticisms from many corners, the bureaucratic form of
the organization continues to live on.

Why is a Bureaucratic Organization criticized?

Here are some reasons:

• The rules are inflexible and rigid. Further, there is too much emphasis on these
rules and regulations.

• Informal groups do not receive any importance. In current times, informal

groups play a huge role in most business organizations.

• Typically, bureaucracy involves a lot of paperwork which leads to a waste of

time, money, and also effort.

• The rules and formalities lead to an unnecessary delay in the decision-making

process.

• While Government organizations can benefit from a bureaucratic structure,

business organization need quick decision-making and flexibility in procedures.
Therefore, it is not suitable for the latter.

• While the technical qualifications of the employee is an important aspect of his

promotion, a bureaucratic organization does not consider the employee’s
commitment and dedication.

• There is limited scope for Human Resource management.

• Coordinating and communicating is difficult.

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5) Human Relations Theory by Elton Mayo

THE RISE OF HUMAN RELATIONS THEORY

To understand the human relations approach, we must first understand the context it
emerged. The human relations movement emerged as a response to some of the
limitations of scientific management theory. According to scientific management,
there was a logic to actions and knowledge that boosted workplace motivation. In
other words, efficiency was a result of operational, legal and administrative
improvements.
At the time, Taylorism—scientific management advocated by Frederick W. Taylor—
was the prevailing theory, which viewed workers as machines. It suggested that the
best way for people (factory workers) to become efficient is to receive proper training
and necessary tools. The human relations approach addressed these gaps by taking
into consideration the social factors. It acknowledged that people’s perceptions,
attitudes and expectations play a critical role in their workplace performance.

Elton Mayo, an Australian psychologist from Harvard University, developed

the Human Relations Theory. He conducted a series of experiments, which are now
known as Hawthorne Studies or Hawthorne Experiments. He concluded that people
have unique preferences and can’t be treated as machines. Here are some of the
key takeaways of the Elton Mayo Human Relations Theory:

• Humans are complex and different factors influence their behavior

• Group dynamics (team relations) influence job performance and output

• Managers should understand that employees have unique needs and one
size doesn’t fit all; communication is essential between managers and employees

• People aren’t solely motivated by compensation; finding meaning in their work

is important as well

• Employees are more open to change when given the opportunity to

participate

Therefore, the Elton Mayo Theory suggested that the workplace is a social system
where multiple factors influence an employee’s performance. Most times, it’s
psychological and organizations need to pay attention to these aspects for bringing
about change.

DEFINING CHARACTERISTICS OF HUMAN RELATIONS THEORY

There are several characteristics that are common to the Human Relations Theory.
Let’s look at them in detail:

1. COORDINATING PROCESS

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Efforts are made to eliminate miscommunication so that people can establish
trustworthy relationships and achieve organizational targets through greater
efficiency. Emotional unity and coordination are instrumental in pursuing and
achieving common objectives.

2. JOB SATISFACTION
In addition to economic needs, employers need to focus on social and psychological
needs and expectations as well. There should be some non-monetary incentives as
they not only boost employee morale but also increase employee retention. Such
incentives further enhance productivity and efficiency.

3. HUMAN ASPECT
As we’ve already established, the Human Relations Theory was developed as a
response to the scientific approach, moving toward the human aspect of
management. It suggests that humane treatment is crucial for successful
management. This means that employers should prioritize employee well-being
within and beyond the workplace.

These characteristics of the human relations approach to management also suggest

that employees should be happy and find meaning in the work they do. When
employers identify and address basic needs, an individual’s willingness to work
improves. This further improves productivity, contributing to business growth and
profitability. Let’s see how people can benefit from the human relations approach.

THE NEED FOR HUMAN RELATIONS SKILLS

The Elton Mayo Human Relations Theory showed that relationships are highly
influential for human productivity. Employers and managers need to have a vast
array of skills to effectively carry a human relations-focused workplace culture. Let’s
look at the different skills needed for successful human relations:

1) COMMUNICATION
At the core of the human relations approach to management lies strong
communication skills. It ensures that everyone in the organization is on the same
page. It encompasses all forms of communication—verbal, non-verbal and written.
Whether it’s the eye contact you maintain with your audience during meetings or the
emails you send, effective communication skills are a great way to convey your
message and connect with others. Managers and team leaders should especially
focus on sharpening these skills as it helps them drive teamwork and collaboration.
2) CONFLICT RESOLUTION
It’s no secret that employees come from multiple walks of life. This further leads to
diverse personality types, outlooks and goals all working together. There may be
times when you don’t agree with someone’s perspectives and you have every right
to respectfully disagree. This is why conflict resolution skills are important as they
help people address and resolve issues in a civil manner. However, people need to
keep an open mind and must allow for individual perspectives to be voiced. You

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must work towards a solution that everyone feels comfortable with and maintain
harmony in the process.

3) ORGANIZATION
One of the most important skills in the human relations approach, organization
impacts all areas of work. Whether it’s your workflow or physical workspace, staying
organized has several benefits. It helps you prioritize your work and manage your
time better. It’s a key element in creating an efficient workflow. This further allows
you to meet your deadlines and be productive. Organization is an important quality
for team leaders as it allows them to juggle multiple priorities and complete tasks in
an organized process.

By employing these skills, managers and team leaders can implement human
relations management practices with greater efficiency.

PUTTING THE HUMAN RELATIONS THEORY INTO ACTION

While the Elton Mayo Theory received recognition and credit for bringing several
fundamental aspects of management to the forefront, it faced several criticisms.
Theorists argued that it was another way to maximize business output. Nevertheless,
it did emphasize the power of positive treatment of employees. If you want to put
the Human Relations Theory into practice, consider these strategies:

1) PROVIDE CONTEXT
Employees are often unable to see the bigger picture. As a result, it’s difficult for
them to find meaning in their work. This can negatively impact employee morale and
increase the risk of them quitting their jobs. Communicate the organizational mission,
vision and objectives to remind employees of their contribution. Help them extract a
sense of fulfillment from their tasks.

2) COLLECT FEEDBACK
Communication is a two-way street. If you want to strengthen relationships,
collaboration and efficiency, you need to hear others out as well. You can actively
solicit employee feedback through surveys or one-on-one meetings. More
importantly, you need to act on the feedback or insights you gathered. This helps
establish trust as employees feel heard.

3) IDENTIFY UNIQUE NEEDS

One of the core tenets of the Human Relations Theory is that every individual is
unique. One size doesn’t fit all, which is why you need to understand individual
perspectives and preferences. Understanding their motivation and work styles can
help you tailor your management style. Say, for example, someone is a strong team
player; help them collaborate with others on projects. In short, play to employee
strengths for greater efficiency.

4) OFFER PRAISE AND RECOGNITION

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While monetary benefits act as strong motivators, they alone don’t suffice. You need
to make your employees feel valued as well. Recognize or celebrate their hard work
whenever possible. Effective recognition is honest and authentic, so make sure that
you talk about individual achievements. The act of appreciation can be as simple as
a congratulatory email or as big as a celebratory lunch.

5) MAKE ROOM FOR BONDING

We often interact and engage with coworkers because we’re required to. However,
interpersonal relationships need not necessarily be transactional. You can explore
other topics of conversation that aren’t limited to ‘shop talk’. For example, you can
ask someone about their day or their hobbies. Connecting on a more personal level
can help you bond better and establish lasting relationships. However, it’s important
not to cross any boundaries and only talk about things your team is comfortable with.

