Human Behavior in Organizations

Christian Javier Umlas

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 Table of Contents

Module 8: Effective Communication, An Important

Management Skill
Introduction 82
Learning Outcomes 84
Lesson 1. Miscommunication Leads to Inappropriate Assumptions 85
Resulting to Organizational Conflict
Lesson 2. Learning to Communicate in Effective Ways 86
Lesson 3. Developing Good Listening Skills to Better Understanding the Audience 89
Lesson 4. Communicating Within the Organization 90
Lesson 5. Communication in International Businesses 92
Lesson 6. Choosing the Best Technique of Communication 94
Assessment Task 8 97
Summary 98
References 99

Module 9: Effective Methods for Creative Decision-Making Skills

Introduction 101
Learning Outcomes 102
Lesson 1. Intuitive Decision-Making Approach and Problem-Solving 102
Capacities
Lesson 2. The Rationale Technique of Decision-Making 103
Lesson 3. The Decision-Maker’s Environment 104
Lesson 4. The Factors to Consider in Decision-Making 105
Lesson 5. Who Participate In Decision-Making 107
Lesson 6. Decision Making Participation 108
Lesson 7. Barriers to Effective Decision-Making 110
Lesson 8. Formulating A Model for Creative Decision-Making 111
Assessment Task 9 113
Summary 114
References 115

Module 10: The Planning Process, Culture, Leadership and

Strategic Management
Introduction 118
Learning Outcomes
Lesson 1. The Planning Process and Its Contingency 120
Lesson 2. The Objectives of Management 122
Lesson 3. The Ethical Aspects of Management 123
Lesson 4. Evaluate and Control the Strategic Plan 124
Lesson 5. The Leadership Power and Authority 125
Lesson 6. Understanding Framework for Classifying Leadership Studies 127
Lesson 7. The Importance of Contingency in Leadership Practice 129
Lesson 8. Becoming Unconventional Personality Leader: Transactional, 130
Transformational and Charismatic Leadership
Lesson 9. The Trait Theory and Basic Leadership Styles in An Organization 134
Assessment Task 10 137
References 138
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 MODULE 8
EFFECTIVE COMMUNICATION,
AN IMPORTANT MANAGEMENT SKILL

Introduction

Effective communication is all that enable us to disseminate data and share knowledge
and is perhaps the most critical of all human abilities.

The rudiments of communication are to establish personal rapport between individuals

and business organizations. And if the other party heard and understood the message, it is
called communication or contact. Communication is an art and a skill, and to be able to convey
and receive knowledge competently, there are many ways to deliver a message and do so
with excellence. To "express" and not to "impress" is successful interaction.

Merriam Webster describes communication as a mechanism through which

information is exchanged through a common system of symbols, signs, or actions between
individuals."

When it is understood without "flowery" or high polluting" words, whether the

information is expressed or transmitted orally or through written messages, it is appreciated.
Conciseness and brevity are important for good communication skills. And it is often best that
the thoughts to be shared are concise, brief, profound, and straight to the point.

It may take a lifetime for others to master communication skills, but for some it is only
reasonably easy to improve their ability to articulate their thoughts in a very impactful way.
For managing people to inspire co-workers for productivity and to ensure that everyone is on
the same page to work out for the fulfillment of project visions, good communication in
leadership is paramount.

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 This supports and facilitates problem solving skills. It discusses changes, settles
disputes, misunderstandings, resolves disagreements and examines possible solutions for
any managerial leaders involved in running a company.
Operative communication skills enable the business to continue to thrive and require
everyone in the organization to understand their work roles and “when” and “what” they are
expected to do in their productivity-generating departmental duties.

The workforce of this current generation is becoming more globalized and may be
challenging for any person in top management to interact and achieve the objectivity and
bottom line of the business with individuals from different disciplines, culture, language,
regions with diverse backgrounds, particularly in the multicultural and multinational setting.

To be able to cast the mission vision knowledge clearly and accurately with respect to
the planned course of actions required to create a professional and responsible worker, the
rise and fall of any leaders working in an organization is good communication skills.

It is never too late that each member of the company, individually and collectively,
must earnestly desire to hone communication skills consistently, central to listening and
demonstrating and adapting a certain form of language properly in writing and speaking.

According to a 2018 National Association of Colleges and Employers (NACE) report,

verbal communication skills are ranked first (1st) among the skills and attributes that a career
applicant must have (https://www.skillsyouneed.com/ips/communication-skills.html).

In a wide range of governmental institutions and business sectors, regardless of their

medium, spoken or written, the fundamental aim of interpersonal communication is to ensure
that you understand others through good listening skills) and to be understood by ensuring
that you get your point across (both in writing and speaking) is an important element that every
person should master.

Communication is an active two-way process, with a “receiver” and a “sender” of data.

Misunderstanding is resolved by asking questions for a common interpretation (awareness)

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of the facts (data) to be checked (verified). No passive communicator will ever excel in all
organizational interactions from within and without.

Learning Outcomes

At the end of this module, students should be able to:

1. Define interactive communication and explain why communication is important to the

knowledge of management.
2. Describe the mechanism of interpersonal process.

3. Explain why miscommunication contributes to improper conclusions;

4. Identifying the correct means of communications for specific circumstances.

5. Research and develop the most common organizational communication mechanisms.

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Lesson 1. Miscommunication Leads to Inappropriate
Assumptions Resulting to Organizational Conflict
(McQuerrey, 2016)

Workplace discontent arises due to social disagreements, inadequate communication

and confused words and behavior that have a detrimental effect on the company in the form
of lack of cooperation and low morale of employees.

There is an inevitable danger of no one understanding what they are supposed to do

and mishandling expectations without a good flow of healthy contact in the workplace.
Collaborative efforts are so important if a certain department determines job tasks and
sets the timeliness norm by using the standard collection of metrics correctly to delegate

project components to ensure that deadlines are met and that no finger pointing, and blame
are the outcome.

Especially when there is an unregulated gossip that spreads and circulates rumors like
a wild fire, all department heads must be able to close the loop holes in the organization. If
rumors are genuine, the department head concern must reflect integrity if they are to answer
them head-on and explain the issue.

Figure 8.1. The Miscommunication Model

(Source: https://ct.counseling.org/2019/06/the-miscommunication-model-and-the- wdep)

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 One good way to fight miscommunication that leads to needless tension is to develop
corporate communication policies such as: minutes of the meeting, updates of programs and
events that record the framework and bullet-form results of meetings.

It is a must to create a clear chain of corporate hierarchical order and policies to resolve
disputes and conflicts effectively to set order in the organization, as the decision-maker is
functional in solving the problem.

As there are distinct cultural contexts and personalities that can trigger
misunderstandings, harmonious working relationships and productivity are disturbed. Any
specific principles for fostering discipline and harmony within the organization to be carried

out by human resources staff are to be developed to combat possible future organizational
disputes.:
1. Cleanliness and order in the workplace
2. Respect for all co-workers
3. Noise level regulation
4. Covering workloads when co-worker(s) is sick
5. Provision of Employees Handbook
6. Providing Training for Employees Behavioral and Motivational Enhancements

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Lesson 2. Learning to Communicate in Effective Ways
(Deep, 2019)

Communicating clearly is one of the most effective skills you can cultivate as a business
leader. Remember to communicate using nonverbal and verbal cues. Listen carefully to what
others have to say, and over-communicate in novel ways to ensure the content of the
conversation sticks with the audience. While communication is part of everyday life, it is
unavoidable that confusion makes any human beings who want to achieve successful
communication dramatically improve their career and personal relationships.

Figure 8.2 Effective Communication Model

(Source: https://www.google.com/search?q-Communicate+In+Effective+++model)

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 Effective communication is not only a two-way exchange of information, but human
emotion in any interpersonal interaction is also involved in the way our voice intonation sounds
and punctuations in what we write in our correspondence.

