Managing Business through

Human Psychology
“A Handbook for Entrepreneur”

Written by: Ashish Bhagoria

An entrepreneur, visualizer and conceptualizer

[email protected] | www.ashishbhagoria.com | +91 98160 91160

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 Acknowledgement
Success is achieved with support and involvement
of people around us. It happens when we
understand them and they understand us. And
that is how my family, friends, staff and associates
supported me while writing my first book.

Before the readers start reading this book; I wish

them to get acquainted with the great contributors
who made the successful completion of this book
possible. Mr Vikas Gurung, my friend, transcribed
this book and gave it a textual shape. Mr Arvind
Sharma, a famous cartoonist and my buddy,
designed the cover page and created an
appropriate theme for the title. And finally, she,
who with her creative writing skills edited this
book and gave it a life; is our family friend and a
professional writer, Ms Riju Sharma.

At the same time I extend my love to the valuable

readers and expect their special insights and
feedback.

- Ashish Bhagoria
 Contents
 Basics of Psychology and Management
o Understanding Humans and their Personality
o Human Psychology
o Understanding Humans and their Mind
o Factors that motivate humans to work
 Business Management Cycle
 Phase 1: Importance of PIE - Planning, Initiation and
Execution
o Philosophy of Business
o Three Essentials for a Successful Business
o Leadership in Business Management
o Lending an Ear and Problem Solving
o Business Approach towards handling Team
Work and Team Relationship
o Getting Closer to Targets
o The winning Strategy in Business
 Phase 2: Meeting Financial needs with Financial
Management
o Getting Best Returns on Investment
o Identifying Financial Resources while starting
business
o Finance and Employees’ Psychology
o Impact of Payment and Credit Policies
o Outsourcing a Job to Third Party
o Choice of Business Associates
o Negotiation and Psychology
 Phase 3: Managing the Human Resource
o Hiring Right Person for the Right Job
o Training through Psychology
o Using Five Senses at Work
o Handling Staff Issues
o Employee Exit and Psychology
 Phase 4: Managing the Marketing Strategies
o Product, Brand, Market Segments and
Psychology
o Price and Psychology
o Positioning the Product in Market
o Promoting the Brand
o Sales and Customer Psychology
 Phase 5: Customer Relationship Management and
Psychology
o From One to Million Customers
 Phase 6: Managing Business Operations
o Change Management and Psychology
o Implementing Systems and Procedures
o Better Control through Psychology
o How Direction works
o Management Information System
 Building the Future
o Getting Ready for Competition
o Achieving and Maintaining Success
 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

Basics of Psychology and

Management
“The mind is its own place, and in itself can make a
heaven of Hell, a hell of Heaven.” - John Milton

It’s not that easy but it’s not that difficult

too. Yes, if you follow the basics of
understanding human psychology, the
success comes to you. No matter the
business is small or big, it is always
managed by humans. Machines and
Technology are tools, again; managed by
humans. Every human has emotions and
feelings, which create desires. To fulfill
these desires one reacts differently to each
situation. At the back of the mind, it is
always heart that controls it. If we learn to
manage humans, we can manage the
entire business process as management
is, above all, a practice where art, science,
and craft meet.

The Management Cycle in any business

process broadly includes:

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

 Planning, Initiation and Execution –

PIE
 Financial Management
 Human Resource Management
 Marketing Management
 Customer Relationship Management
 Operations Management
There are scores of other branches of
Management that need to be perused
provided we learn to handle the above
Management Cycle.

My area of concern is to explain

Psychology and Management, which are
analogous to each other. Psychology and
Management are two very important
aspects of life, in general and in business.
Psychology plays a vital role in all aspects
of management, be it at home or in
business. This book will help two types of
people; those who have problems in their
business and those who don’t have any
problem but can come across such
problems at any time during the business
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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

process. This book will be useful for

entrepreneurs or the embryonic
entrepreneurs and their need to
understand that business is not financial
science; it's about trading, buying and
selling. It's about creating a product or
service so good that people will pay for it.
In every organization be it small or large
we come across various new and tricky
situations on a daily basis and we have to
deal with these situations smartly and
carefully. I am going to share some of my
learning and experiences through this
book.

Ashish Bhagoria -3-

 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

Understanding Humans
and their Personality
Every human is different and has a
different personality. Personality is the
sum total of ways in which an individual
reacts and interacts with others or may be
defined as the deeply ingrained and
relatively enduring patterns of thought,
feeling and behavior. In fact, when one
refers to personality, it generally implies to
all what is unique about an individual, the
characteristics that makes one stand out
in a crowd. Generally, we categorize people
according to the different types of
personalities but personality is developed
through the influence of the right or the
left brain. The influence of right or left
brain varies from person to person and
splits people into multiple personalities.
That is why everyone has different
behavior. We agree and accept that each
individual is unique, but what makes one
unique is attributable to one’s personality.
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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

If we take identical twins, even though

they may look alike but their behavior and
personality are different from each other.
Therefore, we cannot label personalities
and we must deal with everyone as an
individual case study.