As you can see, not only employees but also employers can benefit from the human
relations approach.

CONCLUSION
Although the Elton Mayo theory was groundbreaking at the time, it’s impossible to
imagine a workplace without considering social aspects in the modern world. As a
manager, if you want to improve workplace performance and prioritize your team’s
needs and expectations, Harappa’s Managing Teamwork course is the solution! This
team management course will not only help you collaborate with different team
members but also handle conflicts with empathy, maturity and sensitivity. You’ll
master the art of giving and receiving feedback and foster a team culture that helps
everyone maximize their potential. Try Harappa to grow alongside your team!

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6) X&Y Theory by Douglas McGregor
INTRODUCTION
Douglas McGregor (1906-1964) followed a mostly academic career lecturing at
Harvard University, Massachusetts Institute of Technology (MIT) and Antioch
College, becoming the first Sloan Fellows Professor at MIT. Although, because of his
early death, he wrote only a few publications, they have had a great impact. In 1993
McGregor was listed as the most popular management writer alongside Henri Fayol
(Andreas Huczynski, Management Gurus - What Makes Them and How To Become
One). Major American writers, such as Rosabeth Moss Kanter, Warren Bennis and
Tom Peters, whose writings have much influence on current learning and practice,
agree that much of modern management thinking goes back to McGregor, especially
the implications of his writing for leadership.
» KEY THEORIES
Summary
McGregor believed that managers' basic beliefs have a dominant influence on the
way that organisations are run. Managers' assumptions about the behaviour of
people are central to this. McGregor argued that these assumptions fall into two
broad categories - Theory X and Theory Y. These findings were detailed in The
Human Side of Enterprise, first published in 1960.
Theory X and Theory Y describe two views of people at work and may be used to
describe two opposing management styles. (See Related model).

Theory X: the traditional view of direction and control

Theory X is based on the assumptions that:

1. The average human being has an inherent dislike of work and will avoid it if
possible.
2. Because of this human dislike of work, most people must be coerced, controlled,
directed, and threatened with punishment to get them to put forth adequate effort
toward the achievement of organisational objectives.
3. The average human being prefers to be directed, wishes to avoid responsibility,
has relatively little ambition, and wants security above all.
A Theory X management style therefore requires close, firm supervision with clearly
specified tasks and the threat of punishment or the promise of greater pay as
motivating factors. A manager working under these assumptions will employ
autocratic controls which can lead to mistrust and resentment from those they
manage. McGregor acknowledges that the `carrot and stick' approach can have a
place, but will not work when the needs of people are predominantly social and
egoistic. Ultimately, the assumption that a manager’s All rights reserved. No part of

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this publication may be reproduced in a retrieval system, or transmitted, in any form
or by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior permission of the publisher. objective is to persuade people to be
docile, to do what they are told in exchange for reward or escape from punishment,
is presented as flawed and in need of re-evaluation.
Theory Y: the integration of individual and organisational goals
Theory Y is based on the assumptions that: 1. The expenditure of physical and
mental effort in work is as natural as play or rest. The average human being does not
inherently dislike work. Depending upon controllable conditions, work may be a
source of satisfaction, or a source of punishment. 2. External control and the threat
of punishment are not the only means for bringing about effort toward organisational
objectives. People will exercise self-direction and self-control in the service of
objectives to which they are committed. 3. Commitment to objectives is a function of
the rewards associated with their achievement. The most significant of such rewards,
e.g. the satisfaction of ego and self-actualisation needs, can be direct products of
effort directed towards organisational objectives. 4. The average human being
learns, under proper conditions, not only to accept but to seek responsibility.
Avoidance of responsibility, lack of ambition, and emphasis on security are generally
consequences of experience, not inherent human characteristics. 5. The capacity to
exercise a relatively high degree of imagination, ingenuity, and creativity in the
solution of organisational problems is widely, not narrowly, distributed in the
population. 6. Under the conditions of modern industrial life, the intellectual
potentialities of the average human being are only partially utilised. Theory Y
assumptions can lead to more cooperative relationships between managers and
workers. A Theory Y management style seeks to establish a working environment in
which the personal needs and objectives of individuals can relate to, and harmonise
with, the objectives of the organisation. In The Human Side of Enterprise McGregor
recognised that Theory Y was not a panacea for all ills. By highlighting Theory Y, he
hoped instead to persuade managers to abandon the limiting assumptions of Theory
X and consider using the techniques suggested by Theory Y. Theory into practice
Abraham Maslow viewed McGregor as a mentor. He was a strong supporter of
Theories X and Y, and he put Theory Y (that people want to work, achieve and take
responsibility) into practice in a Californian electronics factory. However, he found
that an organisation driven solely by Theory Y could not succeed, as some sense of
direction and structure was required. Instead, Maslow advocated an improved
version of Theory Y which involved an element of structured security and direction
taken from Theory X. Maslow's negative experience with implementing Theory Y
must be balanced against that of McGregor himself at a Procter & Gamble plant in
Georgia, where he introduced Theory Y through the concept of selfdirected teams.
This plant was found to be a third more profitable than any other Procter and Gamble
plant; it was kept a trade secret until the mid-1990s. Before he died, McGregor
began to develop a further theory which addressed the criticisms made of theories X
and Y - that they were mutually incompatible. Ideas he proposed as part of this
theory included lifetime employment, concern for employees (both inside and outside
the working environment), decision by consensus and commitment to quality. He

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tentatively called it Theory Z. Before it could be widely published, McGregor died and
the ideas faded. All rights reserved. No part of this publication may be reproduced in
a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior permission of the
publisher. Theory Z The work on Theory Z which McGregor began was not
completely forgotten. During the 1970s, William Ouchi began to expound its
principles by comparing and contrasting Japanese (Type J) and American (Type A)
organisations. Type A organisations tended to offer short-term employment,
specialised careers (with rapid promotion) and individual decision making and
responsibility. Type J firms, on the other hand, mirrored the ethos of Japanese
society - collectivism and stability rather than individuality. Those American firms
which shared Type J characteristics (and indeed had more in common with Type J
organisations) were described as Type Z (examples included Hewlett-Packard and
Procter & Gamble). Leadership Before McGregor, the thrust of writing about
leadership focused on the qualities and characteristics of `Great People', in the hope
that, if those qualities were identified, they could be emulated. McGregor argued that
there were other variables involved in leadership, including the attitudes and needs
of the followers, the nature and structure of the organisation itself, and the social,
economic and political environment. For McGregor, leadership was not a property of
the individual, but a complex relationship among these variables. He was one of the
first to argue that leadership was more about the relationship between the leader and
the situation they faced, than merely the characteristics of the leader alone. » IN
PERSPECTIVE The Human Side of Enterprise marked a watershed in management
thinking which had previously been dominated by the scientific approach of Taylor,
and formed the foundations for the current people-centred view of management.
Theory Y has been criticised for being too idealistic, but if we examine each of the
six tenets of Theory Y in turn, we can trace much modern thinking back to McGregor:
1. Work - as a source of satisfaction - means accepting that people need to know not
just what or how, but why; the adoption of meaningful objectives is one of the keys to
self-motivation. 2-4. Ownership, commitment and responsibility are three of the key
facets of empowerment 5-6. The encouragement for people to be fully exercised in
the solution of organisational problems is central to action learning, Total Quality
Management, strategic thinking and knowledge exploitation. As mentioned, Moss
Kanter on empowerment, Bennis on leadership, and Peters on excellence as well as
chaos, all acknowledge their debt to McGregor. Contemporary and subsequent
commentaries on McGregor's theories have tended to see them as black and white.
Harold Geneen, former President and CEO of ITT, commented that although
Theories X and Y propose a neat summary of business management, no company is
run in strict accordance with either one or the other. Peter Drucker argued that the
contrast between Theory X and Theory Y is ‘“largely a sham battle’”, since people
behave in a reactive way and in fact the situation and job requirements often dictate
the best approach. The two contrasting theories are best seen perhaps as two
polarising forces with which managers have to grapple. Blake and Mouton expressed
this in terms of the managerial grid where managers constantly have to balance the
drives and forces between task - getting things done - and people - how best to get
them done for the benefit of the organisation and the individuals doing them. All