Behind the messages we exchanged, the way they felt about what they read and heard
is full of sense to be interpreted by others.

Communication can either create problems for others we communicate with or

strengthen relationships with others that build greater confidence and appreciation and
promote teamwork and overall social and emotional health.

The common obstacles to successful communication are the "out-of-control" emotion

induced by root stress that manifests through nonverbal signals that are the language of the
body. Because of lack of attention, most people do not interact effectively, there are tons of
distractions such as daydreaming, smartphone searching, wandering thoughts, and the busy
body that is constantly involved in multi-tasking.

Next, particularly when we disagree with the individual we are dealing with and we
cross our arms and avoid eye contact or stomping our feet, we display negative body
language. Whenever we recognize that by respecting the needs of others by meticulously
listening to their thoughts, beliefs, ideas, life's point of view and expectations, we must set
aside emotional nuances and biased judgment.

When we show concern and loyalty to people, we are talking to by withdrawing

criticism, we will become a seriously involved listener. Our stance creates an inviting and
friendly environment while we smile or nod at individuals. Focus on what we say and focus on
what we hear, and the more we pay attention, the more enjoyable and rewarding our
interactive contact becomes.

Talking to people with unlikeable attitudes is one of the most daunting moments in
conversation and yet you take time to offer input and confirm the information being heard.

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 Knowing human differences means that you value individual individuality because
individuals come from various ages, races, beliefs, life trials and backgrounds of education.
Effective communication is the effective and reactive control of human emotions and the
positive language of the body.

Effective communication is systematic. We make one simple point in every statement

with words clearly spoken and written. Rate speed is key, pausing allows us to monitor and
refine our words with prudence even better. To verify details and wrap up a description while
simplifying collaborative communication, it is often good to ask questions.

To make each conversation is to find an opportunity in any situation to work in a sense

of humor. At times, we need to conduct ourselves in a situation where we "agree to disagree"
if necessary, to foster peace and equilibrium in any conversation experience, to be
adaptable to any person concerned. This is the best way to illustrate politeness and empathic
self- assertion in an innovative and truthful way in which individuals feel welcomed and
motivated(Robinsons, Segal & Smith, (2020).
(Source: https://www.helpguide.org/articles/relationships-communication/effective-
communication.html)

Lesson 3. How to Improve Listening Skills in the

Organization? (Diksha S., n.d.)
The following are the eight tips to improve listening skills in an organization:

3.1. Be More Open Minded in the Organization . Stereotyping, ethnocentricity, rigid frames
of reference, and selective listening can all become barriers to comprehending the intended
message of a sender, so one of the first things to do to enhance listening skills in the
organization is to spend time developing a greater awareness of personal tendencies in the
direction of any of these problems.

Part of the reason for direct and conscious attention to this area of listening and speaking
is that most people speak at about 120 words per minute and yet can listen at about a rate of
1,000 words per minute. This creates the opportunity for the mind to wander or make
judgments about what we are hearing from others. These tendencies can distort what is heard

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and how it is interpreted in the organization. Once you have a better awareness of these
tendencies, you can monitor and control them in your organization during conversations.

3.2. Develop Empathy in the Organization. Once personal tendencies have been examined,
the next step is developing empathy. Empathy is identifying with and understanding the other
person’s feelings, situation, and motives in the correct manner. To some extent, this requires
thinking about the situation of other people in exact manner. What are their feelings relative
to the topic at hand? What are their motivations? Why are they talking about what they are?
These and other questions can help you enhance your understanding of the personal context
of the message being sent to any organization.

3.3. Listen Actively in the Organization. The next step to improving communication is to take
actions to ensure that the receiver hears and understands what the sender is trying to
communicate in any organization. In conversations, making eye contact is good way to help
speakers feel comfortable and convinced in any situation, that you are sincerely interested in
understanding what they have to say.

It is important to focus more on the content of the message send than the style of its
delivery. Even if people in the organization are not choosing the best words or are making
grammatical errors, they may have something quite valuable to communicate. Focusing on
style over substance can cause the value of the message to be missed in the organization.

To make sure you understand what is being said, ask clarifying questions from others.
Also, even when you think you have understood the message, it is a good idea to paraphrase,
that is, restate what you think the message is. This can be put in the form of a question or
statement in the organization.

For example, in the organization you could ask, “So are you saying that…?” or you can put
it more directly by saying something such as, “What I understand you to be saying is?”

3.4. Observe Nonverbal Clues in the Organization . Nonverbal cues are critical to effective
communication in the organization. Listening more open-mindedly arid actively to the words
is only part of the task in the organization.

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 You also need to concentrate on observing nonverbal clues in the organization. In cross-
cultural settings, this means that you need to remember more than a nonverbal clue or gesture
can have different meanings in different cultures in any organization. There is little substitute
for learning about the nonverbal clues and gestures of the culture of those with whom you will
be interacting in your organization.

3.5. Improving Sending Skills in the Organization. There are many situations in which you
will be the sender of a message in the organization. Developing better sending skills in the
organization can enhance effective communication.

3.6. Simple Language in the Organization. One of the first things a sender can do to enhance
communication is to simplify the language in the message. Clearly, what is simple in the
organization will vary depending on the audience. Simplifying may involve eliminating jargon
that may not be familiar to all members of all audience or in own organization.

It may also involve choosing more sufficient and active words and shorter sentences in the
messages. Perhaps the best clue for spotting complicated and passive language is excessive
use of prepositions in messages. The more prepositions in a sentence, the higher the
likelihood that the language could be simplified and the message could be stated more directly
in your organization.

3.7. Organize Writing in the Organization. Executives consistently complain about the poor
writing skills of new managers in their organizations. Their complaints lie not in spelling or
grammar mistakes, though clearly these should be eliminated, but in the lack of logical thought
processes they deal.

As a manager, you are likely to write more reports and memos than you may want, and
the effectiveness of those written communications will have an important impact on your
career not only in present organization but also in future organization. Consequently,
developing good writing skills is vital to being an effective manager in the organization.
Nothing substitutes for practice in the organization.

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3.8. Understand the Audience. Perhaps the single best thing a sender can do to enhance the
effectiveness of communications is to understand the audience on any part.

For example, consider the following questions:

What is the direction of the communication 9up, lateral, or down) and does the receiver have
any expectations concerning this type of communication?

Is the communication formal or informal and how should it be structured to have the intended
impact on the receiver?

Are there expectations from the receiver about the explicitness or implicitness of the message
you want to send?

Does the receiver have any biases for or against certain modes of communication (e.g., for or
against e-mail, face-to- face conversations, and so on)?

If you do not understand the person or persons you are sending the message, it is
almost impossible to answer these questions correctly. Knowing your audience is
particularly important in cross-cultural settings is some lists to improve cross-cultural
communication in the organization:

Study the general principles that apply to all types of inter cultural communication in
the organization.

Learn about the fundamental characteristics of the other cultures with which you will
be working in the organization.

For high-context cultures, learn as many details in advance about the target
organization(s) and their specific individual representatives in organization.

For high-context cultures, use at least a few words or phrases in the listener’s
language wherever possible.

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 For high-context cultures, be especially careful about body language and tone of voice
wherever possible.

For low-context cultures, organize written communications so that the major points are
immediately and directly stated wherever possible.

Study and respect communicators’ preference for greater degree of formality,

especially compared with the typical Indian approach of casual informality.

Lesson 4. The Importance of Communication in

International Business (Mcrill, 2019)

Businesses are selling products around the world. Partnerships are being formed
with people from diverse cultures as business relationships are formed. Each country and
the cultures within a country bring communication challenges to businesses. Good
international business communication practices help maintain these intricate business
dealings. Bad communication practices can cause loss of business and even international
tension among countries. Communication is intricately blended with non-verbal
communication and etiquette.