Every person has two aspects of

personality, Internal and External
personality. Internal Personality is our
inner self and External Personality is our
outer self, which actually is a
manifestation of the internal personality. If
we examine people deeply, we are able to
understand their thinking and psychology.
That means our thinking is reflected
through our personality. The way our
personality shows our thinking, our
thinking can change our personality too.
What we think and believe is reflected
through our personality. So, if we believe
that we are confident then we would be
confident and start behaving that way
without any training and just by believing
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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

in it. Therefore understanding human

personality is equally important as
understanding human psychology.

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

Human Psychology
Before we discuss Management, we need
to understand psychology, in general.
Psychology deals with human behavior. It
deals with the human reaction under
different circumstances. Different people
react in different manner to similar
situations or the same person reacts in
different ways to similar situation in
different times. Just to understand this,
let’s try to understand first how we can
deal with human psychology.

To deal with human psychology we need to

understand Neuro Linguistic Programming
(NLP). Neuro refers to the brain and neural
network that feeds into the brain. Neurons
or nerve cells are the working units used
by the nervous system to send, receive,
and store signals that add up to
information. Linguistics refers to the
content, both verbal and non-verbal, that
moves across and through these

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

pathways. Programming is the way the

content or signal is manipulated to
convert it into useful information. NLP
helps us deal with human behavior. The
brain may direct the signal, sequence it,
change it based on our previous
experience, or connect it to some other
experience we have stored in our brain to
convert it into thinking patterns and
behaviors that are the quintessence of our
experience of life. On this earth, only
humans can understand language. Moods,
emotions, feelings, mind, brain and
psychology are present in every living
being but humans have one special
character, which makes them different
from all the other living beings and that is
Language. Other living beings like animals
and birds also communicate but they
express it through various sounds and
unlike humans, they lack the cognitive
mental apparatus to be infinitely creative.
Humans are distinguished from all other

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

species by an innate capacity to create

language. To communicate or to express
themselves they cannot use words. Hence,
the power of word is very important, in
dealing with humans. A word expresses
the feeling that is going on in the mind of
the human, for example if we have to say
“hello”, though it is a single word but how
we say it that makes the difference. It
shows our expression and what is going
on in our mind. The basic premise of NLP
is that the words we use reflect an inner,
subconscious perception of our problems.
If these words and perceptions are inexact,
they will create an underlying problem as
long as we continue to use and to think
them. Each word is important to deal with
psychology and also to make it easier to
deal with humans if we understand words.
Language is a medium to communicate
and convey our expression. There are
regional, national or international
languages but the common thing is that

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

every language uses words. We need to

understand that words are like knife. A
person can use a knife in many ways, it
can be used to kill someone or to protect
himself or to chop the vegetables; reaction
or the feedback will be depending on the
action or the event. When a straight talk is
given to a person, they might feel hurt or
offended or even feel angry, on the other
hand when the same talk is given to
another person they might take it
positively and rectify themselves. We
might come across third type of people,
who are least bothered about the
statement; they will just listen to it and
forget it. Same words can have different
impacts on different person or no impact
on some. So, in dealing with people we
need to be very specific with our words, as
words can make or break a deal and it
should not be so that we have to talk
about something just to keep our voice
boxes in working order. Rightly has it

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

been said “Watch your thoughts, they

become words. Watch your words, they
become actions.”

Neuro-Linguistic Programming deals with

the three most influential components
involved in producing human experience;
neurology, language and programming.
Now the question arises, how can a person
be programmed? We can program a
person in the same way a computer is
programmed or the way software is
programmed. A person’s programming is
done through conditioning which starts
from the moment he is born. This way a
person develops certain habits and
temperament in life. This is what makes
him react to certain situations and his
reactions are based on conditioning. So in
human psychology, emotions, expressions,
feelings and mood; all aspects are covered.
All these aspects can be programmed and
if we learn how to program humans, we
can achieve our objectives and goals and
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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

be successful because ultimately we have

to deal with humans. It is essential for an
entrepreneur to understand the technique
of programming humans, to achieve their
objectives, goals or targets. In this book, I
will discuss how to program a person and
understand his psychology.

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 MANAGING BUSINESS THROUGH HUMAN PSYCHOLOGY

Understanding Humans
and their Mind
The human mind is divided into two parts
conscious and the subconscious mind.
Conscious mind is the part of the brain
which does the speculations, the
reasoning and takes care of the logical
things. This part of the mind is awake and
deals with the situations around. The
subconscious mind is the part of brain
where the data is stored and it deals with
our emotions, feelings and expressions. In
our day to day life, we come across many
situations which we forget. However, it’s
not so that these are completely erased
from our mind.

Everything that we experience in our life is

stored in our subconscious mind. All the
events and happenings that have occurred
in our life whether good or bad are stored
in our subconscious mind. If we take up
any book on psychology or human

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