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rights reserved. No part of this publication may be reproduced in a retrieval system,
or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of the publisher. If Theory Y has
been held up as an unachievable aim - where individual and organisational
aspirations converge - there is a growing body of successful cases where progress
towards this aim has been made. Organisations are attempting to achieve this
alignment through continuous improvement, continuous professional development
and employee participation schemes operating in climates of empowerment. It is
possible to conclude that the The Human Side of Enterprise recognises that we
cannot actually motivate people, but we do have to acknowledge the opposing forces
at play. What we can do is attempt to create the right climate, environment or
working conditions for motivation to be enabled.

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7) Total Quality Management by Deming
W. EDWARDS DEMING’S 14 POINTS

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total
cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and
service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for
management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the
annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.

OR

1. Create a constant purpose toward improvement

2. Adopt the new philosophy
3. Cease dependence on inspection to achieve quality
4. Work with one supplier.
5. Continuous improvement
6. On-the-job training
7. Leadership
8. Drive out fear
9. Break down silos
10. No slogans
11. No quotas or numerical goals
12. Remove annual ratings or merits system.
13. Institute of education and self-improvement programs
14. Involve all workers in the transformation

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8) Abraham Maslow's Hierarchy of Needs

What Is Maslow’s Hierarchy of Needs?

Maslow's hierarchy of needs is a theory of motivation which states that five
categories of human needs dictate an individual’s behavior. Those needs are
physiological needs, safety needs, love and belonging needs, esteem needs, and
self-actualization needs.

What Are the 5 Levels of Maslow’s Hierarchy of Needs?

Maslow's theory presents his hierarchy of needs in a pyramid shape, with basic
needs at the bottom of the pyramid and more high-level, intangible needs at the
top. A person can only move on to addressing the higher-level needs when their
basic needs are adequately fulfilled.

1. Physiological needs: The first of the id-driven lower needs on Maslow's

hierarchy are physiological needs. These most basic human survival needs include
food and water, sufficient rest, clothing and shelter, overall health, and
reproduction. Maslow states that these basic physiological needs must be
addressed before humans move on to the next level of fulfillment.
2. Safety needs: Next among the lower-level needs is safety. Safety needs
include protection from violence and theft, emotional stability and well-being, health
security, and financial security.
3. Love and belonging needs: The social needs on the third level of Maslow’s
hierarchy relate to human interaction and are the last of the so-called lower needs.
Among these needs are friendships and family bonds—both with biological family
(parents, siblings, children) and chosen family (spouses and partners). Physical
and emotional intimacy ranging from sexual relationships to intimate emotional
bonds are important to achieving a feeling of elevated kinship. Additionally,
membership in social groups contributes to meeting this need, from belonging to a
team of coworkers to forging an identity in a union, club, or group of hobbyists.
4. Esteem needs: The higher needs, beginning with esteem, are ego-driven
needs. The primary elements of esteem are self-respect (the belief that you are
valuable and deserving of dignity) and self-esteem (confidence in your potential for
personal growth and accomplishments). Maslow specifically notes that self-esteem
can be broken into two types: esteem which is based on respect and
acknowledgment from others, and esteem which is based on your own self-
assessment. Self-confidence and independence stem from this latter type of self-
esteem.

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5. Self-actualization needs: Self-actualization describes the fulfillment of your
full potential as a person. Sometimes called self-fulfillment needs, self-actualization
needs occupy the highest spot on Maslow's pyramid. Self-actualization needs
include education, skill development—the refining of talents in areas such as
music, athletics, design, cooking, and gardening—caring for others, and broader
goals like learning a new language, traveling to new places, and winning awards.

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9) Management By Objectives & SMART Goals by Peter Drucker
What is Management by Objectives (MBO)?
Management by Objectives (MBO) is a strategic approach to enhance the
performance of an organization. It is a process where the goals of the organization
are defined and conveyed by the management to the members of
the organization with the intention to achieve each objective.

An important step in the MBO approach is the monitoring and evaluation of the
performance and progress of each employee against the established objectives.
Ideally, if the employees themselves are involved in setting goals and deciding their
course of action, they are more likely to fulfill their obligations.

Steps in Management by Objectives Process

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also
serves a variety of purposes. It needs to include several different types of managers
in setting goals. The objectives set by the supervisors are provisional, based on an

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interpretation and evaluation of what the company can and should achieve within a
specified time.

2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the
strategies to follow, the managers can start working with their subordinates on
establishing their personal objectives. This will be a one-on-one discussion where
the subordinates will let the managers know about their targets and which goals they
can accomplish within a specific time and with what resources. They can then share
some tentative thoughts about which goals the organization or department can find
feasible.

3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the
effectiveness of managers, it is equally essential for monitoring the performance and
progress of each employee in the organization.

4. Performance evaluation
Within the MBO framework, the performance review is achieved by the participation
of the managers concerned.

5. Providing feedback
In the management by objectives approach, the most essential step is the
continuous feedback on the results and objectives, as it enables the employees to
track and make corrections to their actions. The ongoing feedback is complemented
by frequent formal evaluation meetings in which superiors and subordinates may
discuss progress towards objectives, leading to more feedback.

6. Performance appraisal
Performance reviews are a routine review of the success of employees within MBO
organizations.

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Benefits of Management by Objectives
Management by objectives helps employees appreciate their on-the-job roles and
responsibilities.
The Key Result Areas (KRAs) planned are specific to each employee, depending on
their interest, educational qualification, and specialization.
The MBO approach usually results in better teamwork and communication.
It provides the employees with a clear understanding of what is expected of them.
The supervisors set goals for every member of the team, and every employee is
provided with a list of unique tasks.
Every employee is assigned unique goals. Hence, each employee feels
indispensable to the organization and eventually develops a sense of loyalty to the
organization.
Managers help ensure that subordinates’ goals are related to the objectives of the
organization.

Limitations of Management by Objectives

Management by objectives often ignores the organization’s existing ethos and
working conditions.
More emphasis is given on goals and targets. The managers put constant pressure
on the employees to accomplish their goals and forget about the use of MBO for
involvement, willingness to contribute, and growth of management.
The managers sometimes over-emphasize the target setting, as compared to
operational issues, as a generator of success.
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The MBO approach does not emphasize the significance of the context wherein the
goals are set. The context encompasses everything from resource availability and
efficiency to relative buy-in from the leadership and stakeholders.
Finally, there is a tendency for many managers to see management by objectives as
a total system that can handle all management issues once installed. The
overdependence may impose problems on the MBO system that it is not prepared to
tackle, and that frustrates any potentially positive effects on the issues it is supposed
to deal with.