Culture and International Communication Concepts

Because cultures vary so widely across the globe, understanding the differences in
culture and the importance of international communication is vital to the business
environment. A person's culture impacts the way he communicates. For example, in Japan
people do not like to say the word "no." In a business meeting, a Japanese business person
may mean no, but never directly state it. This can cause confusion.

Another cultural example is in Saudi Arabia. Never discuss women, even to ask about a
female family member's health. In Saudi Arabia, you may be having a business meeting and
the person may leave the room for up to 20 minutes. The Saudi person may have gone to
prayers as he considers the business meeting more of a discussion than a formal meeting.

International Communication Errors

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 Understanding the local meaning of a word or phrase is a vital aspect of international
communication. Errors can cause embarrassment and can show disrespect.

According to Kwintessential, a communication company, an example of a communication

error occurred with the Kellogg company. It was selling a cereal product in Sweden. The
cereal name, Bran Buds, can generally mean, "burned farmer," in Sweden.

Another example is the ad, "Come Alive with Pepsi," by Pepsico. In Taiwan, the
translation became, "Pepsi brings your ancestors back from the dead."

Etiquette and Communication

Etiquette is a combination of behavior and communication. Making an error in etiquette

can cause a business deal to fail. For example, when you are meeting with a group of people
from the Asian culture, you have to be aware of hierarchy issues. If you disagree with an
idea presented by a person in management, it is not a good idea to say so in front of
subordinates. The manager "loses face," by what is perceived as criticism.

Language Differences in Written Communication

In the Western World, business is handled by phone calls and emails. Less formal
communication can cause confusion and misinterpretation due to language differences. For
example, if you use generally accepted Americanized statements, you can cause a lot of
confusion such as, "I'm on it. I'll jump on that right away," or even, "I get it." Other email
communication needs to be considered.

For example, in Japan, typically, a person will greet you by your last name and then the
word "san." This is a sign of respect to you. If you simply send back an email response
without a greeting, it may be considered rude.

Lesson 5. Best Communications Models to Ensure Effective

Business Collaboration (Butterfield, 2017)

Traditional Model

Traditional communication models often include a sender, a receiver and a

message. Generally, they are simple and easy to follow. However, business communication

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models slightly differ. There are many more moving parts involved in business
communication. A message may be sent to multiple parties through multiple channels, which
is where things can get complicated, especially if you do not have an e-verify service to ensure
intended recipients have actually received messages.

As a business owner, it is your job to ensure effective communication throughout your

organization. That is why it is important to understand the basic communication models for
business listed below. If you want to understand the different ways you can communicate
within your business, keep reading below.

Linear Communication Model

The linear communication model is unique in that it does not recognize feedback as a part
of the communication process. In linear communication, a sender encodes a message by way
of a channel. Then, the message is decoded by the communication receiver. Linear
communication, or straight-line communication, is the model found in mass communication
like TV, radio, newspaper and other forms of media. This is not a helpful communication model
for business practices, as you could imagine.

Circular Communication Model

The circular model of communication, developed by Osgood and Schramm, outlines a

constant flow of information between a sender and a receiver. In this communication model,
both parties act as sender and receiver for different messages. The process is a two-way
street that requires constant sharing and interpretation of these messages, which is incredibly
effective when using event management software in particular. According to Schramm and
Osgood’s theory, communication is a non-stop process. As a business owner it is important
to keep the circular communication model in mind so that you can acknowledge and receive
feedback from your employees.

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Grapevine

The grapevine is an unofficial form of communication. However, it is an inevitable part of

the workplace. This communication model follows an unpredictable spread of
information. Often through word of mouth, grapevine communication leaves no record for how
and where the message originated. Coworker gossip, interdepartmental rumors and even
formal information can be passed on in your business through the grapevine communication
model. It is important to be alert of this particular communication model because it can bring
a sense of unity to your employees through the sharing of information, but that information
can also be inaccurate or even hostile.

Vertical

Vertical communication is one of the most commonly practiced models in business

today. This top-down format involves communication from the highest executive to
subsequent managers, all the way down to front-end employees. These messages are often
passed along through multiple channels. As a home remodeling business owner, you may
recognize the vertical communication model. Whenever you speak to an employee or
manager that works for you, that is vertical communication. The process often follows the
layout of the company, which is why it is important to note. The vertical communication model
offers accountability for the messages you and your employees send and pass along.

Lateral

Lateral or horizontal communication is another formal form of business communication that

is completed between two equal parties. Unlike vertical communication, which is focused on
management and supervision, lateral communication puts trust in coworkers and departments
to communicate effectively on their own. The spreading of information is not required to go
through different levels of the business. Instead, the two parties involved in lateral
communication will interact as peers. This allows different departments to share information
and problem solve as a team. This is a great communication model to keep in mind for your
business, as lateral communication can help to foster a more collaborative environment.
In order to manage your business effectively, it is important to have a good communication
strategy. Keeping your employees, managers and business partners in the loop is essential

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to a successful organization. Utilizing a combination of these types of communication models
can help to make your business prosper.

Assessment task 8

1. How do you use your communication skill to inspire your subordinates and
build passion for their everyday tasks if you are a boss or a team leader?
2. Do you think that there is no need for effective communication to persuade
consumers to buy your product or service, even though you produce the best
product and service?

Summary

Managerial leadership is expected to master communication skills such

as verbal and written capabilities that discern confidential data that needs to be protected
because it is one of the organization's most valuable assets.
Effective business owners and managers use their communication skills, especially
their oral communication, to provide subordinates and staff with consistent guidance and
encouragement.
Each business person finds it necessary to proficiently verbalize their thoughts and
communicate with prudence by delivering a keynote and adhering to the rule of thumb.

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 References:

Butterfield, S. ( 2017) https://businessfirstfamily.com/business-communication-models/

Diksha S. ( n.d.). https://www.businessmanagementideas.com/organisation /listening-

skills/how-to-improve-listening-skills-in-the-organisation/3546

McQuerrey, L. (2016). https://smallbusiness.chron.com/lack-communication-

cause-conflict-workplace-10470.html

Mcrill, D. (2019) (https://bizfluent.com/info-7761139-importance-communication-

international-business.html

Patel, D. (2019) . https://www.entrepreneur.com/article/300466

Robinsons, L.; Segal & Smith, M. (2020). https://www.helpguide.org/articles/

relationships-communication/effective-communication.html)

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 MODULE 9
EFFECTIVE METHODS FOR CREATIVE
DECISION-MAKING SKILLS

Introduction

To establish and precipitate a smooth sending and receiving of communication

feedback, the quality of the communication process is important. Creativity and
resourcefulness make it possible for the decision-maker to gauge and internalize the problem
situation and provide the best potential actions to address the problem encountered.

The future and business partners must receive critical or urgent transaction
notifications in no time. One of the easiest ways to communicate extremely urgent business
confirmation is through phone calls such as Land-line, Mobile Phone. Grapevine is one of the
informal communication networks that a company, such as Skype or Messenger, can use.

For this purpose, there is a Research and Development Department that continually
thinks of innovative ways to meet the manufacturing needs of their goods and services and
the effort to manufacture them in a cost-effective manner. Companies that encourage
innovation will certainly help decision-makers.

The notable characteristics of decision-makers are good for evaluating and filtering
valuable information and updating it so that they can take advantage of it to maximize the
benefit of the business and its entire output.
When any problems manifest on the scene, there are obvious qualities that decision-
makers manifest. Since business is like gambling, decision-makers need to be willing to take
risks, to persevere in the face of obstacles, adversity, and to evolve through open-
mindedness. Formulating questions would enable all members of the company to engage in
a creative environment of problem solving.