Key Takeaways
Management by Objectives (MBO) is an approach adopted by managers to control
their employees by implementing a series of concrete goals that both the employee
and the organization aim to accomplish in the immediate future and work accordingly
to achieve.
The MBO approach is implemented to ensure that the employees get a clear
understanding of their roles and responsibilities, along with expectations, so that they
can understand the relation of their activities to the overall success of the
organization.
If the management by objectives strategy is not adequately set, decided upon, and
controlled by organizations, self-centered workers can be likely to misinterpret
results, wrongly portraying the achievement of short-term, narrow-minded goals.

SMART GOALS

What are SMART Goals?

Goals are part of every aspect of business/life and provide a sense of
direction, motivation, a clear focus, and clarify importance. By setting goals, you are
providing yourself with a target to aim for. A SMART goal is used to help guide goal
setting. SMART is an acronym that stands
for Specific, Measurable, Achievable, Realistic, and Timely. Therefore, a SMART
goal incorporates all of these criteria to help focus your efforts and increase the
chances of achieving your goal.

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SMART goals are:
Specific: Well defined, clear, and unambiguous
Measurable: With specific criteria that measure your progress toward the
accomplishment of the goal
Achievable: Attainable and not impossible to achieve
Realistic: Within reach, realistic, and relevant to your life purpose
Timely: With a clearly defined timeline, including a starting date and a target date.
The purpose is to create urgency.

Specific SMART Goals

Goals that are specific have a significantly greater chance of being accomplished. To
make a goal specific, the five “W” questions must be considered:
Who: Who is involved in this goal?
What: What do I want to accomplish?
Where: Where is this goal to be achieved?
When: When do I want to achieve this goal?
Why: Why do I want to achieve this goal?

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For example, a general goal would be “I want to get in shape.” A more specific goal
would be “I want to obtain a gym membership at my local community center and
work out four days a week to be healthier.”

Measurable SMART Goals

A SMART goal must have criteria for measuring progress. If there are no criteria, you
will not be able to determine your progress and if you are on track to reach your goal.
To make a goal measurable, ask yourself:
How many/much?
How do I know if I have reached my goal?
What is my indicator of progress?

For example, building on the specific goal above: I want to obtain a gym membership
at my local community center and work out four days a week to be healthier. Every
week, I will aim to lose one pound of body fat.

Achievable SMART Goals

A SMART goal must be achievable and attainable. This will help you figure out ways
you can realize that goal and work towards it. The achievability of the goal should be
stretched to make you feel challenged, but defined well enough that you can actually
achieve it. Ask yourself:
Do I have the resources and capabilities to achieve the goal? If not, what am I
missing?
Have others done it successfully before?

Realistic SMART Goals

A SMART goal must be realistic in that the goal can be realistically achieved given
the available resources and time. A SMART goal is likely realistic if you believe that it
can be accomplished. Ask yourself:
Is the goal realistic and within reach?
Is the goal reachable, given the time and resources?
Are you able to commit to achieving the goal?

Timely SMART Goals

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A SMART goal must be time-bound in that it has a start and finish date. If the goal is
not time-constrained, there will be no sense of urgency and, therefore, less
motivation to achieve the goal. Ask yourself:
Does my goal have a deadline?
By when do you want to achieve your goal?

For example, building on the goal above: On August 1, I will obtain a gym
membership at my local community center. In order to be healthier, I will work out
four days a week. Every week, I will aim to lose one pound of body fat. By the end of
August, I will have realized my goal if I lose four pounds of fat over the course of the
month.

The Importance of SMART Goal Setting

Often, individuals or businesses will set themselves up for failure by setting general
and unrealistic goals such as “I want to be the best at X.” This goal is vague, with no
sense of direction.
SMART goals set you up for success by making goals specific, measurable,
achievable, realistic, and timely. The SMART method helps push you further, gives
you a sense of direction, and helps you organize and reach your goals.

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10) Systems Management Theory
What is System Approach/Theory of Management?
The system approach is new thinking in the management literature. A system is a set
of interrelated and interdependent parts arranged in a manner that produces a
unified whole. A system is a combination of sub-systems. For instance, an
organization is a system and its sub-systems maybe are finance, management,
selling, production, and accounting department, etc. so the combination of these
departments forms a business firm as a system.
System theory is popularized by Ludwing Von Bertalanffy, Kenneth Boulding, NIE
Weiner, Fermount E. Kast, and James. E Rosenzwing.
The system is composed of a number of subsystems and all the subsystems are
related to each other. The system of an organization can be classified as physical,
biological, mechanical, and social.
The system theory also studied on the basis of input, processing, and output
components, they can be shown as:

System Approach
#1 Input
Inputs are the raw materials that can be processed for the output. An organization
gets input from the external environment. Input consists of human, financial,
physical, and information. Qualified and experienced human resources, good
physical infrastructure, and adequate capital are crucial for accomplishing
organizational goals.
#2 Processing
Organizations are processing units. They convert raw materials into finished
products through the conversion process. Solid planning, decision-making,
leadership, and proper control are vital for better processing.
#3 Output
The output is the product of organizations. Outputs are supplied in the market and
feedback or response is received. If the businesses provide quality outputs to their
customers, buyers will have a positive attitude towards the organization and vice-

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versa. For a better product or service, an organization needs good inputs and
processing.
Components of System Theory
#1 Goal Oriented
Every system is purposeful. It is directed towards achieving certain objectives.
#2 Subsystem
The parts or components of a system are called subsystems. Each system may be a
subsystem of a larger whole making another system. For example, a teacher is a
subsystem of a college, which is the subsystem of a university, which is also the
subsystem of the education commission of the nation. These subsystems interact
with each other.
#3 Synergy
The synergy means the whole is greater than the sum of its parts. Thus, the synergy
effect means 2 + 2= 5. It means that the performance of the whole depends on how
well its parts are related and not how well each part operates. For example, if two
organizations or systems join together they will achieve more success than if they
work separately.
#4 System Boundary
Every system has a boundary that separates it from its environment. In an
organization, the boundary determines which parts are internal and which are
external. In an open system, the system boundary is flexible, and in a closed system,
the boundary is rigid. Many organizations apply flexible system boundaries.
#5 Open and Closed System
An open system continuously interacts with the environment. All organizations
interact with their environment. It is concerned with the transformation of input into
useful outputs required by environments.
The closed systems do not interact with the environment and are not affected by
them. They are isolated within their organization and most have their works to be
done within their environment. A clock is an example of a closed system.
#6 Flow
A system has a flow of materials, information, money, human, and other resources.
These are inputs, processed through the conversion process, and comes as output
and supplied in the market as a product or service.
#7 Feedback
A reaction or response from the environment is known as feedback. It helps to
evaluate either the output is useful or not. It is useful in evaluating and improving the
functioning of the system. Therefore, feedback is the key to system control.

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Contribution of System Approach to the Management
It provides a conceptual framework for a meaningful analysis for organizations and
management.
It emphasizes manager on the interdependence and interrelations of various parts of
the organizations as well as between organizations and their environment.
It emphasizes managers to analyze and understand every element of a problem in
relation to another element.
Limitations of System Approach
It is too abstract and can not be directly and easily applied to practical problems.
It does not offer any tools or techniques of integration and the nature of
interdependencies between organizations and the environment.

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11) Mckinsey7 S Framework
What is the McKinsey 7S Model?
The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational
design.” The goal of the model is to depict how effectiveness can be achieved in an
organization through the interactions of seven key elements – Structure, Strategy,
Skill, System, Shared Values, Style, and Staff.