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 .

Learning Outcomes

At the end of this module, students should be able to:

1. Explain why Intuitive decision-making approach and problem-solving capacities are

necessary;

2. Analyze the decision-maker’s environmental approaches;

3. Identify who participate in decision-making;

4. clearly define the decision-making participation development;

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Lesson 1. Intuitive Decision-Making Approach and Problem-
Solving Capacities (Matzler, Ballom, & Mooradlan, 2007)

Intuitive decision-making can be described as the process by which information acquired

through associated learning and stored in long-term memory is accessed unconsciously to
form the basis of a judgment or decision.

Recent research into the workings of our brain has stirred the debate with respect to
intuitive decision making versus rational decision making. How much we should rely on
intuition when making difficult decisions? In his book, The Power of Intuition, Gary Klein
suggests that 90 percent of critical decisions are made using our intuition. Even if only partially
true, this would suggest that any approach to improved decision making should address this
decision-making style.

What do we mean when we talk about intuition?

When talking about intuition we are describing something that is known, perceived,
understood or believed by instinct, feelings or nature without actual evidence, rather than by
use of conscious thought, reason, or rational processes. This does not imply that intuitive
decision making is irrational. Instead, we mean that the explanation for a choice is not directly
available through conscious or logical thought.

Brain research points to parts of the brain that work simultaneously with our conscious
thought processes, acting as parallel intelligent systems. These systems will create responses
(usually emotional) that compete with each other in determining a person's response. When
guided by experience with a previous pattern, these responses could be considered the result
of intuition.

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Can intuitive decision making be learned and improved?

Experts at MIT (Matzler, Ballom, and Mooradlan, 2007) and the Marine Corps (Krulak,
1999) believe so, and so do we. Cognitive models are continuing to be developed and evolved
that help us understand intuition and decision making. The Recognition Primed Decision
Model, developed by Gary Klein and others, suggests that recognition of patterns or cues is
an important element of intuitive decision making, along with an ability to perform a rapid
mental simulation of how an option would perform against other previously successful
outcomes. This model, and others, point to the following approaches for improved intuitive
decision making:

Use a structured process when time allows - This will provide a framework for
capturing and learning from previous decisions. It will also guard from errors that can
occur when using intuition.
Listen better - Improved listening will ensure getting more of the situational information.
The better formed the pattern, the more likely that intuition will provide a solution well
matched to the problem.
Reflect on a decision before implementing - Look for areas where emotions might be
distorting your perception of the current situation.
Examine beliefs - Are they based on reliable facts and evidence?
Consult others - Get feedback and validate that your decision seems reasonable. Also,
pay attention to disconfirming assessments.
Communicate - The reasoning behind your intuition can sometimes be made explicit
through discussion with others. Failure to do this in a business decision may
undermine its implementation.
Increase experiences - Try new things. Patterns develop from experiences. More
experiences will create and shape successful patterns. This leads to better intuition.
Learn through repetition in different environments - Repetition in different emotional
environments will help improve the consistency of intuitive decision making.
Learn to recognize and interpret your emotions - Emotions provide signals of previous
patterns and experiences. Learning what they indicate and their reliability improves
your ability to know when to count on your intuition.
Create the right learning environment - Better intuitive decision making comes from
making more decisions. An environment that can provide tolerance and/or low risk for

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 mistakes, and that examines decisions without attacking the pride and dignity of the
person making them, will lead to better intuitive choices.
Use decision making games - Games simulate life and provide a low risk environment
to develop the patterns that can improve intuition.
Situational assessment and case studies - Used in business and the military (e.g.,
After action reviews), studying previous outcomes with a focus on the decision-making
processes will help build patterns for intuition

When does it make sense to use an intuitive decision-making style?

Starting with the easy case, it certainly is reasonable to use intuitive decision making for
trivial or low value decisions. Decision failure will have little consequence, and intuition will
provide for a quick selection. These decisions are simple, unimportant, and in many cases
may result in habit. Choosing the same kind of coffee every day because you are happy with
how it tastes is a good example.

Decisions that involve emotions are often subject to a fair amount of intuition and will often
play a major role in personal relationships. However, emotions can change, and when
relationships run into difficulty, do not be surprised if your intuition is no longer generating the
outcomes you expect. At these times, relationships take work because intuitive decision
making has to become more open, explicit and rational. People find that they may need to
make choices that are not supported by their emotions.

Finally, when speed is critical to a successful outcome, expect to have rely more heavily
on intuitive decision-making. Examples include choices made in battle or by first responders
arriving at a crisis in both cases, participants undergo extensive training that helps build the
experience patterns that will improve intuition and decision making.

Furthermore, according to Dienes (1999), In financial trade management decisions,

high-risk circumstances, and strategic decisions, the tendency (inclination) to think critically
about intuition (instinct) can play a role.

Intuitive decision-making can be contrasted with intentional decision-making, which is

based on cognitive variables such as beliefs, arguments, and motives, usually referred to as
one's explicit awareness.

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Lesson 2. Different decision-making techniques to improve
business outcomes (Changeboard Team, 2019)

Decision making is broadly random, intuitive or analytical. In business, an analytical

approach can lead to informed decisions which are more likely to provide real business value.
Which of these decision-making techniques will enhance your own effectiveness as a
manager or leader?

1. Affinity diagrams / Brainstorming / Mind-mapping

When engaged in brainstorming ideas, how can you avoid information overload? Affinity
diagrams help leaders and teams visually organise numerous ideas and data points in a
simplified visual form.

2. Analytic hierarchy process (AHP) / Complex decisions

This decision-making technique helps to mitigate any subjectivity or intuition that goes into a
decision. Going with the gut or being blinkered by a subjective perspective is perfectly natural
– it’s human nature, and in some ways is a remarkable survival technique as it can lead to
fast decisions based on personal lived experience. However, it’s uncommon for a business
issue to involve outrunning a non-allegorical sabre-toothed tiger. Leadership often requires
decision making to be analytical and as objective as possible.

AHP, first developed in the 1970s by Dr. Thomas Saaty, combines the Multiple Criteria
decision-making technique with Paired Comparison and a splash of maths to explore multiple
criteria and options which might result in a single overall goal. The AHP decision making
technique is normally reserved for group solutions to complex challenges.

3. Conjoint analysis / Market research

Market researchers will be familiar with this stats-oriented technique. Conjoint analysis is often
used to help forecast how accepting consumers will be of proposed changes. It’s also used
to help determine a brand’s positioning in the market. Conjoint analysis is a survey-based

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technique that helps reveal how consumers might value the attributes (such as the function,
features or benefits) of a product or service.

4. Cost/benefit analysis / Financial decision-making

This technique is solely for making decisions of a financial nature. It can also be used to
acquire any financial data you might wish to use as part of another decision-making technique.

5. Decision making trees / Assessing multiple outcomes prior to tough decision making

The outcomes aren’t always clear when business decisions need to be made. A business
might, for example, be required to choose between conflicting strategies while hampered by
limited resources or other impediments to success. A decision-making tree can provide a
visual aid when considering the various phases of proposed solutions with unclear outcomes.

6. Game theory / Negotiating with third parties or making strategic decisions that involve
third parties

Game theory can help business leaders make decisions by putting themselves in the shoes
of a third party – e.g. a client, competitor or consumer – and anticipating what their actions,
reactions and motives might be. Playing out these scenarios in a safe hypothetical space can
help a leader make decisions based on the outcomes of the game.

Game theory can be a useful decision-making technique if you need to take into account
exterior third parties like competitors, clients or legislative authorities. It was invented in 1944
by John von Neumann and Oskar Morgenstern. Since then, around 20 leading scientists and
economists have been awarded the Nobel Prize in Economic Sciences for their evolution of
game theory, so it’s clearly an important aspect of modern decision-making and analysis.

Game theory models the strategic interaction between two or more players in a situation that
involves set rules. Games are typically co-operative or non-co-operative. There are various
Players, Actions, Payoffs and Information (known as PAPI). Players formulate strategies and
try to gain as much benefit as they can.

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Key opportunities to use game theory in decision making:

 Bargaining and negotiating

 Product/service launch decisions
 Supply chain decisions (e.g. outsourcing)

7. Heuristic methods / Save time on making decisions where a perfect result isn’t required first
time round

Heuristic methods are used to refine a product or service over time, using trial and error.
They’re not accurate, but they can get the job done. Heuristic methods often have the benefit
of saving time and resource and reducing initial expenditure.

For example, decisions relating to a website launch could be resolved using heuristic
methods, if it’s determined the website doesn’t need to be perfect on launch. It can meet 80%
of desired requirements, and be improved in terms of content and function over time.

8. Influence diagrams approach (IDA)/ Reducing the risk of human error in decision making

IDA is a technique used in the field of human reliability assessment. It can be used in all kinds
of sectors, from business and HR to the healthcare and nuclear industries.

Decision making sometimes depends greatly on the people involved and their level of
reliability. In some projects, the reliability of the team can make or break a situation. An
influence diagram can provide a visual aid to determine how human error might influence a
decision or project, and how much that might affect outcomes.

9. Linear programming (LP) / Making the most of limited resources

Linear programming uses math to represent requirements as linear equations. It is, for
example, useful when making decisions relating to problems cropping up in operations
research.

10. Multiple criteria decision analysis / Making business that reach a compromise between
logical analysis and intuition

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This decision-making technique allows a business to assess and evaluate various options
against a set of defined business criteria. Typical examples of criteria might be cost/price,
level of quality, customer/client satisfaction, or high returns.

This analysis technique is somewhat like a cost/benefit analysis, except it’s not limited to cost.
We make thousands of decisions every day - often intuitively, but some part of us is weighing
up the various criteria. When we buy a car, we weigh up cost, comfort, safety, fuel economy,
function, form and aesthetics. When we buy a latte, we consider everything from cost and
quality to the environmental friendliness of the packaging.

Multiple criteria decision analysis enables leaders to weigh up different criteria. How does one
measure apples against cheese, or cost against comfort? The following MCDA steps can help.

Multiple criteria decision analysis in 5 steps

 Specify the context

 Identify available options
 Confirm the objectives and select criteria that represent key values
 Measure each of the criteria in order to figure out their relative importance
 Calculate the different values by averaging out scores and weighting

11. Multi-voting / Making fair and balanced group decisions

When making decisions as a group, use multi-voting to weed out lower priority options. You
can then use other, more exacting techniques to make key decisions on a smaller (and
therefore more manageable) group of options.

Multi-voting can be as simple as giving each member of the group a list of ideas and telling
them they can only vote for the three ideas they consider most important or beneficial. Tally
up the votes to determine which options are deemed most important by the group.

12. Net present value (NPV) and present value (PV) / Making decisions relating to investment
and capital budget

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The value of money flexes with time. A house bought twenty years ago might be worth far
more now, leading to questions of whether (and when) to sell or buy. Pension payments might
rise substantially the longer a person remains in employment, leading to questions of when to
retire.

Calculation of NPV or PVC can help a business compare financial options representing future
cash flows. It’s key to use critical thinking to question all assumptions when making these
calculations in order to make a genuinely informed decision.

13. Paired comparison analysis / making decisions relating to comparing two options

 The less experienced, cheaper hire or the more expensive, more experienced hire?
 Creating a product/service in-house or buying/outsourcing it?
 The quick, cost-effective option or the expensive, delayed, future-proofed option?
We often have to compare two options in order of importance. Paired comparison analysis
can help with that – and we do it intuitively all the time, but it’s advantageous in business to
bring structured analysis into the mix.

If paired comparison analysis has a catch, it’s that this technique doesn’t really surface any
information identifying the criteria supporting each option. You have to do the legwork yourself
– but it’s a good starting point.

14. Pro/con technique / making decisions relating to comparing two options

The pro/con technique can be used in tandem with paired comparison analysis, and
weighing up the pros and cons of a decision is a tale as old as time.

Similar techniques include the plus/minus/interesting (PMI) technique and force field
analysis.

15. Scientific method /Taking a scientific approach to business decisions

The scientific method of decision making can also be called a heuristic method, since it’s best
used in circumstances where you don’t need 100% perfection first time round.

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We all learned the drill in school – hypothesis, method, results, conclusion. There are a few
more steps to the scientific method, but in essence the format is the same as that of science
experiments in school.

Using the scientific method in 7 steps:

 Question – formulate a question

 Research – do background research to gather as much clarity as possible
 Hypothesis - Based on your research, form a hypothesis, or statement you want to test the
validity of
 Experiment – test, test, test!
 Observations – collect data from the experiment
 Results – formulate results based on the data you’ve collected
 Conclusion – determine the validity of your hypothesis

16. Trial and error / A general and popular approach to making low-risk decisions

Decision making based on trial and error sounds chaotic but it has an established place in
business strategy.

Several of the decision-making techniques outlined above have their basis in a structured
approach to trial and error. Heuristic methods and the scientific method feature trial and error
as the backbone of their process. Agile project management is a very flexible management
style that incorporates trial and error into its process with minimum risk.
When using the trial and error method to make decisions, it’s important to acknowledge that
any failure as a result of decisions made is low risk. It’s also vital to reflect deeply on the
results in order to understand the causes of the failure and further remove the risks and
challenges on the next iteration of the trial and error process. Going in circles is not
progression. Heading upwards in a spiral is.

Lesson 3. The Decision-Maker’s Environment

Quality decision-making can prevent failure, until concluding in an important decision

to ensure success, there must be a knowledge mechanism. Each business issue and situation

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are a good business environment in which people can practice their research and tactical
formulation in an organization and only the final-results can indicate if the approach
implemented is the best option.

Figure 9.1. Decision-Makers Environment and Making Better Strategic Decision Model
Source: https://business901.com/blog1/making-better-strategic-decisions/

Lesson 4. The Factors to Consider in Decision-Making

(www.tutorialspoint.com/management_principles, n.d.)

There are quite a few important characteristics that affect the production of decisions.
Key components are historical understandings, a few perceptive prejudices, an increase in
duty and sunken outcomes, social individuality, including gender, age, socioeconomic status,
and a belief in personal value.

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 Figure 9.2. Factors to Consider In Decision Making Model
(Source: https://www.tutorialspoint.com/management_principles/management_principles)

To play safe in running a company before selecting the right choice is to allow ample
time to consider alternatives and the secret to completing business ventures is to formulate
better questions before making a wise and informed decision.
1. Rationality
2. Intuition
3. Relationships
4. Alignment
5. Counsel
6. Negative Drivers
7. Cost
8. Risk and Reward

Lesson 5. Who Participate in Decision-Making (Probst, 2005)?

Decision-makers are persons within an organization who have the ability to make
deliberate or intentional decisions such as acquisitions, market growth, or investment

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spending. Strategic, administrative, procedure, organizational, personal, programmed, and
non-programmed decisions can involve some of the decision-making.

Figure 9.3 Who Participate In Business Organization Decision-Making Model

(Source:/www.hrtechnologist.com/articles/performance-management-hcm/)

Employees involved in decision-making recognize their essential role in the

community. The degree to which employers allow or enable workers to share or participate
in organizational decision-making is a participative decision-making mechanism. (Probst,
2005).