The focus of the McKinsey 7s Model lies in the interconnectedness of the elements
that are categorized by “Soft Ss” and “Hard Ss” – implying that a domino effect exists
when changing one element in order to maintain an effective balance. Placing
“Shared Values” as the “center” reflects the crucial nature of the impact of changes
in founder values on all other elements.

Structure of the McKinsey 7S Model

Structure, Strategy, and Systems collectively account for the “Hard Ss” elements,
whereas the remaining are considered “Soft Ss.”

1. Structure
Structure is the way in which a company is organized – chain of command and
accountability relationships that form its organizational chart.

2. Strategy
Strategy refers to a well-curated business plan that allows the company to formulate
a plan of action to achieve a sustainable competitive advantage, reinforced by the
company’s mission and values.

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3. Systems
Systems entail the business and technical infrastructure of the company that
establishes workflows and the chain of decision-making.
4. Skills
Skills form the capabilities and competencies of a company that enables its
employees to achieve its objectives.
5. Style
The attitude of senior employees in a company establishes a code of
conduct through their ways of interactions and symbolic decision-making, which
forms the management style of its leaders.
6. Staff
Staff involves talent management and all human resources related to company
decisions, such as training, recruiting, and rewards systems
7. Shared Values
The mission, objectives, and values form the foundation of every organization and
play an important role in aligning all key elements to maintain an effective
organizational design.

Application of the McKinsey 7S Model

The subjectivity surrounding the concept of alignment concerning the seven key
elements contributes to why this model seems to have a complicated application.
However, it is suggested to follow a top-down approach – ranging from broad
strategy and shared values to style and staff.
Step 1: Identify the areas that are not effectively aligned
Is there consistency in the values, strategy, structure, and systems? Look for gaps
and inconsistencies in the relationship of elements. What needs to change?
Step 2: Determine the optimal organization design
It is important to consolidate the opinions of top management and create a generic
optimal organizational design that will allow the company to set realistic goals and
achievable objectives. The step requires a tremendous amount of research and
analysis since there are no “organizational industry templates” to follow.
Step 3: Decide where and what changes should be made
Once the outliers are identified, the plan of action can be created, which will involve
making concrete changes to the chain of hierarchy, the flow of communication, and
reporting relationships. It will allow the company to achieve an efficient
organizational design.

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Step 4: Make the necessary changes
Implementation of the decision strategy is a make-or-break situation for the company
in realistically achieving what they set out to do. Several hurdles in the process of
implementation arise, which are best dealt with a well-thought-out implementation
plan.
Advantages of the Model
It enables different parts of a company to act in a coherent and “synced” manner.
It allows for the effective tracking of the impact of the changes in key elements.
It is considered a longstanding theory, with numerous organizations adopting the
model over time.

Disadvantages of the Model

It is considered a long-term model.
With the changing nature of businesses, it remains to be seen how the model will
adapt.
It seems to rely on internal factors and processes and may be disadvantageous in
situations where external circumstances influence an organization.

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12) Design Thinking by Tim Cook
Design Thinking
Design thinking is a human-centered approach to innovation—anchored in
understanding customer’s needs, rapid prototyping, and generating creative ideas—
that will transform the way you develop products, services, processes, and
organizations. By using design thinking, you make decisions based on what
customers really want instead of relying only on historical data or making risky bets
based on instinct instead of evidence.
Design thinking brings together what is desirable from a human point of view with
what is technologically feasible and economically viable.

Desirability: What makes sense to people and for people?

Feasibility: What is technically possible within the foreseeable future?
Viability: What is likely to become part of a sustainable business model?

Design Thinking Process

"Design thinking is not limited to a process. It’s an endlessly expanding
investigation." —Sandy Speicher, IDEO CEO

We teach the phases of design thinking as linear steps, but in practice, the process
is not always linear—the phases combine to form an iterative approach that you can
try out and adapt to suit your specific challenge.

Frame a Question
Inspire your team to think about your customers (who you’re designing a solution for)
and what they actually need.
Gather Inspiration
Go out into the world and seek inspiration by observing and discovering what people
really need.
Generate Ideas
Use the inspiration you gather to help push past the obvious to come up with fresh
solutions to your problem.
Make Ideas Tangible
Build rough prototypes and find what’s working and what’s not.
Test to Learn
Test your prototypes, gather feedback, and iterate.

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Share the Story
Once you’ve arrived at the right solution, craft and share the story to introduce it to
your colleagues, clients, and customers.

Some of these steps may happen several times, and you may even jump back and
forth between them. Moving through the phases of design thinking can take you from
a blank slate to a new, innovative solution.
Why Design Thinking is Valuable
We live and work in a world of interlocking systems, where many of the problems we
face are dynamic, multifaceted, and inherently human. The following IDEO case
studies consider the questions How will we personalize health? and How can design
advance learning and education?

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13) Vijay Govindrajan's-Three Box Solution
From Linear to Non-Linear
Hindsight is always 20/20, especially in strategy and innovation. In real-time, however, how
to allocate attention and resources to maintain the present while building the future is far
from obvious. Enter Vijay Govindarajan, a professor at Tuck School of Business with a
number of best-sellers on strategy and innovation to his name. In his new book, The Three-
Box Solution, Govindarajan offers a framework, based on three boxes, that is both
methodology and mindset for attacking the dual and often conflicting imperatives of
succeeding today and preparing to succeed tomorrow.
Box 1, according to Govindarajan, is about managing the present — implementing the
strategies, tactics and approaches required to operate at “peak efficiency.”
Box 2 is about forgetting the past — divesting businesses and letting go of practices and
assumptions that are becoming obsolete.
Box 3 is about creating the future — developing new business models to ensure long-term
success.
Companies must pay attention to all three boxes at once, which means, Govindarajan
explains, focusing on both linear and non-linear innovation. Linear innovation is extrapolated
from a company’s current activities. Non-linear innovation doesn’t build on current activities
but, instead, targets new and old customers with new business models and products. Linear
innovation is vital for success in Box 1; non-linear innovation is at the heart of Box 3.
It is perhaps Box 2, however, that holds the key to the entire framework. In order to transition
from present to future, Govindarajan explains, you have to deal with the past. Toy- and
game-maker Hasbro offers one example of how the three-box solution works. Launched in
the 1920s by three brothers, Hasbro was known for its traditional products such as the
Monopoly game. Its distribution model was simple: toy stores. With the arrival of the Internet,
it’s distribution expanded to the web.
To keep customers coming back for more, Hasbro maintained its Box 1 linear innovations —
for example, developing Star Wars-themed versions of its classic Monopoly and Mr. Potato
Head.
However, it is Hasbro’s Box 3 non-linear innovations that have positioned the company for
long-term success.

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14) Stephen Covey -7 Habits of Effective People & Time
Management Matrix
7 Habits of Highly Effective People
1. Be Proactive
2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to Be Understood
6. Synergize
7. Sharpen the Saw

That's where the seven habits of highly effective people come in:
Habits 1, 2, and 3 are focused on self-mastery and moving from dependence to
independence.
Habits 4, 5, and 6 are focused on developing teamwork, collaboration, and
communication skills, and moving from independence to interdependence.
Habit 7 is focused on continuous growth and improvement and embodies all the
other habits.