Lesson 6. Decision-Making Participation (Probst, 2005)

Five Ways to Get Employees Involved in Decision-Making

1. Form a committee
2. Suggestion box
3. Offer choices
4. Let them choose their training

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 5. Remove set work hours

Participation in the decision-making process allows each worker the ability to

communicate their thoughts and to share their data with others. As this advances the
association between managers and workers, it also inspires a deep sense of staff cooperation.

Figure 9.4. Decision-Making Participation Model

(Source:www.Decision+Making+Participation++model&tbm)

Seven (7) Smart Ways to Encourage Better Decision Making in Your Business
(www.blog.vistage.co.uk/7-smart-ways-to-encourage-better-decisions-in-business)

1. Make sure your team aren’t afraid to disagree

2. Be open to mistakes
3. Encourage the levels of trust and to criticize the ideas of every decision maker
participants
4. Make sure your team aren’t afraid to disagree
5. Communicate the what and why of significant decisions

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 6. Have our Team’s Back, but feel free to disagree?
7. Use a process of decision analysis

Lesson 7. Barriers to Effective Decision-Making

Figure 9.5. Barriers to Effective Decision-Making Model

(Source: https://www.slideserve.com/albina/day-4-problem-solving-decision-making)

The following are the usual challenges faced when formulating a winning plan by a
managerial leader.

1. Level of decision making not clear

2. Lack of time
3. Lack of reliable data
4. Risk-taking ability
5. Too many options

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 6. Inadequate support
7. Lack of resources
8. Inability to change.

Lesson 8. Formulating A Model for Creative Decision-Making

Skills

Figure 9.6. Formulating A Creative Decision-Making Skills Model

(Source: www.strategy-business.com/article/10-Principles-of-Strategic-Leadership?gko=af52a)

Seven (7) Smart Steps Involved in Better Business Decision Making

1. Define the problem
2. Analyze the problem
3. Developing alternative solutions
4. Selecting the best type of alternative
5. Implementation of the decision
6. Follow up
7. Monitoring and feedback

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 Assessment task 9

1. Explain the difference between decision-making and problem solving if you are one
of the managers.
2. If you are the organization's accountable managerial leader and you are one of the
main decision-makers, what are the best-known innovative decision-making
techniques?

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 Summary
Decision-making is the act of deciding between different choices. And it includes
studying the "processes" of decision making and recognizing the stages to produce an
intelligent conclusion. Knowledge, concept, and option are the three (3) steps.

Problem solving is not a simple task because it is analytical or mental activity and not
all people love to think, so problem solving decides the necessary solutions or behavior
required to alleviate a problem for this purpose.

To all executives, decision-making really means a lot, but not all decision-makers are
executives. However, in the pursuit of organizational goals, every manager, supervisor and
team leader must make the required decisions. Decision-making saturates the management
task of preparing, leading, hiring, coordinating and managing.

Some organizational issues and concerns are too complex to address, but some
decision-makers can only moderate them until they can reach a long-term solution to any
current challenges. Optimizing is important because it is about choosing the best possible
solution wisely.

Human Behavior Learners in Companies need to consider the climate of the decision-
maker. To have more flexibility and participatory style, some, if not all managers and
supervisors need to have an administrative atmosphere where they have independence to
decide on behalf of the organization to lead employees and handle resources.

There are environmental variables that affect decision-making in an organization, such

as: organizational groups, organizational persons, and the organization itself.

Political environment in terms of legislation regulating the land, socio-cultural,

economic, labor market, industry competitiveness and technical aspects are forces outside
the company that need to be discussed.

Organizational superiors must develop and understand multiple environmental factors

affecting their choices.
(Source: Management, A Real World Approach, Andrew W. Ghillyer, 2009)
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 References

Changeboard Team. ( 2019). https://www.changeboard.com/article-details/16961/16-

different-decision-making-techniques-to-improve-business-outcomes/

Dienes, Zoltan; Pemer, Josef (1990). “A theory of implicit and explicit knowledge.Behavioral
and Brain Sciences. 22 (5): 735-808.10.1017/S0140525X99002186.ISSN0141-

525X.PMID11301570

Ghillyer, A. (2009). Management: A real world approach, McGraw-Hill Companies, Inc.

https://en.wikipedia.org/wiki/Intuition_and_decision-making
Krulak, C. (1999), Cultivating Intuitive Decisiob making. Marine Corps Gazette.
(http://www.au.af.mil/au/awc/gate/usmc/cultivating_intuitive_d-m.htm

Matzler, K., Ballom, F., & Mooradlan, T. (2007). Intuitive Decision Making. MIT Sloan

Management Review. (http://sloanreview.mit.edu/the-magazine/files/pdfs/49108SvW.pdf

https://business901.com/blog1/making-better-strategic-decisions/

https://www.slideserve.com/albina/day-4-problem-solving-decision-making
https://blog.vistage.co.uk/7-smart-ways-to-encourage-better-decisions-in-your-business

https://courses.lumenlearning.com/boundless-management/chapter/rational-and-
nonrational-decision-making/
https://www.tutorialspoint.com/management_principles/management_principles_factors_affe

cting_decision_making.htm

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 MODULE 10
THE PLANNING PROCESS, CULTURE,
LEADERSHIP AND STRAGEGIC MANAGEMENT

Introduction

For someone deeply involved in the decision-makers of the organization, it is pointless

to try to execute their administrative tasks without any deliberate preparation.
Planning encourages responsible management leaders to influence the bottom-line of
the company rather than passively embracing the future without doing something. Active
engagement in decision-making is finding a course of action and pursuing it
uncompromisingly, even during market hardships and crises.
The character of those responsible for planning and decision-making should have the
positive attitudes generated by deep engagement to enhance the overall morale and
commitment of the company that results in the quality of work performance.
Planning is the main and the most complicated management role that precedes all
other functions. The very aim of planning is to set goals and to manage resources for decision
making.
The imaginary planning cycle consists of planning, executing a plan, monitoring a plan,
setting targets, gathering data and then analyzing data. Setting targets is known as the most
significant step in the planning process. The goals are either long-term or short-term, and both
internal and external forces are often considered.
Many executive leaders face a lot of organizational challenges, so formulating a
support plan helps to execute the main plan.
Management Culture is a set of principles and practices of leadership that arise from
the history and leadership of a firm. It may include both the political environment and
assessment, efficiency, creativity, investment, learning from failure and management style
expectations.

121
 Culture management consists of norms, beliefs and values that affect people's actions.
A healthy culture is one where the company's employees understand and act in ways
consistent with the principles and policies of the company. A not so strong community, on the
other hand, is where the long-term ambitions of their company are not accepted.

Leadership can be defined as management's ability to make sound choices and

encourage others to perform well. It is the method of directing others' actions towards
achieving a shared goal, working with others and achieving it.

Strategic management aims to set up the association for potential challenges and to
believe that the start-up business enterprise identifies possibilities and promotes the
identification of strategies to meet those opportunities. This strategic management helps
companies carefully track and guard the achievement of the goals of the company and
safeguard its assets and respond to any unprecedented changes from international forces.

Learning Outcomes

At the end of this module, students should be able to:

1. Explains the planning process, leadership and its contingency;
2. Define planning and distinguish between formal and functional plans;
3. Define organizational ethics, leadership and authority;
4. Understanding framework for classifying leadership’s traits, personality, practice and
styles.

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Lesson 1. The Planning Process and Its Contingency
(Chinn, 2019)
The preparation of contingency is defined as a course of action to help an individual
respond to an event that may or may not occur. It is also possible to refer to contingency plans
as "Plan B," and it can serve as an alternative solution if things do not go as intended. It is a
proactive strategy that describes the course of actions or steps the management and staff of
an organization need to take in response to an event that could happen in the future. It plays
a significant role in business continuity, risk management and disaster recovery.

The Purpose of Contingency Planning (Chinn, 2019)

No one can predict the future or how external events and market conditions will affect its
ability to continue to operate. But businesses can prepare for events beyond their control.
Using a “what if” process, organizations develop contingency plans, sometimes called
business continuity plans, to identify unknown scenarios that may affect their operations,
such as earthquakes, fires, violence and other situations and how they will respond to each
scenario.

The purpose of a contingency plan is to allow an organization to return to its daily

operations as quickly as possible after an unforeseen event. The contingency plan protects
resources, minimizes customer inconvenience and identifies key staff, assigning specific
responsibilities in the context of the recovery. For example, human resources may develop
employee evacuation plans; support employee benefits programs, such as health care or
worker’s compensation; or hire temporary workers as needed.

Contingency plans are both organization-wide and department-specific. For example,

information services departments typically have a disaster recovery plan to protect, restore
and use company data, including computer hardware, software and instructional manuals.

Steps in Contingency Planning

(Source: https://simplicable.com/new/contingency-planning)

123
 Figure 10.1. Planning Process and Its Contingency Model
(https://pingboard.com/blog/organizational-planning-guide-types-of-plans-steps-and-examples/)

Five (5) Steps in Contingency Planning

1. Program Management
2. Planning
3. Implementation
4. Testing and Exercise
5. Program Improvement
Key Elements of Contingency Plan
1. Protection
2. Detection
3. Recoverability

Nine (9) Examples of Contingency Planning

1. Disaster
2. Environment
3. Infrastructure and Facilities
4. Partners
5. Talent
6. Markets

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 7. Political
8. Trade
9. Prices

Lesson 2. The Objectives of Management

Figure 10.2. The Objective of Management Model

Source: https://theinvestorsbook.com/management-by-objectives-mbo.html

Ten (10) Major Objectives of Management

1. Getting and Staying Profitable

2. Productivity of People and Resources
3. Excellent Customer Service
4. Employee Attraction and Retention
5. Mission-driven Core Values
6. Sustainable Growth
7. Maintaining a Healthy Cash Flow
8. Dealing with Change
9. Reaching the Right Customers

125
 10. Staying Ahead of the Competition

Lesson 3. The Ethical Aspects Of Management

(http://homepages.se.edu/cvonbergen/files/2015/01/Ethical-Role-of-the-
Manager.pdf, n.d.)

A manager's ethical position is inherently ethical. Only the interests of the shareholder
should be served by business managers to have fiduciary duty to optimize shareholder
resources that is embedded in the contract between employer-employees and the law(s)
governing the land.

Source:

Figure 10.3. Ethical Issues in Management Principle Model

Ethical Leadership

The manager's ethical position is both moral and administrative, where the main
characteristics of his or her professionalism must be the hallmark of integrity, fairness and

126
trustworthiness. Integrity means adhering steadily to the ethical code of conduct, meaning
"doing the right thing"

Figure 10.4 Impact Of Ethical Leadership On Organizational Model

(https://abdulhammedkhayr.wordpress.com/2015/05/06/the-impact-of-ethical-leadership-on-
organisational-behaviour/)

The principal leadership is to establish the personal collection of principles and values
carefully and exhibit fair and objective challenges and concerns for our social welfare and
pursue high quality decisions with a compelling reason in mind.

Lesson 4. Evaluate and Control the Strategic Plan

The process of determining the quality of a given strategy in achieving organizational

goals and taking corrective steps if appropriate is premeditated assessment and control. By
allocation contingency plans and a crisis management team, prudence and jurisdiction can
be exercised.

127
 Figure 10.5. Evaluate and Control The Strategic Plan Model
(https://www.researchgate.net/figure/The-communication-controlling-model-of-planning-and-
evaluation-Huhn-et-al-2011-)

The process of control and assessment helps strategic managers track a plan's
progress. Evaluation of the strategic strategy is becoming more challenging with the passing
of time:
1. Dramatic rise in the reality of the system
2. The growing challenge of predicting the future with precision
3. The growing variety of variables
4. The rapid pace of even the best plans' obsolescence
5. The rise in the number of organizational activities, both domestic and worldwide,
6. With some degree of ambiguity, the decreasing time for which preparation can be
done.

Lesson 5. The Leadership Power and Authority

(Savage & Savage, 2010)

Wisdom and a considerate heart are required to use power and authority in leadership.
Managerial-Leadership should invest in shaping individuals and translating them into part of
the transformative partnership of the future, using control and influence not just to achieve
mutual goals, but also to invest in employee lives.

128
 Each managerial leader must possess the currency of delegated supervision and
authority, either through magnetic personality or realistic obligation, to serve their followers. If
they have worthless company leaders, their deep sense of interest and concern for the
followers' needs will manifest.

According to Savage & Savage 2010, authority and leadership are best represented
in five (5) contributing factors that can be extracted from: legitimate power and authority,
reward power and authority, coercive power and authority, expert power and authority, and
authority and authority of reference.

When an individual derives their authority, in defining headship greatness capacity, it

implies his or her form of leadership attribute. Via mastered derivation of authority on
reference and expert influence, any form of leadership must build a wise and efficient positive
and beneficial control.

Figure 10.6. Leadership Authority and Power Model

(http://classroommanagementdiscipline.weebly.com/authorityleadership.html)

129
Lesson 6. Understanding Framework For Classifying
Leadership Studies (www.theleadershipframework.com.au/the-
leadership-framework.html, n.d.)

The best leadership style is situational and conditional, which means you use your
leadership style based on the personality type and need of your followership. If they are
cooperative and compliant you use participative and if they are stubborn and uncooperative
you use autocratic leadership style (Umlas, 2020).

The style of indifferent management is not based on efficiency, while the style of
accommodating management is concentrated on productivity. The middle-of-the-road
balance and compromise are used by Status Quo Management Style, and it has its leniency
that the need and production of people is not religiously practiced.

Sound Management Style, meanwhile, is a mode of leadership that contributes and

engages. It pays great attention both to individuals and to production and promotes
collaboration and dedication. The last form of leadership is the style of dictatorial leadership,
which is often controversial and unpopular because it is to control and dominate this type of
leadership. Production and not individuals are the entire weight of this leadership objective,
and laws, legislation and punishment are used to accomplish goals.

Figure 10.7. Framework for Classifying Leadership Studies for Production Model
(https://courses.lumenlearning.com/wmopen-organizationalbehavior/chapter/the-history-of-
leadership-theories/)

130
 The Five (5) Leadership Theories:

1. The trait theory

2. The behavioral theory
3. The transactional theory or management theory
4. The transformational theory or relationship theory
5. The situational theory

The Effective Leadership Framework

It's a collection of concepts that determine what executives need to know and do. It
integrates activities that are important for executives at all levels, from frontline executives to
middle management and managers. It simplifies leadership when everyone can grasp
everything and contribute to it.

Leading people in day to day business operations manage people on the following criteria.

1. Provide a safe working environment

2. Create effective roles and fill them with good people
3. Effective assign and assess work
4. Develop team capability
5. Recognize and reward work
6. Build teamwork
7. Enable continuous improvement and lead change.
Source: https://www.theleadershipframework.com.au/the-leadership-framework.html

Lesson 7. The Importance Of Contingency In Leadership

Practice (www.shutterstock.com/image-illustration/diagram-adaptive-
leadership-410152726, n.d.)

Due to the potential for learning from individual circumstances and using these
experiences to affect future management in the same or similar situations, contingency theory

131
is useful to organizations. A benefit is also the ability to react to external pressure and
alterations.

The Leadership contingency theory supposed that the success of a responsive and
competent leader does not solely rely on his or her abilities. By and through employing others
to solve problems, it makes the people better by discovering their talent and abilities
contingency in leadership can be considered as adaptive leadership.