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15) Discovery & Delivery Skills
Let’s look at the skills in detail.
Discovery Skill 1: Associating
Associating, or the ability to successfully connect seemingly unrelated questions,
problems, or ideas from different fields, is central to the innovator’s DNA.
Entrepreneur Frans Johansson described this phenomenon as the “Medici
effect,” referring to the creative explosion in Florence when the Medici family brought
together people from a wide range of disciplines—sculptors, scientists, poets,
philosophers, painters, and architects. As these individuals connected, new ideas
blossomed at the intersections of their respective fields, thereby spawning the
Renaissance, one of the most inventive eras in history.
To grasp how associating works, it is important to understand how the brain
operates. The brain doesn’t store information like a dictionary, where you can find
the word “theater” under the letter “T.” Instead, it associates the word “theater” with
any number of experiences from our lives. Some of these are logical (“West End” or
“intermission”), while others may be less obvious (perhaps “anxiety,” from a botched
performance in high school). The more diverse our experience and knowledge, the
more connections the brain can make. Fresh inputs trigger new associations; for
some, these lead to novel ideas. As Steve Jobs has frequently observed, “Creativity
is connecting things.”
The world’s most innovative companies prosper by capitalizing on the divergent
associations of their founders, executives, and employees. For example, Pierre
Omidyar launched eBay in 1996 after linking three unconnected dots: (1) a
fascination with creating more-efficient markets, after having been shut out from a
hot internet company’s IPO in the mid-1990s; (2) his fiancée’s desire to locate hard-
to-find collectible Pez dispensers; and (3) the ineffectiveness of local classified ads
in locating such items. Likewise, Steve Jobs is able to generate idea after idea
because he has spent a lifetime exploring new and unrelated things—the art of
calligraphy, meditation practices in an Indian ashram, the fine details of a Mercedes-
Benz.
Associating is like a mental muscle that can grow stronger by using the other
discovery skills. As innovators engage in those behaviors, they build their ability to
generate ideas that can be recombined in new ways. The more frequently people in
our study attempted to understand, categorize, and store new knowledge, the more
easily their brains could naturally and consistently make, store, and recombine
associations.
Discovery Skill 2: Questioning
More than 50 years ago, Peter Drucker described the power of provocative
questions. “The important and difficult job is never to find the right answers, it is to
find the right question,” he wrote. Innovators constantly ask questions that challenge
common wisdom or, as Tata Group chairman Ratan Tata puts it, “question the
unquestionable.” Meg Whitman, former CEO of eBay, has worked directly with a
number of innovative entrepreneurs, including the founders of eBay, PayPal, and
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Skype. “They get a kick out of screwing up the status quo,” she told us. “They can’t
bear it. So they spend a tremendous amount of time thinking about how to change
the world. And as they brainstorm, they like to ask: ‘If we did this, what would
happen?’”
Most of the innovative entrepreneurs we interviewed could remember the specific
questions they were asking at the time they had the inspiration for a new venture.
Michael Dell, for instance, told us that his idea for founding Dell Computer sprang
from his asking why a computer cost five times as much as the sum of its parts. “I
would take computers apart…and would observe that $600 worth of parts were sold
for $3,000.” In chewing over the question, he hit on his revolutionary business model.
Discovery Skill 3: Observing
Discovery-driven executives produce uncommon business ideas by scrutinizing
common phenomena, particularly the behavior of potential customers. In observing
others, they act like anthropologists and social scientists.
Intuit founder Scott Cook hit on the idea for Quicken financial software after two key
observations. First he watched his wife’s frustration as she struggled to keep track of
their finances. “Often the surprises that lead to new business ideas come from
watching other people work and live their normal lives,” Cook explained. “You see
something and ask, ‘Why do they do that? That doesn’t make sense.’” Then a buddy
got him a sneak peek at the Apple Lisa before it launched. Immediately after leaving
Apple headquarters, Cook drove to the nearest restaurant to write down everything
he had noticed about the Lisa. His observations prompted insights such as building
the graphical user interface to look just like its real-world counterpart (a checkbook,
for example), making it easy for people to use it. So Cook set about solving his wife’s
problem and grabbed 50% of the market for financial software in the first year.
Innovators carefully, intentionally, and consistently look out for small behavioral
details—in the activities of customers, suppliers, and other companies—in order to
gain insights about new ways of doing things. Ratan Tata got the inspiration that led
to the world’s cheapest car by observing the plight of a family of four packed onto a
single motorized scooter. After years of product development, Tata Group launched
in 2009 the $2,500 Nano using a modular production method that may disrupt the
entire automobile distribution system in India. Observers try all sorts of techniques to
see the world in a different light. Akio Toyoda regularly practices Toyota’s philosophy
of genchi genbutsu—“going to the spot and seeing for yourself.” Frequent direct
observation is baked into the Toyota culture.
Discovery Skill 4: Experimenting
When we think of experiments, we think of scientists in white coats or of great
inventors like Thomas Edison. Like scientists, innovative entrepreneurs actively try
out new ideas by creating prototypes and launching pilots. (As Edison said, “I haven’t
failed. I’ve simply found 10,000 ways that do not work.”) The world is their laboratory.
Unlike observers, who intensely watch the world, experimenters construct interactive
experiences and try to provoke unorthodox responses to see what insights emerge.

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The innovative entrepreneurs we interviewed all engaged in some form of active
experimentation, whether it was intellectual exploration (Michael Lazaridis mulling
over the theory of relativity in high school), physical tinkering (Jeff Bezos taking apart
his crib as a toddler or Steve Jobs disassembling a Sony Walkman), or engagement
in new surroundings (Starbucks founder Howard Shultz roaming Italy visiting coffee
bars). As executives of innovative enterprises, they make experimentation central to
everything they do. Bezos’s online bookstore didn’t stay where it was after its initial
success; it morphed into an online discount retailer, selling a full line of products from
toys to TVs to home appliances. The electronic reader Kindle is an experiment that is
now transforming Amazon from an online retailer to an innovative electronics
manufacturer. Bezos sees experimentation as so critical to innovation that he has
institutionalized it at Amazon. “I encourage our employees to go down blind alleys
and experiment,” Bezos says. “If we can get processes decentralized so that we can
do a lot of experiments without it being very costly, we’ll get a lot more innovation.”
Discovery Skill 5: Networking
Devoting time and energy to finding and testing ideas through a network of diverse
individuals gives innovators a radically different perspective. Unlike most
executives—who network to access resources, to sell themselves or their
companies, or to boost their careers—innovative entrepreneurs go out of their way to
meet people with different kinds of ideas and perspectives to extend their own
knowledge domains. To this end, they make a conscious effort to visit other
countries and meet people from other walks of life.
They also attend idea conferences such as Technology, Entertainment, and Design
(TED), Davos, and the Aspen Ideas Festival. Such conferences draw together
artists, entrepreneurs, academics, politicians, adventurers, scientists, and thinkers
from all over the world, who come to present their newest ideas, passions, and
projects. Michael Lazaridis, the founder of Research In Motion, notes that the
inspiration for the original BlackBerry occurred at a conference in 1987. A speaker
was describing a wireless data system that had been designed for Coke; it allowed
vending machines to send a signal when they needed refilling. “That’s when it hit
me,” Lazaridis recalls. “I remembered what my teacher said in high school: ‘Don’t get
too caught up with computers because the person that puts wireless technology and
computers together is going to make a big difference.’” David Neeleman came up
with key ideas for JetBlue—such as satellite TV at every seat and at-home
reservationists—through networking at conferences and elsewhere.
Kent Bowen, the founding scientist of CPS technologies (maker of an innovative
ceramic composite), hung the following credo in every office of his start-up: “The
insights required to solve many of our most challenging problems come from outside
our industry and scientific field. We must aggressively and proudly incorporate into
our work findings and advances which were not invented here.” Scientists from CPS
have solved numerous complex problems by talking with people in other fields. One
expert from Polaroid with in-depth knowledge of film technology knew how to make
the ceramic composite stronger. Experts in sperm-freezing technology knew how to

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prevent ice crystal growth on cells during freezing, a technique that CPS applied to
its manufacturing process with stunning success.
What are delivery skills?
Delivery skills are comprised of effective eye contact, volume, pacing, tone,
body language, word choice, and appearance. It's important to be aware of not
only what you are saying, but also how you are saying it.

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16) Leadership & Managerial Styles: The Blake Mouton
Managerial Grid
What Is the Blake Mouton Grid?
The Blake Mouton Grid plots a manager's or leader's degree of task-centeredness
versus their person-centeredness, and identifies five different combinations of the
two and the leadership styles they produce. It's also known as the Managerial Grid,
or Leadership Grid, and was developed in the early 1960s by management theorists
Robert Blake and Jane Mouton.
The model is based on two behavioral dimensions:
Concern for People: this is the degree to which a leader considers team members'
needs, interests and areas of personal development when deciding how best to
accomplish a task.
Concern for Results: this is the degree to which a leader emphasizes concrete
objectives, organizational efficiency and high productivity when deciding how best to
accomplish a task.
Blake and Mouton defined five leadership styles based on these, as illustrated in the
diagram below.

et's take a look at the five leadership styles in detail.

1. Impoverished Management – Low Results/Low People
The Impoverished or "indifferent" manager is mostly ineffective. With a low regard for
creating systems that get the job done, and with little interest in creating a satisfying

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or motivating team environment , this manager's results are inevitably
disorganization, dissatisfaction and disharmony.
2. Produce-or-Perish Management – High Results/Low People
Also known as "authoritarian" or "authority-compliance" managers, people in this
category believe that their team members are simply a means to an end. The team's
needs are always secondary to its productivity.
This type of manager is autocratic, has strict work rules, policies and procedures,
and can view punishment as an effective way of motivating team members. This
approach can drive impressive production results at first, but low team morale and
motivation will ultimately affect people's performance, and this type of leader will
struggle to retain high performers.
They probably adhere to the Theory X approach to motivation, which assumes that
employees are naturally unmotivated and dislike working. A manager who believes
people are self-motivated and happy to work is said to follow Theory Y. You can
learn more about these theories in our article, Theory X and Theory Y .
3. Middle-of-the-Road Management – Medium Results/Medium People
A Middle-of-the-Road or "status quo" manager tries to balance results and people,
but this strategy is not as effective as it may sound. Through continual compromise,
they fail to inspire high performance and also fail to meet people's needs fully. The
result is that their team will likely deliver only mediocre performance.
4. Country Club Management – High People/Low Results
The Country Club or "accommodating" style of manager is most concerned about
their team members' needs and feelings. They assume that, as long as their people
are happy and secure, they'll work hard.
What tends to be the result is a work environment that is very relaxed and fun, but
where productivity suffers because there is a lack of direction and control.
5. Team Management – High Production/High People
According to the Blake Mouton model, Team Management is the most effective
leadership style. It reflects a leader who is passionate about their work and who does
the best they can for the people they work with.
Team or "sound" managers commit to their organization's goals and mission,
motivate the people who report to them, and work hard to get people to stretch
themselves to deliver great results. But, at the same time, they're inspiring figures
who look after their teams. Someone led by a Team manager feels respected and
empowered, and is committed to achieving her goals.
Team managers prioritize both the organization's production needs and their
people's needs. They do this by making sure that their team members understand
the organization's purpose , and by involving them in determining production
needs.

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When people are committed to, and have a stake in, the organization's success, their
needs and production needs coincide. This creates an environment based on trust
and respect, which leads to high satisfaction, motivation and excellent results. Team
managers likely adopt the Theory Y approach to motivation, as we mentioned above.
Applying the Blake Mouton Grid
It is important to understand your management or leadership style, so that you can
then identify ways of reaching the target position of Team manager.
Step One: Identify Your Managerial Style
List five or six recent situations where you were the leader.
For each situation, place yourself on the grid according to where you believe you fit.
Use our self-assessment leadership quiz to help you spot your traits.
Step Two: Identify Areas Where You Can Improve and Develop Your Leadership
Skills
Look at your current approach. Are you settling for "Middle-of-the-Road" because it's
easier than reaching for more? Think about whether your style suits the situation you
are in.
If you feel that you are too task-oriented, then you can try to involve your team
members in creative problem solving , improve how you communicate with them,
or work on your mentoring skills . Or, if you tend to focus too much on people, it
may mean becoming clearer about scheduling and monitoring project progress ,
or improving your decision making .
Continually monitor your performance and watch for situations where you slip back
into bad old habits .
Step Three: Put the Grid in Context
The Team Management style is often the most effective approach, but there are
situations that call for more attention to one area than the other. For example, if your
company is in the middle of a merger or some other significant change, then it can
be acceptable to place a higher emphasis on people than on production, to guide
them and reassure them through a potentially difficult time. Likewise, when faced
with an emergency, an economic hardship, or a physical risk, concerns about people
may be put to one side, for the short term at least, to achieve good results and
efficiency.

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17) Business Ethics

Business ethics carries significant influence in the corporate world. Not only does it
change how businesses operate on a day-to-day- basis, but it also influences
legislation around corporate regulation. Find out what business ethics is, why it is
important, and how you can spot ethical and unethical behaviors in the workplace.

What Is Business Ethics?

Business ethics is the study of how a business should act in the face of ethical
dilemmas and controversial situations. This can include a number of different
situations, including how a business is governed, how stocks are traded, a business'
role in social issues, and more.

Business ethics is a broad field because there are so many different topics that fall
under its umbrella. It can be studied from a variety of different angles, whether it's
philosophically, scientifically, or legally. However, the law plays the biggest role in
influencing business ethics by far.

Many businesses leverage business ethics not only to remain clean from a legal
perspective, but also to boost their public image. It instills and ensures trust between
consumers and the businesses that serve them.

The modern idea of business ethics as a field is relatively new, but how to ethically
conduct business has been widely debated since bartering and trading first arose.
Aristotle even proposed a few of his own ideas about business ethics.

However, business ethics as we know it today arose in the 1970s as a field of

academic study. As part of academia, business ethics were both debated

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philosophically and measured empirically. As this field of study became more robust,
the government began legislating leading ideas in the field into law, thus forcing
businesses to abide by certain rules and regulations that were deemed ethical.

Why Is Business Ethics Important?

Business ethics are important for a variety of reasons. First and foremost, it keeps
the business working within the boundaries of the law, ensuring that they aren't
committing crimes against their employees, customers, consumers at large, or other
parties. However, the business also has a number of other advantages that will help
them succeed if they are aware of business ethics.

Businesses can also build trust between the business and consumers. If consumers
feel that a business can be trusted, they will be more likely to choose that business
over its competitors. Some businesses choose to use certain aspects of business
ethics as a marketing tool, particularly if they decide to highlight a popular social
issue. Leveraging business ethics wisely can result in increased brand equity overall.

Being an ethical business is also highly appealing to investors and shareholders.

They will be more likely to sink money into the company, as following standard
ethical business practices and leveraging them properly can be a path to success for
many businesses.