Table 10.1. Adaptive Leadership Equals Contingency Plan Model

ADAPTIVE LEADERSHIP
EMOTIONAL INTELLIGENC ORGANIZATIONAL JUSTICE
-Self-Awareness -Decision Fairness
-Self-Management -Information Sharing
-Social Awareness -Outcome Concern
-Relationship Management
CHARACTER DEVELOPMENT
-Integrity -Lifelong learning
-Credibility -Developing Others
-Values Differences

The contingency theory of leadership suggests that the efficiency of a leader depends
on whether their leadership style fits a specific circumstance or not. A person may be an
effective leader in one situation and an ineffective leader in another, according to this theory.

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Lesson 8. Becoming Unconventional Personality Leader:
Transactional, Transformational and Charismatic Leadership

Five (5) Unconventional Characteristics of Effective Leader

"Successful leadership is not about how to be tough or soft, sensitive or assertive, but about
a collection of attributes," Warren Bennis said, character is first and foremost.
1. Courage
2. Integrity
3. Stewardship
4. Humility
5. Care for others

What is an unconventional leader?

Among great leaders, there is a common denominator and they stand out because of
their outstanding achievements and unconventional qualities of leadership that they have
exhibited.

Vinnie Wong Eleven (11) Common Traits of Unconventional Leaders:

1. Puts others before himself

2. Gives credit to others and absorbs blame
3. Pushes beyond boundaries of conventional wisdom
4. Listen
5. Diversity
6. Lifelong learner
7. Master of reflection
8. Not afraid to take an unpopular stance
9. Integrity
10. Caring for and building others
11. Invisible
Seven (7) Unconventional Character Traits
1. Grit
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 2. Curiosity
3. Self-control
4. Social intelligence
5. Zest
6. Optimism
7. Gratitude

Such traits are the basis of a successful leadership rooted in their personalities,
these are some characteristics that can be acquired and built over time.

Thirteen (13) Qualities That Define A Good Leader to Strive For

1. Honesty
2. Delegate
3. Communicate
4. Confidence
5. Commitment
6. Positive attitude
7. Creativity
8. Inspire
9. Empathy
10. Accountability
11. Enthusiastic
12. Focus and drive
13. Responsible

These features can include micromanagement, whereby a director tries to monitor

every part of your work, and a lack of integrity, or a sense of right and wrong. Credit can be
accepted by incompetent leaders, lack of vision and weak communication skills where credit
is not due.

Twelve (12) Ways to Spot Ineffective Leadership

1. Poor character

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 2. Lack of performance
3. Poor communication skills
4. Self-serving nature
5. One size fits all leadership style
6. Lack of focus and follow-through
7. Not forward-looking
8. Disconnected from the market
9. Not invested
10. Not accountable
11. Not focused
12. Lacking vision

Personality Leader
Motivated leaders want to reach beyond norms and go beyond expectations. This is
due to their passion, pride and determination to do better and the willingness to do it better
than anyone else. To succeed as a leader, you must be motivated, and no one else can do
that for you but yourself.

Transactional Leader
This is a management style that values order and structure and is likely to
autocratically carry out military operations within large organizations.

Transactional management includes rules and regulations to attain targets where

creativity and innovative ideas are valued. This management style is focused on workers who
are highly self-motivated, well-detailed and result-oriented. In the other hand, it seeks to
inspire and motivate workers, seeking to control rather than direct others.

The benefits of transactional management are the demonstration of an organization's

hierarchical authority and responsibilities and the maintenance of routine by tracking individual
progress and encouraging group efficiency. The emphasis is on monitoring the performance
of the individual and measuring in a formal environment how well a leader performs.
Transactional leadership reacts to the self-interest of individuals, and its style
prioritizes group development.

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Charismatic leadership
Charismatic (Inspirational) leadership emphasizes shaping a group or entity to make
the world a better place.

Lesson 9. The Trait Theory and Basic Leadership Styles In An

Organization

What is the trait leadership theory?

Trait theories of leadership describe the basic characteristics of personality that
separate leaders from non-leaders. They are based on the belief that they are born, not
made, leaders.'

A professional leadership trait theory is an empirical theory that seeks to justify why
some should not be considered skilled leaders. It will help us understand in this debate why
the main features are important to make one leader predict leadership effectiveness in order
to be prepared and nurtured as a great potential leader.

Figure 10. 8.. Trait Theory and Basic Leadership Styles Model
(www.educational-business-articles.com/trait-theory-of-leadership/)

The Three (3) Theories of Leadership

1. Situational
2. Contingency
3. Transactional

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The Four (4) Basic Leadership Styles?
1. Direct
2. Coach
3. Support
4. Delegate

Leadership Theories
1. Great Man Theory
2. Trait Theory
3. Contingency Theory
4. Situational Theory

People with great leadership skills are often aligned with ideal leadership qualities.
The following are some of the essential characteristics: trustworthiness, task abilities, self-
confidence, perseverance, human skills, emotional maturity, commitment, imagination,
assertiveness, adaptability and versatility, ability to inspire others, bravery and resolve,
willingness to accept accountability, need for accomplishment, intellect and action-oriented
decision.

Any aspirant or future managerial leaders in the making should be accountable,

trustworthy and brave enough to consider other people's significant roles and gifts and foster
creativity among company members. Willingness to take charge and never blame others as
great leaders are trustworthy and capable of making wise decisions to guide, help the team
succeed and hit a momentous milestone.

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 Assessment Task 10
1. If you are one of the key leaders in the leadership role, can you discern
the distinction between formal and functional planning?
2. What is the difference between the theory of traits and the basic types
of leadership in an organization?

Summary

John C. Maxwell, one of the world's revered management gurus, once said, "If you fail
to plan, you plan to fail." Planning is the process of determining which goals to meet and how
to accomplish those goals in the future. Planning is the primary management role that
precedes leadership, hiring, organization and supervision. This means that management
efforts are pointless without meticulous preparation.

Organizational priorities must be laid out in writings, outlining coherent and

comprehensible project vision statements and the action plan aimed at achieving what the
company wants to do. This objectivity serves as a compass in the hope of not only surviving
but thriving and achieving the company's successful future.
There are two (2) types of targets, the short and the long-range objectives. The short-
range objectives are relevant to a fixed timeframe of a year or less and are derived from an
in-depth review of long-range objectives. While the long-range priorities go beyond the current
fiscal year, they must complement and not contradict the corporate plan of action.

Objective management is a philosophy that focuses on the translation of

organizational objectives into personal objectives. This means that the development of
personal goals generates employee engagement, contributing to improved outcomes.

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 Strategy outlines the underlying methods of management to take steps to reach a
target or set of objectives; outlines how management aims to achieve its goals. In addition, by
prolonging and controlling scarce resources and allocating them responsively and gaining
benefits from market opportunities, both companies purposefully tried to use growth strategies
to establish a foothold in the sector and maximize territorial profitability.

Only competent strategic leadership will carry out strategic management to formulate
the proper implementation and ongoing analysis of tactical plans; to determine the
organization's long-term direction and performance. The smart management theory is diligent
planning and keeping them relevant and up-to-date.

References

Chinn, D. ( 2019) https://smallbusiness.chron.com/purpose-contingency-planning-

24864.html

https://pingboard.com/blog/organizational-planning-guide-types-of-plans-steps-and-
examples/
https://www.educational-business-articles.com/trait-theory-of-leadership/)
https://www.christianmuntean.com/five-unconventional-characteristics-of-effective-leaders/
https://www.theleadershipframework.com.au/the-leadership-framework.html

https://simplicable.com/new/contingency-planning
https://smallbusiness.chron.com/10-important-business-objectives-23686.html

http://homepages.se.edu/cvonbergen/files/2015/01/Ethical-Role-of-the-Manager.pdf

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