Following business ethics can also be beneficial for the business' employees and
operations. Attracting top talent is significantly easier for ethical businesses.
Employees not only appreciate a socially aware employer, but will also perceive
them as the kind of business that will act in the best interest of their employees. This
produces more dedicated employees and can also reduce recruitment costs.

What Are the Types of Business Ethics?

Business ethics as a field of study is incredibly diverse, but many concepts can be
divided into a few basic principles. Every business should strive to follow these
guidelines in the pursuit of success.

Trustworthiness

Achieving trustworthiness typically involves being transparent and honest in all

actions and communications. Being trustworthy can have a positive impact both
internally and externally. Consumers appreciate openness, as it provides them with
insight into how a business operates and conceptualizes the work that they do.
Employees also appreciate this quality in a business that they work for.

Respect
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Showing respect for employees and customers involves following through on all
promises -- and providing sincere apologies and appropriate compensation if
anything falls through. Showing a lack of respect will deter customers from engaging
with a business and lower a business' reputation. It will also do significant damage to
employee morale and increase turnover.

Fairness

Treating customers and employees with a sense of fairness and justice is a key type
of ethics. Manipulative behaviors aren't just unethical, but they are also unhelpful --
and the top priority of any business should be to be helpful to its customers and
employees. It is also important to treat all people equally.

Caring

Businesses, at the end of the day, are composed of human beings. There are human
beings that consume goods or services from the business, and then there are human
beings that work to produce those goods or services. Being open to their struggles
and coming to the table with solutions will show empathy -- a valuable tool for any
business to utilize. Showing a sense of caring and keeping the lines of
communication is not just the ethical thing to do, but can also boost internal and
external perceptions of the business.

Examples of Ethical Behavior in the Workplace

While understanding the basic principles of business ethics is important, it is

arguably more important to understand how these ideas apply to day-to-day
business operations. Here are some examples of how ethical behaviors can be
practically applied.

Putting Customer Needs First

Companies that build their workplace culture around putting customer needs first and
hiring people who engage in this behavior are participating in ethical behaviors. For
example, if a customer comes into a store looking for a product that meets very
specific needs, it's important to provide them the best product for the situation
described instead of upselling them or encouraging them to buy a product that won't
meet their needs. However, it is important to ensure that the "customer first" attitude
does not unintentionally result in the unethical treatment of employees -- such as
encouraging them to work more overtime than allowed, forcing them to endure
abuse from customers with no safe way to escape the situation, and more.

Being Transparent

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Transparency and clear communication is paramount when it comes to ethical
workplace behaviors. Employees and consumers alike should never be lied to or told
untruths, as this breaks trust within the business. For example, when faced with a
public relations crisis, companies should call a meeting and address the problem
directly with their employees. It's important to truthfully describe the situation as it
unfolded, present solutions, and accept criticism humbly.

Prioritizing Workplace Diversity

Part of being fair is providing everyone with an equal opportunity to be employed at

the company. While there is much political debate around how to create workplace
fairness, it is undeniable that providing equal opportunity for employment to every
applicant is an ethical standard. For example, if someone notices that management
tends to hire the same type of person, they may suggest getting employees more
involved in the hiring process. This will introduce different perspectives to the hiring
process and increase the possibility that different kinds of applicants will be selected
for a position.

Respecting Customer Information

Many businesses collect the personal information of their customers, whether it's
payment information, health information, or similar. One of the priorities for any
business should be securing and protecting this information. For example, a hospital
may create and enforce aggressive policies around staff sharing patient information
on social media. Having an employee share this kind of information on their personal
accounts is not only disrespectful of the patient's privacy, but could also put the
hospital at risk of violating HIPAA regulations.

Providing Resources for Reporting Unethical Behavior

If an employee notices unethical behavior in the workplace, they should have an

outlet to report these behaviors. The business is responsible for putting this
infrastructure in place and designing it in a way that insulates the employee from
harm. For example, a research university should have a neutral office of compliance
that is organizationally detached from the research arm of the institution. This
provides a neutral space where academics can report unethical studies or harmful
practices without fear of workplace repercussions.

Examples of Unethical Behavior in the Workplace

Just as it is important to understand how to practically apply ethical behavior, it is

equally important to understand what qualifies as unethical behavior. Here are some
examples of what unethical situations can look like in the workplace.

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Taking Sides in an Employee Argument

It is not uncommon for conflicts to arise between employees in the workplace.

Ethically, it is the job of company leadership and management to remain impartial
during these conflicts. For example, if two of a manager's employees are in conflict, it
is important for the manager to remain as neutral as possible. When a manager
gives preference to a favorite or senior employee or provides a solution that only
works in favor of one party, they are participating in unethical behavior. They must
allow both employees to speak their piece and then come to a solution that works
best for both parties, as well as the business itself.

Lying

Lying to your employees or customers is the biggest way to break trust. Trust is the
best source of dedication and loyalty that any business has. Once that trust is
broken, it is extremely difficult to get it back. For example, if a company has a high-
performing employee who is asking for a promotion, they may say that there is no
room in the budget for a promotion this year. A few months later, another employee
may receive a promotion. Telling obvious lies isn't just unethical -- it will drive people
away from your business.

Misusing Company Time

This is a common ethical dilemma that many businesses face. Many employees
misuse company time in a variety of ways, whether it's surfing the internet during
business hours, taking extended breaks, altering time sheets, or similar. Misusing
company time is unethical because the employee is being paid a salary for work that
they did not complete or time they did not dedicate to their job.

Cultivating a Hostile Workplace

While there is bound to be some conflict in the workplace, it is important to make the
workplace a safe environment for everyone. Some companies unintentionally
cultivate a hostile or overly competitive company culture. For example, employers
may encourage an unhealthily competitive environment among employees to drive
productivity and innovation. However, cultivating this kind of environment can tax
employee mental health, and even encourage unethical, sabotaging behavior among
employees who want to get ahead at work.

Ignoring Conflicts of Interest

Conflicts of interest encourage businesses to act in ways that do not benefit their
customers or employees. For example, if a manager has a relative as their direct
report, that manager may treat that employee differently than their other reports. It is

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the duty of the business to address this situation. Removing conflicts of interest can
become more complex when a business is publicly traded, non-profit, or receives
funds from a government entity.

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18) MBA Oath
THE MBA OATH

As a business leader I recognize my role in society.

My purpose is to lead people and manage resources to create value that no single
individual can create alone.

My decisions affect the well-being of individuals inside and outside my enterprise,

today and tomorrow. Therefore, I promise that:

• I will manage my enterprise with loyalty and care, and will not advance my
personal interests at the expense of my enterprise or society.
• I will understand and uphold, in letter and spirit, the laws and contracts
governing my conduct and that of my enterprise.
• I will refrain from corruption, unfair competition, or business practices harmful
to society.
• I will protect the human rights and dignity of all people affected by my
enterprise, and I will oppose discrimination and exploitation.
• I will protect the right of future generations to advance their standard of living
and enjoy a healthy planet.
• I will report the performance and risks of my enterprise accurately and
honestly.
• I will invest in developing myself and others, helping the management
profession continue to advance and create sustainable and inclusive prosperity.

In exercising my professional duties according to these principles, I recognize that

my behavior must set an example of integrity, eliciting trust and esteem from those I
serve. I will remain accountable to my peers and to society for my actions and for
upholding these standards. This oath I make freely, and upon my honor.

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19) ESG

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20) Circular Economy

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